| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

|  BIGLARI HOLDINGS INC.(Exact name of registrant as specified in its charter) |
|-----------------------------------------------------------------------------------|

| INDIANA                                        | 37-0684070                           |
|------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) |

| 175 East Houston Street, Suite 1300      |       |
|------------------------------------------|------------|
| San Antonio, Texas                       | 78205      |
| (Address of principal executive offices) | (Zip code) |

| (210) 344-3400(Registrant’s telephone number, including area code)  |
|--------------------------------------------------------------------------------|

| Large accelerated filer o | Accelerated filer x | Non-accelerated filer o | Smaller reporting company o  |
|---------------------------|---------------------|-------------------------|-----------------------------------|

----

BIG

|                                 |                                                                                                                                        |         | Page No. |
|--------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|--------------|----------|
| Part I – Financial Information |                                                                                                                                        |    |
|                                 |                                                                                                                                        |         |     |
| Item 1.                              | Financial Statements                                                                                                                        |         |     |   |
|                                 | Condensed Consolidated Balance Sheets —April 13, 2011 and September 29, 2010                                                          |         | 2        |   |
|                                 | Condensed Consolidated Statements of Earnings—Sixteen and Twenty-Eight Weeks Ended April 13, 2011 and April 14, 2010                  |         | 3        |   |
|                                 | Condensed Consolidated Statements of Cash Flows—Twenty-Eight Weeks Ended April 13, 2011 and April 14, 2010                            |         |  4  |   |
|                                 | Condensed Consolidated Statements of Changes in Shareholders’ Equity—Twenty-Eight Weeks Ended April 13, 2011 and April 14, 2010 |         |  5  |   |
|                                 | Notes to Condensed Consolidated Financial Statements                                                                                        |         | 6-18     |   |
| Item 2.                              | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                 |         | 19-26    |   |
| Item 3.                              | Quantitative and Qualitative Disclosures about Market Risk                                                                                  |         | 26       |   |
| Item 4.                              | Controls and Procedures                                                                                                                |         | 27       |   |
|                                 |                                                                                                                                        |         |     |   |
| Part II – Other Information    |                                                                                                                                        |         |     |
|                                 |                                                                                                                                        |         |     |   |
| Item 1A.                             | Risk Factors                                                                                                                           |         | 28       |   |
| Item 2.                              | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                 |         | 28       |   |
| Item 6.                              | Exhibits                                                                                                                               |         | 29       |   |
| Signatures                           |                                                                                                                                        | 30           |     |

----

Index

art

Ite

CO

|                                                                                                                                                                                                                    |   | April 13,2011 |    |   | September 29,2010 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
|                                                                                                                                                                                                                    |   | (Unaudited)   |    |   |              |   |
| Assets                                                                                                                                                                                                                  |   |          |    |   |              |   |
| Current assets:                                                                                                                                                                                                         |   |          |    |   |              |   |
| Cash and cash equivalents                                                                                                                                                                                               |   | $             | 69,214  |   |              | $      | 47,563 |   |
| Investments                                                                                                                                                                                                             |   |          | 21,127  |   |              |   | 32,523 |   |
| Receivables, net of allowance of $497 and $475, respectively                                                                                                                                                            |   |          | 11,081  |   |              |   | 5,818 |   |
| Inventories                                                                                                                                                                                                             |   |          | 6,157   |   |              |   | 6,061 |   |
| Deferred income taxes                                                                                                                                                                                                   |   |          | 5,340   |   |              |   | 3,802 |   |
| Assets held for sale                                                                                                                                                                                                    |   |          | 7,816   |   |              |   | 9,611 |   |
| Other current assets                                                                                                                                                                                                    |   |          | 3,588   |   |              |   | 4,453 |   |
| Total current assets                                                                                                                                                                                                    |   |          | 124,323 |   |              |   | 109,831 |   |
| Property and equipment, net                                                                                                                                                                                             |   |          | 378,134 |   |              |   | 386,181 |   |
