Biglari Gains on Western Sizzlin

INDIANAPOLIS (TheStreet) -- Shares of Biglari Holdings(BH) soared more than 11% Monday after the Steak n Shake parent more than doubled quarterly profits.

Biglari booked profits of $8.7 million, or $6.23 per share, in its fiscal third quarter ended July 7, compared with $3.8 million, or $2.65 per share, in the second quarter last year.

Revenue jumped 10.4% to $161.5 million, attributed to stronger performance at Steak n Shake restaurants and to Biglari Holdings' acquisition of Western Sizzlin, a steak and buffet restaurant chain, which it acquired March 30 through its wholly-owned subsidiary, Grill Acquisition. Biglari Holdings CEO Sardar Biglari was also chairman and CEO of Western Sizzlin at the time of the acquisition.

In the recent quarter, Biglari also acquired Biglari Capital, the general partner of private investment fund Lion Fund. Sardar Biglardi was the sole shareholder of Biglari Capital. The Lion Fund functions as an investment arm for Biglari Holdings to assist, principally, in facilitating the partial ownership of other publicly traded companies.

Biglari Holdings acquired Steak n Shake in a 2007 proxy fight.

Comparable same-store sales at Steak n Shake, or sales at stores open at least 18 months, increased 7.5% in the recent quarter thanks to a 9.6% jump in customer traffic.

Biglari shares were 7.9% higher Monday afternoon, to $284.88, on heavier-than-normal trading volume.

Focused restaurant chain competitors in the family style dining segment, including Cracker Barrel Old Country Stores(CBRL), Bob Evans Farms(BOBE), Applebee's parent DineEquity(DIN) and Denny's(DENN), according to Revere Data, did not fare quite as well Monday. Cracker Barrel shares gained 0.8%, DineEquity 1% and Denny's 0.4%. Shares of Bob Evans edged 0.3% lower.

Biglari Holdings' Stock Rating Report (BH) Rating and Financial Analysis

-- Reported by Miriam Marcus Reimer from New York.

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