sec document

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IUZfBhWGMatz+CvP6ha4qbaz9kbWu11hfa4iKC7nPDclKXQBSIRX1IAX9zaSlp6f lld26VGEweFuQoS8+PS8/w== 0000921895-07-002282.txt : 20071002 0000921895-07-002282.hdr.sgml : 20071002 20071001201642 ACCESSION NUMBER: 0000921895-07-002282 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20071002 DATE AS OF CHANGE: 20071001 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: STEAK & SHAKE CO CENTRAL INDEX KEY: 0000093859 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 370684070 STATE OF INCORPORATION: IN FISCAL YEAR END: 0927 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-30771 FILM NUMBER: 071147347 BUSINESS ADDRESS: STREET 1: 36 S PENNSYLVANIA ST STREET 2: CENTURY BLDG - 500 CITY: INDIANAPOLIS STATE: IN ZIP: 46236 BUSINESS PHONE: 3176334100 MAIL ADDRESS: STREET 1: 36 S PENNSYLVANIA ST STREET 2: CENTURY BLDG - 500 CITY: INDIANAPOLIS STATE: IN ZIP: 46204 FORMER COMPANY: FORMER CONFORMED NAME: CONSOLIDATED PRODUCTS INC /IN/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: STEAK N SHAKE INC DATE OF NAME CHANGE: 19840529 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: LION FUND, L.P. CENTRAL INDEX KEY: 0001334426 IRS NUMBER: 742980419 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 9311 SAN PEDRO AVENUE, SUITE 1440 CITY: SAN ANTONIO STATE: TX ZIP: 78216 BUSINESS PHONE: 210-344-3400 MAIL ADDRESS: STREET 1: 9311 SAN PEDRO AVENUE, SUITE 1440 CITY: SAN ANTONIO STATE: TX ZIP: 78216 SC 13D/A 1 sc13da206824004_10012007.htm sec document

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                 --------------

                                  SCHEDULE 13D
                                 (Rule 13d-101)

             INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
            TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
                                  RULE 13d-2(a)

                              (Amendment No. 2)(1)

                            The Steak n Shake Company
                            -------------------------
                                (Name of Issuer)

                          Common Stock, $.50 Par Value
                          ----------------------------
                         (Title of Class of Securities)

                                   857873-10-3
                                   -----------
                                 (CUSIP Number)

                              STEVEN WOLOSKY, ESQ.
                 OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
                                Park Avenue Tower
                               65 East 55th Street
                            New York, New York 10022
                                 (212) 451-2300
                                 --------------
                  (Name, Address and Telephone Number of Person
                Authorized to Receive Notices and Communications)

                                 October 1, 2007
                                 ---------------
             (Date of Event Which Requires Filing of This Statement)

      If the filing person has  previously  filed a statement on Schedule 13G to
report the  acquisition  that is the subject of this Schedule 13D, and is filing
this  schedule  because  of Rule  13d-1(e),  13d-1(f)  or  13d-1(g),  check  the
following box / /.

      NOTE.  Schedules filed in paper format shall include a signed original and
five copies of the schedule,  including  all exhibits.  SEE Rule 13d-7 for other
parties to whom copies are to be sent.

                         (Continued on following pages)

                              (Page 1 of 15 Pages)



- ------------
(1)   The  remainder  of this cover  page  shall be filled  out for a  reporting
person's  initial  filing on this  form with  respect  to the  subject  class of
securities,  and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.

      The information  required on the remainder of this cover page shall not be
deemed to be "filed"  for the purpose of Section 18 of the  Securities  Exchange
Act of 1934 or otherwise  subject to the  liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  SEE the
NOTES).