| Goodwill                                                                                                                                                                                                                |   |          | 27,529  |   |              |   | 28,759 |   |
| Other intangible assets, net                                                                                                                                                                                            |   |          | 7,567   |   |              |   | 7,959 |   |
| Other assets                                                                                                                                                                                                            |   |          | 6,647   |   |              |   | 7,612 |   |
| Investments held by consolidated affiliated partnerships                                                                                                                                                                |   |          | 17,825  |   |              |   | 23,497 |   |
| Total assets                                                                                                                                                                                                            |   | $             | 562,025 |   |              | $      | 563,839 |   |
| Liabilities and shareholders’ equity                                                                                                                                                                              |   |          |    |   |              |   |   |   |
| Liabilities                                                                                                                                                                                                             |   |          |    |   |              |   |   |   |
| Current liabilities:                                                                                                                                                                                                    |   |          |    |   |              |   |   |   |
| Accounts payable                                                                                                                                                                                                        |   | $             | 29,405  |   |              | $      | 26,752 |   |
| Due to broker                                                                                                                                                                                                           |   |          | — |   |              |   | 3,903 |   |
| Accrued expenses                                                                                                                                                                                                        |   |          | 37,770  |   |              |   | 37,401 |   |
| Revolving credit                                                                                                                                                                                                        |   |          | 13,044  |   |              |   | 18,000 |   |
| Current portion of obligations under leases                                                                                                                                                                             |   |          | 4,686   |   |              |   | 4,556 |   |
| Current portion of long-term debt                                                                                                                                                                                       |   |          | 4,135   |   |              |   | 151 |   |
| Total current liabilities                                                                                                                                                                                               |   |          | 89,040  |   |              |   | 90,763 |   |
| Deferred income taxes                                                                                                                                                                                                   |   |          | 13,208  |   |              |   | 10,309 |   |
| Obligations under leases                                                                                                                                                                                                |   |          | 119,805 |   |              |   | 124,247 |   |
| Long-term debt                                                                                                                                                                                                          |   |          | 18,508  |   |              |   | 17,781 |   |
| Other long-term liabilities                                                                                                                                                                                             |   |          | 10,127  |   |              |   | 9,499 |   |
| Total liabilities                                                                                                                                                                                                       |   |          | 250,688 |   |              |   | 252,599 |   |
| Commitments and contingencies                                                                                                                                                                                           |   |          |    |   |              |   |   |   |
| Redeemable noncontrolling interests of consolidated affiliated partnerships                                                                                                                                             |   |          | 52,821  |   |              |   | 62,245 |   |
| Shareholders’ equity                                                                                                                                                                                              |   |          |    |   |              |   |   |   |
| Common stock – $0.50 stated value, 2,500,000 shares authorized – 1,511,174 and 1,511,175     shares issued, 1,227,056 and 1,227,654 shares outstanding (net of treasury stock), respectively |   |          | 756     |   |              |   | 756 |   |
| Additional paid-in capital                                                                                                                                                                                              |   |          | 136,594 |   |              |   | 143,521 |   |
| Retained earnings                                                                                                                                                                                                       |   |          | 210,933 |   |              |   | 195,825 |   |
| Accumulated other comprehensive income (loss)                                                                                                                                                                           |   |          | 725     |   |              |   | (1,152 | ) |
| Treasury stock – at cost: 284,118 shares and 283,521 shares (includes 205,743    shares held by consolidated affiliated partnerships) at April 13, 2011 and September 29, 2010, respectively       |   |          | (90,492 | )      |              |   | (89,955 | ) |
| Biglari Holdings Inc. shareholders’ equity                                                                                                                                                                        |   |          | 258,516 |   |              |   | 248,995 |   |
| Total liabilities and shareholders’ equity                                                                                                                                                                        |   | $             | 562,025 |   |              | $      | 563,839 |   |

