Core Points - Steak 'n Shake has initiated a patriotic campaign by installing large American flags at its restaurants nationwide, emphasizing its support for American values and traditions [1] - The initiative has garnered significant positive feedback on social media, with over 650,000 views and numerous supportive comments from customers [2][4] - The company has recently positioned itself against Cracker Barrel, criticizing its logo change and asserting its commitment to heritage and American values [5][7] Company Initiatives - The flag installations are part of a broader strategy to embrace heritage and patriotism, which includes recent menu changes such as switching from seed oils to beef tallow for food preparation [1][7] - The transition to beef tallow has received praise from notable figures, including Health and Human Services Secretary Robert F. Kennedy Jr. [7][8] - Steak 'n Shake's locations span several states, including Texas, North Carolina, Florida, Missouri, Tennessee, Georgia, Illinois, and Ohio, indicating a wide operational footprint [5] Customer Engagement - The social media response to the flag initiative has been overwhelmingly positive, with customers expressing increased loyalty and pride in the brand [2][4] - Comments from users highlight the effectiveness of the marketing strategy, suggesting that the campaign is attracting new customers [4][5] - The company's focus on American values resonates with its customer base, as evidenced by the supportive remarks on social media platforms [4][5]

Group 1 - Biglari Holdings (NYSE: BH) has shown strong performance recently, benefiting from an improving capital cost situation favorable for holding companies with significant exposure to privately held assets [2] - The Value Lab, led by Biglari Holdings, offers a portfolio with real-time updates, 24/7 chat support, regular global market news reports, feedback on member stock ideas, new trades monthly, and quarterly earnings write-ups [2] - The Valkyrie Trading Society consists of analysts focusing on high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the current economic environment [3]

Group 1 - Biglari Holdings (NYSE: BH) has shown strong performance recently, benefiting from an improving capital cost situation favorable for holding companies with significant exposure to privately held assets [2] - The Value Lab, led by Biglari Holdings, offers a portfolio with real-time updates, 24/7 chat support, regular global market news reports, feedback on member stock ideas, new trades monthly, and quarterly earnings write-ups [2] - The Valkyrie Trading Society consists of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the current economic environment [3]

Core Viewpoint - Biglari reported a significant return to profitability in Q2 2025, with net earnings of $50.9 million, a turnaround from a loss of $48.2 million in the same period last year, primarily driven by investment gains of $61.4 million [1][4]. Financial Performance - Net Earnings: $50.9 million in Q2 2025 compared to a loss of $48.2 million in Q2 2024 [2]. - Pre-tax Operating Earnings: Dropped to $3.7 million from $19.7 million a year earlier, marking an 81.4% decline [4]. - Investment Gains: Reported at $61.4 million, a significant recovery from a loss of $82.6 million in the prior year [2][4]. - Steak n Shake Same-Store Sales Growth: Achieved a growth of 10.7% for both company-run and franchise locations [5]. Business Overview - Biglari operates in multiple sectors, including restaurants (Steak n Shake and Western Sizzlin), insurance focused on commercial trucking, oil and gas assets in the Gulf of Mexico, and media through the MAXIM brand [3]. Operational Insights - The management emphasized that the reported results were heavily influenced by investment gains, and ongoing operating profitability should be assessed separately [4]. - There was a lack of detailed performance information regarding other key segments such as insurance, oil and gas, and media, making it challenging to evaluate their contributions to overall results [5]. Future Outlook - Management did not provide any forward-looking financial guidance for upcoming quarters or the full year, indicating a lack of visibility into future revenue, earnings, or strategic direction [6][7].

[General Information](index=1&type=section&id=General%20Information) This section outlines Biglari Holdings Inc.'s foundational details, including incorporation, principal offices, and stock exchange listings [Registrant Details](index=1&type=section&id=Registrant%20Details) This section specifies Biglari Holdings Inc.'s corporate identity, including its incorporation, executive offices, and stock market registration - The registrant is **BIGLARI HOLDINGS INC.**, incorporated in Indiana, with its principal executive offices in San Antonio, Texas[1](index=1&type=chunk) Registered Stock Classes | Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | | :------------------ | :---------------- | :-------------------------------------- | | Class A common stock | BH.A | New York Stock Exchange | | Class B common stock | BH | New York Stock Exchange | - The registrant is not an emerging growth company[3](index=3&type=chunk) [Item 2.02. Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02.%20Results%20of%20Operations%20and%20Financial%20Condition) This section details the announcement of Biglari Holdings Inc.'s financial results for Q2 and H1 2025 via a press release [Announcement of Financial Results](index=2&type=section&id=Announcement%20of%20Financial%20Results) Biglari Holdings Inc. released its Q2 and H1 2025 financial results on August 8, 2025, via a press release included as an exhibit - On August 8, 2025, Biglari Holdings Inc. issued a press release announcing its financial results for its second quarter and first six months, which ended June 30, 2025[4](index=4&type=chunk) - The Company's press release is attached as Exhibit 99.1 and the information set forth therein is incorporated by reference[4](index=4&type=chunk) [Filing Status and Disclaimers](index=2&type=section&id=Filing%20Status%20and%20Disclaimers) This section clarifies that the report's information is furnished, not filed, limiting liability and requiring explicit incorporation for future references - The information in this Current Report, including the exhibit, is being furnished and shall not be deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934, as amended[5](index=5&type=chunk) - The information shall not be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, unless the Company expressly states otherwise in a future filing[5](index=5&type=chunk) [Item 9.01. Financial Statements and Exhibits](index=2&type=section&id=Item%209.01.%20Financial%20Statements%20and%20Exhibits) This section enumerates the exhibits accompanying the Form 8-K, including the financial results press release and interactive data file [List of Exhibits](index=2&type=section&id=List%20of%20Exhibits) This section provides a comprehensive list of all exhibits included with the Form 8-K filing Form 8-K Exhibits | Exhibit No. | Description | | :------------ | :---------------------------------------------------------- | | 99.1 | Press Release issued by the Company on August 8, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [Signature](index=3&type=section&id=SIGNATURE) This section confirms the official signing of the Form 8-K by Biglari Holdings Inc.'s Controller on August 8, 2025 [Authorization and Signatory](index=3&type=section&id=Authorization%20and%20Signatory) This section details the authorized signatory and date for the Current Report on Form 8-K filing - The Current Report on Form 8-K was signed on August 8, 2025, by Bruce Lewis, Controller of BIGLARI HOLDINGS INC[9](index=9&type=chunk)[10](index=10&type=chunk)