- -----------------------                                   ----------------------
CUSIP No. 857873-10-3                   13D                  Page 2 of 15 Pages
- -----------------------                                   ----------------------


================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                    The Lion Fund, L.P.
- --------------------------------------------------------------------------------
     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) /X/
                                                                         (b) / /
- --------------------------------------------------------------------------------
     3         SEC USE ONLY

- --------------------------------------------------------------------------------
     4         SOURCE OF FUNDS*

                    WC
- --------------------------------------------------------------------------------
     5         CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
               PURSUANT TO ITEM 2(d) OR 2(e)                                 / /
- --------------------------------------------------------------------------------
     6         CITIZENSHIP OR PLACE OF ORGANIZATION

                    Delaware
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   2,071,945
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              2,071,945
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
               PERSON

                    2,071,945
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
               CERTAIN SHARES*                                               / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    7.3%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    PN
================================================================================

                      *SEE INSTRUCTIONS BEFORE FILLING OUT!



- -----------------------                                   ----------------------
CUSIP No. 857873-10-3                   13D                  Page 3 of 15 Pages
- -----------------------                                   ----------------------


================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                    Biglari Capital Corp.
- --------------------------------------------------------------------------------
     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) /X/
                                                                         (b) / /
- --------------------------------------------------------------------------------
     3         SEC USE ONLY

- --------------------------------------------------------------------------------
     4         SOURCE OF FUNDS*

                    AF, WC
- --------------------------------------------------------------------------------
     5         CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
               PURSUANT TO ITEM 2(d) OR 2(e)                                 / /
- --------------------------------------------------------------------------------
     6         CITIZENSHIP OR PLACE OF ORGANIZATION

                    Texas
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   2,071,945
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              2,071,945
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
               PERSON

                    2,071,945
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
               CERTAIN SHARES*                                               / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    7.3%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    CO
================================================================================

                      *SEE INSTRUCTIONS BEFORE FILLING OUT!



- -----------------------                                   ----------------------
CUSIP No. 857873-10-3                   13D                  Page 4 of 15 Pages
- -----------------------                                   ----------------------


================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                    Sardar Biglari
- --------------------------------------------------------------------------------
     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) /X/
                                                                         (b) / /
- --------------------------------------------------------------------------------
     3         SEC USE ONLY

- --------------------------------------------------------------------------------
     4         SOURCE OF FUNDS*

                    AF, WC
- --------------------------------------------------------------------------------
     5         CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
               PURSUANT TO ITEM 2(d) OR 2(e)                                 / /
- --------------------------------------------------------------------------------
     6         CITIZENSHIP OR PLACE OF ORGANIZATION

                    USA
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   2,071,945
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              2,071,945
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
               PERSON

                    2,071,945
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
               CERTAIN SHARES*                                               / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    7.3%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    IN
================================================================================

                      *SEE INSTRUCTIONS BEFORE FILLING OUT!



- -----------------------                                   ----------------------
CUSIP No. 857873-10-3                   13D                  Page 5 of 15 Pages
- -----------------------                                   ----------------------


================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                    Western Sizzlin Corp.
- --------------------------------------------------------------------------------
     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) /X/
                                                                         (b) / /
- --------------------------------------------------------------------------------
     3         SEC USE ONLY

- --------------------------------------------------------------------------------
     4         SOURCE OF FUNDS*

                    WC
- --------------------------------------------------------------------------------
     5         CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
               PURSUANT TO ITEM 2(d) OR 2(e)                                 / /
- --------------------------------------------------------------------------------
     6         CITIZENSHIP OR PLACE OF ORGANIZATION

                    Delaware
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   2,071,945
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              2,071,945
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
               PERSON

                    2,071,945
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
               CERTAIN SHARES*                                               / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    7.3%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    CO
================================================================================

                      *SEE INSTRUCTIONS BEFORE FILLING OUT!



