Biglari Holdings Inc. (BH) Bundle
A Brief History of Biglari Holdings Inc.
Biglari Holdings Inc. has undergone significant transformations since its inception, with a focus on creating value through its diversified business model. The company operates multiple businesses, including restaurant chains and an investment portfolio.
Financial Performance Overview
As of September 30, 2024, Biglari Holdings reported total assets of $865,116 thousand, up from $849,422 thousand at the end of 2023. The company’s current assets were valued at $165,219 thousand, compared to $152,551 thousand in the prior year.
Revenue and Earnings
For the first nine months of 2024, Biglari Holdings generated net sales of $119,210 thousand, reflecting a 3.1% increase from $115,613 thousand in the same period of 2023. The net earnings for the first nine months of 2024 were $6,514 thousand, a decrease from $10,899 thousand year-over-year.
| Metric | 2024 (First Nine Months) | 2023 (First Nine Months) |
|---|---|---|
| Net Sales | $119,210 thousand | $115,613 thousand |
| Net Earnings | $6,514 thousand | $10,899 thousand |
Cost Structure
The cost of food at company-operated restaurants was $35,549 thousand, accounting for 29.8% of net sales, while labor costs totaled $38,694 thousand or 32.5% of net sales for the first nine months of 2024. These percentages indicate a slight increase compared to the previous year, where food costs were 29.4% and labor costs were 31.2%.
Franchise Operations
Biglari Holdings operates a franchise model with 177 units as of September 30, 2024, down from 181 units in 2023. Franchise royalties and fees during the first nine months of 2024 were $10,534 thousand compared to $12,456 thousand in 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Franchise Units | 177 | 181 |
| Franchise Royalties and Fees | $10,534 thousand | $12,456 thousand |
Investment Performance
Investment gains for the first nine months of 2024 amounted to $4,740 thousand, contrasting with losses of $4,715 thousand in the same period of 2023. The total fair value of interests in investment partnerships was reported at $491,589 thousand as of September 30, 2024.
Cash Flow Analysis
Net cash provided by operating activities for the first nine months of 2024 was $31,665 thousand, a decrease from $48,676 thousand in 2023. The cash used in investing activities was $34,916 thousand, compared to $56,226 thousand in the previous year.
| Cash Flow Metric | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $31,665 thousand | $48,676 thousand |
| Net Cash Used in Investing Activities | $34,916 thousand | $56,226 thousand |
Conclusion on Financial Health
Biglari Holdings maintains a robust financial structure with significant liquidity, evidenced by a total cash and investments balance of $624,382 thousand as of September 30, 2024. The company continues to navigate challenges while pursuing growth opportunities across its various business segments.
A Who Owns Biglari Holdings Inc. (BH)
Ownership Structure
As of September 30, 2024, Sardar Biglari beneficially owns approximately 71.5% of the voting interest in Biglari Holdings Inc. (BH).
Shareholder Composition
The ownership is divided into Class A and Class B common stock. The following table outlines the shares authorized, issued, and outstanding:
| Share Class | Authorized | Issued and Outstanding |
|---|---|---|
| Class A | 500,000 | 206,864 |
| Class B | 10,000,000 | 2,068,640 |
Investment Partnerships
Biglari Holdings has significant ownership interests in investment partnerships. As of September 30, 2024:
- Biglari Holdings’ ownership interest in The Lion Fund, L.P. is 90.2%.
- Biglari Holdings’ ownership interest in The Lion Fund II, L.P. is 87.8%.
Financial Performance of Investment Partnerships
The following table summarizes the financial information for The Lion Fund, L.P. and The Lion Fund II, L.P. as of September 30, 2024:
| Partnership | Total Assets | Total Liabilities | Revenue (First 9 Months 2024) | Earnings (Loss) (First 9 Months 2024) |
|---|---|---|---|---|
| Lion Fund | $372,605 | $22,447 | $(1,940) | $(3,233) |
| Lion Fund II | $382,895 | $183,055 | $(630) | $(9,261) |
Company's Total Assets and Liabilities
As of December 31, 2023, Biglari Holdings Inc. reported:
- Total Assets: $865,116
- Total Liabilities: $263,353
Shareholder Equity
The composition of shareholder equity as of September 30, 2024 is detailed below:
| Component | Value |
|---|---|
| Common Stock | $1,138 |
| Additional Paid-in Capital | $385,594 |
| Retained Earnings | $637,972 |
| Accumulated Other Comprehensive Loss | $(2,179) |
| Treasury Stock, at Cost | $(420,762) |
| Total Shareholders' Equity | $601,763 |
Recent Financial Performance
For the first nine months of 2024, Biglari Holdings reported:
- Net Earnings: $6,514
- Net Earnings per Equivalent Class A Share: $23.15
Biglari Holdings Inc. (BH) Mission Statement
Mission Overview
Biglari Holdings Inc. aims to operate and manage a diversified portfolio of businesses with a focus on long-term value creation. The company emphasizes a strategy centered around disciplined capital allocation, operational excellence, and a commitment to shareholder value.
