Analogy 1: A mini-Berkshire Hathaway, with a strong emphasis on casual dining chains.

Analogy 2: Like Berkshire Hathaway, but with an activist-investor CEO who focuses heavily on restaurant brands.

• Casual Dining Restaurant Services: Operates and franchises casual dining restaurants offering American cuisine, primarily under the Steak 'n Shake and Western Sizzlin brands.
• Commercial & Property/Casualty Insurance: Provides underwriting and sales of commercial automobile and property & casualty insurance policies through its insurance subsidiaries.
• Capital Allocation & Investment Management: Manages a portfolio of publicly traded equity securities and allocates capital across diverse businesses for long-term growth and shareholder value.

Biglari Holdings (BH-A) operates a diverse portfolio of businesses, with its largest revenue segment being company-owned Steak n Shake restaurants. These restaurants primarily serve individual consumers.

The up to three categories of individual customers that Biglari serves through its Steak n Shake restaurant operations include:

• Families and Casual Diners: Individuals seeking affordable, family-friendly American comfort food, often looking for a meal out with classic diner fare.
• Young Adults and Students: Customers attracted to the classic diner experience, burgers, and hand-dipped milkshakes, including those looking for late-night dining options.
• Travelers and Commuters: Individuals seeking quick, familiar, and reasonably priced meals while on the road, often utilizing locations situated conveniently near highways.

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Sardar Biglari, Chairman and Chief Executive Officer

Sardar Biglari is the founder, Chairman, and Chief Executive Officer of Biglari Holdings Inc., a position he has held since 2008, with the company being renamed in 2010. He also serves as the Chairman and CEO of Steak 'n Shake. Mr. Biglari founded Biglari Capital Corp. in 2000, where he serves as Chairman and CEO, overseeing The Lion Fund, L.P., and The Lion Fund II, L.P., which are private investment partnerships. At the age of 18, he founded INTX.net, an Internet service provider, and subsequently sold it to Internet America in 1999. Utilizing the proceeds, he initiated an investment partnership at 22, acquiring stakes in restaurant companies like Western Sizzlin Corp., where he became Chairman and CEO in 2006. He was an activist investor in Friendly Ice Cream, which was later acquired by a private equity firm.

Philip L. Cooley, Vice Chairman

Philip L. Cooley has served as a director of Biglari Holdings Inc. since 2008 and as Vice Chairman of the Board of Directors since 2009. From 1985 until his retirement in 2012, he was the Prassel Distinguished Professor of Business at Trinity University. Mr. Cooley has also been an advisory director of Biglari Capital since 2000, connecting him to the private investment partnerships managed by Sardar Biglari. He possesses extensive business and investment experience and previously served as a director for CCA Industries, Inc. and Insignia Systems, Inc.

Bruce Lewis, Controller

Bruce Lewis has held the position of Controller for Biglari Holdings Inc. since 2012. He is listed as a key officer of the company.

Biglari (BH-A) faces several clear emerging threats across its operating segments:

• Restaurants (Steak 'n Shake, Western Sizzlin): The proliferation and increasing sophistication of ghost kitchens and virtual restaurant brands. These models leverage shared kitchen spaces and delivery platforms to offer a wide variety of food options with significantly lower overhead costs than traditional brick-and-mortar restaurants. This allows them to quickly adapt to trends, offer competitive pricing, and capture a growing share of the delivery market, directly challenging the existing restaurant operational model and potentially siphoning off customer demand.
• Insurance (First Guard): The rapid adoption and advancement of telematics and artificial intelligence (AI) in commercial auto insurance underwriting and claims management. Competitors leveraging these technologies can achieve more precise risk assessment, dynamic pricing, and efficient claims processing. This allows them to offer more competitive rates, attract lower-risk clients, and improve profitability, potentially creating a significant disadvantage for insurers relying on more traditional underwriting methods.
• Media (Maxim): The accelerating dominance of short-form, algorithm-driven video content platforms (e.g., TikTok, Instagram Reels, YouTube Shorts). These platforms fundamentally alter consumer attention spans and content consumption habits, particularly among younger demographics. They directly compete for advertising dollars and audience engagement, eroding the relevance and monetization potential of traditional magazine formats (both print and digital) that rely heavily on articles and static imagery. The rise of the creator economy also empowers individuals to directly compete for audience attention and advertising revenue without traditional media infrastructure.

