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|  THE                STEAK N SHAKE COMPANY(Exact                name of registrant as specified in its                charter) |
|------------------------------------------------------------------------------------------------------------------------------------|

| INDIANA                                          | 37-0684070                         |
|--------------------------------------------------|------------------------------------|
| (State                or other jurisdiction      | (I.R.S.                Employer    |
| of                incorporation or organization) | Identification                No.) |

| 36                S. Pennsylvania Street, Suite 500     |                      |
|---------------------------------------------------------|---------------------------|
| Indianapolis,                Indiana                    | 46204                     |
| (Address                of principal executive offices) | (Zip                code) |

| Large                  accelerated filer  ___                                                                    | Accelerated                  filer  X            |
|----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|
| Non-accelerated                  filer ___ (Do                  not check if a smaller reporting                  company) | Smaller                  reporting company                  ___ |

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THE

| PART I.                  FINANCIAL INFORMATION          |                                                                                                                                                   |                                                                                                                                                                                                        |   |   |   | Page   |
|--------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                                                         |                                                                                                                                                   |                                                                                                                                                                                                        |   |   |   |   |   |
|                                                         | ITEM                  1. FINANCIAL                  STATEMENTS                                                                                         |                                                                                                                                                                                                        |   |   |   |   |   |
|                                                         |                                                                                                                                                   | Condensed                    Consolidated Statements of Financial Position                    (Unaudited) as of April 8, 2009 and September 24,                    2008                                | 3      |
|                                                         |                                                                                                                                                   |                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|                                                         |                                                                                                                                                   | Condensed                    Consolidated Statements of Operations                    (Unaudited) for the Sixteen and Twenty-Eight Weeks Ended April                    8, 2009 and April 9, 2008 | 4      |
|                                                         |                                                                                                                                                   |                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|                                                         |                                                                                                                                                   | Condensed                    Consolidated Statements of Cash Flows                    (Unaudited) for the Twenty-Eight Weeks Ended April 8, 2009 and                    April 9, 2008        | 5      |
|                                                         |                                                                                                                                                   |                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|                                                         |                                                                                                                                                   | Notes                  to                  Condensed Consolidated Financial Statements                  (Unaudited)                                                                                         |   |   | 6      |
|                                                         |                                                                                                                                                   |                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|                                                         | ITEM                  2.                  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                  OPERATIONS | 16                                                                                                                                                                                                          |
|                                                         |                                                                                                                                                   |                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|                                                         | ITEM                  3.                  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET                  RISK                                  | 25                                                                                                                                                                                                          |
|                                                         |                                                                                                                                                   |                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|                                                         | ITEM                  4. CONTROLS                  AND PROCEDURES                                                                                      |                                                                                                                                                                                                        |   |   |   | 25     |
|                                                         |                                                                                                                                                   |                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|                                                         |                                                                                                                                                   |                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| PART                  II. OTHER                  INFORMATION |                                                                                                                                                   |                                                                                                                                                                                                        |   |   |   |   |
|                                                         |                                                                                                                                                   |                                                                                                                                                                                                        |   |
|                                                         | ITEM                  1. LEGAL PROCEEDINGS                                                                                                             |                                                                                                                                                                                                        |   |   | 26     |
|                                                         |                                                                                                                                                   |                                                                                                                                                                                                        |   |   |   |   |   |   |
|                                                         | ITEM                  1A. RISK FACTORS                                                                                                                 |                                                                                                                                                                                                        |   |   | 26     |
|                                                         |                                                                                                                                                   |                                                                                                                                                                                                        |   |   |   |   |   |   |
|                                                         | ITEM                  6.                  EXHIBITS                                                                                                     |                                                                                                                                                                                                        |   |   |   |   | 26 |
|                                                         |                                                                                                                                                   |                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|                                                         |                                                                                                                                                   |                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| SIGNATURES                                                   |                                                                                                                                                   |                                                                                                                                                                                                        |   |   |   |   | 27 |

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Table          of Contents

PART 
I.

