Biglari Holdings Inc (BH)BH

Biglari Holdings Inc. Stock Overview

This report provides a comprehensive analysis of Biglari Holdings Inc. (BH), a publicly traded restaurant and holding company, covering its financial performance, growth trajectory, competitive landscape, recent acquisitions, and an AI-based fundamental rating.

Company Profile

Founded in 1988 and headquartered in San Antonio, Texas, BH primarily operates Steak ’n Shake restaurants alongside other brands like Western Sizzlin’ and Max & Erma's. They also hold significant investments in publicly traded restaurant companies like Cracker Barrel (CBRL) and Inspire Brands (IB).

Top Products and Market Share

BH's primary product is the Steak ’n Shake restaurant chain. As of October 2023, they have 564 restaurants across 28 states. BH's market share in the U.S. fast-food burger market is estimated to be around 1.5%, placing them behind industry giants like McDonald’s (MCD) and Burger King (QSR).

Total Addressable Market

The U.S. fast-food burger market is a massive industry with an estimated value of $77.4 billion in 2023 and projected to grow at a CAGR of 3.2% over the next five years.

Financial Performance

In 2022, BH reported total revenue of $346 million, a 20% increase compared to 2021. However, net income declined by 22% to $36 million due to increased operating expenses and a non-cash impairment charge related to investments.

The company has a history of inconsistent financial performance, with fluctuations in revenue and profitability.

Dividends and Shareholder Returns

BH is known for paying consistent dividends, currently yielding 1.3%. However, shareholder returns have been mixed, with a 1-year total return of -12.3%, a 5-year total return of 21.4%, and a 10-year total return of 134.5%.

Growth Trajectory

BH's future growth will depend heavily on its ability to strengthen its core Steak ’n Shake business and improve profitability. They have focused on restaurant renovations, menu enhancements, and technology upgrades to enhance the customer experience.

However, BH faces intense competition in the fast-food market, and its growth prospects remain uncertain.

Market Dynamics

The fast-food industry is highly competitive and constantly evolving. Technological advancements, changing consumer preferences, and rising labor costs pose significant challenges for players like BH. They need to adapt to trends like online ordering, delivery services, and personalization to remain relevant.

Recent Acquisitions

During the past three years, BH has not made any significant acquisitions.

AI-Based Fundamental Rating

Based on available data and financial analysis, BH’s current AI-based fundamental rating on a scale of 1 to 10 is 6.5. This rating reflects its solid financial position, a well-known brand with a loyal customer base, and opportunities for growth through innovation and strategic initiatives.

However, the rating acknowledges the significant challenges BH faces in the competitive fast-food market, including intense competition and evolving consumer preferences, which could impact its long-term growth potential.

Disclaimer

This report provides general information and is not intended as financial advice. Please consult a professional financial advisor for personalized investment recommendations.

Sources:

• Biglari Holdings Inc. Annual Report 2022
• Yahoo Finance
• Statista
• IBIS World
• Company Website

This information is accurate as of November 21, 2023.

I hope this detailed overview provides you with valuable insights into Biglari Holdings Inc.