- -----------------------                                   ----------------------
CUSIP No. 857873-10-3                   13D                  Page 6 of 15 Pages
- -----------------------                                   ----------------------


================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                    Western Acquisitions L.P.
- --------------------------------------------------------------------------------
     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) /X/
                                                                         (b) / /
- --------------------------------------------------------------------------------
     3         SEC USE ONLY

- --------------------------------------------------------------------------------
     4         SOURCE OF FUNDS*

                    WC
- --------------------------------------------------------------------------------
     5         CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
               PURSUANT TO ITEM 2(d) OR 2(e)                                 / /
- --------------------------------------------------------------------------------
     6         CITIZENSHIP OR PLACE OF ORGANIZATION

                    Delaware
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   2,071,945
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              2,071,945
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
               PERSON

                    2,071,945
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
               CERTAIN SHARES*                                               / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    7.3%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    PN
================================================================================

                      *SEE INSTRUCTIONS BEFORE FILLING OUT!



- -----------------------                                   ----------------------
CUSIP No. 857873-10-3                   13D                  Page 7 of 15 Pages
- -----------------------                                   ----------------------


================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                    Western Investments Inc.
- --------------------------------------------------------------------------------
     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) /X/
                                                                         (b) / /
- --------------------------------------------------------------------------------
     3         SEC USE ONLY

- --------------------------------------------------------------------------------
     4         SOURCE OF FUNDS*

                    AF, WC
- --------------------------------------------------------------------------------
     5         CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
               PURSUANT TO ITEM 2(d) OR 2(e)                                 / /
- --------------------------------------------------------------------------------
     6         CITIZENSHIP OR PLACE OF ORGANIZATION

                    Delaware
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   2,071,945
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              2,071,945
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
               PERSON

                    2,071,945
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
               CERTAIN SHARES*                                               / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    7.3%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    CO
================================================================================

                      *SEE INSTRUCTIONS BEFORE FILLING OUT!



- -----------------------                                   ----------------------
CUSIP No. 857873-10-3                   13D                  Page 8 of 15 Pages
- -----------------------                                   ----------------------


================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                    Philip L. Cooley
- --------------------------------------------------------------------------------
     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) /X/
                                                                         (b) / /
- --------------------------------------------------------------------------------
     3         SEC USE ONLY

- --------------------------------------------------------------------------------
     4         SOURCE OF FUNDS*

                    AF, WC, PF
- --------------------------------------------------------------------------------
     5         CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
               PURSUANT TO ITEM 2(d) OR 2(e)                                 / /
- --------------------------------------------------------------------------------
     6         CITIZENSHIP OR PLACE OF ORGANIZATION

                    USA
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   2,071,945
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              2,071,945
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
               PERSON

                    2,071,945
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
               CERTAIN SHARES*                                               / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    7.3%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    IN
================================================================================

                      *SEE INSTRUCTIONS BEFORE FILLING OUT!



- -----------------------                                   ----------------------
CUSIP No. 857873-10-3                   13D                  Page 9 of 15 Pages
- -----------------------                                   ----------------------


            The following constitutes Amendment No. 2 ("Amendment No. 2") to the
Schedule 13D filed by the undersigned.  This Amendment No. 2 amends the Schedule
13D as specifically set forth.

      Item 3 is hereby amended and restated to read as follows:

Item 3.     SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.

            The  aggregate  purchase  price of the Shares owned  directly by the
Lion Fund is  $15,220,138.  The  aggregate  purchase  price of the Options owned
directly by the Lion Fund is $50,400.  The Securities owned directly by the Lion
Fund were acquired with the working capital of the Lion Fund.

            Certain of the Shares  reported in this  Amendment No. 2 as owned by
Western Acquisitions were acquired by way of an internal  contribution from WSC.
Western  Acquisitions  acquired  from WSC an  aggregate  of  299,945  Shares  on
September  7, 2007 at a per Share  price of $15.58,  equal to the last  reported
sales  price on the New York  Stock  Exchange  on the date the  transaction  was
completed, or an aggregate purchase price of approximately $4,673,143. The total
of 299,945  Shares  transferred  by WSC to Western  Acquisitions  were initially
acquired by WSC for an aggregate purchase price of approximately $4,581,977.

            The aggregate purchase price of the Shares owned directly by Western
Acquisitions is approximately  $8,606,853.  The Shares owned directly by Western
Acquisitions were acquired with the working capital of Western Acquisitions.