ITEM        1.

| Condensed                    Consolidated Statements of Financial Position                                                                                                                       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| The                    Steak n Shake                    Company                                                                                                                                  |   |   |   |   |   |   |
| (Amounts                    in $000s except share and                    per share data)                                                                                                         |   |   |   |   |   |   |
|                                                                                                                                                                                             |   | April                    8, |   |   | September                    24, |   |
|                                                                                                                                                                                             |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                                                             |   | (Unaudited) |   |   | (Unaudited) |   |
| Assets:                                                                                                                                                                                          |   |   |   |   |   |   |
| Current                    Assets                                                                                                                                                                |   |   |   |   |   |   |
| Cash                    and cash                    equivalents                                                                                                                                  |   | $ | 35,010 |   |   | $ | 6,855 |   |
| Receivables,                    net                                                                                                                                                              |   |   | 6,110 |   |   |   | 15,622 |   |
| Inventories                                                                                                                                                                                      |   |   | 7,302 |   |   |   | 6,795 |   |
| Deferred                    income                    taxes                                                                                                                                      |   |   | 2,902 |   |   |   | 3,260 |   |
| Assets                    held for                    sale                                                                                                                                       |   |   | 21,055 |   |   |   | 25,395 |   |
| Other                    current                    assets                                                                                                                                       |   |   | 4,581 |   |   |   | 3,009 |   |
| Total                    current                    assets                                                                                                                                       |   |   | 76,960 |   |   |   | 60,936 |   |
| Net                    property and                    equipment                                                                                                                                 |   |   | 413,045 |   |   |   | 432,690 |   |
| Goodwill                                                                                                                                                                                         |   |   | 14,503 |   |   |   | 14,503 |   |
| Other                    intangible assets,                    net                                                                                                                               |   |   | 1,660 |   |   |   | 1,765 |   |
| Other                    assets                                                                                                                                                                  |   |   | 7,673 |   |   |   | 10,242 |   |
| Total                    assets                                                                                                                                                                  |   | $ | 513,841 |   |   | $ | 520,136 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
| Liabilities                    and Shareholders'                    Equity:                                                                                                                      |   |   |   |   |   |   |   |   |
| Current                    Liabilities                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Accounts                    payable                                                                                                                                                              |   | $ | 22,667 |   |   | $ | 25,302 |   |
| Accrued                    expenses                                                                                                                                                              |   |   | 31,515 |   |   |   | 31,685 |   |
| Current                    portion of long-term                    debt                                                                                                                          |   |   | 5,732 |   |   |   | 733 |   |
| Line                    of                    credit                                                                                                                                             |   |   | 17,000 |   |   |   | 14,180 |   |
| Current                    portion of obligations                    under leases                                                                                                                |   |   | 4,452 |   |   |   | 4,417 |   |
| Total                    current                    liabilities                                                                                                                                  |   |   | 81,366 |   |   |   | 76,317 |   |
| Deferred                    income                    taxes                                                                                                                                      |   |   | 3,599 |   |   |   | 2,209 |   |
| Other                    long-term                    liabilities                                                                                                                                |   |   | 6,657 |   |   |   | 7,439 |   |
| Obligations                    under                    leases                                                                                                                                   |   |   | 131,634 |   |   |   | 134,809 |   |
| Long-term                    debt                                                                                                                                                                |   |   | 6,302 |   |   |   | 15,783 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
| Commitments                    and                    Contingencies                                                                                                                              |   |   |   |   |   |   |   |   |
| Shareholders'                    Equity:                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Common                    stock - $0.50 stated value,                    50,000,000 shares authorized -  shares                    issued:                    30,332,839               |   |   | 15,166 |   |   |   | 15,166 |   |
| Additional                    paid-in                    capital                                                                                                                                 |   |   | 128,779 |   |   |   | 128,526 |   |
| Retained                    earnings                                                                                                                                                             |   |   | 160,546 |   |   |   | 161,733 |   |
| Treasury                    stock - at cost:                    1,549,517 shares as of April 8, 2009;  1,760,531                    shares as of                    September 24, 2008 |   |   | (20,208 | ) |   |   | (21,846 | ) |
| Total                    shareholders'                    equity                                                                                                                                 |   |   | 284,283 |   |   |   | 283,579 |   |
| Total                    liabilities and                    shareholders' equity                                                                                                                 |   | $ | 513,841 |   |   | $ | 520,136 |   |
|                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
| See                    accompanying                    notes.                                                                                                                                    |   |   |   |   |   |   |   |   |

