Biglari Holdings Inc., parent to the Steak ‘n Shake and Western Sizzlin’ restaurant chains, said increased sales and the acquisition of Western Sizzlin’ helped to more than double its third-quarter profit.
For the quarter, Biglari Holdings reported a profit of $8.7 million, or $6.23 per share, compared to $3.8 million, or $2.65 per share, in the same quarter last year.
Latest-quarter revenue, which included sales from the Western Sizzlin chain that the company acquired in March, rose 10.4 percent to $161.5 million. The acquisition of Western Sizzlin increased revenue by $4.4 million, the company said. The company owns five Western Sizzlin restaurants and franchises 91 locations in 17 states.
The San Antonio-based company reported that same-store sales at its 412 corporate Steak n Shake locations rose 7.5 percent for the quarter ended July 7. The 70 franchised Steak n Shake stores reported a 7.9 percent increase in same-store sales, the company reported. Traffic at corporate Steak n Shake restaurants increased 9.6 percent during the quarter and was offset by lower check averages, the company said.
The company’s results include Biglari Holdings’ restaurant subsidiaries as well as an investment-related subsidiary, Biglari Capital, which operates through the Lion Fund, a hedge fund operated by Sardar Biglari, chief executive of Biglari Holdings.
Biglari also is an active investor in the restaurant space, disclosing this month a 5.9-percent stake in Sonic Corp., the parent company to the 3,500-unit drive-in chain based in Oklahoma City. Earlier this summer, Biglari disclosed a 6-percent stake in Red Robin Gourmet Burgers Inc. Both investments were filed with federal regulators under a 13G schedule, indicating a passive position. In the past, Biglari had taken aggressive positions in Steak n Shake, Applebee’s and Friendly’s.
Contact Ron Ruggless at [email protected].