----

Index

CO

|                                                                    |   | Sixteen Weeks Ended |      |   | Twenty-Eight Weeks Ended |   |
|-------------------------------------------------------------------------|--------|---------------------|-----------|--------|--------------------------|--------|
|                                                                    |   | 2011                |      |   | 2010                     |   |   | 2011 |   |   | 2010 |   |
|                                                                    |   | (Unaudited)         |      |   | (Unaudited)              |   |
| Net revenues                                                            |   |                |      |   |                     |   |   |   |   |   |   |   |
| Restaurant Operations:                                                  |   |                |      |   |                     |   |   |   |   |   |   |   |
| Net sales                                                               |   | $                   | 207,896   |   |                     | $      | 197,257 |   |   | $ | 360,955 |   |   | $ | 345,181 |   |
| Franchise fees                                                          |   |                | 2,305     |   |                     |   | 1,192 |   |   |   | 4,350 |   |   |   | 2,111 |   |
| Other revenue                                                           |   |                | 711       |   |                     |   | 667 |   |   |   | 1,222 |   |   |   | 1,182 |   |
| Total                                                                   |   |                | 210,912   |   |                     |   | 199,116 |   |   |   | 366,527 |   |   |   | 348,474 |   |
| Investment Management Operations:                                       |   |                |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Management fee income                                                   |   |                | 114       |   |                     |   | — |   |   |   | 224 |   |   |   | — |   |
| Consolidated Affiliated Partnerships:                                   |   |                |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Investment gains/losses                                                 |   |                | 259       |   |                     |   | — |   |   |   | 2,946 |   |   |   | — |   |
| Other income/loss                                                       |   |                | (8        | )      |                     |   | — |   |   |   | 302 |   |   |   | — |   |
| Total                                                                   |   |                | 365       |   |                     |   | — |   |   |   | 3,472 |   |   |   | — |   |
| Total net revenues                                                      |   |                | 211,277   |   |                     |   | 199,116 |   |   |   | 369,999 |   |   |   | 348,474 |   |
|                                                                    |   |                |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Costs and expenses                                                      |   |                |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                                           |   |                | 57,543    |   |                     |   | 54,160 |   |   |   | 98,823 |   |   |   | 92,639 |   |
| Restaurant operating costs                                              |   |                | 102,640   |   |                     |   | 98,476 |   |   |   | 175,329 |   |   |   | 171,714 |   |
| General and administrative                                              |   |                | 14,595    |   |                     |   | 11,609 |   |   |   | 25,609 |   |   |   | 20,394 |   |
| Depreciation and amortization                                           |   |                | 8,683     |   |                     |   | 8,962 |   |   |   | 15,292 |   |   |   | 15,885 |   |
| Marketing                                                               |   |                | 10,780    |   |                     |   | 9,882 |   |   |   | 19,731 |   |   |   | 17,609 |   |
| Rent                                                                    |   |                | 5,124     |   |                     |   | 4,988 |   |   |   | 9,020 |   |   |   | 8,696 |   |
| Pre-opening costs                                                       |   |                | 34        |   |                     |   | — |   |   |   | 76 |   |   |   | — |   |
| Asset impairments and provision for restaurant closings                 |   |                | (270      | )      |                     |   | (28 | ) |   |   | 13 |   |   |   | 143 |   |
| Loss on disposal of assets                                              |   |                | 153       |   |                     |   | 122 |   |   |   | 257 |   |   |   | 99 |   |
| Other operating (income) expense                                        |   |                | (57       | )      |                     |   | (408 | ) |   |   | 765 |   |   |   | (471 | ) |
| Total costs and expenses, net                                           |   |                | 199,225   |   |                     |   | 187,763 |   |   |   | 344,915 |   |   |   | 326,708 |   |
|                                                                    |   |                |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense)                                                  |   |                |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest, dividend and other investment income                          |   |                | 118       |   |                     |   | 154 |   |   |   | 153 |   |   |   | 229 |   |
| Interest on obligations under leases                                    |   |                | (3,261    | )      |                     |   | (3,477 | ) |   |   | (5,710 | ) |   |   | (5,953 | ) |
| Interest expense                                                        |   |                | (867      | )      |                     |   | (197 | ) |   |   | (1,432 | ) |   |   | (343 | ) |
| Realized investment gains/losses                                        |   |                | 366       |   |                     |   | 522 |   |   |   | 3,244 |   |   |   | 834 |   |
| Derivative gains/losses                                                 |   |                | 32        |   |                     |   | — |   |   |   | 207 |   |   |   | — |   |
| Total other income (expense)                                            |   |                | (3,612    | )      |                     |   | (2,998 | ) |   |   | (3,538 | ) |   |   | (5,233 | ) |
|                                                                    |   |                |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Earnings before income taxes                                            |   |                | 8,440     |   |                     |   | 8,355 |   |   |   | 21,546 |   |   |   | 16,533 |   |
|                                                                    |   |                |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                                                            |   |                | 2,687     |   |                     |   | 2,838 |   |   |   | 7,028 |   |   |   | 5,522 |   |
|                                                                    |   |                |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings                                                            |   |                | 5,753     |   |                     |   | 5,517 |   |   |   | 14,518 |   |   |   | 11,011 |   |
| Earnings/loss attributable to noncontrolling interest                   |   |                | —   |   |                     |   | 7 |   |   |   | — |   |   |   | (10 | ) |
| Earnings/loss attributable to redeemable noncontrolling interests:      |   |                |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income allocation                                                       |   |                | (108      | )      |                     |   | — |   |   |   | (1,920 | ) |   |   | — |   |
| Incentive fee reallocation                                              |   |                | —   |   |                     |   | — |   |   |   | 2,510 |   |   |   | — |   |
| Total earnings/loss attributable to redeemable noncontrolling interests |   |                | (108      | )      |                     |   | — |   |   |   | 590 |   |   |   | — |   |
| Net earnings attributable to Biglari Holdings Inc.                      |   | $                   | 5,645     |   |                     | $      | 5,524 |   |   | $ | 15,108 |   |   | $ | 11,001 |   |
|                                                                    |   |                |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share attributable to Biglari Holdings Inc.                |   |                |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per common and common equivalent share                   |   | $                   | 4.25      |   |                     | $      | 3.87 |   |   | $ | 11.38 |   |   | $ | 7.70 |   |
| Diluted earnings per common and common equivalent share                 |   | $                   | 4.23      |   |                     | $      | 3.84 |   |   | $ | 11.31 |   |   | $ | 7.66 |   |
|                                                                    |   |                |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares and equivalents                                 |   |                |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                   |   |                | 1,327,685 |   |                     |   | 1,428,699 |   |   |   | 1,327,480 |   |   |   | 1,427,835 |   |
| Diluted                                                                 |   |                | 1,334,653 |   |                     |   | 1,437,806 |   |   |   | 1,335,878 |   |   |   | 1,436,746 |   |

