Business Segment Reporting
Our reportable business segments are organized in a manner that reflects how management views those business activities. Biglari Holdings’ diverse businesses are managed on an unusually decentralized basis. Our restaurant operations include Steak n Shake and Western Sizzlin. Our insurance operations include First Guard, Southern Pioneer, and Biglari Reinsurance. Our oil and gas operations include Southern Oil and Abraxas Petroleum. The Company also reports segment information for Maxim. Other business activities not specifically identified with reportable business segments are presented under corporate and other. We report our earnings from investment partnerships separately. The Company’s chief operating decision-maker is the Chief Executive Officer, who is ultimately responsible for significant capital allocation decisions, evaluating operating performance, and selecting the chief executive to head each of the operating segments. The cost and expense information provided is based on the information regularly provided to the chief operating decision-maker. Given the varied operating segments and the differences in revenue streams and cost structures, there are wide variances in the form, content, and levels of such expense information significant to the business. With respect to insurance underwriting, the chief operating decision-maker considers pre-tax underwriting earnings. Typically, there are no budgeted or forecasted premiums. For most non-insurance businesses, pre-tax earnings are considered in allocating resources and capital.
A disaggregation of our consolidated data for each of the three most recent years is presented in the tables that follow.
| | | | | | | | | | | | | | | | | |
| Restaurant | | | | | |
| 2025 |
| Steak n Shake | | Western Sizzlin | | Total Restaurants |
| Revenue | $ | 270,578 | | | $ | 10,292 | | | $ | 280,870 | |
| Cost and expenses: | | | | | |
| Cost of food | 52,663 | | | 3,542 | | | 56,205 | |
| Labor costs | 53,654 | | | 2,521 | | | 56,175 | |
| Occupancy and other | 50,963 | | | 3,399 | | | 54,362 | |
| Selling, general and administrative | 62,791 | | | 185 | | | 62,976 | |
| Depreciation, amortization and impairment | 27,937 | | | 73 | | | 28,010 | |
| Total costs and expenses | 248,008 | | | 9,720 | | | 257,728 | |
| Earnings before income taxes | $ | 22,570 | | | $ | 572 | | | $ | 23,142 | |
| | | | | | | | | | | | | | | | | |
| 2024 |
| Steak n Shake | | Western Sizzlin | | Total Restaurants |
| Revenue | $ | 240,846 | | | $ | 10,601 | | | $ | 251,447 | |
| Cost and expenses: | | | | | |
| Cost of food | 44,440 | | | 3,451 | | | 47,891 | |
| Labor costs | 47,884 | | | 2,547 | | | 50,431 | |
| Occupancy and other | 47,511 | | | 2,977 | | | 50,488 | |
| Selling, general and administrative | 53,870 | | | 44 | | | 53,914 | |
| Depreciation, amortization and impairment | 27,042 | | | 67 | | | 27,109 | |
| Total costs and expenses | 220,747 | | | 9,086 | | | 229,833 | |
| Earnings before income taxes | $ | 20,099 | | | $ | 1,515 | | | $ | 21,614 | |
| | | | | | | | | | | | | | | | | |
| 2023 |
| Steak n Shake | | Western Sizzlin | | Total Restaurants |
| Revenue | $ | 239,956 | | | $ | 10,901 | | | $ | 250,857 | |
| Cost and expenses: | | | | | |
| Cost of food | 41,562 | | | 3,431 | | | 44,993 | |
| Labor costs | 44,663 | | | 2,427 | | | 47,090 | |
| Occupancy and other | 48,092 | | | 2,925 | | | 51,017 | |
| Selling, general and administrative | 48,558 | | | 258 | | | 48,816 | |
| Depreciation, amortization and impairment | 30,911 | | | 67 | | | 30,978 | |
| Total costs and expenses | 213,786 | | | 9,108 | | | 222,894 | |
| Earnings before income taxes | $ | 26,170 | | | $ | 1,793 | | | $ | 27,963 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Insurance | | | | | | | | | | | |
| 2025 |
| First Guard | | Southern Pioneer | | Total Underwriting | | Investment Income | | Other | | Total Insurance |
