v3.26.1
Investment Partnerships
 6 Months Ended
Jun. 30, 2026
Equity Method Investments and Joint Ventures [Abstract]  
Investment Partnerships Investment Partnerships   
The Company reports on the limited partnership interests in investment partnerships under the equity method of accounting. We record our proportional share of equity in the investment partnerships but exclude Company common stock held by said partnerships. The Company’s pro-rata share of its common stock held by the investment partnerships is recorded as treasury stock even though these shares are legally outstanding. The Company records gains/losses from investment partnerships (inclusive of the investment partnerships’ unrealized gains and losses on their securities) in the consolidated statements of earnings based on our carrying value of these partnerships. The fair value is calculated net of the general partner’s accrued incentive fees. Gains and losses on Company common stock included in the earnings of these partnerships are eliminated because they are recorded as treasury stock. 
Biglari Capital Corp. is the general partner of the investment partnerships. Biglari Capital Corp. is solely owned by Mr. Biglari. Under the terms of their partnership agreements, each contribution made by the Company to the investment partnerships is subject to a rolling five year lock-up period. The lock-up period can be waived by the general partner in its sole discretion.
The Company evaluates the nature of each distribution to determine whether it represents a return on investment or a return of investment. Distributions determined to be returns on investment are classified as operating cash inflows, while distributions determined to be returns of investments are classified as investing cash inflows. The Company’s determination is based on the nature of the activities that generated the distributions and other available information that is relevant.
The fair value and adjustment for Company common stock held by the investment partnerships to determine the carrying value of our partnership interest are presented below.
Fair ValueCompany
Common Stock		Carrying Value
Partnership interest at December 31, 2025$772,585 $618,310 $154,275 
Investment partnership gains (losses)191,873 169,690 22,183 
Contributions (net of distributions)21,910 21,910 
Changes in proportionate share of Company stock held19,668 (19,668)
Partnership interest at June 30, 2026$986,368 $807,668 $178,700 
Fair ValueCompany
Common Stock		Carrying Value
Partnership interest at December 31, 2024$656,266 $454,539 $201,727 
Investment partnership gains (losses)68,515 59,603 8,912 
Distributions (net of contributions)(4,935)(4,935)
Changes in proportionate share of Company stock held2,811 (2,811)
Partnership interest at June 30, 2025$719,846 $516,953 $202,893 
The carrying value of the investment partnerships net of deferred taxes is presented below.
June 30,
2026		December 31, 2025
Carrying value of investment partnerships$178,700 $154,275 
Deferred tax liability related to investment partnerships(31,985)(20,004)
Carrying value of investment partnerships net of deferred taxes$146,715 $134,271 
We expect that a majority of the $31,985 deferred tax liability enumerated above will not become due until the dissolution of the investment partnerships.
The Company’s proportionate share of Company stock held by investment partnerships at cost was $471,832 and $452,164 at June 30, 2026 and December 31, 2025, respectively. 
The carrying value of the partnership interest approximates fair value adjusted by the value of held Company stock.  Fair value of our partnership interest is assessed according to our proportional ownership interest of the fair value of investments held by the investment partnerships. Unrealized gains and losses on marketable securities held by the investment partnerships affect our net earnings. 
Gains/losses from investment partnerships recorded in the Company’s consolidated statements of earnings are presented below.
Second QuarterFirst Six Months
2026202520262025
Gains (losses) from investment partnerships$35,637 $58,504 $22,183 $8,912 
Tax expense (benefit)7,710 12,310 4,507 2,144 
Contribution to net earnings (loss)$27,927 $46,194 $17,676 $6,768 
On December 31 of each year, the general partner of the investment partnerships, Biglari Capital Corp., will earn an incentive reallocation fee for the Company’s investments equal to 25% of the net profits above an annual hurdle rate of 6% over the previous high-water mark. Our policy is to accrue an estimated incentive fee throughout the year. The total incentive reallocation from Biglari Holdings to Biglari Capital Corp. includes gains on the Company’s common stock. Gains and losses on the Company’s common stock and the related incentive reallocations are eliminated in our financial statements.
There were no incentive reallocations accrued during the first six months of 2026 and 2025.
Summarized financial information for The Lion Fund, L.P. and The Lion Fund II, L.P. is presented below.
Equity in Investment Partnerships
Lion FundLion Fund II
Total assets as of June 30, 2026$980,989 $340,347 
Total liabilities as of June 30, 2026$30,068 $180,513 
Revenue for the first six months of 2026$184,628 $26,412 
Earnings for the first six months of 2026$184,154 $22,622 
Biglari Holdings’ average ownership interest during 202692.8 %91.7 %
Total assets as of December 31, 2025$750,172 $293,051 
Total liabilities as of December 31, 2025$16,742 $163,900 
Revenue for the first six months of 2025$58,537 $23,257 
Earnings for the first six months of 2025$57,970 $18,396 
Biglari Holdings’ average ownership interest during 202591.2 %88.8 %
Revenue in the financial information of the investment partnerships, summarized above, includes investment income and unrealized gains and losses on investments.