----

Index

CON

|                                                                                                                                                        |   | Twenty-Eight Weeks Ended |     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|----------|
|                                                                                                                                                        |   | 2011                     |     |   | 2010 |   |
|                                                                                                                                                        |   | (Unaudited)              |     |   |   |   |
| Operating activities                                                                                                                                        |   |                     |     |   |   |   |
| Net earnings                                                                                                                                                |   | $                        | 14,518   |   |   | $ | 11,011 |   |
| Adjustments to reconcile net earnings to operating cash flows (excluding investment     operations of consolidated affiliated partnerships): |   |                     |     |   |   |   |   |   |
| Depreciation and amortization                                                                                                                               |   |                     | 15,292   |   |   |   | 15,885 |   |
| Provision for deferred income taxes                                                                                                                         |   |                     | 1,314    |   |   |   | 1,519 |   |
| Asset impairments and provision for restaurant closings                                                                                                     |   |                     | 13       |   |   |   | 143 |   |
| Stock-based compensation and other non-cash expenses                                                                                                        |   |                     | 572      |   |   |   | 900 |   |
| Loss on disposal of assets                                                                                                                                  |   |                     | 257      |   |   |   | 99 |   |
| Realized investment (gains)                                                                                                                                 |   |                     | (3,244   | ) |   |   | (834 | ) |
| Derivative gains/losses                                                                                                                                     |   |                     | (207     | ) |   |   | — |   |
| Changes in receivables and inventories                                                                                                                      |   |                     | (5,161   | ) |   |   | (3,152 | ) |
| Changes in other assets                                                                                                                                     |   |                     | 1,261    |   |   |   | (126 | ) |
| Changes in accounts payable and accrued expenses                                                                                                            |   |                     | 2,679    |   |   |   | 5,650 |   |
| Investment operations of consolidated affiliated partnerships:                                                                                              |   |                     |     |   |   |   |   |   |
| Purchases of investments                                                                                                                                    |   |                     | (28,057  | ) |   |   | — |   |
| Sales of investments                                                                                                                                        |   |                     | 37,752   |   |   |   | — |   |
| Realized investment (gains), net                                                                                                                            |   |                     | (2,567   | ) |   |   | — |   |
| Unrealized gains on marketable securities held by consolidated affiliated partnerships                                                                      |   |                     | (379     | ) |   |   | — |   |
| Changes in cash equivalents held by consolidated affiliated partnerships                                                                                    |   |                     | (1,858   | ) |   |   | — |   |
| Net cash provided by operating activities                                                                                                                   |   |                     | 32,185   |   |   |   | 31,095 |   |
| Investing activities                                                                                                                                        |   |                     |     |   |   |   |   |   |
| Additions of property and equipment                                                                                                                         |   |                     | (7,556   | ) |   |   | (4,648 | ) |
| Proceeds from property and equipment disposals                                                                                                              |   |                     | 1,988    |   |   |   | 711 |   |
| Purchases of investments                                                                                                                                    |   |                     | (25,841  | ) |   |   | (9,532 | ) |
| Sales of investments                                                                                                                                        |   |                     | 44,422   |   |   |   | 9,169 |   |
| Changes in due to/from broker                                                                                                                               |   |                     | (3,903   | ) |   |   | — |   |
| Cash from merger activities                                                                                                                                 |   |                     | —  |   |   |   | 1,208 |   |
| Net cash provided by (used in)  investing activities                                                                                              |   |                     | 9,110    |   |   |   | (3,092 | ) |
| Financing activities                                                                                                                                        |   |                     |     |   |   |   |   |   |
| Proceeds from revolving credit facility                                                                                                                     |   |                     | 144,325  |   |   |   | — |   |
| Payments on revolving credit facility                                                                                                                       |   |                     | (149,281 | ) |   |   | (1,000 | ) |
| Borrowings on long-term debt                                                                                                                                |   |                     | 20,000   |   |   |   | — |   |
| Principal payments on long-term debt                                                                                                                        |   |                     | (15,289  | ) |   |   | (8 | ) |
| Principal payments on direct financing lease obligations                                                                                                    |   |                     | (4,301   | ) |   |   | (2,253 | ) |
| Proceeds and tax benefits from exercise of stock options and employees stock purchase plan                                                                  |   |                     | 477      |   |   |   | 210 |   |
| Cash paid in lieu of fractional shares                                                                                                                      |   |                     | —  |   |   |   | (711 | ) |
| Repurchase of employee shares for tax withholding                                                                                                           |   |                     | (494     | ) |   |   | (199 | ) |
| Distributions to noncontrolling interest                                                                                                                    |   |                     | —  |   |   |   | (221 | ) |
| Financing activities of consolidated affiliated partnerships:                                                                                               |   |                     |     |   |   |   |   |   |
| Contributions from noncontrolling interests                                                                                                                 |   |                     | 691      |   |   |   | — |   |
| Distributions to noncontrolling interests                                                                                                                   |   |                     | (15,772  | ) |   |   | — |   |
| Net cash used in financing activities                                                                                                                       |   |                     | (19,644  | ) |   |   | (4,182 | ) |
| Increase in cash and cash equivalents                                                                                                                       |   |                     | 21,651   |   |   |   | 23,821 |   |
| Cash and cash equivalents at beginning of period                                                                                                            |   |                     | 47,563   |   |   |   | 51,395 |   |
| Cash and cash equivalents at end of period                                                                                                                  |   | $                        | 69,214   |   |   | $ | 75,216 |   |

