CEO of struggling Steak n Shake resigns

August 13, 2007
The man who spent the last five years retooling the menu and operations of Indianapolis-based Steak n Shake Co. is leaving the struggling hamburger chain.

Peter Dunn is out as CEO, the company said today. Chairman Alan Gillman, who joined Steak n Shake in 1992 as CEO, will take the helm again on an interim basis.

The company said Dunn resigned "to pursue other interests."

Despite a barrage of initiatives to increase staff retention, develop customer loyalty and add such menu options as side-by-side milkshakes and deluxe salads, Steak n Shake consistently has seen same-store sales numbers drop.

Shareholders have punished the company since last week, when it announced a dip in third-quarter profit and lowered guidance. Today, the company's shares dropped $1.96, or 12.7 percent, to $13.46. That's more than $1 below the company's previous 52-week low.

Shares in Steak n Shake (NYSE: SNS) had traded at $16.89 on Aug. 7, responding to news that an activist shareholder acquired a 9.5 percent stake in the burger chain.

This story will be updated.
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