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Table            of Contents

| Condensed                    Consolidated Statements of Operations                                                                                    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| The                    Steak n Shake                    Company                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| (Amounts                    in $000s except share and                    per share data)                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                  |   | Sixteen                    Weeks                    Ended |   |   | Twenty-Eight                    Weeks                    Ended |   |
|                                                                                                                                                  |   | April                    8, |   |   | April                    9, |   |   | April                    8, |   |   | April                    9, |   |
|                                                                                                                                                  |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                  |   | (Unaudited) |   |   | (Unaudited) |   |   | (Unaudited) |   |   | (Unaudited) |   |
| Revenues:                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    sales                                                                                                                          |   | $ | 187,975 |   |   | $ | 189,272 |   |   | $ | 318,694 |   |   | $ | 324,768 |   |
| Franchise                    fees                                                                                                                     |   |   | 1,054 |   |   |   | 1,215 |   |   |   | 2,012 |   |   |   | 2,115 |   |
| Total                    revenues                                                                                                                     |   |   | 189,029 |   |   |   | 190,487 |   |   |   | 320,706 |   |   |   | 326,883 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs                    and                    Expenses:                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                    of                    sales                                                                                                   |   |   | 45,611 |   |   |   | 47,447 |   |   |   | 77,642 |   |   |   | 80,131 |   |
| Restaurant                    operating                    costs                                                                                      |   |   | 101,526 |   |   |   | 104,039 |   |   |   | 176,208 |   |   |   | 179,849 |   |
| General                    and                    administrative                                                                                      |   |   | 10,799 |   |   |   | 14,072 |   |   |   | 19,444 |   |   |   | 24,490 |   |
| Depreciation                    and                    amortization                                                                                   |   |   | 9,537 |   |   |   | 10,455 |   |   |   | 16,929 |   |   |   | 18,113 |   |
| Marketing                                                                                                                                             |   |   | 9,873 |   |   |   | 10,376 |   |   |   | 17,416 |   |   |   | 16,377 |   |
| Interest                                                                                                                                              |   |   | 4,049 |   |   |   | 4,240 |   |   |   | 7,651 |   |   |   | 7,553 |   |
| Rent                                                                                                                                                  |   |   | 4,659 |   |   |   | 4,520 |   |   |   | 8,224 |   |   |   | 7,728 |   |
| Pre-opening                    costs                                                                                                                  |   |   | — |   |   |   | 677 |   |   |   | — |   |   |   | 1,131 |   |
| Asset                    impairments and provision                    for  restaurant                    closing                                 |   |   | 741 |   |   |   | — |   |   |   | 917 |   |   |   | — |   |
| Loss                    (gain) on disposal of                    property                                                                             |   |   | 47 |   |   |   | 297 |   |   |   | (12 | ) |   |   | 13 |   |
| Other                    income,                    net                                                                                               |   |   | (419 | ) |   |   | (524 | ) |   |   | (338 | ) |   |   | (975 | ) |
| Total                    costs and                    expenses                                                                                        |   |   | 186,423 |   |   |   | 195,599 |   |   |   | 324,081 |   |   |   | 334,410 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                    (Loss) Before Income                    Taxes                                                                             |   |   | 2,606 |   |   |   | (5,112 | ) |   |   | (3,375 | ) |   |   | (7,527 | ) |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                    Taxes                                                                                                                       |   |   | 353 |   |   |   | (2,302 | ) |   |   | (2,188 | ) |   |   | (3,530 | ) |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Earnings                    (Loss)                                                                                             |   | $ | 2,253 |   |   | $ | (2,810 | ) |   | $ | (1,187 | ) |   | $ | (3,997 | ) |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                    Earnings (Loss) Per Common                    and  Common                    Equivalent                    Share   |   | $ | 0.08 |   |   | $ | (0.10 | ) |   | $ | (0.04 | ) |   | $ | (0.14 | ) |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                    Earnings (Loss) Per Common                    and  Common                    Equivalent                    Share |   | $ | 0.08 |   |   | $ | (0.10 | ) |   | $ | (0.04 | ) |   | $ | (0.14 | ) |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                    Average Shares and                    Equivalents:                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                 |   |   | 28,478,365 |   |   |   | 28,269,538 |   |   |   | 28,402,685 |   |   |   | 28,221,692 |   |
| Diluted                                                                                                                                               |   |   | 28,554,395 |   |   |   | 28,269,538 |   |   |   | 28,402,685 |   |   |   | 28,221,692 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                    accompanying                    notes.                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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Table            of Contents

