Biglari Holdings (BH) AI Stock Analysis

• Market Cap: $981.31M
• Dividend Yield: N/A
• Average Volume (3M): 68.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: 6.87%
• EPS Growth: -95.91%
• Country: US
• Employees: 2,535
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -16.07
• Shares Outstanding: 2,083,140
• 10 Day Avg. Volume: 169,571
• 30 Day Avg. Volume: 67,998
• PEG Ratio: -0.08
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 2.61
• P/FCF Ratio: 13.47
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 2.63
• Enterprise Value/Gross Profit: 8.09
• Enterprise Value/Ebitda: 14.60
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $300.00 ▼(-30.35% Downside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is held back primarily by sharply weaker profitability (despite solid cash generation and manageable leverage), bearish technical signals with the stock trading below key moving averages, and an extremely high P/E that provides little valuation support. A negative recent corporate update on losses and declining operating earnings further weighs on the outlook.

Positive Factors

Strong cash generation

Biglari Holdings produced consistently positive operating and free cash flow, with a notable step-up in 2025. Reliable cash generation supports capital allocation flexibility—debt service, reinvestment in operating units, or opportunistic investments—providing a durable liquidity cushion despite reported accounting losses.

Manageable leverage / solid equity base

The company's low debt-to-equity ratio and sizable equity base indicate a conservative capital structure that reduces financial risk and increases resilience to earnings swings. This balance-sheet profile gives management room to fund operations or pursue strategic investments without immediate refinancing pressure.

Diversified holding-company model

A diversified mix of restaurants, an insurance subsidiary with investable float, consumer businesses and an investment portfolio provides multiple, partially uncorrelated cash-flow streams. This structural diversification smooths volatility from any single segment and supports long-term resilience and optionality.

Negative Factors

Sharply deteriorated profitability

Profitability has declined materially despite broadly stable revenue, with margins collapsing into negative territory and EBITDA turning negative in 2025. Sustained margin weakness undermines earnings power, reduces internal capital for growth, and makes long-run shareholder value creation more challenging without a structural operational turnaround.

Earnings volatility from investment swings

Large swings in investment gains and losses introduce pronounced volatility to reported results. Because a portion of consolidated performance is market-driven, predictable operating earnings are harder to assess, complicating capital allocation and making reported profitability less reliable as a guide for long-term performance.

Inconsistent returns to shareholders (ROE volatility)

Return on equity swung from positive to negative recently, reflecting earnings volatility and weakening profitability. Persistent negative ROE would signal that capital is not generating sustainable shareholder value, constraining management's ability to pursue growth initiatives or justify distributions over the medium term.

Biglari Holdings Business Overview & Revenue Model

Company Description

Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States. It owns, operates, and franchises restaurants under the Steak n Shake and Western Sizzlin names. As of December 31, 2021, it operated 199 Steak n Shake company-operated restaurants, 159 franchise partner units, and 178 traditional franchise units, as well as 3 Western Sizzlin company-operated restaurants and 38 franchised units. The company also engages in underwriting commercial trucking insurance; selling physical damage and non-trucking liability insurance to truckers; and providing property and casualty insurance. In addition, it operates oil and natural gas properties in the Gulf of Mexico; and publishes and sells magazines and related publishing products under the MAXIM brand name. Further, it licenses media products and services; and engages in the investment activities. The company was formerly known as The Steak n Shake Company and changed its name to Biglari Holdings Inc. in April 2010. Biglari Holdings Inc. was founded in 1934 and is based in San Antonio, Texas.

How the Company Makes Money

Biglari Holdings makes money through a combination of operating-company earnings and investment income/changes in the value of its investment holdings. 1) Restaurant operations (Steak n Shake, Western Sizzlin): The company earns revenue primarily from selling food and beverages through company-operated restaurant locations and, where applicable, fees and royalties from franchised or licensed locations. Restaurant profitability is driven by guest traffic, average check size, menu pricing, labor and occupancy costs, and input costs (notably food commodities). 2) Insurance (First Guard Insurance Company): The insurance business generates revenue mainly from earned premiums on insurance policies (historically focused on commercial trucking-related coverages). Profit comes from underwriting results (premiums collected minus claims, loss adjustment expenses, and operating expenses) and from investing the insurance “float” (premium funds held before claims are paid) in investment securities. 3) Consumer products/other operating businesses: Where BH controls other subsidiaries, revenue is derived from sales of those subsidiaries’ products and services. The specific product-level drivers depend on each subsidiary; if a particular segment or brand is not disclosed in a given period’s reporting, details are null. 4) Investment income and portfolio results: As a holding company, BH maintains a portfolio of marketable securities and other investments. It can earn interest and dividends on invested assets and may realize gains or losses when securities or other investments are sold. Reported earnings can also be affected by changes in fair value of certain investments, depending on applicable accounting treatment. 5) Concentration and holding-company factors: Because BH’s results combine multiple segments, consolidated earnings can be materially influenced by performance in restaurants (sensitive to consumer demand and cost inflation), underwriting and investment performance in insurance, and fluctuations in the value of its investment portfolio. Significant partnerships are null (not specified here).