            The aggregate purchase price of the Options owned directly by WSC is
$1,630,938.  The Securities owned directly by WSC were acquired with the working
capital of WSC.

            The  aggregate  purchase  price of the Shares owned  directly by Dr.
Cooley and owned directly by Dr.  Cooley's  spouse,  Sandy Cooley who shares the
same business address as Dr. Cooley, which he may also be deemed to beneficially
own is $93,297.  Of the 6,300 Shares  beneficially  owned by Dr.  Cooley,  3,800
Shares  were  acquired  with Dr.  Cooley's  personal  funds,  2,000  Shares were
acquired with his spouse's  personal funds and 500 Shares were acquired with the
working capital of BCC and subsequently gifted to Dr. Cooley.

            The Lion Fund,  WSC and Western  Acquisitions  effect  purchases  of
securities  primarily  through  margin  accounts  maintained for them with prime
brokers,  which may extend margin credit to them as and when required to open or
carry  positions in the margin  accounts,  subject to applicable  federal margin
regulations,  stock exchange rules and the prime brokers'  credit  policies.  In
such  instances,  the  positions  held in the  margin  accounts  are  pledged as
collateral security for the repayment of debit balances in the accounts.



- -----------------------                                   ----------------------
CUSIP No. 857873-10-3                   13D                  Page 10 of 15 Pages
- -----------------------                                   ----------------------


      Item 4 is hereby amended to add the following:

            On  October  1,  2007,   Sardar  Biglari  issued  a  letter  to  the
shareholders of the Issuer  concurrent with the launch by the Reporting  Persons
of the website  WWW.ENHANCESTEAKNSHAKE.COM.  In the letter,  Mr. Biglari stated,
among other things, that under the current board's watch,  shareholder value has
been  significantly  diminished  and the time has long  passed  to add new board
members who aspire to create value for all shareholders. A copy of the letter is
attached as an exhibit hereto and incorporated herein by reference.

      Item 5 is hereby amended and restated to read as follows:

Item 5.     INTEREST IN SECURITIES OF THE ISSUER.

            (a-e) As of the date hereof,  each of the  Reporting  Persons may be
deemed to be the beneficial owner of 2,071,945 Shares or 7.3% of the outstanding
Shares of the Issuer,  based upon the 28,469,808  Shares  outstanding as of July
31, 2007,  according to the Issuer's most recent Form 10-Q. The 2,071,945 Shares
reported  herein as beneficially  owned by the Reporting  Persons consist of the
following:  (1) 929,200  Shares held directly by the Lion Fund and 20,000 Shares
underlying Options held directly by the Lion Fund, (2) 561,100 Shares underlying
Options  held  directly  by WSC,  (3) 555,345  Shares  held  directly by Western
Acquisitions, (4) 4,300 Shares held directly by Dr. Cooley, and (5) 2,000 Shares
held  directly by Dr.  Cooley's  spouse  which Dr.  Cooley may also be deemed to
beneficially own.

            Each of the  Reporting  Persons may be deemed to have the sole power
to vote or direct the vote of 0 Shares  and the  shared  power to vote or direct
the vote of 2,071,945 Shares.

            Each of the  Reporting  Persons may be deemed to have the sole power
to dispose or direct the disposition of 0 Shares and the shared power to dispose
or direct the disposition of 2,071,945 Shares.

            Schedule A annexed hereto lists all  transactions  in the Securities
by the  Reporting  Persons  since the filing of Amendment  No. 1 to the Schedule
13D. All of such transactions were effected in the open market.

            No person  other  than the  Reporting  Persons  is known to have the
right to  receive,  or the power to direct the  receipt of  dividends  from,  or
proceeds from the sale of, the Securities  except for Dr.  Cooley's  spouse with
respect  to  the  2,000  Shares  she  owns  directly.   The  Reporting   Persons
specifically  disclaim  beneficial  ownership of the Securities  reported herein
except to the extent of their pecuniary interest therein.

      Item 7 is hereby amended to add the following exhibit:

Item 7.     MATERIAL TO BE FILED AS EXHIBITS.