Restaurant Operations (Steak 'n Shake, Western Sizzlin')

• Quick Service Restaurants (QSR) Market: The U.S. quick service restaurant industry was valued at approximately USD 447.2 billion in 2025 and is projected to reach USD 731.6 billion by 2030. Globally, the QSR market was estimated at USD 322.72 billion in 2025 and is expected to reach around USD 510.15 billion by 2034. Another source indicates the global QSR market was valued at USD 289.68 billion in 2024 and is projected to grow to USD 468.98 billion by 2034. North America holds the largest global market share for QSR due to high consumer preference for quick dining and digital innovations. The U.S. alone is projected to reach USD 599.87 billion by 2032 within the QSR market.
• Casual Dining Market: The global casual dining market was valued at USD 333.02 billion in 2025 and is expected to reach USD 575.5 billion by 2035. North America contributes 28% of the global casual dining market share.
• Full-Service Restaurants Market: The United States full-service restaurant market size is projected to be USD 360.91 billion in 2025 and is forecast to climb to USD 617.47 billion by 2030.

Insurance Operations (First Guard Insurance Company, Southern Pioneer Property & Casualty Insurance)

• Property and Casualty (P&C) Insurance Market: The global property and casualty insurance market was valued at USD 4.30 trillion in 2025 and is projected to grow to USD 8.81 trillion by 2034. Another estimate puts the global market at USD 1.92 trillion in 2025, reaching USD 2.57 trillion by 2032. For the U.S. specifically, the property and casualty insurance market was valued at USD 1.10 trillion in 2025 and is projected to reach USD 1.33 trillion by 2030. Other sources estimate the U.S. property and casualty insurance market at USD 890 billion in 2024, projected to reach USD 2.02 trillion by 2034, and USD 1.0 trillion in 2025. North America, as a region, held the largest revenue share in the global property and casualty insurance market, valued at USD 826.4 billion in 2024.

Other Segments (Investment Management, Media and Publishing (Maxim Inc.))

Expected Drivers of Future Revenue Growth for Biglari Holdings (BH-A)

1. Steak n Shake Same-Store Sales Growth: Biglari Holdings has reported significant same-store sales growth for its Steak n Shake restaurant operations. In the third quarter of 2025, Steak n Shake's same-store sales for domestic company-operated and franchise-partner-operated restaurants increased by 15.0%. This continued momentum in same-store sales is a key driver for revenue expansion in its restaurant segment.
2. Expansion of Restaurant Operations: The company's diversified business model, particularly within its restaurant segment, indicates growth opportunities through both company-operated and franchise partner units. Efforts to sustain franchise revenues through improved performance and the growth of company-operated stores are expected to contribute to overall revenue.
3. Growth in the Insurance Business: Biglari Holdings anticipates revenue augmentation through the expansion of its insurance business. This segment has shown impressive growth in pre-tax underwriting gains due to lower underwriting expenses at Southern Pioneer, coupled with solid premium growth across its insurance businesses, which naturally boosts investment holdings.
4. Strategic Acquisitions: As a holding company, Biglari Holdings has a history of growth through acquisitions. Management continues to seek "sensible acquisitions that will advance operating earnings over time," indicating that strategic purchases of other businesses will be a method to increase the company's overall revenue base.

Share Repurchases

• Biglari Holdings has consistently engaged in share repurchases over the last five years, with the value of treasury stock increasing.
• The company's treasury stock increased by approximately $22.3 million in 2024, $6.6 million in 2023, $7.8 million in 2022, $12.3 million in 2021, and $12.3 million in 2020.
• Management views share repurchases as a way to increase per-share intrinsic value when the stock trades at a discount to book value.

Share Issuance

No significant share issuances were identified over the last 3-5 years.

Inbound Investments

No significant inbound investments by third-parties into Biglari Holdings were identified over the last 3-5 years.

Outbound Investments

• Biglari Holdings made acquisitions of $75.9 million in 2024, $50.4 million in 2023, $106.8 million in 2022, $12.3 million in 2021, and $106.3 million in 2020.
• The company also made significant investment purchases through its investment partnerships (The Lion Fund), totaling $67.4 million in 2024, $107.9 million in 2023, $134.5 million in 2022, $110.2 million in 2021, and $300.0 million in 2020.
• As of year-end 2024, total investments (cash, marketable securities, and investments in The Lion Fund) amounted to $790.0 million at fair value.

Capital Expenditures

• Capital expenditures were $29.1 million in 2024, $24.6 million in 2023, $5.3 million in 2022, $10.1 million in 2021, and $4.4 million in 2020.
• The company anticipates further capital investments, particularly in its oil and gas segment, including drilling activities.
• Biglari Holdings is also transitioning company-operated Steak n Shake restaurants to a franchise partner program, which impacts capital allocation in its restaurant segment.