In November of last year, I wrote "The Restaurant Investor" about Steak n Shake, Sardar Biglari, and what it takes for a restaurant to succeed. In the article, I mentioned that Steak n Shake (now Biglari Holdings) was on solid financial footing and that Biglari would likely start pursuing a holding-company strategy by investing excess cash flow into better opportunities. While this did happen, a few other "revelations" came up over the past six months that changed my view on the company. Anyone who follows BH already knows what I'm talking about, but below I've included my thoughts on the situation from my most recent letter to investors:
On Biglari Holdings and Type X Behavior
On Biglari Holdings and Type X Behavior
On Biglari Holdings and Type X Behavior
In November of last year, I wrote "The Restaurant Investor" about Steak n Shake, Sardar Biglari, and what it takes for a restaurant to succeed. In the article, I mentioned that Steak n Shake (now Biglari Holdings) was on solid financial footing and that Biglari would likely start pursuing a holding-company strategy by investing excess cash flow into better opportunities. While this did happen, a few other "revelations" came up over the past six months that changed my view on the company. Anyone who follows BH already knows what I'm talking about, but below I've included my thoughts on the situation from my most recent letter to investors: