Financial Performance - Net sales for Q2 2024 were $40,815 million, a 3.3% increase from Q2 2023, while first six months sales reached $79,550 million, up 4.1% year-over-year[93]. - Franchise partner fees decreased to $18,149 million in Q2 2024 from $19,070 million in Q2 2023, with a total of $35,907 million for the first six months of 2024 compared to $36,982 million in 2023[94]. - Franchise royalties and fees fell to $3,615 million in Q2 2024 from $4,125 million in Q2 2023, totaling $7,092 million for the first six months of 2024 versus $8,383 million in 2023[95]. - Other income decreased to $2,442 million in 2024 from $4,301 million in 2023, with notable property sales contributing to the previous year's figures[98]. - Total other income for the first six months of 2024 was $2,691 million, an increase from $2,300 million in the first six months of 2023, showing a growth of 17.0%[106]. Cost and Expenses - Cost of food as a percentage of net sales increased to 30.3% in Q2 2024 from 29.6% in Q2 2023, while for the first six months, it was 29.3% compared to 29.0% in 2023[96]. - Labor costs represented 31.8% of net sales in Q2 2024, up from 30.8% in Q2 2023, with first six months labor costs at 32.1% compared to 31.3% in 2023[96]. - General and administrative expenses rose to $13,016 million or 20.2% of total revenue in Q2 2024, compared to $10,790 million or 16.7% in Q2 2023[97]. - General and administrative expenses for Q2 2024 were $33 million, down from $54 million in Q2 2023[121]. Impairment and Losses - The company recorded impairment charges of $853 million in Q2 2023, with $107 million in the first six months of 2024 compared to $1,629 million in 2023[97]. - Investment losses net of tax for Q2 2024 were $2,159 million, a significant decline from investment gains of $276 million in Q2 2023, and for the first six months of 2024, losses were $827 million compared to gains of $3,141 million in 2023[123]. - Investment partnership losses for Q2 2024 were $79,890 million, compared to losses of $7,496 million in Q2 2023, and for the first six months of 2024, losses were $57,905 million compared to gains of $65,092 million in 2023[124]. - The total losses and expenses for Southern Pioneer in the second quarter of 2024 were $7,582 million, which is 111.5% of premiums earned, compared to 106.7% in the same quarter of 2023[110]. Insurance Operations - The pre-tax underwriting gain for the insurance operations was $546 million in Q2 2024, down from $2,704 million in Q2 2023[103]. - Premiums earned for the second quarter of 2024 were $16,291 million, an increase from $15,971 million in the same quarter of 2023, representing a growth of 2.0%[106]. - Insurance losses for the second quarter of 2024 were $10,962 million, up from $8,372 million in the second quarter of 2023, indicating a rise of 30.0%[106]. - The pre-tax underwriting gain for First Guard in the second quarter of 2024 was $1,331 million, compared to $3,155 million in the same quarter of 2023, reflecting a decrease of 57.8%[107]. - Southern Pioneer's insurance losses in the second quarter of 2024 were $4,801 million, which is 70.6% of premiums earned, compared to 61.0% in the same quarter of 2023[110]. Cash and Investments - The company's cash and cash equivalents as of June 30, 2024, were $26,897 million, down from $28,066 million at the end of 2023[131]. - Net cash provided by operating activities for the first six months of 2024 was $20,910 million, a decrease of $10,608 million compared to $31,518 million in 2023[133]. - Cash used in investing activities decreased by $8,888 million in 2024 compared to 2023, primarily due to increased proceeds from property and equipment disposals[134]. - The carrying value of cash and investments on the balance sheet as of June 30, 2024, was $279,247 million, down from $319,048 million at the end of 2023[131]. Oil and Gas Operations - Oil and gas revenues for the second quarter of 2024 were $8,671 million, down from $10,741 million in the same quarter of 2023, indicating a decline of 19.4%[115]. - The contribution to net earnings from oil and gas operations in the second quarter of 2024 was $13,369 million, compared to $2,150 million in the same quarter of 2023, reflecting a significant increase[115]. - Southern Oil's oil and gas revenues for the second quarter of 2024 were $3,679 million, down from $4,810 million in the same quarter of 2023, a decrease of 23.5%[119].
Biglari (BH_A) - 2024 Q2 - Quarterly Report