PART I – FINANCIAL INFORMATION This section presents the unaudited consolidated financial statements and management's discussion for Q2 and 6M 2025 [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited consolidated financial statements for Q2 and 6M 2025, including balance sheets, earnings, cash flows, and detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position at June 30, 2025, and December 31, 2024 Consolidated Balance Sheet Highlights (dollars in thousands): | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total Assets | $863,579 | $866,133 | | Total Current Assets | $174,281 | $170,615 | | Cash and Cash Equivalents | $32,766 | $30,709 | | Total Liabilities | $274,293 | $293,172 | | Total Current Liabilities | $126,087 | $147,316 | | Biglari Holdings Inc. Shareholders' Equity | $589,286 | $572,961 | - **Total assets decreased slightly** from **$866,133 thousand** at December 31, 2024, to **$863,579 thousand** at June 30, 2025. **Total liabilities decreased** from **$293,172 thousand** to **$274,293 thousand**, while **shareholders' equity increased** from **$572,961 thousand** to **$589,286 thousand**[10](index=10&type=chunk) [Consolidated Statements of Earnings](index=6&type=section&id=Consolidated%20Statements%20of%20Earnings) This section details the company's financial performance, including revenues, expenses, and net earnings, for Q2 and 6M 2025 and 2024 Consolidated Statements of Earnings Highlights (dollars in thousands, except per share amounts): | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Total Revenues | $100,619 | $91,141 | $195,654 | $180,592 | | Total Costs and Expenses | $96,946 | $71,437 | $181,987 | $155,191 | | Total Other Income (Expenses) | $61,429 | $(82,619) | $10,252 | $(58,921) | | Earnings (Loss) before Income Taxes | $65,102 | $(62,915) | $23,919 | $(33,520) | | Net Earnings (Loss) | $50,931 | $(48,190) | $17,656 | $(25,611) | | Net Earnings (Loss) per Avg. Equivalent Class A Share | $194.57 | $(171.89) | $67.26 | $(90.80) | - The company reported a **significant turnaround in net earnings**, moving from a loss of **$48,190 thousand** in Q2 2024 to a gain of **$50,931 thousand** in Q2 2025. This was **largely driven by a substantial increase** in 'Total Other Income (Expenses)', primarily from investment partnership gains[13](index=13&type=chunk) [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents total comprehensive income, including net earnings and other comprehensive income items, for the specified periods Consolidated Statements of Comprehensive Income Highlights (dollars in thousands): | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | Net Earnings (Loss) | $50,931 | $(48,190) | $17,656 | $(25,611) | | Foreign Currency Translation | $1,010 | $(118) | $1,480 | $(149) | | Comprehensive Income (Loss) | $51,941 | $(48,308) | $19,136 | $(25,760) | - Comprehensive income mirrored the net earnings trend, showing a **strong positive shift** in Q2 2025 and the first six months of 2025, **primarily due to improved net earnings** and positive foreign currency translation adjustments[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section outlines cash flows from operating, investing, and financing activities for the first six months of 2025 and 2024 Consolidated Statements of Cash Flows Highlights (dollars in thousands): | Metric | 6M 2025 | 6M 2024 | | :------------------------------------ | :------ | :------ | | Net Cash Provided by Operating Activities | $57,942 | $20,910 | | Net Cash Used in Investing Activities | $(27,161) | $(19,586) | | Net Cash Used in Financing Activities | $(28,778) | $(2,691) | | Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | $2,045 | $(1,374) | | Cash, Cash Equivalents and Restricted Cash at End of Second Quarter | $33,477 | $28,280 | - **Net cash provided by operating activities significantly increased** to **$57,942 thousand** in the first six months of 2025, up from **$20,910 thousand** in the same period of 2024, **primarily due to $35,000 thousand** in distributions from investment partnerships[18](index=18&type=chunk)[163](index=163&type=chunk) - Cash used in investing activities **increased by $7,575 thousand** in 2025 compared to 2024, mainly due to reduced proceeds from property and equipment sales. Cash used in financing activities also **increased by $26,087 thousand**, primarily due to payments on the Company's line of credit[164](index=164&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) This section details changes in shareholders' equity from December 31, 2024, to June 30, 2025, driven by net earnings and other comprehensive income Consolidated Statements of Changes in Shareholders' Equity Highlights (dollars in thousands): | Metric | Dec 31, 2024 | June 30, 2025 | | :-------------------------------- | :----------- | :------------ | | Balance at Period Start | $572,961 | $572,961 | | Net Earnings (Loss) | $17,656 | $17,656 | | Other Comprehensive Loss | $1,480 | $1,480 | | Adjustment for holdings in investment partnerships | $(2,811) | $(2,811) | | Balance at Period End | $589,286 | $589,286 | *Note: The table above reflects the changes for the first six months of 2025, starting from the balance at December 31, 2024, and ending at June 30, 2025. The 'Net earnings (loss)' and 'Other comprehensive loss' values are for the first six months of 2025.* - **Shareholders' equity increased** from **$572,961 thousand** at December 31, 2024, to **$589,286 thousand** at June 30, 2025, driven by net earnings and positive other comprehensive income, partially offset by adjustments for investment partnership holdings[21](index=21&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements [Note 1. Summary of Significant Accounting Policies](index=10&type=section&id=Note%201.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the company's diverse business activities and significant accounting principles applied in financial reporting - Biglari Holdings Inc. is a holding company with diverse business activities including property and casualty insurance and reinsurance, licensing and media, restaurants, and oil and gas. Its largest operating subsidiaries are in the restaurant sector[23](index=23&type=chunk) - The company operates with decentralized business units but centralized financial decision-making, with all major investment and capital allocation decisions made by Chairman and CEO Sardar Biglari, who beneficially owns approximately **74.3%** of the voting interest as of June 30, 2025[24](index=24&type=chunk)[25](index=25&type=chunk) [Note 2. Earnings Per Share](index=10&type=section&id=Note%202.