| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
Biglari Holdings delivered mixed results in 2025, with investment assets per share surging 52.1% to $1,936 while operating earnings per share declined 42.2% to $59.26 due to increased leverage. The standout performer was Steak n Shake, achieving industry-leading 10.2% same-store sales growth through premium quality initiatives and franchise partner conversions. The insurance division maintained strong underwriting discipline with $7.2 million in profits and an 89.7% combined ratio, while the newly formed Biglari Reinsurance earned an A rating from AM Best. Oil and gas operations generated $12.9 million in earnings, primarily through strategic farmout transactions. The company's holding company structure enables flexible capital allocation across diverse industries, with $225 million in dry powder available for acquisitions. Management targets 15% annual growth in per-share intrinsic value, requiring $1.6 billion in aggregate profits over the next decade. Key risks include execution challenges in restaurant transformation and cyclical pressures in oil and gas operations.
Biglari Holdings operates as a diversified holding company that maximizes long-term value through flexible capital allocation across uncorrelated businesses, with decentralized operations and centralized capital decisions enabling superior returns through strategic acquisitions and organic growth.
The company aims to grow per-share intrinsic value by an average of 15% per annum, requiring aggregate profits of about $1.6 billion over the next ten years. Management expects increased acquisition activity in insurance given the division's rating advantage and investment flexibility. The restaurant business momentum is expected to continue with further quality improvements and franchise conversions.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Mar 2 2026 | 2025 Q4 | RACE, TSLA | Acquisitions, Capital Allocation, Decentralization, Holding Company, insurance, Oil & Gas, Restaurants, value creation | - | Biglari Holdings combines a diversified operating portfolio with flexible capital allocation, delivering strong restaurant performance through Steak n Shake's quality transformation and franchise conversion strategy. The insurance division maintains exceptional underwriting discipline while oil operations generate cash through strategic farmouts. With $225 million in dry powder and a proven acquisition track record, the company is positioned for continued value creation through disciplined capital deployment. |
| Feb 28 2025 | 2024 Q4 | CBRL, LOCO, RACE | Capital Allocation, Franchising, Holding Company, insurance, oil, Restaurants, value | - | Biglari Holdings operates a diversified holding company with restaurant, insurance, and oil operations generating $32.6 million in operating earnings. The company transformed Steak n Shake through franchising, maintains profitable insurance underwriting, and extracts cash from oil assets without reinvestment. Management focuses on maximizing per-share intrinsic value through disciplined capital allocation and opportunistic share repurchases. |
| Dec 31 2024 | 2024 Q4 | CBRL, LOCO, RACE | Capital Allocation, Franchising, Holding Company, insurance, oil, Restaurants, value |
RACE CBRL |
Biglari Holdings operates a diversified holding company with restaurant, insurance, and oil operations generating $32.6 million in operating earnings. The company transformed Steak n Shake through franchising, maintains profitable insurance underwriting, and extracts cash from oil assets without reinvestment. Management focuses on maximizing per-share intrinsic value through disciplined capital allocation and opportunistic share repurchases. |
| Dec 31 2023 | 2023 Q4 | - | AI, diversification, growth, Optimism, technology, Valuations | - | Financial Synergies maintains market optimism despite elevated valuations, viewing AI as transformative rather than bubble-driven. With declining rates, controlled inflation, and strong corporate earnings, the firm advocates diversified positioning across market segments. While Large Cap Growth appears expensive, opportunities exist in Value and Small Caps, emphasizing long-term patience over market timing concerns. |
| Dec 31 2022 | 2022 Q4 | - | - | - | |
| Dec 31 2021 | 2021 Q4 | - | - | - | |
| Dec 31 2020 | 2020 Q4 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Capital AllocationGeorgia Capital demonstrates best-in-class capital allocation with no new investments while discount remains wide and proceeds from divestments used to fund share buybacks. This approach is highlighted as a key investment thesis driver. |
Share Buybacks Capital Allocation Discount Management Divestments Value Creation |
InsuranceBerkshire's insurance operations generated pre-tax underwriting gains and grew float to $176 billion. The combined ratio of 87.1% across property and casualty businesses was exceptional. However, increased competition and rising claim cost trends may pressure future earnings. |
