-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0000921895-08-002911.txt : 20081120
<SEC-HEADER>0000921895-08-002911.hdr.sgml : 20081120
<ACCEPTANCE-DATETIME>20081120160858
ACCESSION NUMBER:		0000921895-08-002911
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20081119
FILED AS OF DATE:		20081120
DATE AS OF CHANGE:		20081120

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			BIGLARI, SARDAR
		CENTRAL INDEX KEY:			0001334430

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-08445
		FILM NUMBER:		081204045

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		(210) 344-3400

	MAIL ADDRESS:	
		STREET 1:		9311 SAN PEDRO AVENUE, SUITE 1440
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78216

	FORMER NAME:	
		FORMER CONFORMED NAME:	Biglari Sardar
		DATE OF NAME CHANGE:	20050727

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			STEAK & SHAKE CO
		CENTRAL INDEX KEY:			0000093859
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-EATING PLACES [5812]
		IRS NUMBER:				370684070
		STATE OF INCORPORATION:			IN
		FISCAL YEAR END:			0924

	BUSINESS ADDRESS:	
		STREET 1:		36 S PENNSYLVANIA ST
		STREET 2:		CENTURY BLDG - 500
		CITY:			INDIANAPOLIS
		STATE:			IN
		ZIP:			46236
		BUSINESS PHONE:		3176334100

	MAIL ADDRESS:	
		STREET 1:		36 S PENNSYLVANIA ST
		STREET 2:		CENTURY BLDG - 500
		CITY:			INDIANAPOLIS
		STATE:			IN
		ZIP:			46204

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CONSOLIDATED PRODUCTS INC /IN/
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	STEAK N SHAKE INC
		DATE OF NAME CHANGE:	19840529

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			WESTERN SIZZLIN CORP
		CENTRAL INDEX KEY:			0000930686
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-EATING PLACES [5812]
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-08445
		FILM NUMBER:		081204044

	BUSINESS ADDRESS:	
		STREET 1:		317 KIMBALL AVENUE NW
		CITY:			ROANOKE
		STATE:			VA
		ZIP:			24016
		BUSINESS PHONE:		5403453195

	MAIL ADDRESS:	
		STREET 1:		317 KIMBALL AVENUE NW
		CITY:			ROANOKE
		STATE:			VA
		ZIP:			24016

	FORMER NAME:	
		FORMER CONFORMED NAME:	AUSTINS STEAKS & SALOON INC
		DATE OF NAME CHANGE:	19940929

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			LION FUND, L.P.
		CENTRAL INDEX KEY:			0001334426
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-08445
		FILM NUMBER:		081204047

	BUSINESS ADDRESS:	
		STREET 1:		9311 SAN PEDRO AVENUE, SUITE 1440
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78216
		BUSINESS PHONE:		210-344-3400

	MAIL ADDRESS:	
		STREET 1:		9311 SAN PEDRO AVENUE, SUITE 1440
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78216

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			BIGLARI CAPITAL CORP.
		CENTRAL INDEX KEY:			0001334429
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-08445
		FILM NUMBER:		081204046

	BUSINESS ADDRESS:	
		STREET 1:		9311 SAN PEDRO AVENUE, SUITE 1440
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78216
		BUSINESS PHONE:		(210) 344-3400

	MAIL ADDRESS:	
		STREET 1:		9311 SAN PEDRO AVENUE, SUITE 1440
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78216

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Western Investments Inc.
		CENTRAL INDEX KEY:			0001422110

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-08445
		FILM NUMBER:		081204042

	BUSINESS ADDRESS:	
		STREET 1:		416 SOUTH JEFFERSON STREET, SUITE 600
		CITY:			ROANOKE
		STATE:			VA
		ZIP:			24011
		BUSINESS PHONE:		(540) 345-3195

	MAIL ADDRESS:	
		STREET 1:		416 SOUTH JEFFERSON STREET, SUITE 600
		CITY:			ROANOKE
		STATE:			VA
		ZIP:			24011

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Western Acquisitions L.P.
		CENTRAL INDEX KEY:			0001422112

