Biglari Holdings Inc.

What they do

Biglari Holdings operates through subsidiaries including Steak n Shake (restaurants), Maxim (licensing and media), Abraxas Petroleum and Southern Oil (oil and gas), and insurance operations. The company also holds investments, including in its own stock through partnerships.

Revenue drivers

• Steak n Shake restaurants — Generates revenue from company-operated and franchise restaurants; same-store sales increased 13.8% in Q2 2026 for domestic company-operated and franchise-partner-operated locations.
• Oil and gas (Abraxas Petroleum, Southern Oil) — Abraxas revenue $13.4M in H1 2026, up 33.5% on higher prices; Southern Oil revenue $7.0M, down 5.5% on lower production.
• Maxim licensing and media — Revenue $6.8M in H1 2026, up from $3.7M in H1 2025, driven by digital contest business.

Recent performance

In Q2 2026, net earnings were $39.9M, down from $50.9M in Q2 2025; H1 2026 net earnings were $25.4M versus $17.7M in H1 2025. Investment gains were $45.3M in Q2 2026 and $30.6M in H1 2026 (pre-tax), while pre-tax operating earnings were $6.3M in Q2 and $2.1M in H1. Revenue for the trailing four reported quarters (Q3 2025–Q2 2026) was approximately $405.6M. Annual 2025 revenue was $395.3M with a net loss of $37.5M.

Strategy

Management separates operating results from investment gains, viewing investment fluctuations as not meaningful. The focus is on operating businesses, with Steak n Shake pursuing same-store sales growth. In oil and gas, Abraxas sold undeveloped reserves to an unaffiliated party to avoid funding exploration. The company also holds its own stock as treasury through investment partnerships, indicating a capital allocation strategy involving share buybacks.

Risks

• Investment volatility — Earnings are highly volatile due to mark-to-market changes on investments, which caused significant swings in net income in recent years (net loss of $37.5M in 2025, net income of $54.9M in 2023).
• Oil price and production risk — Abraxas and Southern Oil are exposed to oil and gas price fluctuations and production declines; Southern Oil's revenue fell 5.5% in H1 2026 due to reduced production.
• Restaurant performance — Steak n Shake's sales depend on consumer spending and same-store sales trends; any reversal in growth could impact operating earnings.
• Regulatory and accounting risk — The 10-K/A was filed to include audited financials of The Lion Fund II, pursuant to Rule 3-09, indicating complex investment structures that may pose compliance and reporting risks.

Outlook

Management does not provide forward-looking guidance. They emphasize that investment gains/losses will continue to cause volatility, and that operating results are best analyzed excluding those gains. The company is focused on growing same-store sales at Steak n Shake and expanding Maxim's digital contest business.