P&C Insurance Reinsurance Float Underwriting GEICO | |
OilOil markets disrupted by closure of Straits of Hormuz affecting 20% of global production. Prices surged from $70 to $119.50 before retreating to $90. Market may be tighter than commonly believed despite IEA projections of surplus. Oil represents cheapest major asset class globally, trading at near-record lows relative to gold. |
Crude Brent WTI Hormuz Supply | |
RestaurantsSteak n Shake achieved industry-leading 10.2% same-store sales growth in 2025, marking the best performance since 1992. The company is transforming through premium quality ingredients including 100% beef tallow fries, cane sugar Coca-Cola, and plans for 100% grass-fed Steakburgers. The franchise partner program has converted 179 company-operated units to single-unit franchise partnerships, with franchise partners generating about 70% of store-level cash flows. |
Steak n Shake Franchise Quality Growth Transformation | |
| 2024 Q4 |
RestaurantsSteak n Shake transformed from full-service to self-service model with franchise partnership program. Company achieved triple-digit productivity gains and converted 173 units to franchise partnerships. Western Sizzlin remains profitable in declining buffet segment. |
Franchise Productivity Transformation Self-service Partnerships |
InsuranceProperty and casualty insurance operations provide underwriting profits and investment float. First Guard maintains 110 consecutive quarters of underwriting profit. Southern Pioneer returned to profitability after weather-related losses. |
Underwriting Float Profitability Commercial Reinsurance | |
OilOil and gas operations contributed $19.8 million in pre-tax earnings through farmout arrangements. Strategy focuses on extracting cash without reinvestment in drilling. Abraxas Petroleum and Southern Oil provide commodity exposure. |
Farmout Commodity Cash generation Permian Offshore | |
| 2024 Q4 |
RestaurantsSteak n Shake transformed from full-service to self-service model with franchise partnership program. Company achieved triple-digit productivity gains and converted 173 units to franchise partnerships. Western Sizzlin remains profitable in declining buffet segment. |
Franchise Productivity Transformation Self-service Partnerships |
InsuranceProperty and casualty insurance operations provide underwriting profits and investment float. First Guard maintains 110 consecutive quarters of underwriting profit. Southern Pioneer returned to profitability after weather-related losses. |
Underwriting Float Profitability Commercial Reinsurance | |
OilOil and gas operations contributed $19.8 million in pre-tax earnings through farmout arrangements. Strategy focuses on extracting cash without reinvestment in drilling. Abraxas Petroleum and Southern Oil provide commodity exposure. |
Farmout Commodity Cash generation Permian Offshore | |
| 2023 Q4 |
AIAI represents incredible potential from curing diseases to improving productivity to reshaping how we live and work. The rapid rise of artificial intelligence is unsettling at times but offers endless opportunities. AI-related companies are primarily concentrated in Information Technology, Communication Services, and Consumer Discretionary sectors. |
Artificial Intelligence Technology Innovation Productivity |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Feb 28, 2025 | Fund Letters | Biglari Holdings | RACE | Ferrari N.V. | Consumer Discretionary | Automobile Manufacturers | Bull | NYSE | automotive, Brand, Competitive Advantage, Equity, High-performance, Italian, Luxury, premium, Sports cars | Login |
| Feb 28, 2025 | Fund Letters | Biglari Holdings | CBRL | Cracker Barrel Old Country Store, Inc. | Consumer Discretionary | Restaurants | Bull | NASDAQ | cash generation, dividend, Equity, Family dining, Long-term, Restaurant, Southern cuisine, strategic stake, Value | Login |
| TICKER | COMMENTARY |
|---|---|
| RACE | Our largest common stock holding is Ferrari. Over the last three years we have purchased 543,800 shares. At year-end, our investment in Ferrari was valued at $202.3 million. When we started purchasing shares in 2022, we were thinking about what the company would look like in two decades. Ferrari's vehicles will, of course, continue to change over the coming years, but we think the reasons people will choose the brand in the 2040s will be nearly the same as they are today. We believe Ferrari is one such company that has sustained its competitive edge. |
| TSLA | Under the previous system, companies that produced only electric vehicles—most notably Tesla—generated large quantities of credits that could then be sold to manufacturers falling short of their EV production targets, allowing them to avoid regulatory penalties. |
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