----

Index

CON

| (Unaudited)                                                                           |   | Common Stock |   |   | Additional Paid-In Capital |   |    | Retained Earnings |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | Treasury Stock |   |   | Total  |   |
|---------------------------------------------------------------------------------------|--------|--------------|--------|--------|----------------------------|--------|---------|-------------------|--------|--------|-----------------------------------------------|--------|--------|----------------|--------|--------|--------|--------|
|                                                                                  |   |         |   |   |                       |   |    |              |   |   |                                          |   |   |           |   |   |   |   |
| Balance at September 29, 2010                                                         |   | $            | 756    |   |                       | $      | 143,521 |              |   | $      | 195,825                                       |   |   | $              | (1,152 | )      |   | $      | (89,955 | ) |   | $ | 248,995 |   |
| Net earnings attributable to Biglari Holdings Inc.                                    |   |         |   |   |                       |   |    |              |   |   | 15,108                                        |   |   |           |   |   |   |   |   |   |   |   | 15,108 |   |
| Reclassification of investment appreciation in net earnings, net of $821 tax          |   |         |   |   |                       |   |    |              |   |   |                                          |   |   |           | 1,285  |   |   |   |   |   |   |   | 1,285 |   |
| Net change in unrealized gains and losses on investments, net of $379 tax             |   |         |   |   |                       |   |    |              |   |   |                                          |   |   |           | 592    |   |   |   |   |   |   |   | 592 |   |
| Total comprehensive income                                                            |   |         |   |   |                       |   |    |              |   |   |                                          |   |   |           |   |   |   |   |   |   |   |   | 16,985 |   |
| Exercise of stock options and other stock compensation transactions                   |   |         |   |   |                       |   | 741     |              |   |   |                                          |   |   |           |   |   |   |   | (537 | ) |   |   | 204 |   |
| Adjustment to redeemable noncontrolling interests to reflect maximum redemption value |   |         |   |   |                       |   | (7,668  | )                 |   |   |                                          |   |   |           |   |   |   |   |   |   |   |   | (7,668 | ) |
| Balance at April 13, 2011                                                             |   | $            | 756    |   |                       | $      | 136,594 |              |   | $      | 210,933                                       |   |   | $              | 725    |   |   | $      | (90,492 | ) |   | $ | 258,516 |   |
|                                                                                  |   |         |   |   |                       |   |    |              |   |   |                                          |   |   |           |   |   |   |   |   |   |   |   |   |   |
|                                                                                  |   |         |   |   |                       |   |    |              |   |   |                                          |   |   |           |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2009                                                         |   | $            | 757    |   |                       | $      | 143,691 |              |   | $      | 167,731                                       |   |   | $              | 112    |   |   | $      | (20,430 | ) |   | $ | 291,861 |   |
| Net earnings attributable to Biglari Holdings Inc.                                    |   |         |   |   |                       |   |    |              |   |   | 11,001                                        |   |   |           |   |   |   |   |   |   |   |   | 11,001 |   |
| Reclassification of investment appreciation in net earnings, net of $58 tax           |   |         |   |   |                       |   |    |              |   |   |                                          |   |   |           | (92    | )      |   |   |   |   |   |   | (92 | ) |
| Net change in unrealized gains and losses on investments, net of $148 tax             |   |         |   |   |                       |   |    |              |   |   |                                          |   |   |           | 232    |   |   |   |   |   |   |   | 232 |   |
| Total comprehensive income                                                            |   |         |   |   |                       |   |    |              |   |   |                                          |   |   |           |   |   |   |   |   |   |   |   | 11,141 |   |
| Exercise of stock options and other stock compensation transactions                   |   |         |   |   |                       |   | 712     |              |   |   |                                          |   |   |           |   |   |   |   | (353 | ) |   |   | 359 |   |
| Retirement of shares held by subsidiary                                               |   |         | (1     | )      |                       |   | 1       |              |   |   |                                          |   |   |           |   |   |   |   |   |   |   |   | — |   |
| Cash paid in lieu of fractional shares                                                |   |         |   |   |                       |   | (711    | )                 |   |   |                                          |   |   |           |   |   |   |   |   |   |   |   | (711 | ) |
| Reacquired shares from acquisition                                                    |   |         |   |   |                       |   |    |              |   |   |                                          |   |   |           |   |   |   |   | (368 | ) |   |   | (368 | ) |
| Balance at April 14, 2010                                                             |   | $            | 756    |   |                       | $      | 143,693 |              |   | $      | 178,732                                       |   |   | $              | 252    |   |   | $      | (21,151 | ) |   | $ | 302,282 |   |

----

Index

OT

----

Index

|                                                                        |   | Purchase Allocation |    |
|-----------------------------------------------------------------------------|--------|---------------------|---------|
| Investments                                                                 |   | $                   | 10,926  |   |
| Company debentures                                                          |   |                | 7,540   |   |
| Total assets acquired                                                       |   |                | 18,466  |   |
|                                                                        |   |                |    |   |
| Current liabilities                                                         |   |                | 66      |   |
| Redeemable noncontrolling interests of consolidated affiliated partnerships |   |                | 44,193  |   |
| Treasury stock                                                              |   |                | (29,900 | ) |
| Total liabilities assumed and treasury stock acquired                       |   |                | 14,359  |   |
| Net assets acquired                                                         |   | $                   | 4,107   |   |

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Amounts     |   |   | Measurement |   |    | Amounts at |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|-------------|--------|---------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Previously  |   |   | Period      |   |    | April 13,  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Recognized1 |   |   | Adjustments |   |    | 2011       |   |
| Current assets                                                                                                                                  |   | $           | 3,310  |   |        | $      | — |       |   | $ | 3,310 |   |
| Property and equipment, net                                                                                                                     |   |        | 4,874  |   |        |   |    |       |   |   | 4,874 |   |
| Investments, including marketable securities held by consolidated affiliated partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |        | 13,037 |   |        |   |    |       |   |   | 13,037 |   |
| Goodwill2                                                                                                                                       |   |        | 14,256 |   |        |   | (1,230  | )          |   |   | 13,026 |   |
| Intangible assets                                                                                                                               |   |        | 6,880  |   |        |   |    |       |   |   | 6,880 |   |
| Other assets2                                                                                                                                   |   |        | 586    |   |        |   | 77      |       |   |   | 663 |   |
|     Total assets acquired                                                                                                   |   |        | 42,943 |   |        |   | (1,153  | )          |   |   | 41,790 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |        |   |   |        |   |    |       |   |   |   |   |
| Current liabilities                                                                                                                             |   |        | 1,966  |   |        |   |    |       |   |   | 1,966 |   |
| Debt                                                                                                                                            |   |        | 2,595  |   |        |   |    |       |   |   | 2,595 |   |
| Other long-term liabilities2                                                                                                                    |   |        | 3,787  |   |        |   | (1,153  | )          |   |   | 2,634 |   |
| Redeemable noncontrolling interests of consolidated affiliated partnerships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        | 15,882 |   |        |   |    |       |   |   | 15,882 |   |
| Treasury stock                                                                                                                                  |   |        | (4,246 | )      |        |   |    |       |   |   | (4,246 | ) |
|     Total liabilities assumed and treasury stock acquired                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |        | 19,984 |   |        |   | (1,153  | )          |   |   | 18,831 |   |
| Net assets acquired                                                                                                                             |   | $           | 22,959 |   |        | $      | — |       |   | $ | 22,959 |   |