Biglari Holdings Financial Statement Overview

Summary

Mixed fundamentals: revenue has been broadly stable, leverage looks manageable, and operating/free cash flow are consistently positive with a strong 2025 step-up. However, profitability deteriorated sharply, with net margin swinging from strong in 2023 to sizable losses in 2024–2025 and negative EBITDA margin in 2025, reducing earnings quality and consistency.

Income Statement

Revenue has been broadly stable with a modest increase in 2025 (annual revenue growth of 2.3%) after slight declines in 2023–2024. Profitability, however, has been volatile: the company swung from strong profitability in 2023 (15.0% net margin) to losses in 2024 and a much larger loss in 2025 (about -9.5% net margin). Reported operating profitability also deteriorated, with 2025 showing negative EBITDA margin, indicating weaker underlying earnings power and reduced consistency.

Balance Sheet

Leverage appears manageable with debt-to-equity generally in the ~0.17–0.26 range in recent years, though total debt increased in 2025 versus 2024. Equity is sizable relative to debt, which provides balance-sheet support, but returns to shareholders have been inconsistent, moving from positive return on equity in 2023 to negative in 2024–2025 in line with net losses. Overall, the capital structure looks reasonable, but earnings volatility is a key risk to balance-sheet quality over time.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are positive across all provided years, with a notably strong step-up in 2025 (operating cash flow of $107.0M and free cash flow of $76.6M). Even as reported earnings turned sharply negative in 2025, cash flow remained solid, suggesting the business is still producing cash. The main weakness is choppier momentum in free cash flow growth (declining in multiple years, including 2025), which points to variability in cash conversion and/or reinvestment needs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	395.26M	362.11M	365.32M	368.23M	366.11M
Gross Profit	108.64M	138.62M	116.38M	152.78M	142.78M
EBITDA	58.89M	37.82M	109.62M	82.17M	66.76M
Net Income	-37.49M	-3.76M	54.95M	-32.02M	35.48M
Balance Sheet
Total Assets	1.05B	866.13M	849.42M	828.47M	894.81M
Cash, Cash Equivalents and Short-Term Investments	337.83M	133.68M	119.94M	106.93M	125.41M
Total Debt	358.64M	150.19M	101.24M	118.83M	121.38M
Total Liabilities	525.71M	293.17M	250.09M	272.91M	307.11M
Stockholders Equity	523.43M	572.96M	599.33M	546.97M	587.70M
Cash Flow
Free Cash Flow	76.61M	19.07M	49.60M	98.08M	164.22M
Operating Cash Flow	106.96M	49.66M	73.00M	127.83M	228.77M
Investing Cash Flow	-65.47M	-87.39M	-66.08M	-136.60M	-58.52M
Financing Cash Flow	196.53M	39.48M	-16.13M	3.86M	-156.16M

Biglari Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 430.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BH, the sentiment is Negative. The current price of 430.74 is above the 20-day moving average (MA) of 346.10, above the 50-day MA of 386.69, and above the 200-day MA of 331.95, indicating a bearish trend. The MACD of -24.37 indicates Positive momentum. The RSI at 34.07 is Neutral, neither overbought nor oversold. The STOCH value of 13.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BH.

Biglari Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WEN	57 Neutral	$1.33B	9.79	140.58%	8.15%	-0.21%	0.16%
FWRG	52 Neutral	$770.95M	48.41	0.83%	―	17.27%	-76.53%
BH	50 Neutral	$981.31M	-27.52	-6.72%	―	6.87%	-95.91%
PZZA	48 Neutral	$1.17B	42.31	-6.99%	4.72%	-0.64%	-60.71%
CBRL	45 Neutral	$645.27M	131.25	-0.90%	3.54%	-1.61%	-58.09%
VENU	44 Neutral	$159.08M	-18.82	-41.64%	―	―	―

Biglari Holdings Corporate Events

Biglari Holdings Releases 2025 Annual Report and Letter

Biglari Holdings Inc. reported that its 2025 Annual Report and the accompanying shareholder letter by Chairman and CEO Sardar Biglari were made available online on February 28, 2026. The company emphasized that its operating businesses are best evaluated excluding investment gains or losses, underscoring the distinction between core operations and market-driven investment results.

For the fourth quarter of 2025, Biglari Holdings posted a net loss attributable to shareholders of $49.9 million, compared with a $10.3 million loss in the prior-year quarter, largely reflecting significantly higher investment losses. For the full year 2025, the company recorded a net loss of $37.5 million versus a $3.8 million loss in 2024, while pre-tax operating earnings declined to $18.8 million from $32.6 million, and book value per Class A equivalent share stood at $2,059.32 as of December 31, 2025.

The most recent analyst rating on (BH) stock is a Buy with a $414.00 price target. To see the full list of analyst forecasts on Biglari Holdings stock, see the BH Stock Forecast page.