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-08445
		FILM NUMBER:		081204043

	BUSINESS ADDRESS:	
		STREET 1:		416 SOUTH JEFFERSON STREET, SUITE 600
		CITY:			ROANOKE
		STATE:			VA
		ZIP:			24011
		BUSINESS PHONE:		(540) 345-3195

	MAIL ADDRESS:	
		STREET 1:		416 SOUTH JEFFERSON STREET, SUITE 600
		CITY:			ROANOKE
		STATE:			VA
		ZIP:			24011
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>the54.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-11-19</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000093859</issuerCik>
        <issuerName>STEAK &amp; SHAKE CO</issuerName>
        <issuerTradingSymbol>SNS</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001334426</rptOwnerCik>
            <rptOwnerName>LION FUND, L.P.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>9311 SAN PEDRO AVENUE, SUITE 1440</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SAN ANTONIO</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>78216</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001334429</rptOwnerCik>
            <rptOwnerName>BIGLARI CAPITAL CORP.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O THE LION FUND L.P.</rptOwnerStreet1>
            <rptOwnerStreet2>9311 SAN PEDRO AVENUE, SUITE 1440</rptOwnerStreet2>
            <rptOwnerCity>SAN ANTONIO</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>78216</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001334430</rptOwnerCik>
            <rptOwnerName>BIGLARI, SARDAR</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O THE LION FUND L.P.</rptOwnerStreet1>
            <rptOwnerStreet2>9311 SAN PEDRO AVENUE, SUITE 1440</rptOwnerStreet2>
            <rptOwnerCity>SAN ANTONIO</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>78216</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000930686</rptOwnerCik>
            <rptOwnerName>WESTERN SIZZLIN CORP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1338 PLANTATION ROAD</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>ROANOKE</rptOwnerCity>
            <rptOwnerState>VA</rptOwnerState>
            <rptOwnerZipCode>24012</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001422112</rptOwnerCik>
            <rptOwnerName>Western Acquisitions L.P.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1338 PLANTATION ROAD</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>ROANOKE</rptOwnerCity>
            <rptOwnerState>VA</rptOwnerState>
            <rptOwnerZipCode>24012</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001422110</rptOwnerCik>
            <rptOwnerName>Western Investments Inc.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1338 PLANTATION ROAD</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>ROANOKE</rptOwnerCity>
            <rptOwnerState>VA</rptOwnerState>
            <rptOwnerZipCode>24012</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, par value $.50</value>
            </securityTitle>
            <transactionDate>
                <value>2008-11-19</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>5000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>3.1211</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>984200</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F1"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value></value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock, par value $.50</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1553545</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                    <footnoteId id="F1"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By Western Acquisitions L.P.</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Each of the Reporting Persons is a member of a Section 13(d) group with respect to the securities of the Issuer that beneficially owns in excess of 10% of the Issuer's outstanding shares of Common Stock.  As members of the group, each of the Reporting Persons may be deemed to beneficially own the securities of the Issuer beneficially owned by the other members of the group.  The Reporting Persons disclaim beneficial ownership of the securities of the Issuer beneficially owned by the other members of the group except to the extent of his or its pecuniary interest therein.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>By: The Lion Fund L.P., By: Biglari Capital Corp., General Partner, By: Sardar Biglari, Chief Executive Officer</signatureName>
        <signatureDate>2008-11-20</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>By: Biglari Capital Corp., By: Sardar Biglari, Chief Executive Officer</signatureName>
        <signatureDate>2008-11-20</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Biglari, Sardar</signatureName>
        <signatureDate>2008-11-20</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>By: Western Sizzlin Corp., By: Sardar Biglari, Chief Executive Officer</signatureName>
        <signatureDate>2008-11-20</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>By: Western Acquisitions L.P., By: Western Investments Inc., General Partner, By: Sardar Biglari, Chief Executive Officer</signatureName>
        <signatureDate>2008-11-20</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>By: Western Investments Inc., By: Sardar Biglari, Chief Executive Officer</signatureName>
        <signatureDate>2008-11-20</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----