Financial Performance - Net earnings attributable to Biglari Holdings Inc. shareholders for 2025 were $(37,488) thousand, a decrease from $(3,759) thousand in 2024, compared to $54,948 thousand in 2023[101]. - Total revenue for the restaurant segment in 2025 was $280,870 thousand, an increase of $29,423 thousand or 11.7% compared to $251,447 thousand in 2024[108]. - Net sales for company-operated units in 2025 were $181,884 thousand, representing an increase of $22,671 thousand or 14.2% compared to 2024, driven by a 10.5% increase in same-store sales[109]. - Franchise partner fees increased to $77,001 thousand in 2025 from $70,616 thousand in 2024, with a same-store sales increase of 10.1%[111]. - The underwriting gain for the insurance segment in 2025 was $7,210 thousand, compared to $4,438 thousand in 2024, with a net underwriting gain of $5,696 thousand[123]. Costs and Expenses - The cost of food at company-operated units was $56,205 thousand, or 30.9% of net sales in 2025, up from $47,891 thousand or 30.1% in 2024, primarily due to inflation[114]. - Labor costs at company-operated restaurants were $56,175 thousand, or 30.9% of net sales in 2025, compared to $50,431 thousand, or 31.7% in 2024[115]. - General and administrative expenses were $48,969 thousand, or 17.4% of total revenue in 2025, an increase from $47,130 thousand, or 18.7% in 2024[116]. - Marketing expenses increased to $17,951 thousand, or 6.4% of total revenue in 2025, from $12,584 thousand, or 5.0% in 2024, primarily due to new product promotions[117]. Insurance Segment Performance - Premiums written increased to $71,041 million in 2025, up from $68,394 million in 2024, representing a growth of 3.8%[124]. - First Guard's underwriting gain in 2025 was $6,015 million, a 49.0% increase compared to $4,038 million in 2024[127]. - Southern Pioneer reported a 19.0% increase in premiums earned to $33,473 million in 2025, up from $28,118 million in 2024[129]. Oil and Gas Revenue - Oil and gas revenue decreased to $30,211 million in 2025, down 18.3% from $36,945 million in 2024[133]. - Abraxas Petroleum's revenue declined by $5,592 million, or 24.8%, to $16,998 million in 2025 due to lower crude oil prices[135]. - Southern Oil's revenue decreased by $1,142 million, or 8.0%, to $13,213 million in 2025, attributed to lower sales prices of crude oil[138]. Licensing and Media Revenue - Maxim's licensing and media revenue surged to $7,717 million in 2025, a significant increase from $1,029 million in 2024[140]. Investment and Financing Activities - Investment partnership losses were $67,001 million in 2025, compared to losses of $41,058 million in 2024[143]. - The consolidated income tax benefit increased to $10,203 million in 2025 from $4,395 million in 2024, driven by taxes on income from investment partnerships[148]. - Interest expense on notes payable rose to $8,221 million in 2025, significantly higher than $771 million in 2024, due to new borrowings[147]. - Consolidated shareholders' equity decreased to $523,429 as of December 31, 2025, down $49,532 from the previous year, primarily due to a net loss of $37,488[150]. - Total cash and investments increased to $1,110,417 in 2025, up from $789,950 in 2024, with cash and cash equivalents rising significantly to $268,782[152]. - Net cash provided by operating activities rose to $106,959 in 2025, an increase of $57,299 compared to 2024, largely due to $56,000 in distributions from investment partnerships[154]. - Cash used in investing activities decreased by $21,918 in 2025, primarily due to a $33,411 increase in sales of investments and redemptions of fixed maturity securities[155]. - Financing activities provided $196,533 in 2025, a significant increase of $157,049 compared to 2024, driven by a $225,000 note payable from Steak n Shake[155]. - The line of credit balance was $27,250 as of December 31, 2025, down from $35,000 in 2024, with an interest rate of 6.7%[157]. - Steak n Shake obtained a loan of $225,000 on September 30, 2025, with a fixed interest rate of 8.8% and a five-year term[159]. - The carrying value of cash and investments on the balance sheet was $492,107 as of December 31, 2025, compared to $335,411 in 2024[152]. Corporate Performance - Corporate expenses for 2025 were reported at a net loss of $16,000, an increase from $12,503 in 2024, mainly due to higher professional fees[149]. - The company maintains significant liquidity, with cash flow activities reflecting a strong operational performance[153]. - The company operated 435 restaurants as of December 31, 2025, a decrease from 492 in 2024, with plans to reopen two closed locations and sell or lease five[105].
Biglari (BH_A) - 2025 Q4 - Annual Report