The Steak n Shake Company Reports Fiscal Third Quarter 2004 Results

The Steak n Shake Company Reports Fiscal Third Quarter 2004
Results
Same Store Sales Increase 6.3%, Net Earnings Increase 4.6% 


INDIANAPOLIS, July 28  /PRNewswire-FirstCall/ -- The Steak n Shake Company
(NYSE:SNS) today announced its revenues and earnings for the fiscal third
quarter ended June 30, 2004.

  (Logo:  http://www.newscom.com/cgi-bin/prnh/20000606/STEAKLOGO )

  Highlights of the third quarter include:

  *  Total revenues increased 7.7% to $130.6 million versus $121.3 million
  *  Same store sales for Company-owned restaurants increased 6.3%
  *  Net earnings increased 4.6% to $7.4 million from $7.1 million last year
  *  Diluted earnings per share were $0.27 compared to $0.26



Net sales for the fiscal third quarter grew 7.6% to $129.6 million versus
$120.3 million in the same quarter last year, while same-store sales increased
6.3% from the same period a year ago.

Net earnings for the fiscal third quarter 2004 were $7.4 million, or $0.27 per
diluted share compared to $7.1 million, or $0.26 per diluted share in the prior
year period.

The Company continues to focus on five key fundamentals which are linked in a
Virtuous Cycle.  These include: developing effective field leaders, improving
associate satisfaction and training, growing guest counts, improving margins,
and expanding the brand.

Peter Dunn, President and Chief Executive Officer commented, "We are encouraged
by consumer acceptance of our new Side by Side(TM) milk shakes, which helped
contribute to our sixth consecutive quarter of positive same store sales.  This
trend is notable considering the strong comparison to third quarter results
from the prior year.  We invested in training and staffing to launch this new
product successfully and this is already paying dividends in strong sales
momentum."

Mr. Dunn continued, "In the third quarter we continued to face significant
increases in food commodity costs, primarily beef and dairy, that resulted in a
higher cost of sales.  These costs were partially offset by strong expense
control."

For the first three quarters of fiscal year 2004, total revenues increased 9.6%
to $408.9 million compared to $373.0 million in the prior year, driven by a
same store sales increase for Company-owned units of 8.7%.  Diluted earnings
per share for the first three quarters of the year rose 12.5% to $0.72 versus
$0.64 in the prior year.

As of June 30, 2004, there were 416 Steak n Shake restaurants operating in 18
states, including 357 Company-owned restaurants and 59 franchised units. During
the quarter, the Company opened one new restaurant in the St. Louis, Missouri
market.  Subsequent to June 30, 2004, the Company has opened three new
restaurants in Peoria, Illinois, Dallas, Texas, and St. Louis, Missouri.

During the current fiscal year, the Company has opened thirteen new
restaurants, including two franchised units, consistent with previous guidance
of opening 15-20 new stores in fiscal 2004, including franchised locations.

Based on results through the first three quarters of fiscal 2004, the Company
is reaffirming its guidance for the full year of diluted earnings per share in
the range of $1.00 to $1.04.  This guidance is predicated on commodity costs
remaining stable at current price levels and continued same store sales
momentum.

Investor Conference Call and Webcast

The Steak n Shake Company will broadcast its investor conference call live over
the Internet at 5:00 p.m. Eastern Time, 4:00 p.m. Central Time today,
Wednesday, July 28, 2004.  Hosting the call will be Peter Dunn, President and
Chief Executive Officer, and Jeffrey A. Blade, Senior Vice President and Chief
Financial Officer.  Interested investors and other parties may listen to a
simultaneous webcast of the conference call by logging onto the Company's
website at http://www.steaknshake.com/ or by dialing 1-877-297-4509.

