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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Follow Biglari Into the Middle East

Biglari's other brand is Western Sizzlin'. There were 84 Western Sizzlin' locations at the end of the fiscal year. Unlike Steak' 'n Shake, Western Sizzlin' has the majority of its locations franchised, with only three locations owned by the company. With Biglari's increasing presence in Europe and the Middle East, Western Sizzlin' could see strong expansion with existing franchise partners.

Beyond the company's own brands is a partial ownership stake in restaurant chain Cracker Barrel (CBRL) The ownership of 20% of Cracker Barrel shares has been in the news several times as Biglari's CEO Sardar Biglari continues to fight Cracker Barrel management for a $20 special dividend and a spot on the board.

Biglari has been unsuccessful in this fight and as recently as last week received an offer from Cracker Barrel to buy out his stake. Although I don't believe Biglari will sell soon or give up his fight, investors should be happy as they have been pleasantly rewarded. Biglari Holdings paid $241 million for its 20% stake in Cracker Barrel. At the end of the 2013 fiscal year, that stake was worth $485. Along the way, Biglari has also collected $18.4 million in dividends.

Biglari's earnings are also complicated as they can only recognize what is paid out in dividends by several of its investments. In 2013, Steak 'n Shake had earnings of $28.4 million, while Western Sizzlin' represented only $511,000. The Lion Fund, which includes several investments, had earnings of $128.2 million, representing the majority of the company's fiscal earnings.

Biglari Holdings has a complicated ownership structure with assets shifted between the company and holding companies such as The Lion Fund I & II. However, past all of the structure is great growth and asset value that investors might be undervaluing.

Shares of the company trade in the triple digits, but there is a limited number of shares outstanding. This company, valued at less than $1 billion, should see steady growth with its continued Cracker Barrel fight and the expansion of its own brands, particularly in the Middle East.

Biglari's shares were recently trading at $506.62.

At the time of publication, the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,915.07 -70.54 -0.42%
S&P 500 1,964.68 -8.15 -0.41%
NASDAQ 4,396.2040 -22.83 -0.52%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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