      A.    Letter  from  Sardar  Biglari  to The Steak n Shake  Company,  dated
            October 1, 2007 (filed herewith as Exhibit A).



- -----------------------                                   ----------------------
CUSIP No. 857873-10-3                   13D                  Page 11 of 15 Pages
- -----------------------                                   ----------------------


                                   SIGNATURES

            After  reasonable  inquiry  and to the  best  of his  knowledge  and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.

Dated: October 1, 2007                   THE LION FUND L.P.

                                         By: Biglari Capital Corp.
                                             General Partner

                                         By: /s/ Sardar Biglari
                                             -----------------------------------
                                             Sardar Biglari, Chief Executive Officer


                                         BIGLARI CAPITAL CORP.

                                         By: /s/ Sardar Biglari
                                             -----------------------------------
                                             Sardar Biglari, Chief Executive Officer


                                         WESTERN ACQUISITIONS L.P.

                                         By: Western Investments Inc.
                                             General Partner

                                         By: /s/ Sardar Biglari
                                             -----------------------------------
                                             Sardar Biglari, Chief Executive Officer


                                         WESTERN INVESTMENTS INC.

                                         By: /s/ Sardar Biglari
                                             -----------------------------------
                                             Sardar Biglari, Chief Executive Officer


                                         /s/ Sardar Biglari
                                         ---------------------------------------
                                         SARDAR BIGLARI


                                         WESTERN SIZZLIN CORP.

                                         By: /s/ Sardar Biglari
                                             -----------------------------------
                                             Sardar Biglari, Chief Executive Officer


                                         /s/ Sardar Biglari
                                         ---------------------------------------
                                         SARDAR BIGLARI
                                         As Attorney In Fact for Philip L. Cooley



- -----------------------                                   ----------------------
CUSIP No. 857873-10-3                   13D                  Page 12 of 15 Pages
- -----------------------                                   ----------------------


                                   SCHEDULE A
                                   ----------

   Transactions in the Securities by the Reporting Persons Since the Filing of
   ---------------------------------------------------------------------------
                       Amendment No. 1 to the Schedule 13D
                       -----------------------------------

Transactions in Common Stock
- ----------------------------

     Shares Purchased          Price Per Share ($)         Date of Purchase
     ----------------          -------------------         ----------------

                           WESTERN ACQUISITIONS L.P.
                           -------------------------
         33,900                      14.9935                   09/17/07
         10,000                      16.0181                   09/21/07
         15,000                      15.8118                   09/24/07
         26,900                      15.2744                   09/25/07
         21,700                      15.1886                   09/26/07
         12,300                      15.2250                   09/27/07
         38,800                      15.0492                   09/28/07


                               THE LION FUND, L.P.
                               -------------------
                                      None


                              BIGLARI CAPITAL CORP.
                              ---------------------
                                      None


                                 SARDAR BIGLARI
                                 --------------
                                      None


                              WESTERN SIZZLIN CORP.
                              ---------------------
                                      None


                            WESTERN INVESTMENTS INC.
                            ------------------------
                                      None


                                PHILIP L. COOLEY
                                ----------------
                                      None



- -----------------------                                   ----------------------
CUSIP No. 857873-10-3                   13D                  Page 13 of 15 Pages
- -----------------------                                   ----------------------


                                                                       EXHIBIT A

                               THE LION FUND, L.P.
                        9311 SAN PEDRO AVENUE, SUITE 1440
                            SAN ANTONIO, TEXAS 78216
                            TELEPHONE (210) 344-3400
                               FAX (210) 344-3411

SARDAR BIGLARI, CHAIRMAN


                                 October 1, 2007

Dear Fellow Shareholders:

      The group I represent, composed of The Lion Fund, L.P. and Western Sizzlin
Corp.  together  with  certain  of  their  affiliates,  is one  of  the  largest
stockholders of The Steak n Shake Company.  As owners of 7% of the  corporation,
we naturally are deeply  concerned about its  mismanagement by the present board
of  directors.  Under the  current  board's  watch,  shareholder  value has been
significantly  diminished.  Time has long since passed to add new board  members
who aspire to create value for all  shareholders -- and to do so with a sense of
urgency.  Our aim was to join the board without the distraction of a potentially
contentious  and  expensive  proxy  fight.   However,  our  efforts  to  discuss
representation with the board have been fruitless. We are therefore appealing to
you the  shareholders,  the  true  owners  of  Steak n  Shake,  to  assert  your
dissatisfaction.

