For months, Sardar Biglari, who controls San Antonio -based Lion Fund, has been appealing to Steak n Shake investors through billboards and other means to elect himself along with associate Philip Cooley.
Biglari asserts that poor management is behind the restaurant chain's 10-quarter streak of declining same-store sales.
A special committee of internal Steak n Shake directors aided by the Wall Street firm of Merrill Lynch helped it decide that prices offered for the company were too low.
Instead, the company is focusing on a turnaround plan that aims to improve performance of its restaurants.
Steak n Shake has said the slow economy has hurt sales.
Steak n Shake shares rose 2.6 percent this morning to trade near $9.36.