%20Earnings%20Per%20Share) This note details the calculation of earnings per share, including the treatment of company stock held by investment partnerships Equivalent Class A Common Stock for EPS Calculation: | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :------------------------------------------------ | :------ | :------ | :------ | :------ | | Equivalent Class A common stock outstanding | 620,592 | 620,592 | 620,592 | 620,592 | | Proportional ownership of Company stock held by investment partnerships | 358,832 | 340,232 | 358,088 | 338,518 | | Equivalent Class A common stock for earnings per share | 261,760 | 280,360 | 262,504 | 282,074 | - The company applies the 'two-class method' for EPS, excluding proportional shares of Biglari Holdings' stock held by investment partnerships from the weighted average common shares outstanding, as these are considered treasury stock[27](index=27&type=chunk)[29](index=29&type=chunk) [Note 3. Investments](index=11&type=section&id=Note%203.%20Investments) This note describes the company's investment classifications and the reporting of investment gains and losses Investment Gains (Losses) (dollars in thousands): | Period | 2025 | 2024 | | :-------------------- | :----- | :----- | | Second Quarter | $2,925 | $(2,729) | | First Six Months | $1,340 | $(1,016) | - The company classifies fixed maturity securities as available-for-sale and considers investment gains and losses as non-operating, while dividends and interest are reported as investment income by insurance companies[31](index=31&type=chunk) [Note 4. Investment Partnerships](index=11&type=section&id=Note%204.%20Investment%20Partnerships) This note explains the accounting for limited partnership interests and the impact of investment partnership gains and losses on earnings Investment Partnership Gains (Losses) (dollars in thousands): | Period | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Second Quarter Gains (Losses) | $58,504 | $(79,890) | | First Six Months Gains (Losses) | $8,912 | $(57,905) | | Q2 2025 Contribution to Net Earnings | $46,194 | $(60,748) | | 6M 2025 Contribution to Net Earnings | $6,768 | $(43,600) | Carrying Value of Investment Partnerships (dollars in thousands): | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Carrying value of investment partnerships | $202,893 | $201,727 | | Deferred tax liability related to investment partnerships | $(30,030) | $(17,255) | | Carrying value of investment partnerships net of deferred taxes | $172,863 | $184,472 | - The company reports limited partnership interests under the equity method, recording its proportional share of equity but excluding company common stock held by the partnerships, which is treated as treasury stock. Investment partnership gains/losses, including unrealized gains/losses on securities, are recorded in the consolidated statements of earnings[33](index=33&type=chunk) - Biglari Capital Corp., solely owned by Mr. Biglari, is the general partner and earns an incentive reallocation fee of **25%** of net profits above a **6%** annual hurdle rate, though no incentive reallocations were accrued in the first six months of 2025 or 2024[34](index=34&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) [Note 5. Property and Equipment](index=14&type=section&id=Note%205.%20Property%20and%20Equipment) This note provides details on the company's property and equipment, including depreciation and impairment charges Property and Equipment, Net (dollars in thousands): | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Total Property and Equipment (Gross) | $816,701 | $818,432 | | Less: Accumulated Depreciation, Depletion, and Amortization | $(451,439) | $(442,277) | | Property and Equipment, Net | $365,262 | $376,155 | - The company recorded **$1,251 thousand** in impairment charges to restaurant long-lived assets in Q2 2025 and the first six months of 2025 due to underperforming stores. No impairments were recorded for oil and gas assets in these periods[47](index=47&type=chunk)[48](index=48&type=chunk) - Abraxas Petroleum recorded gains of **$794 thousand** in Q2 2025 and **$10,117 thousand** in the first six months of 2025 from selling undeveloped reserves, with potential future royalties[49](index=49&type=chunk) [Note 6. Goodwill and Other Intangible Assets](index=15&type=section&id=Note%206.%20Goodwill%20and%20Other%20Intangible%20Assets) This note details the carrying values of goodwill and other intangible assets, along with any impairment considerations Goodwill and Other Intangible Assets (dollars in thousands): | Metric | Dec 31, 2024 | June 30, 2025 | | :------------------------------------ | :----------- | :------------ | | Goodwill | $52,496 | $52,568 | | Other Intangibles (Trade Names & Lease Rights) | $22,820 | $23,676 | | Total Goodwill and Other Intangible Assets | $75,316 | $76,244 | - Goodwill **increased slightly** due to changes in foreign exchange rates. No goodwill impairment was recorded for Steak n Shake in the first six months of 2025 or 2024, and no impairment for Western Sizzlin goodwill in 2025 (compared to **$1,000 thousand** in 2024)[53](index=53&type=chunk) [Note 7. Restaurant Operations Revenues](index=16&type=section&id=Note%207.%20Restaurant%20Operations%20Revenues) This note disaggregates revenues from restaurant operations, including net sales, franchise fees, and royalties Restaurant Operations Revenues (dollars in thousands): | Revenue Type | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | Net Sales | $46,858 | $40,815 | $88,473 | $79,550 | | Franchise Partner Fees | $20,150 | $18,149 | $37,289 | $35,907 | | Franchise Royalties and Fees | $3,128 | $3,615 | $6,617 | $7,092 | | Other | $1,875 | $1,896 | $3,981 | $3,922 | | **Total Revenues** | **$72,011** | **$64,475** | **$136,360** | **$126,471** | - Total restaurant revenues **increased by 11.2%** for the first six months of 2025 compared to 2024, **primarily driven by a 14.8% increase** in net sales in Q2 2025, largely due to a **10.7% increase** in Steak n Shake's same-store sales[57](index=57&type=chunk)[118](index=118&type=chunk) - Franchise partner fees, which include up to **15%** of sales and **50%** of profits, increased despite fewer open units, indicating improved performance at franchise partner units[59](index=59&type=chunk)[120](index=120&type=chunk) [Note 8. Accounts Payable and Accrued Expenses](index=17&type=section&id=Note%208.