INDIANAPOLIS Almost two months after an investment group said it would use a newly purchased interest in Steak n Shake to push for an acquisition or other means of boosting the company's value, Peter Dunn has resigned as president, chief executive and director of the full-service burger chain.
Steak n Shake said Dunn tendered his resignation after five years in the post to pursue other opportunities. His duties and titles have been assumed by chairman Alan Gilman, pending the appointment of a permanent replacement, the company said.
Dunn’s resignation closely followed Steak n Shake's report of a $124,000 net profit for the third quarter ended July 4, compared with a profit of $7.3 million for the year-ago period. In the latest quarter, the company took a charge of $3.3 million for the planned closing of 14 of its approximately 477 company-operated and franchised restaurants.
Revenue grew 2.1 percent to $153.6 million, while same-store sales fell 4.3 percent. Steak n Shake reduced its full-year earnings forecast by between 13 and 19 cents per share.
In June, an investment group disclosed that it had purchased 9.5 percent of Steak n Shake's outstanding shares. The group included Dallas-based HBK Investments LP and Lone Star Funds, owner of Lone Star Steakhouse & Saloon Inc. and a one-time owner of Shoney's Inc. The private investor Robert J. Stetson was also part of the consortium.
The group said it planned to engage Steak n Shake management in discussions about strategies to “maximize shareholder value,” including “exploring an acquisition or other transaction.”
At the time, the group said it did not intend to seek representation on Steak n Shake’s board or engage in an acquisition or other transaction without first gaining support of the board.
