123

Notes from Steak 'n Shake's Investor Day

Also: (from 10k)
pg 4

We own the land and buildings of 164 properties and 20 parcels of land. The other 260 or whatever are leased.

At the end of fiscal year 2008, we have $25.4 million in assets held for sale which includes the 14 improved properties and 20 parcels of land which were previously purchased for development.

14 properties + 20 parcels = 34 unimproved and improved parcels. They are held for sale at less than $1M each, about 700K each for $25M

Say they sell all 160 properties for (an optimistic, best case scenario of) 1.5M each - that is $240M. OK. That's ignoring taxes, selling costs, etc. So what's left? A bunch of leased burger restaurants, their operating success is pretty much up in the air.

I think that his really has to be a successful operating business for this to work out and that's not at all clearly the case right now.