The value of Biglari Holdings shares have slid since the company at Sardar Biglari's behest adopted a dual-class stock structure in May.
Indianapolis-based Steak n Shake announced a plan Monday to dramatically change its franchising model by letting “franchise partners” take over operations at company-owned restaurants.
The Indianapolis-based restaurant chain saw declining customer traffic and sales in the first quarter.
The parent of Steak n Shake will create two classes of stock, allowing Sardar Biglari to make acquisitions without diluting his voting control.
A franchisee has filed suit against Indianapolis-based Steak n Shake in an effort to raise its menu prices because it says all of its restaurants are losing money.
A franchisee says Sardar Biglari's devotion to low prices is taking a toll on the customer experience at Steak n Shake.
Sardar Biglari might talk a good game about being a champion of shareholders, but his biggest critics view him as a hypocrite—thanks to a series of moves that furthered his control over the business, the latest of which has spurred one lawsuit and seems sure to spark others.
Third-quarter revenue and customer traffic also declined for the Indianapolis-based restaurant chain.
Sardar Biglari racked up 29 quarters of consecutive same-store sales gains before the current cold streak hit.
Sales at established Steak n Shake restaurants rose slightly in the latest quarter following disappointing results last period that snapped a streak of 29 consecutive quarterly increases dating to 2009.
A former employee alleges that Sardar Biglari insisted Maxim devote 50 pages of the December/January issue to Monaco, where he spends significant time, and include features on his favorite cigar shop and on David Letterman, part-owner of the race team Steak n Shake sponsors.
"In a world filled with hyper-orthodoxy, Biglari Holdings represents an oasis of unconventionality," Sardar Biglari said in his latest letter to shareholders. "We follow our own individualistic ideas and ideals rather than find refuge in the superficial conventions and conformity.”
The burger chain in November announced that it recorded a 3 percent increase in same-store sales in the third quarter. It was the 27th quarter in a row in which same-store sales rose compared with the same period a year earlier—a stunning run of success in the topsy-turvy world of restaurants.
Sardar Biglari, CEO of the investment company that owns Indianapolis-based Steak n Shake, is expected to become editor-in-chief of Maxim, according to a report by Politco, taking control after a high-profile effort to revamp the magazine proved unsuccessful.
The Indianapolis-based restaurant chain will be the primary sponsor of Rahal's Honda at five IndyCar Series events, including two races at Indianapolis Motor Speedway.
Sardar Biglari was able to use shareholder money to boost his voting power to nearly 50 percent.
Sardar Biglari fielded questions from shareholders until they ran out of things to ask. He talked about the smallest details of the company’s businesses, from the way Steak n Shake makes its milkshakes to the number of ad pages its men’s magazine, Maxim, sells.
The parent of Steak n Shake has disclosed the vote tally from the April 9 annual meeting, where all six incumbents won re-election.