Total revenues for the fiscal third quarter 2005 grew 13.2% to $147.9 million compared to the same quarter last year. Same store sales for Company- owned stores increased 2.8% during the quarter (1.4% when adjusted for the impact of the 53rd week in fiscal 2004). This marked the tenth consecutive quarter that Steak n Shake has reported positive same store sales. New store expansion increased sales by 4% and the Kelley acquisition increased sales by 6.4%.

Net earnings for the fiscal third quarter 2005 were $7.8 million, or $0.28 per diluted share, compared to $7.4 million, or $0.27 per diluted share, in the prior year period.

Peter Dunn, President and Chief Executive Officer commented, "During the third quarter, we delivered solid operating results with positive same store sales while rolling over very strong sales last year. We remain encouraged, particularly considering the 6.3% and 8.0% increases in same store sales during the same quarter in 2004 and 2003, respectively. We achieved this thanks in part to the introduction of three new flavors of our Sippable Sundaes(TM) premium milk shakes. These new shakes also helped increase the size of the average guest check. In addition, stable commodity costs resulting from our strategic decision to lock in key ingredient costs enabled us to leverage our cost of sales."

Mr. Dunn concluded, "As we approach the end of fiscal 2005, we are pleased with the progress that we are achieving. Our ongoing investments to prepare for expansion will ensure that we have the capabilities and infrastructure in place for accelerated unit growth in the future. We are committed to delivering consistent and sustained earnings growth for our shareholders as we realize the full potential of the Steak n Shake brand."

As of July 6, 2005, there were 438 Steak n Shake restaurants operating in 19 states, including 393 Company-owned restaurants and 45 franchised units. During the quarter, the Company opened 4 new restaurants, including 2 locations in Florida, as well as restaurants in Ohio and Indiana.

First Three Quarters Fiscal 2005 Results

For the first three quarters of fiscal year 2005, total revenues increased 12.8% to $461.2 million compared to $408.9 million in the prior year, driven by a same store sales increase for Company-owned units of 4.9% year-to-date. Diluted earnings per share for the first three quarters of the year rose 7.0% to $0.77 versus $0.72 in the prior year.

Fiscal 2005 Guidance

The Company reaffirmed diluted earnings per share guidance for the fiscal year 2005 in the range of $1.08 to $1.11. Same store sales growth is expected to be between 2% to 3%. The Company now anticipates opening approximately 19 new Company-owned restaurants in fiscal year 2005 and at least 26 Company- owned restaurants in fiscal year 2006.

Click here for more information on the Steak n Shake Franchise Opportunity