Restaurant Operations - As of June 30, 2023, the total number of company-operated and franchise restaurants was 521, down from 545 as of December 31, 2022, reflecting a net closure of 24 restaurants[167]. - Total revenues for restaurant operations reached $64,491 in Q2 2023, up from $60,324 in Q2 2022, with Steak n Shake contributing $61,577 and Western Sizzlin $2,914[186]. Franchise Performance - Franchise partner fees increased to $19,070 in Q2 2023 from $16,425 in Q2 2022, totaling $36,982 for the first six months of 2023 compared to $32,049 in the same period of 2022[170]. - Traditional franchise royalties and fees decreased to $4,125 in Q2 2023 from $5,237 in Q2 2022, totaling $8,383 for the first six months of 2023 compared to $10,383 in 2022, attributed to fewer traditional units open[171]. Operating Costs and Efficiency - Operating costs at company-operated restaurants were $19,295 or 48.8% of net sales in Q2 2023, down from $20,350 or 54.0% in Q2 2022, indicating improved efficiency[172]. - Marketing expenses decreased by $584 in the first six months of 2023 compared to the same period in 2022, primarily due to reduced marketing by traditional franchisees[173]. Insurance Operations - First Guard's loss ratio improved to 46.2% in Q2 2023 from 60.6% in Q2 2022, reflecting better underwriting performance despite cost inflation[179]. - The total insurance operations revenue was $17,547 in Q2 2023, compared to $16,354 in Q2 2022, indicating growth in this segment[186]. Financial Position - Total assets at fair value were $105,222, with cash equivalents of $16,563 and government bonds valued at $61,467[182]. - The company paid $4,200 in service fees to Biglari Enterprises during the first six months of 2023, consistent with the previous year[184].
Biglari (BH_A) - 2023 Q2 - Quarterly Report