Professional Opportunities Orientation Program

1. Professional Opportunities Orientation Program The Steak n Shake Company Jim Stehlik - Manager - Financial Services Theresa McDaniel - Financial Analyst

2. The Steak n Shake Company • Headquartered in downtown Indianapolis • NYSE - Symbol - “SNS” • High growth, small cap company - S&P 600 Small Cap Index - Rated 14th best small company by Forbes • Brand has tripled in size in past decade • EW Kelley - Chairman of the Board since 1984

3. The Steak n Shake Company • Total units: 385 today • FY 2000 System-wide sales: $500 million • Current sources of financing for expansion: • Cash flow from operations • $75 million senior note/private shelf agreement • $30 million unsecured revolving line of credit • $20 million per year from sale/leasebacks • Stock offerings based on market conditions

4. Development Strategy - Controlled Expansion - New market areas contiguous to existing markets identified - Open sufficient number of stores in newer markets to afford proper TV weights

6. Development Areas Existing Markets New Markets Cincinnati Broward, Dade and Palm Orlando Beach Counties in Florida Tampa Kansas City Dayton Pittsburgh Jacksonville Dallas Cleveland

7. Finance Department

8. Finance Function • Revenue and earnings projections • Period, Quarter, Fiscal Year, 3 Year, 12 year • Used by Execs, Board, Outside Analysts • Cash Flow and Financing Alternatives • Planning - Coordinate semi-annual budget • Multi-functional analysis - real estate, marketing, operations, constr, legal, HR • Asset and capital management • Forward looking

9. Cross Functional Support and Experience • Marketing • Evaluation of Media Proposals and Results (TV/Radio) • Menu Analysis • Effects of Advertising Programs - Coupons…etc • Operations • Sales and Profitability - Benchmarks (Over/Under performers) • Bi - weekly Labor analysis by division and store • Construction- Replace vs. Repair • Legal- Eminent Domain • Human Resources • Insurance Plans • Stock Purchase Plan • Lease/Buy Company Vehicles • Cost/Benefit of HR Information System

10. Proactive Analyses • Exception Reporting / Trend Analysis • Drive Thru Efficiency Study and Recommendations • New Market Studies (Currently Texas) • Division Structure Analysis • Impact of Modified Marketing Efforts

11. Pickle Front

12. Before & After After Before

13. Finance Department • Today - small by design: • But Growing & Evolving...

14. Career Path • Finance Department • Intern, analyst, senior analyst, manager - train your replacement • Executive interaction and exposure • Background and experience creates opportunity • Executive Development - EW Kelley Influence • Emphasis on learning and management development • Examples: • Director of Financial Planning promoted to VP of Financial Planning and Information Systems / Treasurer • Controller promoted to Operations VP and Deputy National General Manager • Staff attorney promoted to Director of Manager Development and Recruitment

15. Financial Analyst • The problem solver • Seeks the reasons behind the numbers in order to predict the future • Forward looking • No protocol • Responsibilities tailored to the strengths and interests of the individual • Skill requirements • Analytical & reasoning • Communication • Interpersonal

16. FINANCIAL PLANNING The Steak n Shake Company THANK YOU!!!