Name: Biglari Holdings Inc. Q2 2025 Earnings Call
Start: 2025-08-08T00:00:00.000Z

Executive Summary

Q2 2025 net earnings were $50.93M, a sharp swing from a $(48.19)M loss in Q2 2024, driven primarily by $58.50M of investment partnership gains; pre-tax operating earnings fell to $3.67M from $19.70M YoY as core operations moderated .
Revenue rose 10.4% YoY to $100.62M, aided by Steak n Shake’s same‑store sales growth of 10.7% and higher franchise partner fees; sequential revenue increased vs Q1 2025 ($95.04M*) .
EPS per average equivalent Class A share was $194.57 vs $(171.89) YoY as investment partnership gains and tax expense dynamics dominated reported results; company continues to emphasize non‑GAAP pre‑tax operating earnings for operating trend analysis .
No formal guidance or earnings call transcript was filed; narrative catalysts are the 10.7% same‑store sales growth, the sizeable investment partnership gains, increased marketing spend for new product/payment promotion, and ongoing internal control remediation .

What Went Well and What Went Wrong

What Went Well
- Steak n Shake delivered 10.7% same‑store sales growth across company and franchise‑partner restaurants, indicating strong demand and execution (“In the second quarter of 2025, Steak n Shake’s same-store sales… increased by 10.7%.”) .
- Consolidated revenue increased 10.4% YoY to $100.62M, with restaurant net sales up 14.8% and franchise partner fees higher despite fewer open units .
- Investment partnership gains of $58.50M (vs $(79.89)M YoY) materially boosted net earnings and book value progress; the company’s cash from operations rose to $57.94M in 1H25, supported by $35.00M distributions from partnerships .
What Went Wrong
- Pre‑tax operating earnings declined to $3.67M in Q2 2025 from $19.70M in Q2 2024, reflecting higher SG&A (marketing +2.4ppt of revenue) and impairments in restaurants .
- Oil & Gas segment EBT fell to $1.12M from $17.35M YoY as prior‑year property sale gains did not repeat; depletion rose and commodity prices remained volatile .
- Internal controls remained a material weakness; disclosure controls were “not effective” as remediation is still in progress, an ongoing governance overhang .

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD thousands)	$91,141	$95,035*	$100,619
Net Earnings ($USD thousands)	$(48,190)	$(33,275)	$50,931
EPS per average equivalent Class A share ($)	$(171.89)	N/A	$194.57
Pre‑tax Operating Earnings ($USD thousands)	$19,704	$9,994	$3,673
Investment Partnership Gains/Losses ($USD thousands)	$(79,890)	$8,912	$58,504
EBITDA ($USD thousands)	$15,052*	$13,161*	$16,494*

Note: Values retrieved from S&P Global for starred metrics (*).

Segment breakdown (Revenue, EBT) — focus on Q2 YoY:

Segment	Q2 2024 Revenue ($000)	Q2 2025 Revenue ($000)	Q2 2024 EBT ($000)	Q2 2025 EBT ($000)
Restaurants (Steak n Shake + Western Sizzlin)	$64,475	$72,011	$5,765	$6,435
Insurance (total)	$17,694	$18,823	$1,850	$1,793
Oil & Gas (total)	$8,671	$7,498	$17,351	$1,117
Brand Licensing (Maxim)	$301	$2,287	$(255)	$(267)
Investment Partnerships (EBT only)	—	—	$(79,890)	$58,504
Investment gains (EBT only)	—	—	$(2,729)	$2,925

KPIs:

KPI	Q2 2024	Q2 2025
Steak n Shake same‑store sales YoY	N/A	+10.7%
Total restaurants (company + franchise + Western Sizzlin)	477	449
Franchise partner units (Steak n Shake)	182	174
Traditional franchise units (Steak n Shake)	120	100
Restaurant net sales ($000)	$40,815	$46,858
Franchise partner fees ($000)	$18,149	$20,150
Rental income in franchise partner fees ($000)	$5,780	$5,887
Labor cost as % of company‑operated net sales	31.8%	29.9%

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated revenue, margins, EPS, segment guidance	FY/Q2 2025	None provided	None provided	Maintained “no formal guidance” posture (company does not issue quarterly guidance)

Note: No earnings call transcript was filed for Q2 2025; themes reflect 8‑K/10‑Q commentary .

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Operating vs investment results emphasis	Company separates pre‑tax operating earnings from investment gains/losses to analyze businesses	Same framing; reiterates investment volatility and focus on operating businesses	Unchanged
Steak n Shake demand	Limited prior commentary in releases	Same‑store sales +10.7%; net sales +14.8%; labor % improved	Improving demand/efficiency
Marketing and payments	Not highlighted	Marketing up to 6.8% of revenue for promotions/new payment methods	Investment in growth
Oil & gas portfolio actions	Prior year had large gains on property sales	Lower EBT as prior‑year sale gains did not repeat; depletion up; price volatility noted	Normalizing; volatile
Tax/regulatory	N/A	New “One Big Beautiful Bill Act” restores 100% bonus depreciation and interest limitation rules	Favorable for capex/accounting
Internal controls	N/A	Disclosure controls “not effective”; remediation ongoing	Work-in-progress

“In the second quarter of 2025, Steak n Shake’s same-store sales for company and franchise-partner restaurants each increased by 10.7%.”
“We do not regard the quarterly or annual fluctuations in our investments to be meaningful. Therefore, our operating businesses are best analyzed before the impact of investment gains.”
“Marketing expenses increased during 2025 compared to 2024 primarily due to promotions of new products and new methods of payments.”
“The Company recorded $1,251 of impairment charges in the second quarter of 2025… related to underperforming stores.”
“Income tax expense… variance… attributable to taxes on income generated by the investment partnerships.”
“The One Big Beautiful Bill Act… makes permanent certain expiring provisions… including 100% bonus depreciation and the business interest expense limitation.”

No public earnings call transcript filed for Q2 2025; no Q&A disclosures available in SEC filings .

Wall Street consensus coverage appears unavailable for BH‑A this quarter; S&P Global did not return consensus means for EPS or revenue (# of estimates fields empty). Actual revenue and EBITDA used above where available from S&P Global are starred; consensus comparison not applicable this quarter. Values retrieved from S&P Global.*

Operating momentum in restaurants: Steak n Shake’s same‑store sales +10.7% and improved labor intensity drove better restaurant EBT despite higher marketing, supporting the refranchising model’s profit share thesis .
Reported earnings highly sensitive to investment partnership marks: $58.50M gains in Q2 flipped net earnings positive; management cautions against over‑interpreting these fluctuations for operating analysis .
Oil & gas normalization: segment EBT fell as last year’s large property sale gains did not recur; depletion rising and price volatility persists, tempering upside from this segment .
Liquidity intact: 1H25 operating cash flow surged to $57.94M, aided by $35.00M partnership distributions; line of credit balances reduced, improving flexibility .
Governance watch: internal control material weaknesses continue; remediation efforts are ongoing and require time to validate effectiveness—an overhang to monitor .
Near‑term narrative drivers: sustained same‑store sales strength, marketing investment payoffs, any further asset monetizations (oil & gas), and investment partnership performance will dictate quarter‑to‑quarter EPS volatility .
With limited Street coverage and no formal guidance, focus on segment EBT trends, store count mix shifts (company‑operated vs franchise partner), and cost structure changes to assess intrinsic trajectory .