Biglari Holdings Reports $37.5 Million Net Loss Despite Revenue Growth to $395.3 Million

Biglari Holdings Inc. reported a net loss of $37.5 million for the fiscal year ending December 31, 2025, a significant decline from a loss of $3.8 million in the previous year. The company's total revenues increased to $395.3 million, up from $362.1 million in 2024, primarily driven by a 14.2% rise in restaurant sales, which reached $280.9 million. The increase in restaurant revenue was attributed to a 10.5% growth in same-store sales at Steak n Shake, which operates 131 company-operated restaurants and 179 franchise partner units. However, the overall profitability was adversely affected by substantial losses from investment partnerships, which totaled $52 million.

In terms of operational changes, Biglari Holdings saw a reduction in its restaurant footprint, closing seven Steak n Shake locations while planning to reopen two and sell or lease five. The company’s restaurant operations now comprise 435 units, including both company-operated and franchise locations. The insurance segment also showed improvement, with net earnings rising to $10.5 million from $7.2 million in 2024, driven by increased premiums written, which reached $71 million.

The company’s investment activities faced challenges, with losses from investment partnerships amounting to $68 million, compared to losses of $41 million in the prior year. This volatility in investment performance has raised concerns about the company's financial stability, particularly as it relies heavily on these investments for capital. As of December 31, 2025, Biglari Holdings had total assets of $1.03 billion, with cash and cash equivalents significantly increasing to $268.8 million from $30.7 million in 2024, reflecting improved liquidity.

Looking ahead, Biglari Holdings has initiated an At the Market Offering Agreement to sell up to $500 million of its Class A and Class B common stock, aiming to bolster its capital position for potential acquisitions and support its subsidiaries. The company is also focused on addressing a material weakness in its internal controls over financial reporting, which was identified in the latest audit. Management plans to implement measures to enhance these controls, although the timeline for remediation remains uncertain. The outlook for 2026 will depend on the company's ability to stabilize its investment performance and manage operational efficiencies across its diverse business segments.