| Condensed                    Consolidated Statements of Cash Flows                                                                             |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| The                    Steak n Shake                    Company                                                                                |   |   |   |   |   |   |
| (Amounts                    in                    $000s)                                                                                       |   |   |   |   |   |   |
|                                                                                                                                           |   | Twenty-Eight                    Weeks                    Ended |   |
|                                                                                                                                           |   | April                    8, |   |   | April                    9, |   |
|                                                                                                                                           |   | 2009 |   |   | 2008 |   |
|                                                                                                                                           |   | (Unaudited) |   |   | (Unaudited) |   |
| Operating                    Activities:                                                                                                       |   |   |   |   |   |   |
| Net                    loss                                                                                                                    |   | $ | (1,187 | ) |   | $ | (3,997 | ) |
| Adjustments                    to reconcile net loss                    to net cash provided by  operating                    activities: |   |   |   |   |   |   |   |   |
| Depreciation                    and                    amortization                                                                            |   |   | 16,929 |   |   |   | 18,113 |   |
| Provision                    for deferred income                    taxes                                                                      |   |   | 1,748 |   |   |   | 257 |   |
| Asset                    impairments and provision                    for restaurant closing                                                   |   |   | 917 |   |   |   | — |   |
| Non-cash                    expense for stock-based                    compensation and deferred rent                                          |   |   | 1,942 |   |   |   | 1,584 |   |
| (Gain)                    loss on disposal of                    property                                                                      |   |   | (12 | ) |   |   | 13 |   |
| Changes                    in receivables and                    inventories                                                                   |   |   | 9,312 |   |   |   | 1,515 |   |
| Changes                    in other                    assets                                                                                  |   |   | (2,098 | ) |   |   | (2,354 | ) |
| Changes                    in accounts payable and                    accrued expenses                                                         |   |   | (1,748 | ) |   |   | (1,244 | ) |
| Net                    cash provided by operating                    activities                                                                |   |   | 25,803 |   |   |   | 13,887 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Investing                    Activities:                                                                                                       |   |   |   |   |   |   |   |   |
| Additions                    of property and                    equipment                                                                      |   |   | (2,612 | ) |   |   | (23,858 | ) |
| Proceeds                    from property and                    equipment disposals                                                           |   |   | 6,590 |   |   |   | 9,872 |   |
| Net                    cash provided by (used in)                    investing activities                                                      |   |   | 3,978 |   |   |   | (13,986 | ) |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Financing                    Activities:                                                                                                       |   |   |   |   |   |   |   |   |
| Net                    proceeds from line of credit                    facility                                                                |   |   | 2,820 |   |   |   | 2,355 |   |
| Principal                    payments on long-term                    debt                                                                     |   |   | (4,482 | ) |   |   | (1,055 | ) |
| Proceeds                    from equipment and                    property sale-leasebacks                                                     |   |   | 2,005 |   |   |   | — |   |
| Principal                    payments on direct                    financing lease obligations                                                 |   |   | (2,407 | ) |   |   | (2,272 | ) |
| Proceeds                    from exercise of stock                    options                                                                  |   |   | — |   |   |   | 140 |   |
| Excess                    tax benefits from                    stock-based awards                                                              |   |   | — |   |   |   | 10 |   |
| Repurchase                    of employee shares for                    tax withholding                                                        |   |   | (128 | ) |   |   | — |   |
| Proceeds                    from employee stock                    purchase plan                                                               |   |   | 566 |   |   |   | 1,004 |   |
| Net                    cash (used in) provided by                    financing activities                                                      |   |   | (1,626 | ) |   |   | 182 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Increase                    in Cash and Cash                    Equivalents                                                                    |   |   | 28,155 |   |   |   | 83 |   |
| Cash                    and Cash Equivalents at                    Beginning of Period                                                         |   |   | 6,855 |   |   |   | 1,497 |   |
| Cash                    and Cash Equivalents at End                    of Period                                                               |   | $ | 35,010 |   |   | $ | 1,580 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| See                    accompanying                    notes.                                                                                  |   |   |   |   |   |   |   |   |

