INDIANAPOLIS Activist shareholder Sardar Biglari has assumed the chairmanship of Steak n Shake Co., a 502-unit family restaurant operator that he has long criticized as being mismanaged and undervalued. He assumes the responsibility from interim chairman Wayne L. Kelley, who will continue to serve as interim chief executive until a permanent replacement has been named. Kelley also retained his board seat.
Biglari, who also serves as chairman of the family-dining company Western Sizzlin Corp., said his first priority at Steak n Shake would be to find Kelley’s replacement as CEO. Kelley assumed the positions of chairman and chief executive after Biglari and associate Philip Cooley led a successful drive earlier this year to oust the prior interim holder of the jobs, Alan Gilman. As part of that proxy challenge, Biglari and Cooley won seats on Steak n Shake’s board in March.
Biglari also vowed to “close the gap between Steak n Shake’s intrinsic business value and its stock price, which we believe considerably underrates that value.”
In addition to running Western Sizzlin, Biglari runs a San Antonio-based hedge fund, The Lion Fund LP. As of June 4, Lion Fund owned 13.1 percent of Steak n Shake’s shares outstanding.