About Steak n Shake

Steak n Shake is a full service, casual dining restaurant serving a core menu
of its famous Steakburger(TM) sandwiches, thin 'n crispy french fries, old
fashioned hand-dipped milk shakes, chili, home style soups, fresh salads, a
variety of desserts and breakfast.  All of the food is prepared to the guest's
order and served by friendly, well-trained associates.  Steak n Shake
restaurants feature full-service dining areas, counter service and drive-thru
windows and are open 24 hours a day, seven days a week.

This press release contains various forward-looking statements that reflect
management's expectations or beliefs regarding future events. Investors are
cautioned that reliance on these forward-looking statements involves risks and
uncertainties.  Although the Company believes that the assumptions used in the
forward-looking statements are reasonable, any of these assumptions could prove
to be inaccurate and, as a result, the outcome of the forward-looking
statements could differ materially.  A list of the factors that could cause
actual results to differ materially from those expressed in the forward-looking
statements are contained in the Company's filings with the Securities and
Exchange Commission, such as its annual and quarterly reports.

                        THE STEAK N SHAKE COMPANY
              CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

                                 TWELVE                    FORTY
                              WEEKS ENDED               WEEKS ENDED
                       6/30/2004     7/2/2003      6/30/2004     7/2/2003
                      (UNAUDITED)   (UNAUDITED)   (UNAUDITED)   (UNAUDITED)
  Revenues
      Net sales      $129,554,552  $120,348,440  $405,554,148  $370,168,267
      Franchise fees    1,072,392       920,086     3,335,778     2,827,188
                      130,626,944   121,268,526   408,889,926   372,995,455

  Costs and Expenses
      Cost of sales    31,078,420    27,535,883    95,022,327    84,116,836
      Restaurant
       operating
       costs           63,097,306    58,454,340   199,530,025   183,472,715
      General and
       administrative   9,401,563     9,250,148    32,022,576    29,280,217
      Depreciation and
       amortization     5,686,004     5,689,377    18,632,401    18,370,086
      Marketing         5,365,982     4,270,375    16,766,903    14,135,871
      Interest          2,942,780     3,127,195     9,925,948    10,351,655
      Rent              2,152,591     1,936,308     6,686,627     6,307,498
      Provision for
       store closings    (394,369)            0      (394,369)            0
      Pre-opening costs   345,035       375,196     1,323,956     1,462,376
      Other income, net  (390,687)     (429,662)   (1,415,508)   (1,505,893)
                      119,284,625   110,209,160   378,100,886   345,991,361

  Earnings Before
   Income Taxes        11,342,319    11,059,366    30,789,040    27,004,094

  Income Taxes          3,925,000     3,970,000    10,775,000     9,674,000


  Net Earnings         $7,417,319    $7,089,366   $20,014,040   $17,330,094

  Net Earnings Per
   Common and Common
   Equivalent Share:
      Basic                 $0.27         $0.26         $0.73         $0.64
      Diluted               $0.27         $0.26         $0.72         $0.64

  Weighted Average Shares
   and Equivalents:
      Basic            27,462,379    27,030,336    27,356,558    26,997,199
      Diluted          27,778,480    27,178,997    27,704,779    27,059,148



         CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

                                          6/30/2004
                                         (UNAUDITED)         9/24/2003
  Assets
      Current assets                     $60,889,752        $39,255,997
      Property and equipment - net       368,716,677        360,878,710
      Leased property - net                3,690,258          3,721,063
      Other assets                         4,910,103         10,779,813

      Total assets                      $438,206,790       $414,635,583

  Liabilities and Shareholders' Equity
      Current liabilities                $65,835,849        $61,795,680
      Deferred income taxes and credits    2,721,135          2,897,887
      Obligations under capital leases   143,025,993        145,124,559
      Senior note                         15,203,175         16,203,175
      Shareholders' equity               211,420,638        188,614,282

      Total liabilities and
       shareholders' equity             $438,206,790       $414,635,583


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DATASOURCE: The Steak n Shake Company



CONTACT:  Jeffrey A. Blade of The Steak n Shake Company, [phone],

 



Web site:  http://www.steaknshake.com/ 

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