How Does Biglari Company Work?

The restaurant segment is primarily driven by Steak n Shake and Western Sizzlin. As of December 31, 2024, Steak n Shake had 458 units, including company-operated and franchise locations. By June 30, 2025, both brands collectively operated 449 restaurants.

Steak n Shake's operational focus has shifted to a franchise partner program. This model requires a $10,000 upfront investment from franchisees, with fees up to 15% of sales and 50% of profits, fostering owner-operator engagement.

Insurance operations are managed through First Guard Insurance Company, specializing in commercial truck insurance via direct response marketing, and Southern Pioneer Property & Casualty Insurance Company, which focuses on property insurance through agents.

The oil and gas segment includes Southern Oil, managing offshore properties in Louisiana, and Abraxas Petroleum Corporation, focused on the Permian Basin. Brand licensing, primarily through Maxim Inc., is project-based and irregular.

The acquisition of Steak n Shake in 2008 was a foundational milestone, leading to a series of strategic purchases that diversified the company's portfolio. By 2023, the full acquisition of Abraxas Petroleum Corporation marked a significant expansion into the energy sector.

A major strategic initiative involves the refranchising of Steak n Shake locations, converting company-operated units to single-unit franchisees. This program, initiated around 2018, had resulted in 181 franchise partner units by the end of 2023, alongside operational enhancements like the removal of table service and the adoption of kiosks.

The company's competitive advantage is rooted in its flexible capital allocation strategy, enabling investment across various industries to maximize per-share intrinsic value. This diversified approach provides inherent resilience against sector-specific downturns.

Financial strength is bolstered by a $35 million line of credit maturing in 2026 and a new $75 million line of credit available until 2027. The company's focus on shareholder equity is evident in its 2024 treasury stock increase of $22,256 through repurchases, and the dual listing on NYSE Texas, effective August 15, 2025, aims to boost market visibility and trading efficiency.

Biglari Holdings Inc. occupies a unique niche as a diversified holding company, rather than a direct competitor in a single industry. Its portfolio includes restaurants, insurance, oil and gas, and brand licensing, allowing for capital allocation across varied economic landscapes.

The company faces risks from investment portfolio volatility, intense market competition, potential technological disruption, and general economic conditions. Regulatory changes and acquisition integration also present ongoing challenges.

Biglari Holdings plans to continue diversifying operations and enhancing financial flexibility. The company anticipates further capital investments, particularly in its oil and gas segment, and the ongoing transition of its restaurant segment to a franchise partner model.

Key strategic moves include the continuous search for sensible acquisitions to boost operating earnings and a recent dual listing on NYSE Texas, effective August 15, 2025, to improve liquidity and market visibility.