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Steak'n Shake Quarterly Results Will Be Out Today


Parsad

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Isn't it rare for a company to report earnings on a Friday after the close? Seems strange to me? And why would SNS not put out an earnings release notice?

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Isn't it rare for a company to report earnings on a Friday after the close? Seems strange to me? And why would SNS not put out an earnings release notice?

 

Sardar already put out all the release dates for 2010 near the end of the 2009 Chairman's Letter...saves money on press releases!  Cheers!

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All I have to say is "wow".

 

2 things:

 

1) This pretty much settles what Biglari plans to do with SNS, now, Biglari Holdings. I am guessing that he is planning on staying for a while. ;)

 

2) Basically, if you add up the quarterly change in cash and investments, we are now at roughly the cash flow that we were a few years back, less cap ex. While I have not gotten far enough to see if it was a result of the credit line being tapped for the investments. Still, he minted about $17 million in cash and investments over the quarter!

 

It will certainly be entertaining to read what the Motley Fool, IBJ, and Indy Star have to say about the name change.

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Parsad - 1 Million gain from investments off $8 million base (cost basis). Any idea what makes that up.  I am assuming ITEX and FMMH, anything else?

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I'm not a fan of the name change...I really like "The Steak'n Shake Company"!  But at the same time, his goal is to acquire other companies both public and private, so this sort of clears up who is acquiring who...for example, would a family-run private company want to be acquired by "The Steak'n Shake Company"?  

 

I'm sure it's a tribute to Berkshire, but the BH & "Biglari Holding" name just opens him up to criticism.  Then again, we are talking about Sardar and he couldn't give a rat's ass what the critics think of him, as long as he's making money for shareholders and growing the businesses he acquires.  Personally, I don't care either as long as he keeps doing what he's doing.  I'm just blown away by how much cash he's socking away!  Cheers!

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Parsad - 1 Million gain from investments off $8 million base (cost basis). Any idea what makes that up.  I am assuming ITEX and FMMH, anything else?

 

No idea.  They would have had to file on ITEX, as Sardar would be over 10% control regardless of it being in WEST or SNS.  Whatever it is, I hope it's the same stuff I've been buying!  ;D  Cheers!

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Some facts:

-1Q is only 12 weeks of a 52 week year.  It's also seasonally slower due to weather.

 

-From 2002-2007, the 1st Quarter averaged 21.4% of the fiscal years net sales.

 

-Q1 2010 sales were 148 million, and applying that ratio would imply 692 million in net sales this year.

 

-2009 net sales were 627 million, with the boost of a 53rd week.  Without the 53rd week, it was 615.

 

-692 / 615 means 12.5% same store sales growth.

 

-As I've read from gas companies, the quarter was a particularly cold one. . .

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According to the last 13-D filing by Sardar, Biglari Capital Corp (his personal company), owns 76,241 shares (pre-split), so much less than 1%.  I think people will critique that naming a company after yourself, when you only own 0.5%, is probably a bit egotistical. 

 

That being said, if you assume the shareholders who own 15% of SNS via Lion Fund, WEST, Mustang, etc still support him (I see absolutely no reason why not), then this is his baby to roll with and everyone wants to enjoy the ride...me included!  Cheers!

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I'm neutral on the name change. Though, I think that along with the other recent changes (even if they're the right changes) it's a little "too much too fast" for the employees and older shareholders. Why not change the name in the AR last month? Part of me thinks that Biglari may have spoken with Gabelli, and is more confident knowing he has his back.

 

"Looking for the financial story behind the 91-98 stock performance"

 

Some older financial history can be found in this S-3, when SNS was under the E.W. Kelly umbrella of Consolidated Products:

 

http://sec.gov/Archives/edgar/data/93859/0000950124-96-002986.txt

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