| Revenue | $ | 36,674 | | | $ | 33,473 | | | $ | 70,147 | | | $ | 3,339 | | | $ | 2,977 | | | $ | 76,463 | |
| Cost and expenses: | | | | | | | | | | | |
| Insurance losses | 23,028 | | | 20,114 | | | 43,142 | | | — | | | — | | | 43,142 | |
| Underwriting expenses | 7,631 | | | 12,164 | | | 19,795 | | | — | | | — | | | 19,795 | |
| Other segment items | — | | | — | | | — | | | — | | | 810 | | | 810 | |
| Total costs and expenses | 30,659 | | | 32,278 | | | 62,937 | | | — | | | 810 | | | 63,747 | |
| Earnings before income taxes | $ | 6,015 | | | $ | 1,195 | | | $ | 7,210 | | | $ | 3,339 | | | $ | 2,167 | | | $ | 12,716 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2024 |
| First Guard | | Southern Pioneer | | Total Underwriting | | Investment Income | | Other | | Total Insurance |
| Revenue | $ | 37,691 | | | $ | 28,118 | | | $ | 65,809 | | | $ | 3,928 | | | $ | 2,956 | | | $ | 72,693 | |
| Cost and expenses: | | | | | | | | | | | |
| Insurance losses | 27,236 | | | 16,407 | | | 43,643 | | | — | | | — | | | 43,643 | |
| Underwriting expenses | 6,417 | | | 11,311 | | | 17,728 | | | — | | | — | | | 17,728 | |
| Other segment items | — | | | — | | | — | | | — | | | 2,232 | | | 2,232 | |
| Total costs and expenses | 33,653 | | | 27,718 | | | 61,371 | | | — | | | 2,232 | | | 63,603 | |
| Earnings before income taxes | $ | 4,038 | | | $ | 400 | | | $ | 4,438 | | | $ | 3,928 | | | $ | 724 | | | $ | 9,090 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2023 |
| First Guard | | Southern Pioneer | | Total Underwriting | | Investment Income | | Other | | Total Insurance |
| Revenue | $ | 36,917 | | | $ | 24,308 | | | $ | 61,225 | | | $ | 3,074 | | | $ | 2,973 | | | $ | 67,272 | |
| Cost and expenses: | | | | | | | | | | | |
| Insurance losses | 20,861 | | | 14,807 | | | 35,668 | | | — | | | — | | | 35,668 | |
| Underwriting expenses | 6,564 | | | 10,539 | | | 17,103 | | | — | | | — | | | 17,103 | |
| Other segment items | — | | | — | | | — | | | — | | | 1,418 | | | 1,418 | |
| Total costs and expenses | 27,425 | | | 25,346 | | | 52,771 | | | — | | | 1,418 | | | 54,189 | |
| Earnings before income taxes | $ | 9,492 | | | $ | (1,038) | | | $ | 8,454 | | | $ | 3,074 | | | $ | 1,555 | | | $ | 13,083 | |
Other segment items include general and administrative costs, depreciation, and other income.
| | | | | | | | | | | | | | | | | |
| Oil and Gas | | | | | |
| 2025 |
| Abraxas Petroleum | | Southern Oil | | Total
Oil and Gas |
| Revenue | $ | 16,998 | | | $ | 13,213 | | | $ | 30,211 | |
| Cost and expenses: | | | | | |
| Production costs | 8,839 | | | 3,709 | | | 12,548 | |
| Depreciation and depletion | 6,011 | | | 5,663 | | | 11,674 | |
| General and administrative | 2,889 | | | 2,079 | | | 4,968 | |
| Total costs and expenses | 17,739 | | | 11,451 | | | 29,190 | |
| | | | | |
| Gains on sales of properties | 11,877 | | | — | | | 11,877 | |
| | | | | |
| Earnings before income taxes | $ | 11,136 | | | $ | 1,762 | | | $ | 12,898 | |
| | | | | | | | | | | | | | | | | |
| 2024 |
| Abraxas Petroleum | | Southern Oil | | Total
Oil and Gas |
| Revenue | $ | 22,590 | | | $ | 14,355 | | | $ | 36,945 | |
| Cost and expenses: | | | | | |
| Production costs | 9,517 | | | 7,119 | | | 16,636 | |
| Depreciation and depletion | 6,202 | | | 4,900 | | | 11,102 | |
| General and administrative | 3,718 | | | 2,417 | | | 6,135 | |
| Total costs and expenses | 19,437 | | | 14,436 | | | 33,873 | |
| | | | | |
| Gains on sales of properties | 16,700 | | | — | | | 16,700 | |
| | | | | |
| Earnings before income taxes | $ | 19,853 | | | $ | (81) | | | $ | 19,772 | |
| | | | | | | | | | | | | | | | | |
| 2023 |
| Abraxas Petroleum | | Southern Oil | | Total
Oil and Gas |
| Revenue | $ | 27,576 | | | $ | 17,495 | | | $ | 45,071 | |
| Cost and expenses: | | | | | |
| Production costs | 9,605 | | | 7,760 | | | 17,365 | |
| Depreciation and depletion | 6,359 | | | 3,980 | | | 10,339 | |