Core Values
- Integrity: Conducting business ethically and transparently.
- Innovation: Embracing new ideas and technologies to improve operations.
- Excellence: Striving for high standards in all aspects of the business.
- Value Creation: Focusing on sustainable growth and profitability.
Financial Performance Indicators
As of September 30, 2024, Biglari Holdings reported the following key financial metrics:
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Net Sales | $119,210 | $115,613 |
| Net Earnings | $32,125 | ($56,514) |
| Total Assets | $865,116 | $849,422 |
| Total Liabilities | $263,353 | $250,092 |
| Cash and Cash Equivalents | $29,891 | $28,066 |
| Investments | $102,902 | $91,879 |
Business Segments
Biglari Holdings operates through several key business segments, including:
- Restaurants: Steak n Shake and Western Sizzlin, comprising 468 company-operated and franchise restaurants as of September 30, 2024.
- Insurance: Biglari Reinsurance, First Guard, and Southern Pioneer, focusing on underwriting and investment activities.
- Investments: Managing a portfolio of equity securities and partnerships, contributing to significant investment gains.
Recent Developments
In the third quarter of 2024, Biglari Holdings reported a notable increase in Steak n Shake’s same-store sales by 5.4%. Additionally, the company's strategic transition from company-operated units to franchise partnerships continues to influence revenue generation.
Investment Partnerships Performance
Summarized financial information for Biglari Holdings' investment partnerships as of September 30, 2024:
| Partnership | Total Assets | Total Liabilities | Revenue (9M 2024) | Earnings (9M 2024) |
|---|---|---|---|---|
| Lion Fund | $372,605 | $22,447 | ($1,940) | ($3,233) |
| Lion Fund II | $382,895 | $183,055 | ($630) | ($9,261) |
Shareholder Value Commitment
Biglari Holdings is committed to enhancing shareholder value through strategic investments and operational improvements. The company’s performance metrics reflect this focus, with net earnings attributable to shareholders at $32,125 for the third quarter of 2024, a significant recovery from the previous year's loss.
How Biglari Holdings Inc. (BH) Works
Overview of Biglari Holdings Inc.
Biglari Holdings Inc. operates primarily through its restaurant and investment segments, which include Steak n Shake and Western Sizzlin, alongside its investment partnerships.
Financial Performance Metrics
As of the third quarter of 2024, Biglari Holdings reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Sales | $39,660 | $39,195 | $119,210 | $115,613 |
| Net Earnings (Loss) | $32,125 | ($56,514) | $6,514 | $10,899 |
| Comprehensive Income (Loss) | $32,613 | ($56,800) | $6,853 | $10,623 |
| Cash and Cash Equivalents | $29,891 | $33,993 | ||
| Total Assets | $865,116 | $849,422 |
Restaurant Operations
Biglari Holdings operates 468 restaurants as of September 30, 2024. The breakdown includes:
| Type | Count |
|---|---|
| Steak n Shake Company-Operated | 143 |
| Steak n Shake Franchise Partner | 177 |
| Western Sizzlin Company-Operated | 3 |
| Western Sizzlin Franchise | 29 |
Revenue Streams
Revenue sources for the restaurant segment include:
| Source | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Franchise Partner Fees | $17,157 | $17,622 | $53,064 | $54,604 |
| Franchise Royalties and Fees | $3,442 | $4,073 | $10,534 | $12,456 |
| Other Revenue | $2,125 | $996 | $6,047 | $4,833 |
Cost Structure
Key costs associated with restaurant operations include:
| Cost Type | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Cost of Food | $12,218 | $11,888 | $35,549 | $34,038 |
| Labor Costs | $13,158 | $12,192 | $38,694 | $36,077 |
| General and Administrative Expenses | $10,355 | $10,720 | $35,101 | $31,973 |
Investment Operations
Biglari Holdings also engages in investment partnerships, with significant earnings and losses reported:
| Partnership | Q3 2024 Earnings (Losses) | Q3 2023 Earnings (Losses) | Year-to-Date 2024 Earnings (Losses) | Year-to-Date 2023 Earnings (Losses) |
|---|---|---|---|---|
| Lion Fund | $35,314 | ($89,599) | ($22,591) | ($24,507) |
| Total Investment Income | $3,706 | ($3,710) | $2,879 | ($569) |
Liquidity and Financial Position
Liquidity metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| Net Cash Provided by Operating Activities | $31,665 |
| Net Cash Used in Investing Activities | ($34,916) |
| Net Cash Provided by Financing Activities | $4,869 |
| Total Assets | $865,116 |
| Total Liabilities | $263,353 |
Debt and Credit Facilities
Biglari Holdings has a line of credit with a balance of $9,000 as of September 30, 2024. The interest rate on the line of credit was 7.71%.