----

Index

|                       |   | Sixteen Weeks Ended |    |   | Twenty-Eight Weeks Ended |   |
|----------------------------|--------|---------------------|---------|--------|--------------------------|--------|
|                       |   | April 13,2011       |    |   | April 14,2010            |   |   | April 13,2011 |   |   | April 14,2010 |   |
|                       |   |                |    |   | (Pro forma)              |   |   |   |   |   | (Pro forma) |   |
| Net revenues               |   | $                   | 211,277 |   |                     | $      | 204,678 |   |   | $ | 369,999 |   |   | $ | 357,830 |   |
| Net earnings               |   | $                   | 5,645   |   |                     | $      | 5,199 |   |   | $ | 15,108 |   |   | $ | 7,967 |   |
| Basic earnings per share   |   | $                   | 4.25    |   |                     | $      | 3.64 |   |   | $ | 11.38 |   |   | $ | 5.65 |   |
| Diluted earnings per share |   | $                   | 4.23    |   |                     | $      | 3.62 |   |   | $ | 11.31 |   |   | $ | 5.62 |   |

|   | · | Reclassification of $3,674 and $6,296, respectively, from interest expense previously included in Costs and expenses to Interest on obligations under leases and Interest expense within Other income; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reclassification of $667 and $1,182, respectively, from Other operating income to Other revenue within restaurant operations, primarily representing revenue generated from rental income; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reclassification of $607 and $945, respectively, from Other operating income to Net sales, primarily representing revenue from ancillary sources. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                                                                                                                                                                                                 |   | Sixteen Weeks Ended |      |   | Twenty-Eight Weeks Ended |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|-----------|--------|--------------------------|--------|
|                                                                                                                                                                                                 |   |                |      |   |                     |   |
|                                                                                                                                                                                                 |   | April 13,           |      |   | April 14,                |   |   | April 13, |   |   | April 14, |   |
|                                                                                                                                                                                                 |   | 2011                |      |   | 2010                     |   |   | 2011 |   |   | 2010 |   |
| Basic earnings per share:                                                                                                                                                                            |   |                |      |   |                     |   |   |   |   |   |   |   |
| Weighted average common shares                                                                                                                                                                       |   |                | 1,327,685 |   |                     |   | 1,428,699 |   |   |   | 1,327,480 |   |   |   | 1,427,835 |   |
| Diluted earnings per share:                                                                                                                                                                          |   |                |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares                                                                                                                                                                       |   |                | 1,327,685 |   |                     |   | 1,428,699 |   |   |   | 1,327,480 |   |   |   | 1,427,835 |   |
| Dilutive effect of stock awards                                                                                                                                                                      |   |                | 6,968     |   |                     |   | 9,107 |   |   |   | 8,398 |   |   |   | 8,911 |   |
| Weighted average common and incremental shares                                                                                                                                                       |   |                | 1,334,653 |   |                     |   | 1,437,806 |   |   |   | 1,335,878 |   |   |   | 1,436,746 |   |
| Number of share-based awards excluded from the calculation of earnings per share as the awards’ exercise prices were greater than the average market price of the Company’s common stock |   |                | —   |   |                     |   | 14,714 |   |   |   | 1,030 |   |   |   | 16,367 |   |

|                    |   | April 13, |   |   | September 29, |   |
|-------------------------|--------|-----------|--------|--------|---------------|--------|
|                    |   | 2011      |   |   | 2010          |   |
| Cost                    |   | $         | 19,939 |   |          | $      | 34,412 |   |
| Gross unrealized gains  |   |      | 1,432  |   |          |   | 657 |   |
| Gross unrealized losses |   |      | (244   | )      |          |   | (2,546 | )  |
| Fair value              |   | $         | 21,127 |   |          | $      | 32,523 |   |

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Sixteen Weeks Ended |    |   | Twenty-Eight Weeks Ended |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|--------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | April 13,           |    |   | April 14,                |   |   | April 13, |   |   | April 14, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2011                |    |   | 2010                     |   |   | 2011 |   |   | 2010 |   |
| Gross realized gains on sales                                                                             |   | $                   | 366     |   |                     | $      | 522 |   |   | $ | 3,250 |   |   | $ | 834 |   |
| Gross realized losses on sales                                                                            |   | $                   | — |   |                     | $      | — |   |   | $ | (6 | ) |   | $ | — |   |