| General and administrative | 2,765 | | | 2,399 | | | 5,164 | |
| Total costs and expenses | 18,729 | | | 14,139 | | | 32,868 | |
| | | | | |
| Gains on sales of properties | 13,563 | | | — | | | 13,563 | |
| | | | | |
| Earnings before income taxes | $ | 22,410 | | | $ | 3,356 | | | $ | 25,766 | |
| | | | | | | | | | | | | | | | | |
| Brand Licensing | | | | | |
| Maxim |
| 2025 | | 2024 | | 2023 |
| Revenue | $ | 7,717 | | | $ | 1,029 | | | $ | 2,118 | |
| Cost and expenses: | | | | | |
| Licensing and media cost | 9,040 | | | 2,036 | | | 1,840 | |
| General and administrative | 598 | | | 173 | | | 267 | |
| Total costs and expenses | 9,638 | | | 2,209 | | | 2,107 | |
| Earnings before income taxes | $ | (1,921) | | | $ | (1,180) | | | $ | 11 | |
| | | | | | | | | | | | | | | | | |
| Capital Expenditures |
| 2025 | | 2024 | | 2023 |
| Operating Businesses: | | | | | |
| Restaurant | $ | 26,690 | | | $ | 21,812 | | | $ | 21,294 | |
| Insurance | 257 | | | 152 | | | 309 | |
| Oil and gas | 1,261 | | | 11,783 | | | 544 | |
| Brand licensing | 1,776 | | | — | | | — | |
| Operating businesses | 29,984 | | | 33,747 | | | 22,147 | |
| Corporate and other | 313 | | | 36 | | | 1,258 | |
| $ | 30,297 | | | $ | 33,783 | | | $ | 23,405 | |
| | | | | | | | | | | | | | | | | |
| Depreciation, Depletion, and Amortization |
| 2025 | | 2024 | | 2023 |
| Operating Businesses: | | | | | |
| Restaurant | $ | 26,759 | | | $ | 27,002 | | | $ | 27,031 | |
| Insurance | 368 | | | 341 | | | 339 | |
| Oil and gas | 11,674 | | | 11,102 | | | 10,339 | |
| Brand licensing | 446 | | | — | | | — | |
| Operating businesses | 39,247 | | | 38,445 | | | 37,709 | |
| Corporate and other | 1,532 | | | 1,398 | | | 1,270 | |
| $ | 40,779 | | | $ | 39,843 | | | $ | 38,979 | |
Reconciliation of revenues and earnings (loss) before income taxes of our business segments to the consolidated amounts for each of the three years ended December 31 follows.
| | | | | | | | | | | | | | | | | |
| Revenues |
| 2025 | | 2024 | | 2023 |
| Total operating businesses | $ | 395,261 | | | $ | 362,114 | | | $ | 365,318 | |
| Investment partnership gains (losses) | — | | | — | | | — | |
| Investment gains | — | | | — | | | — | |
| Interest expenses not allocated to segments | — | | | — | | | — | |
| Corporate and other | — | | | — | | | — | |
| Revenues | $ | 395,261 | | | $ | 362,114 | | | $ | 365,318 | |
| | | | | | | | | | | | | | | | | |
| Earnings (losses) before income taxes |
| 2025 | | 2024 | | 2023 |
| Total operating businesses | $ | 46,835 | | | $ | 49,296 | | | $ | 66,823 | |
| Investment partnership gains (losses) | (67,001) | | | (41,058) | | | 19,440 | |
| Investment gains | 528 | | | 335 | | | 2,211 | |
| Interest expenses not allocated to segments | (8,221) | | | (771) | | | (681) | |
| Corporate and other | (19,832) | | | (15,956) | | | (22,946) | |
| Earnings before income taxes | $ | (47,691) | | | $ | (8,154) | | | $ | 64,847 | |
A disaggregation of our consolidated assets is presented in the table that follows.
| | | | | | | | | | | |
| Identifiable Assets |
| December 31, |
| 2025 | | 2024 |
| Reportable segments: | | | |
| Restaurant Operations: | | | |
| Steak n Shake | $ | 417,147 | | | $ | 322,918 | |
| Western Sizzlin | 23,927 | | | 20,534 | |
| Total Restaurant Operations | 441,074 | | | 343,452 | |
| | | |
| Insurance Operations: | | | |
| First Guard | 55,584 | | | 52,726 | |
| Southern Pioneer | 77,739 | | | 67,808 | |
| Biglari Reinsurance | 11,079 | | | 9,042 | |
| Total Insurance Operations | 144,402 | | | 129,576 | |
| | | |
| Oil and Gas Operations: | | | |
| Abraxas Petroleum | 54,923 | | | 58,992 | |
| Southern Oil | 43,213 | | | 49,259 | |
| Total Oil and Gas Operations | 98,136 | | | 108,251 | |
| | | |
| Maxim | 18,442 | | | 17,098 | |
| Corporate and other | 169,054 | | | 66,029 | |
| Investment partnerships | 154,275 | | | 201,727 | |
| $ | 1,025,383 | | | $ | 866,133 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.