Biglari Swings to Profit in Fiscal Q2

Key Points

• Net earnings (GAAP) swung to a $50.9 million profit in Q2 2025 from a $48.2 million loss a year earlier, driven by $61.4 million in investment gains.

• Pre-tax operating earnings (non-GAAP) fell 81.4% to $3.7 million.

• Steak n Shake same-store sales rose 10.7%.

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Biglari (NYSE:BH), a holding company with operations in restaurants, insurance, oil and gas, and media, reported its Q2 2025 earnings on Aug. 8, 2025. The most significant headline was a sharp return to profitability, as net earnings (GAAP) swung to $50.9 million after a $48.2 million GAAP loss in the prior year period, largely driven by investment gains of $61.4 million. Pre-tax operating earnings, which strip out investment swings, fell sharply to $3.7 million from $19.7 million a year earlier. No analyst estimates or company-issued guidance were available for the quarter. With notable improvement in restaurant sales but weaker results in core operations.

Business Overview and Key Performance Factors

Biglari is a diversified holding company. It operates restaurants under the Steak n Shake and Western Sizzlin brands.

In addition to restaurants, the company owns insurance businesses focused on commercial trucking, operates oil and gas assets in the Gulf of Mexico, and has a media segment through the MAXIM brand.

Quarterly Results: Notable Drivers and Developments

Net earnings (GAAP) were $50.9 million, compared to a loss in the prior year, but this turnaround was almost entirely due to investment gains of $61.4 million. Management made it clear that these results reflect swings in the value of company investments, not ongoing operating profitability, stating: “We do not regard the quarterly or annual fluctuations in our investments to be meaningful. Therefore, our operating businesses are best analyzed before the impact of investment gains.”

Pre-tax operating earnings dropped sharply to $3.7 million, an 81.4% decline from the prior-year period. This non-GAAP metric is defined by Biglari Holdings to exclude investment gains and losses. For the first half of 2025, pre-tax operating earnings (non-GAAP) fell 46% compared to the first half of 2024.

Within restaurant operations, Steak n Shake posted strong same-store sales growth of 10.7% for both company-run and franchise-partner locations.

Details on other key operating segments -- insurance, oil and gas, and media -- were not included in the release. There were also no updates on the performance of Western Sizzlin or the MAXIM publishing business. Without this segment information, it is difficult to fully assess how each business contributed to overall results this quarter.

Looking Forward

Management did not provide forward-looking financial guidance for either the next quarter or the full year. The release contained only a standard statement that Biglari does not update or revise forward-looking statements once made. As a result, investors do not have visibility into company expectations for revenue, earnings, or strategy in the coming quarters.

There was also no discussion of future strategic priorities or commentary on potential changes in dividends, capital allocation, or business initiatives. The absence of guidance or additional disclosures means that those following the company will need to focus on the reported operational results and watch for any segmentation data or direction in future filings.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends Biglari. The Motley Fool has a disclosure policy.