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | April 13,2011 |   |   | September 29, 2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------------------|--------|
| Equity securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |   |   |               |   |
| Cost                                                                                                                 |   | $             | 7,687  |   |               | $      | 14,725 |   |
| Fair value                                                                                                           |   | $             | 8,101  |   |               | $      | 15,627 |   |

|                                |   | Sixteen Weeks EndedApril 13, |   |   | Twenty-EightWeeks EndedApril 13, |   |
|-------------------------------------|--------|------------------------------|--------|--------|----------------------------------|--------|
|                                |   | 2011                         |   |   | 2011                             |   |
| Gross unrealized gains              |   | $                            | 176    |   |                             | $      | 440 |   |
| Gross unrealized losses             |   | $                            | (22    | )      |                             | $      | (61 | ) |
| Net realized gains/losses from sale |   | $                            | 105    |   |                             | $      | 2,567 |   |

| Carrying value at September 29, 2010                                       |   | $      | 62,245  |   |
|----------------------------------------------------------------------------|--------|--------|---------|--------|
| Contributions from noncontrolling interests                                |   |   | 691     |   |
| Distributions to noncontrolling interests                                  |   |   | (17,193 | )      |
| Incentive fee reallocation                                                 |   |   | (2,510  | )      |
| Income / loss allocation                                                   |   |   | 1,920   |   |
| Adjustment to noncontrolling interests to reflect maximum redemption value |   |   | 7,668   |   |
| Carrying value at April 13, 2011                                           |   | $      | 52,821  |   |

----

Index

|                       |   | April 13, |   |   | September 29, |   |
|----------------------------|--------|-----------|--------|--------|---------------|--------|
|                       |   | 2011      |   |   | 2010          |   |
| Land and buildings         |   | $         | 7,176  |   |          | $      | 8,789 |   |
| Improvements               |   |      | 640    |   |          |   | 822 |   |
| Total assets held for sale |   | $         | 7,816  |   |          | $      | 9,611 |   |

|                                           |   | April 13, |     |   | September 29, |   |
|------------------------------------------------|--------|-----------|----------|--------|---------------|--------|
|                                           |   | 2011      |     |   | 2010          |   |
| Land                                           |   | $         | 159,892  |   |          | $      | 158,526 |   |
| Buildings                                      |   |      | 149,652  |   |          |   | 148,718 |   |
| Land and leasehold improvements                |   |      | 154,441  |   |          |   | 155,166 |   |
| Equipment                                      |   |      | 203,578  |   |          |   | 203,757 |   |
| Construction in progress                       |   |      | 1,381    |   |          |   | 1,261 |   |
|                                           |   |      | 668,944  |   |          |   | 667,428 |   |
| Less accumulated depreciation and amortization |   |      | (290,810 | )      |          |   | (281,247 | ) |
| Property and equipment, net                    |   | $         | 378,134  |   |          | $      | 386,181 |   |

----

Index

|                                    |   | April 13, 2011        |   |   | September 29, 2010       |   |
|-----------------------------------------|--------|-----------------------|--------|--------|--------------------------|--------|
|                                    |   | Gross carrying amount |   |   | Accumulated amortization |   |   | Total |   |   | Gross carrying amount |   |   | Accumulated amortization |   |   | Total |   |
| Right to operate                        |   | $                     | 1,480  |   |                     | $      | (1,063 | ) |   | $ | 417 |   |   | $ | 1,480 |   |   | $ | (999 | ) |   | $ | 481 |   |
| Franchise agreement                     |   |                  | 5,310  |   |                     |   | (531 | ) |   |   | 4,779 |   |   |   | 5,310 |   |   |   | (266 | ) |   |   | 5,044 |   |
| Other                                   |   |                  | 1,136  |   |                     |   | (509 | ) |   |   | 627 |   |   |   | 1,136 |   |   |   | (446 | ) |   |   | 690 |   |
| Total                                   |   |                  | 7,926  |   |                     |   | (2,103 | ) |   |   | 5,823 |   |   |   | 7,926 |   |   |   | (1,711 | ) |   |   | 6,215 |   |
| Intangible assets with indefinite lives |   |                  | 1,744  |   |                     |   | — |   |   |   | 1,744 |   |   |   | 1,744 |   |   |   | — |   |   |   | 1,744 |   |
| Total intangible assets                 |   | $                     | 9,670  |   |                     | $      | (2,103 | ) |   | $ | 7,567 |   |   | $ | 9,670 |   |   | $ | (1,711 | ) |   | $ | 7,959 |   |

----

Index

----

Index

|   | • | Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.                                                                                                                                 |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. |
|   | • | Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.                                                                                       |