%20Accounts%20Payable%20and%20Accrued%20Expenses) This note provides a breakdown of accounts payable and accrued expenses, highlighting changes over the period Accounts Payable and Accrued Expenses (dollars in thousands): | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Accounts Payable | $25,538 | $28,542 | | Gift Cards and Other Marketing | $4,593 | $6,655 | | Insurance Accruals | $1,074 | $1,746 | | Compensation | $5,198 | $4,911 | | Deferred Revenue | $5,167 | $3,723 | | Taxes Payable | $4,191 | $8,134 | | Oil and Gas Payable | $2,042 | $1,912 | | Professional Fees | $3,588 | $3,052 | | Due to Broker | $4,276 | $3,517 | | Other | $751 | $1,189 | | **Total** | **$56,418** | **$63,381** | - Total accounts payable and accrued expenses **decreased** from **$63,381 thousand** at December 31, 2024, to **$56,418 thousand** at June 30, 2025, **primarily due to decreases** in accounts payable, gift cards and other marketing, and taxes payable[65](index=65&type=chunk) [Note 9. Lines of Credit](index=17&type=section&id=Note%209.%20Lines%20of%20Credit) This note details the company's outstanding balances on lines of credit and compliance with loan covenants Lines of Credit Balances (dollars in thousands): | Line of Credit | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Biglari Holdings Inc. (2022) | $19,000 | $35,000 | | Biglari Holdings Inc. (2024) | $0 | $10,000 | | Western Sizzlin Revolver | $0 | $0 | - Biglari Holdings **reduced its outstanding balance** on its 2022 line of credit from **$35,000 thousand** to **$19,000 thousand** and **fully paid off** its 2024 line of credit by June 30, 2025. The company was in compliance with all covenants for both lines of credit[66](index=66&type=chunk)[67](index=67&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk) [Note 10. Unpaid Losses and Loss Adjustment Expenses](index=18&type=section&id=Note%2010.%20Unpaid%20Losses%20and%20Loss%20Adjustment%20Expenses) This note presents the liabilities for unpaid insurance losses and loss adjustment expenses, net of reinsurance Claim Liabilities, Net of Reinsurance (dollars in thousands): | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Net Liabilities at Beginning of Year | $17,250 | $15,168 | | Incurred Losses and Loss Adjustment Expenses | $24,466 | $22,209 | | Paid Losses and Loss Adjustment Expenses | $24,513 | $21,682 | | Net Liabilities at June 30 | $17,203 | $15,695 | - Net liabilities for unpaid losses and loss adjustment expenses **remained relatively stable** at **$17,203 thousand** at June 30, 2025, compared to **$17,250 thousand** at the beginning of the year. The company recorded net increases of **$872 thousand** for prior accident years in 2025, compared to net reductions of **$1,330 thousand** in 2024[70](index=70&type=chunk) [Note 11. Lease Assets and Obligations](index=18&type=section&id=Note%2011.%20Lease%20Assets%20and%20Obligations) This note provides information on the company's lease assets, obligations, and associated lease costs Total Lease Obligations (dollars in thousands): | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total Current Portion of Lease Obligations | $15,054 | $14,449 | | Total Long-Term Lease Obligations | $91,384 | $90,739 | | **Total Lease Obligations** | **$106,438** | **$105,188** | Total Lease Costs (dollars in thousands): | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Finance Lease Costs | $313 | $304 | $600 | $614 | | Operating and Variable Lease Costs | $2,862 | $2,948 | $5,798 | $5,777 | | Sublease Income | $(2,512) | $(2,986) | $(5,120) | $(5,975) | | **Total Lease Costs** | **$663** | **$266** | **$1,278** | **$416** | - Total lease obligations **increased slightly**. Total lease costs for the first six months of 2025 **increased to $1,278 thousand** from **$416 thousand** in 2024, **primarily due to lower sublease income**[72](index=72&type=chunk)[76](index=76&type=chunk) [Note 12. Income Taxes](index=20&type=section&id=Note%2012.%20Income%20Taxes) This note details the income tax expense or benefit and discusses factors influencing tax variances, including recent tax legislation Income Tax Expense (Benefit) (dollars in thousands): | Period | 2025 | 2024 | | :-------------------- | :----- | :----- | | Second Quarter | $14,171 | $(14,725) | | First Six Months | $6,263 | $(7,909) | - The **significant variance in income taxes** between 2025 and 2024 is **primarily due to taxes on income generated by investment partnerships**. Investment partnerships shifted from pre-tax losses of **$79,890 thousand** in Q2 2024 to pre-tax gains of **$58,504 thousand** in Q2 2025[86](index=86&type=chunk)[159](index=159&type=chunk) - The 'One Big Beautiful Bill Act', signed on July 4, 2025, makes permanent certain expiring provisions of the Tax Cuts and Jobs Act, including **100%** bonus depreciation and business interest expense limitation[87](index=87&type=chunk) [Note 13. Commitments and Contingencies](index=21&type=section&id=Note%2013.%20Commitments%20and%20Contingencies) This note addresses the company's involvement in legal proceedings and other claims, assessing their potential financial impact - The company is involved in various legal proceedings and unresolved claims but believes that the ultimate liability, if any, in excess of amounts already provided, is not likely to materially affect its financial results[88](index=88&type=chunk) [Note 14. Fair Value of Financial Assets](index=21&type=section&id=Note%2014.%20Fair%20Value%20of%20Financial%20Assets) This note describes the fair value measurement of financial assets, categorized by input levels Total Assets at Fair Value (dollars in thousands): | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Level 1 Assets | $116,208 | $109,287 | | Level 2 Assets | $4,268 | $5,995 | | Level 3 Assets | $0 | $0 | | **Total Assets at Fair Value** | **$120,476** | **$115,282** | - The fair values of financial instruments are measured using market or income approaches, categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs). The majority of assets are classified as Level 1[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) [Note 15. Related Party Transactions](index=22&type=section&id=Note%2015.%20Related%20Party%20Transactions) This note discloses transactions with related parties, including service agreements and incentive arrangements with the CEO Service Fees Paid to Biglari Enterprises LLC (dollars in thousands): | Period | 2025 | 2024 | | :-------------------- | :----- | :----- | | First Six Months | $5,700 | $4,800 | - The company has a service agreement with Biglari Enterprises LLC, owned by Mr. Biglari, for business and administrative services. An incentive agreement also provides Mr. Biglari with a performance-based annual incentive payment of **25%** of adjusted equity growth above a **6%** hurdle rate[96](index=96&type=chunk)[98](index=98&type=chunk) [Note 16. Business Segment Reporting](index=23&type=section&id=Note%2016.