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BIGLARI HOLDINGS INC.
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(Name of Registrant as Specified in Its Charter)
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(Name of Persons(s) Filing Proxy Statement, if Other Than the Registrant)
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(3)
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Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
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Since Sardar Biglari became CEO on August 5, 2008, Biglari Holdings’ share price increased 267.1%, compared to 91.9% for the S&P 500.
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During this period BH’s total shareholder return has outpaced the S&P 500 by 175.2%.
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Year
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Biglari Holdings Stock
(1)
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S&P 500 Index
(2)
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Outperformance of S&P 500
(1)-(2)
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2008
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(12.1 | ) | (26.8 | ) | 14.7 | |||||||
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2009
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172.4 | 26.5 | 145.9 | |||||||||
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2010
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26.6 | 15.1 | 11.5 | |||||||||
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2011
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(10.2 | ) | 2.1 | (12.3 | ) | |||||||
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2012
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5.9 | 16.0 | (10.1 | ) | ||||||||
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2013
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40.0 | 32.4 | 7.6 | |||||||||
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2014
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(14.9 | ) | 13.7 | (28.6 | ) | |||||||
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2015
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6.9 | 1.0 | 5.9 | |||||||||
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Average Annual Return
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21.8 | % | 10.4 | % | 11.4 | % | ||||||
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Overall Return
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267.1 | % | 91.9 | % | 175.2 | % | ||||||
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Steak n Shake’s Same-Store Sales
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Prior Management
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Current Management
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2005
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2006
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2007
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2008
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2009
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2010
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2011
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2012
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2013
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2014
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1st Quarter
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– | -1.1 | % | -1.7 | % | -9.5 | % | -1.4 | % | 14.4 | % | 2.1 | % | 5.5 | % | 1.3 | % | 3.0 | % | ||||||||||||||||||||||
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2nd Quarter
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– | -0.3 | % | -4.7 | % | -6.3 | % | 2.4 | % | 5.1 | % | 4.3 | % | 4.8 | % | 0.3 | % | 3.7 | % | ||||||||||||||||||||||
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3rd Quarter
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– | -3.9 | % | -4.3 | % | -5.8 | % | 5.0 | % | 7.5 | % | 4.9 | % | 2.9 | % | 4.2 | % | 1.0 | % | ||||||||||||||||||||||
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4th Quarter
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-3.0 | % | -3.4 | % | -3.9 | % | -7.4 | % | 10.1 | % | 6.8 | % | 5.3 | % | 1.8 | % | 3.3 | % | 3.4 | % | |||||||||||||||||||||
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When Sardar Biglari became CEO in August 2008, Steak n Shake’s customer traffic was declining year-over-year by over 10%, cash flows were negative, and the company was out of compliance with its debt covenants. Its lenders demanded a reduction in its debt, and after all possible avenues had been exhausted, one lender stated in an e-mail to management: “We have done all we can.” Under present management, Steak n Shake has experienced one of the great brand turnarounds in the history of the restaurant industry. For the quarter ending March 31, 2015, Steak n Shake will achieve its 25th consecutive quarter of same-store sales growth.
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Year
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Return From Biglari Investments
(1)
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S&P 500 Index
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Outperformance of S&P 500
(1)-(2)
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2009
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19.9 | 14.0 | 5.9 | |||||||||
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2010
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33.5 | 15.1 | 18.4 | |||||||||
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2011
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13.7 | 2.1 | 11.6 | |||||||||
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2012
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25.1 | 16.0 | 9.1 | |||||||||
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2013
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69.1 | 32.4 | 36.7 | |||||||||
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2014
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20.6 | 13.7 | 6.9 | |||||||||
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Average Annual Return
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32.8 | % | 17.0 | % | 15.8 | % | ||||||
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Overall Return
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364.3 | % | 133.9 | % | 230.4 | % | ||||||
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From August 2009 through December 31, 2014, Biglari Holdings has earned $490 million in investment gains.
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Biglari Holdings’ balance sheet has grown exponentially from a standing start of $1.6 million in cash in 2008 to over $917 million of cash and investments on December 31, 2014.
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