Smashburger: Forbes pick for most promising company
When biglari got control,he slashed prices on 4 everyday deals at $3.99 if I recall. I think they still have them.
For a guy not having any restaurant experience and his unwillingness to hire an experienced operator, he has done a heckuva job.
At first he was working 18 hour days in Indiana. Now he runs it from Texas.
PZZIs former president wanted the Steak N Shake job and interviewed for it. He even bought stock and joined biglaris group but later ended up selling out way too soon.
And not long after biglari got control, he lost his top operations guy to Sonic.
So we really have no idea who is in charge of day to day operations.
But traffic has increased every quarter and he cut capex to the bone.
CBRLs latest presentation is a high dollar 50 page deal where they alternate between tooting their own horn & bashing biglari.
All over 1 board seat...out of 11 or 12.
And he owns WAY more stock than all of them combined.
SNS did the same thing& lost. The analysts seem to think Biglari will lose this time. But, if the stock continues to do well, nobody loses.
Steak N Shake just opened one store and plans to open 4 more in Denver, the same place Red Robin is trying out their new model.
I happened to own Western Sizzlin about a month before Biglari took over there so Ive been watching him for years. Got in SNS after he did at better prices and then Western was later converted into SNS shares & a bond.
Impressive long winded annual reports every year. Pretty impressive given his age.
Downside is his compensation package. He is paid like a hedge fund operator with 25% of the profits after 6%. In addition to $900k. But, he is required to use much of that to buy shares in the open market.