%20Business%20Segment%20Reporting) This note provides financial information for the company's reportable business segments, including revenues and earnings before income taxes - Biglari Holdings manages its diverse businesses on a decentralized basis, with reportable segments including Restaurant Operations (Steak n Shake, Western Sizzlin), Insurance Operations (First Guard, Southern Pioneer, Biglari Reinsurance), Oil and Gas Operations (Southern Oil, Abraxas Petroleum), and Brand Licensing (Maxim)[99](index=99&type=chunk) Total Operating Businesses - Revenues and Earnings Before Income Taxes (dollars in thousands): | Metric | Q2 2025 Revenue | Q2 2024 Revenue | Q2 2025 Earnings (Loss) before Tax | Q2 2024 Earnings (Loss) before Tax | | :-------------------------- | :-------------- | :-------------- | :--------------------------------- | :--------------------------------- | | Total Operating Businesses | $100,619 | $91,141 | $9,078 | $24,711 | | Metric | 6M 2025 Revenue | 6M 2024 Revenue | 6M 2025 Earnings (Loss) before Tax | 6M 2024 Earnings (Loss) before Tax | | :-------------------------- | :-------------- | :-------------- | :--------------------------------- | :--------------------------------- | | Total Operating Businesses | $195,654 | $180,592 | $24,220 | $32,947 | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on financial performance, condition, and liquidity for Q2 and 6M 2025 compared to 2024 [Overview](index=29&type=section&id=Overview) This overview introduces Biglari Holdings' diverse business activities and presents a disaggregation of net earnings by segment - Biglari Holdings Inc. is a holding company with diverse business activities, including property and casualty insurance and reinsurance, licensing and media, restaurants, and oil and gas, led by Chairman and CEO Sardar Biglari[110](index=110&type=chunk) Net Earnings (Loss) Disaggregation (dollars in thousands): | Segment | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Restaurant | $4,555 | $4,244 | $6,744 | $7,717 | | Insurance | $1,399 | $1,454 | $2,600 | $3,192 | | Oil and Gas | $849 | $13,369 | $9,147 | $14,518 | | Brand Licensing | $(198) | $(193) | $(465) | $(458) | | Interest Expense | $(656) | $(32) | $(1,349) | $(32) | | Total Operating Businesses | $5,949 | $18,842 | $16,677 | $24,937 | | Goodwill Impairment | $0 | $(1,000) | $0 | $(1,000) | | Corporate and Other | $(3,530) | $(3,125) | $(6,819) | $(5,121) | | Investment Partnership Gains (Losses) | $46,194 | $(60,748) | $6,768 | $(43,600) | | Investment Gains (Losses) | $2,318 | $(2,159) | $1,030 | $(827) | | **Net Earnings (Loss)** | **$50,931** | **$(48,190)** | **$17,656** | **$(25,611)** | [Restaurants](index=30&type=section&id=Restaurants) This section analyzes the performance of restaurant operations, including store count, revenues, and key cost metrics Restaurant Store Count: | Store Type | Dec 31, 2024 | June 30, 2025 | | :-------------------- | :----------- | :------------ | | Company-operated | 146 | 143 | | Franchise Partner | 173 | 174 | | Traditional Franchise | 107 | 100 | | Western Sizzlin Company-operated | 3 | 3 | | Western Sizzlin Franchise | 29 | 29 | | **Total Stores** | **458** | **449** | Restaurant Operations Revenue and Costs (as % of Net Sales for Cost of Food, Labor, Occupancy; as % of Total Revenue for G&A, Marketing, Impairments, Depreciation): | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net Sales | $46,858 | $40,815 | $88,473 | $79,550 | | Franchise Partner Fees | $20,150 | $18,149 | $37,289 | $35,907 | | Franchise Royalties and Fees | $3,128 | $3,615 | $6,617 | $7,092 | | Total Revenue | $72,011 | $64,475 | $136,360 | $126,471 | | Cost of Food (% of Net Sales) | 30.2% | 30.3% | 30.1% | 29.3% | | Labor Costs (% of Net Sales) | 29.9% | 31.8% | 31.0% | 32.1% | | General & Administrative (% of Total Revenue) | 17.7% | 20.2% | 18.1% | 19.6% | | Marketing (% of Total Revenue) | 6.8% | 4.4% | 5.9% | 4.6% | | Impairments (% of Total Revenue) | 1.7% | 0.0% | 0.9% | 0.1% | | Earnings before Income Taxes | $6,435 | $5,765 | $9,749 | $10,643 | - Net sales **increased by 14.8%** in Q2 2025 and **11.2%** in the first six months of 2025, **primarily due to a 10.7% increase** in Steak n Shake's same-store sales[118](index=118&type=chunk)[120](index=120&type=chunk) - Franchise partner fees, which include up to **15%** of sales and **50%** of profits, increased despite fewer open units, indicating improved performance at franchise partner units[59](index=59&type=chunk)[120](index=120&type=chunk) - Labor costs as a percentage of net sales decreased in 2025 compared to 2024, mainly due to a decrease in management labor. Marketing expenses increased due to promotions of new products and payment methods[124](index=124&type=chunk)[126](index=126&type=chunk) [Insurance](index=33&type=section&id=Insurance) This section reviews the underwriting results and overall financial performance of the company's insurance operations Insurance Operations Underwriting Results (dollars in thousands): | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | First Guard Pre-tax Underwriting Gain | $2,091 | $1,331 | $3,306 | $2,131 | | Southern Pioneer Pre-tax Underwriting Gain (Loss) | $(857) | $(785) | $(1,359) | $(726) | | **Total Pre-tax Underwriting Gain** | **$1,234** | **$546** | **$1,947** | **$1,405** | Insurance Operations Earnings Summary (dollars in thousands): | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Premiums Written | $17,403 | $16,848 | $36,425 | $33,375 | | Premiums Earned | $17,166 | $16,291 | $34,931 | $32,213 | | Pre-tax Underwriting Gain | $1,234 | $546 | $1,947 | $1,405 | | Total Other Income (Investment Income + Other) | $559 | $1,304 | $1,383 | $2,691 | | Earnings before Income Taxes | $1,793 | $1,850 | $3,330 | $4,096 | | Contribution to Net Earnings | $1,399 | $1,454 | $2,600 | $3,192 | - First Guard's underwriting gain **increased by $1,175 thousand** in the first six months of 2025 compared to 2024. Southern Pioneer's premiums earned **increased by 24.0%** in the first six months of 2025 due to rate increases in personal lines, despite an underwriting loss[137](index=137&type=chunk)[139](index=139&type=chunk) [Oil and Gas](index=36&type=section&id=Oil%20and%20Gas) This section discusses the revenues, costs, and earnings from oil and gas operations, including gains on property sales Oil and Gas Operations Summary (dollars in thousands): | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Oil and Gas Revenues | $7,498 | $8,671 | $17,428 | $18,181 | | Total Cost and Expenses | $7,175 | $7,485 | $15,780 | $16,010 | | Gain on Sale of Properties | $794 | $16,165 | $10,117 | $16,646 | | Earnings before Income Taxes | $1,117 | $17,351 | $11,765 | $18,817 | | Contribution to Net Earnings | $849 | $13,369 | $9,147 | $14,518 | - Oil and gas revenues decreased in Q2 2025 and the first six months of 2025 compared to 2024. The **significant decrease in earnings before income taxes** is **largely due to lower gains** on the sale of properties in 2025 compared to 2024[143](index=143&type=chunk) - Abraxas Petroleum recorded a **$10,117 thousand** gain from selling undeveloped reserves in the first six months of 2025. Southern Oil's revenue remained consistent, with increased production offset by lower crude oil sales prices[146](index=146&type=chunk)[148](index=148&type=chunk) [Brand Licensing](index=37&type=section&id=Brand%20Licensing) This section details the financial performance of the Maxim brand licensing segment, including revenues and costs Maxim Brand Licensing Operations Summary (dollars in thousands): | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Licensing and Media Revenue | $2,287 | $301 | $3,694 | $513 | | Total Cost and Expenses | $2,554 | $556 | $4,318 | $1,122 | | Earnings (Loss) before Income Taxes | $(267) | $(255) | $(624) | $(609) | | Contribution to Net Earnings (Loss) | $(198) | $(193) | $(465) | $(458) | - Maxim's revenue **significantly increased** in the first half of 2025 compared to 2024, **primarily due to the launch** of various new digital contests, though the segment still reported a net loss[150](index=150&type=chunk) [Investment Gains and Investment Partnership Gains](index=37&type=section&id=Investment%20Gains%20and%20Investment%20Partnership%20Gains) This section analyzes the impact of investment gains and losses, particularly from investment partnerships, on overall earnings Investment Gains (Losses) (dollars in thousands): | Period | 2025 | 2024 | | :-------------------- | :----- | :----- | | Q2 Net of Tax | $2,318 | $(2,159) | | 6M Net of Tax | $1,030 | $(827) | Investment Partnership Gains (Losses) (dollars in thousands): | Period | 2025 | 2024 | | :-------------------- | :----- | :----- | | Q2 Pre-tax | $58,504 | $(79,890) | | 6M Pre-tax | $8,912 | $(57,905) | | Q2 Net of Tax | $46,194 | $(60,748) | | 6M Net of Tax | $6,768 | $(43,600) | - The company experienced a **significant positive swing** in investment gains and investment partnership gains in 2025 compared to losses in 2024, which contributed substantially to the overall net earnings turnaround. These gains and losses, particularly from investment partnerships, cause significant volatility in periodic earnings[151](index=151&type=chunk)[153](index=153&type=chunk)[155](index=155&type=chunk) [Interest Expense](index=38&type=section&id=Interest%20Expense) This section details the interest expense incurred on notes payable and its impact on financial results Interest Expense on Notes Payable (dollars in thousands): | Period | 2025 | 2024 | | :-------------------- | :----- | :----- | | Q2 Pre-tax | $852 | $42 | | 6M Pre-tax | $1,752 | $42 | | Q2 Net of Tax | $656 | $32 | | 6M Net of Tax | $1,349 | $32 | - Interest expense on notes payable **increased significantly** in 2025 compared to 2024, reflecting higher borrowings[157](index=157&type=chunk) [Corporate and Other](index=38&type=section&id=Corporate%20and%20Other) This section reports on the net losses attributable to corporate and other unallocated activities - Corporate and other net losses **increased to $3,530 thousand** in Q2 2025 and **$6,819 thousand** in the first six months of 2025, compared to **$3,125 thousand** and **$5,121 thousand** in the respective 2024 periods[158](index=158&type=chunk) [Income Taxes](index=38&type=section&id=Income%20Taxes) This section explains the income tax expense or benefit and its drivers, particularly related to investment partnership performance Income Tax Expense (Benefit) (dollars in thousands): | Period | 2025 | 2024 | | :-------------------- | :----- | :----- | | Second Quarter | $14,171 | $(14,725) | | First Six Months | $6,263 | $(7,909) | - The variance in income taxes is **primarily due to the shift** from pre-tax losses to pre-tax gains in investment partnerships, resulting in income tax expense in 2025 compared to a benefit in 2024[159](index=159&type=chunk) [Financial Condition](index=39&type=section&id=Financial%20Condition) This section provides an overview of the company's financial position, focusing on cash and investment balances Consolidated Cash and Investments (dollars in thousands): | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Cash and Cash Equivalents | $32,766 | $30,709 | | Investments | $104,541 | $102,975 | | Fair Value of Interest in Investment Partnerships | $719,846 | $656,266 | | Total Cash and Investments | $857,153 | $789,950 | | Less: Portion of Company Stock Held by Investment Partnerships | $(516,953) | $(454,539) | | Carrying Value of Cash and Investments on Balance Sheet | $340,200 | $335,411 | - The company's consolidated cash and investments **increased to $340,200 thousand** at June 30, 2025, from **$335,411 thousand** at December 31, 2024, reflecting growth in the fair value of investment partnerships[161](index=161&type=chunk) [Liquidity](index=39&type=section&id=Liquidity) This section discusses the company's cash flow activities and overall liquidity position, including compliance with debt covenants Consolidated Cash Flow Activities (dollars in thousands): | Metric | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | | Net Cash Provided by Operating Activities | $57,942 | $20,910 | | Net Cash Used in Investing Activities | $(27,161) | $(19,586) | | Net Cash Used in Financing Activities | $(28,778) | $(2,691) | | Increase in Cash, Cash Equivalents and Restricted Cash | $2,045 | $(1,374) | - The company maintains significant liquidity, with net cash provided by operating activities **increasing substantially** in 2025, **primarily due to $35,000 thousand** in distributions from investment partnerships[162](index=162&type=chunk)[163](index=163&type=chunk) - Cash used in financing activities **increased significantly** in 2025 due to payments on the company's line of credit. The company was in compliance with all covenants on its lines of credit as of June 30, 2025[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk) [Critical Accounting Policies](index=40&type=section&id=Critical%20Accounting%20Policies) This section highlights the significant accounting policies and estimates used in preparing the financial statements - Management's discussion is based on consolidated financial statements prepared in accordance with GAAP, requiring estimates and judgments for future transactions. **No material changes** to critical accounting policies were reported since the December 31, 2024, annual report[168](index=168&type=chunk) [Recently Issued Accounting Pronouncements](index=40&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) This section confirms the non-applicability of recently issued accounting pronouncements to the current report - **No recently issued accounting pronouncements were applicable** for this Quarterly Report on Form 10-Q[169](index=169&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=40&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section advises caution regarding forward-looking statements, which are subject to inherent risks and uncertainties - The report contains forward-looking statements, which are estimates of future financial items and are subject to various risks and uncertainties, many beyond the company's control. Investors are cautioned not to place undue reliance on these statements[170](index=170&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there are no applicable disclosures regarding quantitative and qualitative market risk for the company - The company has **no applicable disclosures** for quantitative and qualitative market risk[172](index=172&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) This section addresses the effectiveness of the company's disclosure controls and procedures and internal control over financial reporting. It notes that disclosure controls were