How Biglari Holdings Inc. (BH) Makes Money
Restaurant Operations
Biglari Holdings operates two main restaurant brands: Steak n Shake and Western Sizzlin. As of September 30, 2024, the company had a total of 468 restaurants, comprising 143 company-operated Steak n Shake locations, 177 franchise partner units, and 116 traditional franchise units.
In the third quarter of 2024, the revenue from restaurant operations was $62,384 thousand, an increase from $61,886 thousand in the same period in 2023. For the first nine months of 2024, total revenues reached $188,855 thousand, compared to $187,506 thousand in the previous year.
| Metric | Q3 2024 | Q3 2023 | First Nine Months 2024 | First Nine Months 2023 |
|---|---|---|---|---|
| Net Sales | $39,660 | $39,195 | $119,210 | $115,613 |
| Franchise Partner Fees | $17,157 | $17,622 | $53,064 | $54,604 |
| Franchise Royalties and Fees | $3,442 | $4,073 | $10,534 | $12,456 |
| Other Revenue | $2,125 | $996 | $6,047 | $4,833 |
Insurance Operations
Biglari Holdings also generates revenue through its insurance operations, which include underwriting and investment income. In the third quarter of 2024, insurance premiums earned reached $18,247 thousand, compared to $16,624 thousand in Q3 2023. For the first nine months, premiums earned were $53,674 thousand in 2024 versus $50,400 thousand in 2023.
| Metric | Q3 2024 | Q3 2023 | First Nine Months 2024 | First Nine Months 2023 |
|---|---|---|---|---|
| Insurance Premiums Earned | $18,247 | $16,624 | $53,674 | $50,400 | Net Investment Income | $645 | $658 | $2,122 | $1,714 |
Oil and Gas Operations
Biglari Holdings' oil and gas segment also contributes to its revenue. In Q3 2024, oil and gas revenues were $9,574 thousand, down from $12,159 thousand in Q3 2023. For the first nine months of 2024, revenues totaled $27,755 thousand compared to $35,123 thousand in the same period in 2023.
| Metric | Q3 2024 | Q3 2023 | First Nine Months 2024 | First Nine Months 2023 |
|---|---|---|---|---|
| Oil and Gas Revenues | $9,574 | $12,159 | $27,755 | $35,123 |
| Production Costs | $4,425 | $3,771 | $13,206 | $12,754 |
Investment Gains
The company's investment partnerships also provide a significant source of income. In Q3 2024, Biglari Holdings recorded investment partnership gains of $35,314 thousand compared to a loss of $89,599 thousand in Q3 2023. For the first nine months of 2024, the losses were $22,591 thousand versus $24,507 thousand in the same period the previous year.
| Metric | Q3 2024 | Q3 2023 | First Nine Months 2024 | First Nine Months 2023 |
|---|---|---|---|---|
| Investment Partnership Gains (Losses) | $35,314 | ($89,599) | ($22,591) | ($24,507) |
Consolidated Financial Performance
Overall, Biglari Holdings reported a net earnings of $32,125 thousand in Q3 2024, a significant recovery from a net loss of $56,514 thousand in Q3 2023. For the first nine months of 2024, net earnings were $6,514 thousand compared to $10,899 thousand in the same period in 2023.
| Metric | Q3 2024 | Q3 2023 | First Nine Months 2024 | First Nine Months 2023 |
|---|---|---|---|---|
| Net Earnings (Loss) | $32,125 | ($56,514) | $6,514 | $10,899 |
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Updated on 16 Nov 2024
Resources:
- Biglari Holdings Inc. (BH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Biglari Holdings Inc. (BH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Biglari Holdings Inc. (BH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.