INDIANAPOLIS —An investor group that includes the parent of Lone Star Steakhouse & Saloon disclosed last month that it had amassed a 9.5-percent stake in family-dining company The Steak n Shake Co. with intentions to “maximize shareholder value” by “exploring an acquisition or other transaction.”
The group’s largest investor is Dallas-based hedge fund HBK Investments LP, with a 7.9-percent holding. The remaining interest is held by Dallas-based Lone Star Funds and by individual investor Robert J. Stetson. Lone Star Funds owned Captain D’s and Shoney’s until last year, and it purchased the multibrand Lone Star Steakhouse last December for about $585 million. —An investor group that includes the parent of Lone Star Steakhouse & Saloon disclosed last month that it had amassed a 9.5-percent stake in family-dining company The Steak n Shake Co. with intentions to “maximize shareholder value” by “exploring an acquisition or other transaction.”
The group’s 9.5-percent holding represents about 2.7 million shares and was purchased for $41.2 million, according to the group’s filing with securities regulators in late June. The filing also said the investor group did not intend to seek representation on Steak n Shake’s corporate board or engage in an acquisition or other transaction without first gaining board support. —An investor group that includes the parent of Lone Star Steakhouse & Saloon disclosed last month that it had amassed a 9.5-percent stake in family-dining company The Steak n Shake Co. with intentions to “maximize shareholder value” by “exploring an acquisition or other transaction.”
Steak n Shake did not return calls seeking comment. —An investor group that includes the parent of Lone Star Steakhouse & Saloon disclosed last month that it had amassed a 9.5-percent stake in family-dining company The Steak n Shake Co. with intentions to “maximize shareholder value” by “exploring an acquisition or other transaction.”
The company’s market capitalization is about $420.5 million, based on the latest-quarter number of shares outstanding and its $14.78 per-share closing price on June 25, just prior to the investor group’s disclosure, which sent Steak n Shake’s stock up more than 16 percent on June 26. —An investor group that includes the parent of Lone Star Steakhouse & Saloon disclosed last month that it had amassed a 9.5-percent stake in family-dining company The Steak n Shake Co. with intentions to “maximize shareholder value” by “exploring an acquisition or other transaction.”
“We doubt the chain will be acquired by a competitor,” said securities analyst Bryan C. Elliott at Raymond James & Associates Inc. “We also would not expect a leveraged recapitalization. … This leaves two likely scenarios…a multiyear fundamental turnaround or radical strategy shift to a franchise business model.” —An investor group that includes the parent of Lone Star Steakhouse & Saloon disclosed last month that it had amassed a 9.5-percent stake in family-dining company The Steak n Shake Co. with intentions to “maximize shareholder value” by “exploring an acquisition or other transaction.”
Steak n Shake, which operates 439 restaurants and franchises 51 units to others, has struggled against seven consecutive quarters of soft same-store sales. For the April-ended first half of its fiscal 2007, Steak n Shake’s profit fell 23 percent from a year earlier to $10.5 million, or 36 cents per share. —An investor group that includes the parent of Lone Star Steakhouse & Saloon disclosed last month that it had amassed a 9.5-percent stake in family-dining company The Steak n Shake Co. with intentions to “maximize shareholder value” by “exploring an acquisition or other transaction.”