not effective due to previously identified material weaknesses, and remediation efforts are ongoing - As of June 30, 2025, the company's disclosure controls and procedures were **not effective** due to material weaknesses in internal control over financial reporting, as previously identified in the 2024 Annual Report on Form 10-K[173](index=173&type=chunk) - **Remediation efforts are ongoing** to address these material weaknesses, involving the implementation and documentation of policies, procedures, and internal controls. The weaknesses will not be considered remediated until controls have operated for a sufficient period and are tested effectively[174](index=174&type=chunk) - There have been **no changes** in internal control over financial reporting during the quarter ended June 30, 2025, that materially affected or are reasonably likely to materially affect internal control over financial reporting[175](index=175&type=chunk) PART II – OTHER INFORMATION This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, and exhibits [ITEM 1. LEGAL PROCEEDINGS](index=41&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 13 of the Consolidated Financial Statements for information regarding legal proceedings, indicating no new material disclosures in this part - Information regarding legal proceedings is incorporated by reference from Note 13 to the Consolidated Financial Statements[177](index=177&type=chunk) [ITEM 1A. RISK FACTORS](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - **No material changes** to risk factors have occurred since the Annual Report on Form 10-K for the year ended December 31, 2024[178](index=178&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section indicates that there were no unregistered sales of equity securities or use of proceeds to report - There were **no unregistered sales** of equity securities and use of proceeds to report[179](index=179&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=41&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities - There were **no defaults** upon senior securities[179](index=179&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the company - Mine safety disclosures are **not applicable**[180](index=180&type=chunk) [ITEM 5. OTHER INFORMATION](index=41&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information to report - There is **no other information to report**[181](index=181&type=chunk) [ITEM 6. EXHIBITS](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications and interactive data files - The report includes certifications pursuant to the Sarbanes-Oxley Act (Sections 302 and 906) and Interactive Data Files (XBRL)[182](index=182&type=chunk) [Signatures](index=43&type=section&id=Signatures) This section contains the required signatures for the Form 10-Q filing, confirming its submission by authorized personnel - The report is signed by Bruce Lewis, Controller, on behalf of Biglari Holdings Inc. on August 8, 2025[183](index=183&type=chunk)[184](index=184&type=chunk)

Financial Data and Key Metrics Changes - In Q2 2025, total revenue declined by 3.6%, with EBITDA and net profit decreasing by 1.6% and 3.8% respectively [27][28][33] - The EBITDA margin for Q2 was 41.6%, while the net profit margin was 30.4% [27][33] - For the first half of 2025, total revenue was down 4.6%, with a 5.3% decline in hospital operation revenue [30][33] Business Line Data and Key Metrics Changes - Revenue from non-Thai patients decreased by 6.6%, while Thai patient revenue slightly declined by 0.2% [27][30] - The outpatient service revenue contribution increased to 51% in the first half of 2025, up from 49% in the same period last year [31] - The government third-party contribution dropped to 14% from 18% in the first half of last year due to lower Middle East revenue [31] Market Data and Key Metrics Changes - Middle Eastern business showed strong growth, with Qatar up 18%, UAE up 46%, Oman up 28%, and Saudi Arabia up 54% [6][7] - The company experienced a decline in revenue from the Indo-China segment, particularly from Cambodia, which was offset by growth in Myanmar and Bangladesh [29][30] - The Chinese market saw a significant reduction in patient arrivals, down by over 30% to 40% year over year due to safety concerns [65][66] Company Strategy and Development Direction - The company is focusing on expanding its cancer care services and enhancing patient experience through new facilities and advanced technologies [88][92] - There is an emphasis on strengthening relationships with key stakeholders and third-party payers to drive growth [84] - The company aims to improve its market position by addressing governance issues and enhancing service quality for Kuwaiti patients [42][56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q3 2025, expecting stronger performance compared to the first half of the year [18][26] - The company is cautiously optimistic about the return of Kuwaiti patients and the resolution of past payment issues [46][56] - Management highlighted the importance of addressing safety concerns to regain Chinese patient trust and increase medical tourism [66][70] Other Important Information - The company achieved recognition as one of the best specialized hospitals in Thailand across multiple specialties [77][78] - A successful disease screening campaign generated nearly 96 million baht in revenue within two months [80] - The company is actively investing excess cash into financial assets to capture higher interest income [34][35] Q&A Session Summary Question: What are the expectations for the Kuwaiti market? - Management indicated that discussions with Kuwaiti officials are ongoing, and there is cautious optimism about future collaborations and patient flow [46][56] Question: How is the company addressing the decline in Chinese patient arrivals? - The company is expanding its presence in China and engaging in targeted outreach to rebuild trust and increase referrals [66][70] Question: What are the key initiatives for cancer care expansion? - The company is focusing on comprehensive cancer care, integrating advanced technologies, and enhancing patient experience through new facilities [88][92]