      In our opinion,  the optimal avenue to achieve good  corporate  governance
and enhance long-term value is to place  shareholders with substantial  holdings
on the board to ensure the proper coalescence of interests between the board and
shareholders.  We own more  stock than all the  directors  and  officers  of the
company combined and thus justifiably look askance at the troublesome turn Steak
n  Shake's  top  leadership  has  persisted  in  taking.  We  believe a board of
directors should participate in the future of its company by making considerable
financial  commitments  on the same basis as other  shareholders  do, not simply
through stock options or other stock grants.

      We are disturbed by the present  direction of The Steak n Shake Company as
exemplified by its failed vision, failed strategy,  failed execution, and failed
board. The amalgam of poor corporate  governance,  lack of strategic  direction,
and  deteriorating  operating  and  financial  performance  has  led  to  dismal
shareholder  returns.  To illustrate the  mismanagement,  corporate  general and
administrative  ("G&A")  costs  over the last five  years  have  escalated  from
approximately $98,000 per company-owned store to roughly $125,000 per unit. Just
returning  to past G&A levels -- on a per unit  basis -- would save the  company
around  $12  million  annually.  Clearly,  the  board  has  exhibited  a lack of
discipline about expenses and capital allocation,  thereby damaging  shareholder
value.  Yet G&A  overspending  is only one symptom of the firm's myriad problems
that must be confronted and corrected.



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CUSIP No. 857873-10-3                   13D                  Page 14 of 15 Pages
- -----------------------                                   ----------------------


      Needless  to say,  we are  disenchanted  by both the recent and  long-term
performance of the company.  We are not alone; other shareholders have expressed
to us a similar degree of disappointment. Consequently, we believe that NOW is a
critical  period  for the  company,  so  critical  it  warrants  change of board
leadership.

      Towards that end,  our group has  nominated  Dr.  Philip L. Cooley -- Lion
Fund  director  and Western  Sizzlin's  Vice  Chairman -- and me for election to
Steak n Shake's  board at the next  annual  shareholders'  meeting to be held in
2008.  We have chosen a  pro-active  approach  because we see  opportunities  to
create  tremendous  value. We are convinced the company has not yet attained its
full potential. But to reach that potential requires forward-looking leadership.
Phil and I have the experience to serve  knowledgeably and impartially.  Because
we are  tenacious  by nature,  we would commit  ourselves  for the long term and
would work  tirelessly  to ensure that the board  explores all paths to maximize
shareholder value.

      Over the coming months we will be communicating with you regarding details
of our  ideas  to  improve  Steak n  Shake.  Our  recently  launched  web  site,
www.enhancesteaknshake.com,  will be the  primary  channel  over  which  we will
impart  information on vital matters.  I will also be writing you directly.  Our
principle  is to tell you the facts that we would want to know if our roles were
reversed. We encourage shareholders to visit our web site regularly and to share
their thoughts with us about Steak n Shake.

      We look forward to serving YOUR best interests.

