For the first quarter of fiscal 2007 that ended Dec. 20, samestore declined 1.7%, improving from a decline of 3.4% in the fourthquarter of fiscal 2006 but still came out "disappointing," PeterDunn, the company's president and chief executive officer, said.Dunn and other Steak 'N Shake officials discussed the results withfinancial analysts Wednesday during the company's quarterlyconference call.

In addition to sluggish same store sales, the 483-restaurantchain reported that net earnings declined to $4.2 million, or 15cents per diluted share, compared with $4.7 million and 17 centsper share last year. That was on revenues that rose 6.1% to $147.3million.

Dunn focused a significant portion of his discussion on the samestore sales issue, saying that improving those results is one ofthe company's highest priorities this year. On the other hand, Dunnsaid, although same store sales remained negative during thequarter, the company was "encouraged by the improvement since thefourth quarter of fiscal 2006," when the same store comparison wasnegative.