Biglari Holdings Inc. Reports Q2 2024 Financial and Business Performance

Biglari Holdings Inc., a diversified holding company with interests in restaurants, insurance, and oil and gas operations, has released its Form 10-Q report for the second quarter of 2024. The report provides a detailed overview of the company's financial performance and operational highlights for the period.

Financial Highlights

• Total Revenues: $180.592 million, reflecting a slight decrease compared to $183.716 million in the first six months of 2023, primarily due to lower revenues from oil and gas operations.
• Net Earnings (Loss) Attributable to Biglari Holdings Inc. Shareholders: $(25.611) million, a significant decline from $66.822 million in the first six months of 2023, largely driven by substantial investment partnership losses.
• Net Earnings (Loss) Per Average Equivalent Class A Share: $(90.80), compared to $229.00 in the first six months of 2023, indicating a sharp decrease in earnings per share due to the net loss.
• Earnings (Loss) Before Income Taxes: $(33.520) million, down from $88.169 million in the first six months of 2023, primarily due to investment partnership losses and lower operating income.
• Income Tax Expense (Benefit): $(7.909) million, compared to an expense of $20.756 million in the first six months of 2023, reflecting the tax benefit from the pre-tax losses.

Business Highlights

• Revenue Segments: The restaurant operations, including Steak n Shake and Western Sizzlin, reported revenues of $64,475 for the second quarter of 2024, with Steak n Shake contributing $61,711 and Western Sizzlin $2,764. Insurance operations generated $17,694 in revenue, with First Guard and Southern Pioneer contributing $9,494 and $6,797 respectively. Oil and gas operations reported $8,671 in revenue, with Abraxas Petroleum and Southern Oil contributing $4,992 and $3,679 respectively.
• Sales Units: As of June 30, 2024, the company operated 477 restaurants, comprising 142 company-operated Steak n Shake stores and 120 traditional franchise units. The number of franchise partner units increased to 182 from 177 in the previous year.
• Future Outlook: The company plans to sell or lease 8 of the 15 closed Steak n Shake locations and refranchise the remaining balance. Management anticipates continued volatility in earnings due to investment partnership gains and losses.

SEC Filing: Biglari Holdings Inc. Reports Q2 2024 Financial and Business Performance [ NYSE:BH ] - 10-Q - Aug. 09, 2024