Find What (restaurant name, category, cuisine)
Where (city, state, zip, address, landmark)
Steak n Shake, Western Sizzlin to Merge
Posted by admin
From Sarah E.  Lockyer, Nation's Restaurant News: Steak 'n Shake Co. and Western Sizzlin Corp., two restaurant companies led by one-time activist investor Sardar Biglari, plan to merge, with Western Sizzlin set to become a subsidiary of Steak n Shake, the companies said Thursday.

The net transaction value payable to Western Sizzlin shareholders is about $23 million. The deal still is subject to shareholder approval, and neither company had filed as of press time any deal materials or proxy information.

Steak n Shake, based here, operates or franchises 486 family-dining restaurants that together tally systemwide sales of about $700 million. Western Sizzlin, based in Roanoke, Va., operates or franchises 105 steak buffet restaurants and boasts systemwide sales of $200 million.

In a statement, the companies said the letter of intent to merge calls for Western Sizzlin to distribute to its stockholders all of its Steak n Shake shares, which total a 5.4-percent stake. At the merger’s closing, each share of Western’s common stock would be converted into the right to receive an amount equal to $8.11 in the principal amount of debentures, or unsecured debt, issued by Steak n Shake. It is anticipated that Steak n Shake’s debt will hold a term of five years, will hold a 14-percent interest rate and will be pre-payable without penalty after one year from the date of issuance.

Biglari, who swept into the restaurant industry starting in 2006 with investments at such companies as Steak n Shake, Friendly Ice Cream, Applebee’s and Western Sizzlin, is the chairman and chief executive at both Steak n Shake and Western Sizzlin. He has worked with both companies for more than a year to close underperforming locations, increase shareholder value and drive customer traffic.

Western Sizzlin’s latest quarter ended June 30 included earnings of $1.9 million, or 68 cents per share, versus a loss of $2.0 million, or 72 cents per share, in the same quarter a year earlier. Revenue fell 2.5 percent to $4.4 million. Same-store sales at franchised locations, which make up the majority of the chain, fell 4.4 percent. Full Story 

Contact information

    Contact form: Send us a message

LocalEats Products

About us

Since 1995, "Where The Locals Eat" and LocalEats dining guides have featured locally owned restaurants across America. From the finest steakhouses and sushi bars, to classic burger joints and roadside barbecues, LocalEats recommends unique restaurants to suit every taste and price range. More
Home Show Full Site LocalEats mobile Contact Us