INDIANAPOLIS Steak n Shake said it has named a new interim chairman and chief executive and an interim president following a shareholder vote that ousted chairman Alan Gilman.
The company named board member Wayne Kelley interim chairman and chief executive officer to replace Gilman, a 16-year company veteran who had been serving as interim CEO since last August. In addition, Steak n Shake appointed chief financial officer Jeffrey Blade to the additional post of interim president. Blade also will continue to serve as an executive vice president and chief administrative officer. Both appointments are effective immediately, the Indianapolis-based company said Thursday.
At last week's annual shareholder meeting, both Gilman and director James Williamson Jr. failed to win re-election to the board after a successful campaign by activist investor Sardar Biglari to win directorships for himself and colleague Philip Cooley.
The other seven members of the board were re-elected.
The board of the 490-unit full-service chain said it was continuing to seek a permanent chief executive. Kelley thanked Gilman for his service, crediting him with overseeing strong growth, increasing the number of restaurants from 120 to 503, and growing revenue from $127 million to $654 million.
New Steak n Shake board member Biglari is chairman of Western Sizzlin Corp. His Lion Fund LP holds approximately 8.5 percent of Steak n Shake’s shares. He had been pressuring for strategic changes at Steak n Shake, including the eviction of Gilman of Williamson from the board. He also has urged for a halt in corporate store development in favor of aggressive franchising.