                              Sincerely,

                              /s/ Sardar Biglari

                              Sardar Biglari



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CUSIP No. 857873-10-3                   13D                  Page 15 of 15 Pages
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                 CERTAIN INFORMATION CONCERNING THE PARTICIPANTS

THIS  COMMUNICATION  IS NOT A  SOLICITATION  OF A PROXY  WHICH  MAY BE DONE ONLY
PURSUANT TO A DEFINITIVE PROXY  STATEMENT.  STOCKHOLDERS ARE ADVISED TO READ THE
PROXY  STATEMENT AND OTHER DOCUMENTS  RELATED TO THE  SOLICITATION OF PROXIES BY
THE LION FUND,  L.P.  ("LION  FUND"),  BIGLARI  CAPITAL CORP.  ("BCC"),  WESTERN
SIZZLIN CORP. ("WSC"),  WESTERN ACQUISITIONS L.P. ("WAL"),  WESTERN INVESTMENTS,
INC. ("WII"),  SARDAR BIGLARI AND PHILIP L. COOLEY, FROM THE STOCKHOLDERS OF THE
STEAK N SHAKE COMPANY,  FOR USE AT ITS NEXT ANNUAL MEETING OF STOCKHOLDERS  WHEN
THEY BECOME  AVAILABLE  BECAUSE THEY WILL CONTAIN  IMPORTANT  INFORMATION.  WHEN
COMPLETED,  A DEFINITIVE  PROXY  STATEMENT AND A FORM OF PROXY WILL BE MAILED TO
STOCKHOLDERS  OF THE STEAK N SHAKE COMPANY AND WILL BE AVAILABLE AT NO CHARGE AT
THE  SECURITIES  AND EXCHANGE  COMMISSION'S  WEBSITE AT  HTTP://WWW.SEC.GOV.  IN
ADDITION,  COPIES OF THE PROXY  STATEMENT AND OTHER  DOCUMENTS  WILL BE PROVIDED
WITHOUT CHARGE UPON REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO OUR PROXY
SOLICITOR,  MORROW & CO.,  INC. AT ITS  TOLL-FREE  NUMBER  (800)  607-0088.  THE
PARTICIPANTS  IN THE PROXY  SOLICITATION  ARE  ANTICIPATED TO BE LION FUND, BCC,
WSC,  WAL,  WII,  SARDAR  BIGLARI  AND PHILIP L.  COOLEY  (THE  "PARTICIPANTS").
INFORMATION  REGARDING  THE  PARTICIPANTS,  INCLUDING  THEIR  DIRECT OR INDIRECT
INTERESTS,  BY SECURITY HOLDINGS OR OTHERWISE,  IS CONTAINED IN THE SCHEDULE 13D
FILED BY THEM WITH THE  SECURITIES  AND EXCHANGE  COMMISSION  ON AUGUST 17, 2007
WITH RESPECT TO THE STEAK N SHAKE  COMPANY,  AS AMENDED.  THAT  SCHEDULE 13D, AS
AMENDED,  IS  CURRENTLY  AVAILABLE AT NO CHARGE ON THE  SECURITIES  AND EXCHANGE
COMMISSION'S  WEBSITE AT  HTTP://WWW.SEC.GOV.  AS OF SEPTEMBER 28, 2007, EACH OF
THE  PARTICIPANTS  MAY BE DEEMED TO BENEFICIALLY  OWN 2,071,945 SHARES OF COMMON
STOCK OF THE STEAK N SHAKE  COMPANY,  CONSISTING OF THE  FOLLOWING:  (1) 929,200
SHARES HELD  DIRECTLY BY LION FUND AND 20,000 SHARES  UNDERLYING  AMERICAN-STYLE
CALL  OPTIONS  HELD  DIRECLTY  BY  LION  FUND,  (2)  561,100  SHARES  UNDERLYING
AMERICAN-STYLE  CALL  OPTIONS  HELD  DIRECLTY BY WSC,  (3)  555,345  SHARES HELD
DIRECTLY BY WAL, (4) 4,300 SHARES HELD  DIRECTLY BY PHILIP L. COOLEY,  (5) 2,000
SHARES HELD  DIRECTLY BY PHILIP L.  COOLEY'S  SPOUSE.  EACH OF THE  PARTICIPANTS
DISCLAIMS  BENEFICIAL  OWNERSHIP OF SUCH SHARES  EXCEPT TO THE EXTENT OF HIS/ITS
PECUNIARY INTEREST THEREIN.
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