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Notes

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Table          of Contents

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Sixteen                  Weeks                  Ended        |   | Twenty-Eight                  Weeks                  Ended                                                    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | April                  8,                                    |   | April                  9,                                                                                     |   | April                  8, |   | April                  9, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2009                                                         |   | 2008                                                                                                          |   | 2009 |   | 2008 |
| Basic                  earnings (loss) per                  share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                         |   |                                                                                                          |   |   |   |   |
| Weighted                  average common                  shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 28,478,365                                                   |   | 28,269,538                                                                                                    |   | 28,402,685 |   | 28,221,692 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                         |   |                                                                                                          |   |   |   |   |
| Diluted                  earnings (loss) per                  share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                         |   |                                                                                                          |   |   |   |   |
| Weighted                  average common                  shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 28,478,365                                                   |   | 28,269,538                                                                                                    |   | 28,402,685 |   | 28,221,692 |
| Dilutive                  effect of stock                  awards                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |          76,030 |   |                  — |   |                   — |   |                   — |
| Weighted                  average common and                  incremental shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 28,554,395                                                   |   | 28,269,538                                                                                                    |   | 28,402,685 |   | 28,221,692 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                         |   |                                                                                                          |   |   |   |   |
| Number                  of share-based awards                  excluded from the                    calculation of                  diluted earnings (loss) per                  share  because                  the                  awards' exercise                  prices were greater                   than                  the average market                  price of                  the Company's                   common                  stock, or because                  they were antidilutive due                  to the Company's net                  losses for the twenty-eight                   weeks                  ended April 8, 2009                  and for the sixteen and  twenty-eight                  weeks                  ended April 9, 2008 | 1,241,775                                                    |   | 1,443,593                                                                                                     |   | 1,410,623 |   | 1,445,749 |

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Table            of Contents

|                                                                             |   | April                  8, |     |   | September                  24, |   |
|----------------------------------------------------------------------------------|--------|---------------------------|----------|--------|--------------------------------|--------|
|                                                                             |   | 2009                      |     |   | 2008                           |   |
| Land                                                                             |   | $                         | 151,677  |   |                           | $      | 151,006 |   |
| Buildings                                                                        |   |                      | 150,438  |   |                           |   | 156,695 |   |
| Land                  and leasehold                  improvements                |   |                      | 154,531  |   |                           |   | 157,738 |   |
| Equipment                                                                        |   |                      | 200,834  |   |                           |   | 204,116 |   |
| Construction                  in                  progress                       |   |                      | 2,392    |   |                           |   | 2,423 |   |
|                                                                             |   |                      | 659,872  |   |                           |   | 671,978 |   |
| Less                  accumulated depreciation and                  amortization |   |                      | (246,827 | )      |                           |   | (239,288 | ) |
| Net                  property and                  equipment                     |   | $                         | 413,045  |   |                           | $      | 432,690 |   |

|                                                              |   | April                  8, |   |   | September                  24, |   |
|-------------------------------------------------------------------|--------|---------------------------|--------|--------|--------------------------------|--------|
|                                                              |   | 2009                      |   |   | 2008                           |   |
| Land                  and                  buildings              |   | $                         | 18,105 |   |                           | $      | 21,726 |   |
| Land                  and leasehold                  improvements |   |                      | 2,932  |   |                           |   | 3,388 |   |
| Equipment                                                         |   |                      | 18     |   |                           |   | 281 |   |
| Total                  assets held for                  sale      |   | $                         | 21,055 |   |                           | $      | 25,395 |   |

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Table            of Contents

|                                                                                       |   | April                  8, |   |   | September                  24, |   |
|--------------------------------------------------------------------------------------------|--------|---------------------------|--------|--------|--------------------------------|--------|
|                                                                                       |   | 2009                      |   |   | 2008                           |   |
| Gross                  value of intangible assets                  subject to amortization |   | $                         | 2,291  |   |                           | $      | 2,291 |   |
| Accumulated                  amortization                                                  |   |                      | (1,131 | )      |                           |   | (1,026 | ) |
| Intangible                  assets subject to                  amortization, net           |   |                      | 1,160  |   |                           |   | 1,265 |   |
| Intangible                  assets with indefinite                  lives                  |   |                      | 500    |   |                           |   | 500 |   |
| Total                  intangible                  assets                                  |   | $                         | 1,660  |   |                           | $      | 1,765 |   |

