This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Restaurant Stocks: Earnings to Watch

Biglari Holdings

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Biglari Holdings (BH) reported fiscal fourth quarter earnings on Dec. 13.

Revenue: $164.4 million, compared with year-earlier sales of $160.4 million.

Net Income: $8.4 million, compared with a year-earlier loss of $3.4 million.

Net Earnings Per Share: $6.26, compared with year-earlier EPS of $2.35 per share.

Analysis: In August analysts from CL King reiterated an accumulate rating on Biglari Holdings shares, and raised their price target on the stock by $25 to $375.

The operator of Steak n Shake and Western Sizzlin restaurants said "Steak n Shake had a banner year" with customer traffic up 8.6% in the fourth quarter while same-store sales grew 6.8%.

Western Sizzlin results had a small impact on Biglari's 2010 results since the steak and buffet restaurant chain was acquired partway through the year, on March 30, and therefore only reported its results from the date of acquisition.

Overall top-line results came in shy of expectations for revenue of $172.7 million. Biglari's quarterly profits topped Wall Street's consensus call.

Biglari warned that in 2011 it is unlikely to exceed prior-year profits as it focuses on reinvesting in its infrastructure, training, supply chain and franchising.

In a letter to shareholders, chairman Sardar Biglari addressed the significant changes the company has undergone since he took control just over two years ago. "Simply put, BH is in the business of owning other businesses in whole and in part," he said. " Wholly or majority-owned businesses steer earnings. Those not retained for their growth, upstairs to the parent for reallocation to fuel holding company growth. With this perspective, BH is a liquidity provider."

RealMoney contributor Jonathan Heller wrote in October that Biglari Holdings got a fair amount of attention earlier this year due to actions by Sardar Biglari, including changing the name of the company from The Steak n Shake Company, as well as "Biglari's proposed hedge-fund-like compensation package, which would have rewarded him handsomely but only after the company exceeded a hurdle in per-share book-value growth. Both of these incidents could be used in the "what not to do" section of a public relations textbook."

"Biglari did a good job of turning around both Western Sizzlin and Steak 'n Shake," Heller wrote. "Now, with the firm's new structure as a holding company, Biglari is more of a capital allocator than restaurateur -- and this is not new to him, given his history in running the Lion Fund."

4 of 22

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BWLD $182.33 0.00%
CMG $662.72 0.00%
EAT $60.59 0.00%
MCD $96.96 0.00%
PNRA $159.22 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs