Shareholder group backs Steak n Shake foes

February 27, 2008
Institutional Shareholder Services, a proxy advisory firm, is recommending that two Steak n Shake Inc. stockholders be elected to the Indianapolis company's board of directors at the annual meeting on March 7.

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.

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