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| September                  24,                  2008 accrual balance     |   | $      | 372  |   |
|--------------------------------------------------------------------------|--------|--------|------|--------|
| Year-to-date                  fiscal year 2009                  accruals |   |   | 88   |   |
| Year-to-date                  fiscal year 2009                  payments |   |   | (445 | )      |
| April 8,                  2009 accrual                  balance     |   | $      | 15   |   |

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| ·   | Level                1:  Unadjusted quoted prices in active markets for identical                assets and liabilities. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level                2:  Observable inputs other than those included in Level                1.  For example, quoted prices for similar assets or liabilities                in active markets or quoted prices for identical assets or liabilities                in                inactive markets. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level                3:  Unobservable inputs reflecting management’s own assumptions                about the inputs used in pricing the asset or                liability. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Assets                                                                                 |   | Level                  1 |    |   | Level                  2 |   |    | Level                  3 |   |   | Total   |   |
|----------------------------------------------------------------------------------------|--------|--------------------------|---------|--------|--------------------------|--------|---------|--------------------------|--------|--------|---------|--------|
| Cash                  equivalents                                                      |   | $                        | — |   |                     | $      | 26,581  |                     |   | $      | — |   |   | $ | 26,581 |   |
| Non-qualified                  deferred                  compensation plan investments |   |                     | 325     |   |                     |   | — |                     |   |   | — |   |   |   | 325 |   |
| Total                  assets at fair                  value                           |   | $                        | 325     |   |                     | $      | 26,581  |                     |   | $      | — |   |   | $ | 26,906 |   |

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ITEM      2.

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|                                                                                                                                            |   | Sixteen                  Weeks                  Ended |   |               | Twenty-Eight                  Weeks                  Ended |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|--------------------|------------------------------------------------------------|--------|
|                                                                                                                                            |   | April                  8,                             |   |               | April                  9,                                  |   |   | April                  8, |   |   | April                  9, |   |
|                                                                                                                                            |   | 2009                                                  |   |               | 2008                                                       |   |   | 2009 |   |   | 2008 |   |
| Revenues:                                                                                                                                       |   |                                                  |   |               |                                                       |   |   |   |   |   |   |   |
| Net                  sales                                                                                                                      |   |                                                  | 99.4   | %                  |                                                       |   | 99.4 | % |   |   | 99.4 | % |   |   | 99.4 | % |
| Franchise                  fees                                                                                                                 |   |                                                  | 0.6    | %                  |                                                       |   | 0.6 | % |   |   | 0.6 | % |   |   | 0.6 | % |
| Total                  revenues                                                                                                                 |   |                                                  | 100.0  | %                  |                                                       |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |
|                                                                                                                                            |   |                                                  |   |               |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Costs                  and                  Expenses:                                                                                           |   |                                                  |   |               |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Cost                  of                  sales  (1)                                                                                  |   |                                                  | 24.3   | %                  |                                                       |   | 25.1 | % |   |   | 24.4 | % |   |   | 24.7 | % |
| Restaurant                  operating costs                  (1)                                                                                |   |                                                  | 54.0   | %                  |                                                       |   | 55.0 | % |   |   | 55.3 | % |   |   | 55.4 | % |
| General                  and                  administrative                                                                                    |   |                                                  | 5.7    | %                  |                                                       |   | 7.4 | % |   |   | 6.1 | % |   |   | 7.5 | % |
| Depreciation                  and                  amortization                                                                                 |   |                                                  | 5.0    | %                  |                                                       |   | 5.5 | % |   |   | 5.3 | % |   |   | 5.5 | % |
| Marketing                                                                                                                                       |   |                                                  | 5.2    | %                  |                                                       |   | 5.4 | % |   |   | 5.4 | % |   |   | 5.0 | % |
| Interest                                                                                                                                        |   |                                                  | 2.1    | %                  |                                                       |   | 2.2 | % |   |   | 2.4 | % |   |   | 2.3 | % |
| Rent                                                                                                                                            |   |                                                  | 2.5    | %                  |                                                       |   | 2.4 | % |   |   | 2.6 | % |   |   | 2.4 | % |
| Pre-opening                  costs                                                                                                              |   |                                                  | 0.0    | %                  |                                                       |   | 0.4 | % |   |   | 0.0 | % |   |   | 0.3 | % |
| Asset                  impairments and provision                  for  restaurant                  closing                                 |   |                                                  | 0.4    | %                  |                                                       |   | 0.0 | % |   |   | 0.3 | % |   |   | 0.0 | % |
| Loss                  (gain) on disposal of                  property                                                                           |   |                                                  | 0.0    | %                  |                                                       |   | 0.2 | % |   |   | (0.0 | )                % |   |   | 0.0 | % |
| Other                  income,                  net                                                                                             |   |                                                  | (0.2   | )                % |                                                       |   | (0.3 | )                % |   |   | (0.1 | )                % |   |   | (0.3 | )                % |
|                                                                                                                                            |   |                                                  |   |               |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                  (Loss) Before Income                  Taxes                                                                           |   |                                                  | 1.4    | %                  |                                                       |   | (2.7 | )                % |   |   | (1.1 | )                % |   |   | (2.3 | )                % |
|                                                                                                                                            |   |                                                  |   |               |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Income                  Taxes                                                                                                                   |   |                                                  | 0.2    | %                  |                                                       |   | (1.2 | )                % |   |   | (0.7 | )                % |   |   | (1.1 | )                % |
|                                                                                                                                            |   |                                                  |   |               |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Net                  Earnings                  (Loss)                                                                                           |   |                                                  | 1.2    | %                  |                                                       |   | (1.5 | )                % |   |   | (0.4 | )                % |   |   | (1.2 | )                % |
|                                                                                                                                            |   |                                                  |   |               |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| (1)                  Cost of sales and restaurant                  operating costs are expressed as a percentage of net                  sales. |   |

