Biglari Holdings Inc.
easily beat expectations recently and is now expected to triple earnings this year.
Biglari Holdings is best known for its Steak n Shake restaurants, which has almost 500 locations. The company also runs over 100 other restaurants under a variety of names.
Net Income More than Doubles
On Aug 13 Biglari Holdings reported quarterly results that showed net earnings of $8.7 million, up from $3.8 million. That number breaks down to $6.23 per share, which is easily ahead of the $2.66 that analysts were expecting.
Revenue for the period was up more than 10%, to $161.5 million. Same-store sales were up 7.5% mostly due to a jump in customer traffic.
Following the news the forecasts rose dramatically. There is only one covering analyst providing estimates and their full-year outlook is up $4.04 to $17.00 per share.
Next year's estimate is up $4.14 to $19.14. Given the $5.40 earned last year, the growth rates are 215% and 13%, respectively.
Earnings expectations have rebounded nicely after the struggling through the heart of the recession.
Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service
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