Financial Data and Key Metrics Changes - The total revenue for Q2 2025 was 6,000 million baht, representing a decline of 3.6% year-over-year [26][27] - EBITDA margin reached a record high of 41.6%, while net profit margin was 30.4%, slightly up from 30.5% in the previous year [9][33] - EPS was reported at 40 baht, with a dividend payout ratio of 44% for the interim dividend, up from 41% the previous year [13] Business Line Data and Key Metrics Changes - Revenue from non-Thai patients decreased by 6.6%, while Thai patient revenue slightly declined by 0.2% [26][28] - The outpatient service revenue contribution increased to 51% from 49% in the first half of the previous year, while inpatient service revenue remained at 50% [31] - The MDA segment saw a significant decline of 12.4%, primarily from Qatar, Kuwait, and Oman, while the Indo-China segment increased by 0.4% [29][30] Market Data and Key Metrics Changes - Middle Eastern business showed strong growth, with Qatar up 18%, UAE up 46%, Oman up 28%, and Saudi Arabia up 54% [5][6] - The company experienced a decline in revenue from Chinese patients, with a drop of over 30% to 40% year-over-year due to safety concerns [65] - The Cambodian market is expected to stabilize, which could improve OPD footfalls and admissions in the future [66] Company Strategy and Development Direction - The company is focusing on expanding its cancer care services, recognizing the growing global cancer crisis and the need for comprehensive care [89][90] - Plans for a new cancer care facility are underway, aimed at enhancing patient experience and integrating advanced technologies [95] - The company is actively negotiating with the Kuwaiti government regarding patient payments and potential future collaborations [39][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q3 2025, expecting stronger performance compared to the first half of the year [16][25] - The company is cautiously optimistic about the return of Kuwaiti patients, emphasizing the importance of quality care and governance [46][60] - The geopolitical situation in Cambodia and China is impacting patient flow, but management is hopeful for recovery in these markets [66][70] Other Important Information - The company received recognition from Newsweek as one of the best specialized hospitals in Thailand, ranking number one in six out of nine specialties [79] - A successful disease screening campaign generated nearly 96 million baht in revenue within two months [82] - The company upgraded its robotic surgery capabilities, expanding to more specialties and training additional surgeons [84] Q&A Session Summary Question: What is the outlook for the Kuwaiti market? - Management indicated that discussions with Kuwaiti officials are ongoing, and there is cautious optimism about future patient flow and payments [39][46] Question: How is the company addressing the decline in Chinese patients? - The company is expanding its presence in China and engaging in online outreach to improve connections with potential patients [67][68] Question: What are the expectations for the second half of 2025? - Management expects stronger performance in the second half compared to the first half, driven by recovery in key markets [16][25]

Financial Performance - Bumrungrad Hospital Public Company Limited's total revenues decreased by 3.6% in 2Q25 compared to 2Q24 and decreased by 4.6% in 1H25 compared to 1H24 [26, 27] - Net profit also experienced a decrease of 3.8% in 2Q25 compared to 2Q24 and a decrease of 8.3% in 1H25 compared to 1H24 [26, 36] - The EBITDA margin reached a company record of 41.6% in 2Q25 [5, 26, 34] - Non-Thai patient revenue decreased by 6.6% in 2Q25 and 8.2% in 1H25 compared to the same periods in the previous year [14, 21, 46, 50] Revenue Analysis - Middle East market share revenue increased by 23% compared to Q1 2025, with notable growth in Qatar (18%), UAE (46%), Oman (28%), and Saudi Arabia (54%) [5] - Non-Thai revenue has shown a CAGR of +5.8% from Y2018 to Y2024 [7] - Middle East non-Thai revenue increased by 56.2% from Y2018 to Y2024, while non-Middle East non-Thai revenue increased by 31.7% during the same period [10] - Inpatient and outpatient services contributed roughly equally to revenues, with inpatient services accounting for 50% in 2Q25 and 49% in 1H25 [29] Business Updates and Developments - Bumrungrad International Hospital has been recognized in Newsweek's Best Specialized Hospitals Asia Pacific 2025 ranking across all 9 specialty fields [52] - The hospital has been approved for renewal of its Advanced Hospital Accreditation (Advanced HA) under the Hospital and Healthcare Standards, with a certification period from May 23, 2025 – May 22, 2029 [55, 56] - A new Bumrungrad Comprehensive Cancer Center is under development, expected to be completed in 2027, with the aim of expanding capacity and enhancing patient experience [78, 80, 105]

[Filing Information](index=1&type=section&id=Filing%20Information) This section details the registrant, report date, and registered common stock classes for the Form 8-K filing [Registrant and Filing Details](index=1&type=section&id=Registrant%20and%20Filing%20Details) This section provides the administrative details of the Form 8-K filing, identifying BIGLARI HOLDINGS INC. as the registrant, the report date, and the classes of common stock registered on the New York Stock Exchange - The registrant is **BIGLARI HOLDINGS INC.**, incorporated in Indiana[1](index=1&type=chunk) - The report date for the earliest event reported is **May 9, 2025**[1](index=1&type=chunk) Registered Common Stock Classes | Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | | :------------------ | :---------------- | :---------------------------------------- | | Class A common stock | BH.A | New York Stock Exchange | | Class B common stock | BH | New York Stock Exchange | [Current Report Items](index=2&type=section&id=Current%20Report%20Items) This section details the company's first-quarter financial results announcement and lists the accompanying exhibits [Item 2.02. Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02.%20Results%20of%20Operations%20and%20Financial%20Condition) Biglari Holdings Inc. announced first-quarter financial results for the period ended March 31, 2025, through a furnished press release (Exhibit 99.1) incorporated by reference - **Biglari Holdings Inc.** issued a press release on **May 9, 2025**, announcing financial results for the first quarter ended **March 31, 2025**[4](index=4&type=chunk) - The press release (**Exhibit 99.1**) is incorporated by reference into this report[4](index=4&type=chunk) - The information in this Current Report, including the exhibit, is furnished and not deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934[5](index=5&type=chunk) [Item 9.01. Financial Statements and Exhibits](index=2&type=section&id=Item%209.01.%20Financial%20Statements%20and%20Exhibits) This section lists the exhibits included with the Form 8-K filing, specifically the press release detailing the first-quarter financial results and the interactive data file for the cover page Exhibits Included | Exhibit No. | Description | | :------------ | :---------------------------------------------------------- | | 99.1 | Press Release issued by the Company on May 9, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [SIGNATURE](index=3&type=section&id=SIGNATURE) This section confirms the formal signing of the Current Report on Form 8-K by the company's Controller [Report Signature](index=3&type=section&id=Report%20Signature) The Current Report on Form 8-K was formally signed on May 9, 2025, by **Bruce Lewis**, Controller of **BIGLARI HOLDINGS INC.**, confirming compliance with the Securities Exchange Act of 1934 - The Current Report was signed on **May 9, 2025**, by **Bruce Lewis**, Controller of **BIGLARI HOLDINGS INC.**[10](index=10&type=chunk) - The signing confirms compliance with the requirements of the Securities Exchange Act of 1934[9](index=9&type=chunk)