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| ·   | the                success of our plan                to increase                store                traffic on a profitable                basis; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | competition                in the restaurant industry for guests, staff, locations, and new                products; |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | disruptions                in the overall economy and the financial                markets; |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | our                ability to comply with the restrictions and covenants to our debt                agreements; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | declines                in the market price of our common stock, which could adversely affect                our                goodwill impairment analysis; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                potential to recognize additional impairment charges on our long-lived                assets; |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | fluctuations                in food commodity                and energy                prices and                the                availability of food                commodities; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                ability of our franchisees to                operate profitable                restaurants; |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | the                poor performance or closing of                even a small number of                restaurants; |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | changes                in guest preferences,                tastes, and                dietary                habits; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | changes                in minimum wage rates                and the availability                and cost of                qualified personnel; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | harsh                weather conditions or losses                due to casualties; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | unfavorable                publicity relating to                food safety or food-borne                illness; |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | exposure                to liabilities related to                the ownership and leasing of significant amounts of real                estate; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                ability to comply with                existing and future governmental                regulations; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | our                ability to adequately protect                our trademarks, service marks, and                other components of our brand;                and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | other                risks identified in the                periodic reports we file with the Securities and Exchange                Commission. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

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ITEM      3.

ITEM      4. 

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PART      II.

ITEM        1.

ITEM        1A.

ITEM      6.

| Exhibit                  Number                                                                                                                              |   | Description                                                                                                                                                                                                                                                                                  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.01*                                                                                                                                                       |   | Separation                    Agreement between the Steak n Shake Company and David C. Milne (incorporated                    by reference to                    Exhibit 10.1 to the Registrant's Current Report on Form 8-K dated                    February                    17, 2009 ) |
|                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                         |
| 31.01                                                                                                                                                        |   | Rule                  13(a)-14(a)/15d-14(a)                  Certification of Chief Executive Officer                                                                                                                                                                                        |
|                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                         |
| 31.02                                                                                                                                                        |   | Rule                  13(a)-14(a)/15d-14(a)                  Certification of Chief Financial Officer                                                                                                                                                                                        |
|                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                         |
| 32.01                                                                                                                                                        |   | Section                  1350                  Certifications                                                                                                                                                                                                                                |
|                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                         |
| *                  Indicates management contract or                  compensatory plans or arrangements required to be filed as an                  Exhibit. |

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Pursuant

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