Biglari Holdings Inc. reported a significant decline in its financial performance for the first quarter of 2025, with a net loss of $33.3 million, compared to a net profit of $22.6 million in the same period of 2024. The company's total revenues increased to $95.0 million from $89.5 million year-over-year, driven primarily by growth in restaurant operations and insurance premiums. Restaurant revenues rose to $64.3 million, up from $62.0 million, while insurance premiums and other income increased to $19.3 million from $17.7 million. However, the company faced substantial losses from its investment partnerships, which contributed to the overall net loss.
The financial results reflect a notable shift in profitability, with earnings before income taxes plunging to a loss of $41.2 million from a profit of $29.4 million in the prior year. This downturn was largely attributed to investment partnership losses of $49.6 million, compared to gains of $22.0 million in the first quarter of 2024. The company also reported a decrease in retained earnings, which fell to $594.4 million from $627.7 million at the end of 2024.
Operationally, Biglari Holdings maintained a total of 454 restaurants as of March 31, 2025, with a slight reduction in franchise partner units. The company reported a decline in customer traffic at its company-operated units, despite a 3.9% increase in same-store sales. The cost of food and labor as a percentage of net sales increased, reflecting higher operational costs, particularly due to changes in food preparation methods and increased staffing.
Looking ahead, Biglari Holdings expressed cautious optimism regarding its restaurant operations, particularly as it continues to transition from company-operated units to a franchise model. The company is also focused on managing its investment portfolio more effectively to mitigate the volatility seen in recent quarters. Despite the challenges, management remains committed to improving operational efficiencies and enhancing shareholder value through strategic decisions and capital allocation.
About Biglari Holdings Inc.
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