professional opportunities orientation program the steak n shake company jim stehlik - manager -...

Professional Opportunities Professional Opportunities Orientation ProgramOrientation Program

The Steak n The Steak n Shake Shake

CompanyCompany

Jim Stehlik - Manager - Financial ServicesJim Stehlik - Manager - Financial Services

Theresa McDaniel - Financial AnalystTheresa McDaniel - Financial Analyst

The Steak n Shake CompanyThe Steak n Shake Company

• Headquartered in downtown IndianapolisHeadquartered in downtown Indianapolis

• NYSE - Symbol - “SNS”NYSE - Symbol - “SNS”

• High growth, small cap company High growth, small cap company - S&P 600 Small Cap Index - S&P 600 Small Cap Index - Rated 14th best small company by - Rated 14th best small company by ForbesForbes

• Brand has tripled in size in past decadeBrand has tripled in size in past decade

• EW Kelley - Chairman of the Board since 1984EW Kelley - Chairman of the Board since 1984

The Steak n Shake CompanyThe Steak n Shake Company• Total units: 385 todayTotal units: 385 today

• FY 2000 System-wide sales: $500 millionFY 2000 System-wide sales: $500 million

• Current sources of financing for expansion:Current sources of financing for expansion:– Cash flow from operationsCash flow from operations– $75 million senior note/private shelf agreement$75 million senior note/private shelf agreement– $30 million unsecured revolving line of credit$30 million unsecured revolving line of credit– $20 million per year from sale/leasebacks$20 million per year from sale/leasebacks– Stock offerings based on market conditionsStock offerings based on market conditions

Development StrategyDevelopment Strategy

- Controlled Expansion

- New market areas contiguous to existing markets identified

- Open sufficient number of stores in newer markets to afford proper TV weights

Development AreasDevelopment AreasExisting Markets New MarketsCincinnati Broward, Dade and Palm

Orlando Beach Counties in Florida Tampa Kansas City

Dayton Pittsburgh

Jacksonville Dallas

Cleveland

Finance DepartmentFinance Department

Finance FunctionFinance Function• Revenue and earnings projections Revenue and earnings projections

– Period, Quarter, Fiscal Year, 3 Year, 12 yearPeriod, Quarter, Fiscal Year, 3 Year, 12 year– Used by Execs, Board, Outside AnalystsUsed by Execs, Board, Outside Analysts

• Cash Flow and Financing Alternatives Cash Flow and Financing Alternatives • Planning - Coordinate semi-annual budgetPlanning - Coordinate semi-annual budget• Multi-functional analysis - real estate, Multi-functional analysis - real estate,

marketing, operations, constr, legal, HRmarketing, operations, constr, legal, HR• Asset and capital managementAsset and capital management• Forward lookingForward looking

Cross Functional Support and ExperienceCross Functional Support and Experience• Marketing Marketing

– Evaluation of Media Proposals and Results (TV/Radio)Evaluation of Media Proposals and Results (TV/Radio)

– Menu AnalysisMenu Analysis

– Effects of Advertising Programs - Coupons…etcEffects of Advertising Programs - Coupons…etc

• OperationsOperations– Sales and Profitability - Benchmarks (Over/Under performers)Sales and Profitability - Benchmarks (Over/Under performers)

– Bi - weekly Labor analysis by division and storeBi - weekly Labor analysis by division and store

• ConstructionConstruction - Replace vs. Repair- Replace vs. Repair

• LegalLegal - Eminent Domain- Eminent Domain

• Human ResourcesHuman Resources– Insurance PlansInsurance Plans

– Stock Purchase PlanStock Purchase Plan

– Lease/Buy Company VehiclesLease/Buy Company Vehicles

– Cost/Benefit of HR Information SystemCost/Benefit of HR Information System

Proactive AnalysesProactive Analyses

• Exception Reporting / Trend AnalysisException Reporting / Trend Analysis

• Drive Thru Efficiency Study and RecommendationsDrive Thru Efficiency Study and Recommendations

• New Market Studies (Currently Texas)New Market Studies (Currently Texas)

• Division Structure AnalysisDivision Structure Analysis

• Impact of Modified Marketing EffortsImpact of Modified Marketing Efforts

Pickle FrontPickle Front

BeforeBefore

AfterAfter

Before & AfterBefore & After

Finance DepartmentFinance Department

• Today - small by design:Today - small by design:

M anager Senior Analyst Financial Analyst

V ice President

• But Growing & Evolving...But Growing & Evolving...

Analyst Analyst

Labor Control

Analyst

System s

M gr - Operations Analysis

Analyst

T reasury

Analyst

Planning

Analyst

Analysis

M gr. - Corporate Finance Others???

Vice President

Career PathCareer Path• Finance Department Finance Department

– Intern, analyst, senior analyst, manager - Intern, analyst, senior analyst, manager - train your replacementtrain your replacement– Executive interaction and exposureExecutive interaction and exposure– Background and experience creates opportunity Background and experience creates opportunity

• Executive Development - EW Kelley InfluenceExecutive Development - EW Kelley Influence– Emphasis on learning and management developmentEmphasis on learning and management development– Examples:Examples:

• Director of Financial Planning promoted to VP of Financial Planning Director of Financial Planning promoted to VP of Financial Planning and Information Systems / Treasurerand Information Systems / Treasurer

• Controller promoted to Operations VP and Deputy National General Controller promoted to Operations VP and Deputy National General ManagerManager

• Staff attorney promoted to Director of Manager Development and Staff attorney promoted to Director of Manager Development and RecruitmentRecruitment

Financial AnalystFinancial Analyst• The problem solverThe problem solver

– Seeks the reasons behind the numbers in order to predict the Seeks the reasons behind the numbers in order to predict the futurefuture

– Forward lookingForward looking

• No protocol No protocol – Responsibilities tailored to the strengths and interests of the Responsibilities tailored to the strengths and interests of the

individualindividual

• Skill requirementsSkill requirements– Analytical & reasoningAnalytical & reasoning

– CommunicationCommunication

– InterpersonalInterpersonal

FINANCIAL PLANNINGFINANCIAL PLANNING

The Steak n Shake CompanyThe Steak n Shake Company

THANK YOU!!!THANK YOU!!!