THE STEAK N SHAKE COMPANY REPORTS FISCAL FOURTH QUARTER 2006 RESULTS

INDIANAPOLIS, November 14, 2006/PRNewswire -- The Steak n Shake Company (NYSE:SNS) today announced its revenues and earnings for the fourth quarter 2006 ended September 27, 2006.

Total revenues for the fiscal fourth quarter 2006 grew 4.3% to $152.0 million from $145.7 million in the same quarter last year, and same-store sales declined 3.4%.

Net earnings for the fiscal fourth quarter 2006 were $7.5 million, or $0.27 per diluted share, compared to $8.7 million, or $0.31 per diluted share, in the prior year period. The fiscal 2006 results include the impact of expensing stock options and shares purchased under the employee stock purchase plan as required by Statement of Financial Accounting Standards No. 123R, Share-Based Payment (“SFAS 123R”). The Company recorded stock-based compensation expense of $0.5 million after-tax, or $0.02 per share in the current quarter. During the quarter, the Company opened seven new Company-owned restaurants, acquired eight units from a franchisee, sold one unit to a franchisee, and opened one new franchised unit.

Fiscal 2006 Results

For the fiscal year 2006, total revenues increased 5.3% to $638.8 million compared to $606.9 million in the prior year. Same store sales decreased 2.1% for Company-owned units for fiscal 2006. Diluted earnings per share were $1.00 versus $1.08 in the prior year (note that the current year amount includes a $0.07 impact of the adoption of SFAS 123R).

Peter Dunn, President and Chief Executive Officer commented, “We made substantial progress on many aspects of our operating fundamentals, including key operating metrics, new product innovation and expansion. While our same-store-sales results were consistent with the performance experienced by many casual dining restaurants in the face of higher gas prices and rising interest rates, we were dissatisfied that we were not able to grow guest counts during the year.”

Mr. Dunn concluded, “As we look ahead to fiscal 2007 our top priority will be to gain sustainable same store sales momentum through improved store execution, new product innovation and optimization of the Steak n Shake concept. We will be diligent to ensure that the necessary decisions and related investments to improve the brand’s performance will be aligned in order to maximize our return on invested capital. We believe these actions will put us in a position to accelerate expansion and deliver sustained earnings growth over the long-term.”

As of September 27, 2006, there were 477 Steak n Shake restaurants operating in 20 states, including 429 Company-owned restaurants and 48 franchised units.

The Steak n Shake Company will broadcast its investor conference call live over the Internet at 5:00 p.m. Eastern Time, 4:00 p.m. Central Time today. Hosting the call will be Peter M. Dunn, President and Chief Executive Officer, and Jeffrey A. Blade, Senior Vice President and Chief Financial Officer.

Interested investors and other parties may listen to a simultaneous webcast of the conference call by logging onto the Company's website at www.steaknshake.com. The on-line replay will be available for a limited time immediately following the call.

The call can also be accessed live over the phone by dialing ###-###-####, or for international callers, (913) 981-4911. A replay will be available one hour after the call and can be accessed by dialing ###-###-####, or for international callers, (719) 457-0820. The passcode for the replay is ###-###-####. The replay will be available until November 21, 2006.

Steak n Shake is a full service, casual dining restaurant serving a core menu of its famous STEAKBURGER^TM sandwiches, thin ‘n crispy french fries, old fashioned hand-dipped milk shakes, chili, home style soups, fresh salads, a variety of desserts and breakfast. All of the food is prepared to the guest’s order and served by friendly, well-trained associates. Steak n Shake restaurants feature full-service dining areas, counter service and drive-thru windows and are open 24 hours a day, seven days a week.

This press release contains forward-looking information. In general, forward-looking statements include estimates of future revenues, cash flows, capital expenditures, or other financial items, and assumptions underlying any of the foregoing. Forward-looking statements reflect management’s current expectations regarding future events and use words such as “anticipate”, “believe”, “expect”, “may”, “will”, and other similar terminology. These statements speak only as of the date they were made and involve a number of risks and uncertainties that could cause actual results to differ materially from those expressed in forward-looking statements. Several factors, many beyond our control, could cause actual results to differ significantly from our expectations, such as the following: the effectiveness of our expansion plans, including the ability to acquire cost-effective sites; the effectiveness of our operating initiatives; changes in economic conditions; the impact of restaurant closings; changes in consumer tastes; changes in consumer behavior, including behavior based on publicity or concerns relating to food safety or food-borne illnesses; the effectiveness of our advertising and marketing initiatives; competitor influences; poor performance in a regional area or in even a small number of geographically diverse restaurants, and the impact this performance could have on consolidated results; harsh weather conditions, primarily in the first and second quarters; the availability and cost of qualified personnel; changes in minimum wage rates; changes in food commodity prices; the completion of mergers or acquisitions and the successful integration of those transactions into the Company’s business; and changes in applicable accounting policies and practices, including the failure to maintain effective internal controls over financial reporting. The foregoing list of important factors is not intended to be all-inclusive as other general market, industry, economic, and political factors may also impact our operations. Readers are cautioned not to place undue reliance on our forward-looking statements, as we assume no obligation to update forward-looking statements.

Contact: Jeffrey A. Blade

(317) 633-4100