Biglari Holdings Inc. reported a net loss of $3.8 million for the fiscal year ending December 31, 2024, a significant decline from a net profit of $54.9 million in 2023. The company's total revenues decreased slightly to $362.1 million from $365.3 million in the previous year. The decline in profitability was attributed to substantial losses from investment partnerships, which amounted to $41.1 million, compared to gains of $19.4 million in 2023. The company's restaurant operations generated $251.4 million in revenue, a marginal increase from $250.9 million in 2023, while insurance premiums rose to $72.7 million from $67.3 million.
In terms of operational changes, Biglari Holdings saw a reduction in its restaurant footprint, closing ten company-operated Steak n Shake locations, resulting in a total of 146 company-operated units by the end of 2024. The company also transitioned several locations to franchise partnerships, with 173 franchise partner units and 107 traditional franchise units reported. The same-store sales for Steak n Shake increased by 6.4%, indicating a positive trend in customer engagement despite the overall decline in the number of company-operated restaurants.
The company’s insurance segment, which includes First Guard and Southern Pioneer, reported a net underwriting gain of $3.5 million, down from $6.7 million in 2023. Premiums written increased to $68.4 million, reflecting growth in the insurance business. However, the segment faced challenges with rising claims costs, particularly in commercial truck insurance, which impacted profitability. The oil and gas segment also experienced a decline in revenue, generating $36.9 million compared to $45.1 million in 2023, primarily due to lower production levels and reduced natural gas prices.
Looking ahead, Biglari Holdings is focused on enhancing its operational efficiency and addressing the material weaknesses identified in its internal controls over financial reporting. The company has engaged a third-party provider to assist in designing and implementing effective controls. Despite the challenges faced in 2024, management remains committed to improving financial performance and exploring growth opportunities across its diverse business segments, including potential acquisitions and strategic partnerships. The company’s liquidity position remains strong, with cash and investments totaling approximately $789.9 million as of December 31, 2024.
About Biglari Holdings Inc.
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