Biglari Holdings Inc is a holding company that owns subsidiaries in a range of businesses... Show more
Biglari Holdings Inc. (BH) operates as a diversified holding company with core exposure to the restaurant sector through Steak n Shake and Western Sizzlin, alongside insurance underwriting via First Guard and Southern Pioneer, oil & gas assets in Louisiana and the Permian Basin, and media licensing under Maxim. Steak n Shake, the largest segment, has evolved from a full-service diner to a streamlined quick-service model emphasizing steakburgers, fries, and shakes—now nearly 90% of sales. This simplification enhances operational efficiency and appeals to value-conscious consumers.
The franchise partner program represents a key competitive edge, transitioning company-operated units to owner-operators who invest $10,000 upfront and share up to 15% of sales plus 50% of profits. As of December 31, 2025, this yielded 179 partner units versus 131 company-operated, reducing capital intensity while leveraging entrepreneurial management. Western Sizzlin complements with buffet-style franchising. In insurance, BH focuses on niche commercial truck coverage, benefiting from steady demand. Oil & gas operations offer commodity upside, though volatile. This multi-segment structure positions BH for uncorrelated cash flows, though restaurants dominate revenue sensitivity.
Upcoming quarterly earnings, next on August 7, 2026, stand as primary catalysts, potentially validating Steak n Shake's sales trajectory amid franchise scaling. Recent filings noted Q4 2025 same-store sales growth over 15% across U.S. operations, signaling momentum into 2026. Continued franchise conversions could accelerate unit economics, with partners generating 70% of store-level cash flows in 2025.
Capital allocation decisions loom large: BH's $225 million note payable to Steak n Shake (8.8% interest) funnels liquidity to the parent for investments, but deployment into acquisitions or buybacks—amid shares trading below book value—could shift sentiment. No formal analyst consensus exists, with sources like Yahoo Finance showing zero coverage, leaving room for surprises in operating results.
Regulatory or partnership developments in insurance (e.g., trucker liability expansion) or oil (Permian drilling) may emerge, alongside potential Steak n Shake menu innovations like beef tallow fries to sustain traffic.
BH's restaurant-heavy model heightens sensitivity to consumer cyclicality. Declines in discretionary spending—tied to employment, inflation, and wage growth—could pressure traffic, as noted in SEC filings. Steak n Shake's value proposition (premium burgers at accessible prices) offers defense, evidenced by 10.2% same-store gains in 2025 despite sector weakness.
Higher interest rates elevate Steak n Shake's $223.9 million note payable burden (end-2025 balance), with rates near 9% squeezing margins amid fixed management labor. Insurance faces catastrophe risk and premium competition, while oil & gas swings with WTI prices (2025 average ~$94/barrel supported prior results). Broader trends like quick-service migration and digital ordering favor BH's kiosk-enabled, self-service pivot. Geopolitical energy shocks could boost upstream, but restaurant exposure dominates macro downside.
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In 2026, BH's trajectory hinges on Steak n Shake franchise maturation, targeting 20%+ pre-tax cash returns on capital through sales growth and cost discipline. Management's 2025 overhaul of operations, finance, and supply chain aims to stem unit closures (net reductions to 404 locations) while prioritizing owner-operator scalability. Insurance scalability via niche trucking coverage could yield steady float for investments, assuming benign catastrophe losses.
Oil & gas in the Permian offers leverage to energy transitions, though volatility persists. Long-term, margin sustainability via menu simplicity and tech (kiosks, POS) positions BH structurally, but competitive threats from fast-casual rivals loom. Capital priorities—deploying ~$225 million dry powder judiciously—may unlock value, especially below book value (~$2,059/Class A share end-2025). Absent analyst targets, focus remains on verifiable execution amid macro headwinds.
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a diversified holding company engaged in the franchising and operating of restaurants, provision of insurance services, media distribution, and other business activities
Industry Restaurants
A.I.dvisor indicates that over the last year, BH has been loosely correlated with CAKE. These tickers have moved in lockstep 38% of the time. This A.I.-generated data suggests there is some statistical probability that if BH jumps, then CAKE could also see price increases.
The 10-day moving average for BH crossed bullishly above the 50-day moving average on June 11, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 26, 2026. You may want to consider a long position or call options on BH as a result. In of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BH just turned positive on May 21, 2026. Looking at past instances where BH's MACD turned positive, the stock continued to rise in of 39 cases over the following month. The odds of a continued upward trend are .
BH moved above its 50-day moving average on June 08, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where BH advanced for three days, in of 302 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 285 cases where BH Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BH declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BH broke above its upper Bollinger Band on June 11, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BH’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.029) is normal, around the industry mean (5.889). BH has a moderately high P/E Ratio (142.336) as compared to the industry average of (40.640). BH's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (1.690). BH has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.029). P/S Ratio (2.648) is also within normal values, averaging (2.040).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.