----

Index

|                                                            |   | April 13, 2011 |   |   | September 29, 2010 |   |
|-----------------------------------------------------------------|--------|----------------|--------|--------|--------------------|--------|
|                                                            |   | Level 1        |   |   | Level 2            |   |   | Level 3 |   |   | Total |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Assets                                                          |   |           |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash equivalents                                                |   | $              | -      |   |               | $      | 51,890 |   |   | $ | - |   |   | $ | 51,890 |   |   | $ | 6,845 |   |   | $ | 38,134 |   |   | $ | - |   |   | $ | 44,979 |   |
| Equity securities:                                              |   |           |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Restaurant/Retail                                               |   |           | 12,803 |   |               |   | - |   |   |   | - |   |   |   | 12,803 |   |   |   | 26,789 |   |   |   | - |   |   |   | - |   |   |   | 26,789 |   |
| Other                                                           |   |           | 8,324  |   |               |   | - |   |   |   | - |   |   |   | 8,324 |   |   |   | 5,734 |   |   |   | - |   |   |   | - |   |   |   | 5,734 |   |
| Equity securities held by consolidated affiliated partnerships: |   |           |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Restaurant/Retail                                               |   |           | 5,565  |   |               |   | - |   |   |   | - |   |   |   | 5,565 |   |   |   | 5,559 |   |   |   | - |   |   |   | - |   |   |   | 5,559 |   |
| Other                                                           |   |           | 2,200  |   |               |   | - |   |   |   | - |   |   |   | 2,200 |   |   |   | 8,931 |   |   |   | 814 |   |   |   | - |   |   |   | 9,745 |   |
| Non-qualified deferred compensation plan investments            |   |           | 558    |   |               |   | - |   |   |   | - |   |   |   | 558 |   |   |   | 476 |   |   |   | - |   |   |   | - |   |   |   | 476 |   |
| Investment held by consolidated affiliated partnership          |   |           | -      |   |               |   | - |   |   |   | 336 |   |   |   | 336 |   |   |   | - |   |   |   | - |   |   |   | 323 |   |   |   | 323 |   |
| Total assets at fair value                                      |   | $              | 29,450 |   |               | $      | 51,890 |   |   | $ | 336 |   |   | $ | 81,676 |   |   | $ | 54,334 |   |   | $ | 38,948 |   |   | $ | 323 |   |   | $ | 93,605 |   |
|                                                            |   |           |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                                     |   |           |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives                                                     |   | $              | -      |   |               | $      | 1,391 |   |   | $ | - |   |   | $ | 1,391 |   |   | $ | - |   |   | $ | 97 |   |   | $ | - |   |   | $ | 97 |   |
| Total liabilities at fair value                                 |   | $              | -      |   |               | $      | 1,391 |   |   | $ | - |   |   | $ | 1,391 |   |   | $ | - |   |   | $ | 97 |   |   | $ | - |   |   | $ | 97 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | April 13, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2011      |   |
| Beginning of period balance                                                                                                                                 |   | $         | 323    |   |
| Gain included in earnings                                                                                                                                   |   |      | 13     |   |
| End of period balance                                                                                                                                       |   | $         | 336    |   |

----

Index

|                                   |   | Net Revenue   |    |
|----------------------------------------|--------|---------------|---------|
|                                   |   | Sixteen Weeks |    |   | Twenty-Eight Weeks |   |
|                                   |   | 2011          |    |   | 2010 |   |   | 2011 |   |   | 2010 |   |
| Operating Business:                    |   |          |    |   |   |   |   |   |   |   |   |   |
| Restaurant Operations:                 |   |          |    |   |   |   |   |   |   |   |   |   |
| Steak n Shake                          |   | $             | 207,142 |   |   | $ | 199,116 |   |   | $ | 359,038 |   |   | $ | 348,474 |   |
|     Western        |   |          | 3,770   |   |   |   | — |   |   |   | 7,489 |   |   |   | — |   |
| Total Restaurant Operations            |   |          | 210,912 |   |   |   | 199,116 |   |   |   | 366,527 |   |   |   | 348,474 |   |
|                                   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment Management:                 |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Management fees                        |   |          | 114     |   |   |   | — |   |   |   | 224 |   |   |   | — |   |
| Consolidated affiliated partnerships   |   |          | 251     |   |   |   | — |   |   |   | 3,248 |   |   |   | — |   |
| Total Investment Management Operations |   |          | 365     |   |   |   | — |   |   |   | 3,472 |   |   |   | — |   |
|                                   |   | $             | 211,277 |   |   | $ | 199,116 |   |   | $ | 369,999 |   |   | $ | 348,474 |   |

|                                               |   | Earnings before income taxes and noncontrolling interests |    |   | Net earnings attributable to Biglari Holdings Inc. |   |
|----------------------------------------------------|--------|-----------------------------------------------------------|---------|--------|----------------------------------------------------|--------|
|                                               |   | Sixteen Weeks                                             |    |   | Twenty-Eight Weeks                                 |   |   | Sixteen Weeks |   |   | Twenty-Eight Weeks |   |
|                                               |   | 2011                                                      |    |   | 2010                                               |   |   | 2011 |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
| Operating Business:                                |   |                                                      |    |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Restaurant Operations:                             |   |                                                      |    |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Steak n Shake                                      |   | $                                                         | 9,299   |   |                                               | $      | 8,092 |   |   | $ | 18,760 |   |   | $ | 16,552 |   |   | $ | 6,669 |   |   | $ | 5,770 |   |   | $ | 13,199 |   |   | $ | 11,423 |   |
| Western                                            |   |                                                      | 449     |   |                                               |   | — |   |   |   | 863 |   |   |   | — |   |   |   | 277 |   |   |   | — |   |   |   | 529 |   |   |   | — |   |
| Total Restaurant Operations                        |   |                                                      | 9,748   |   |                                               |   | 8,092 |   |   |   | 19,623 |   |   |   | 16,552 |   |   |   | 6,946 |   |   |   | 5,770 |   |   |   | 13,728 |   |   |   | 11,423 |   |
|                                               |   |                                                      |    |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment Management:                             |   |                                                      |    |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Management fees                                    |   |                                                      | 114     |   |                                               |   | — |   |   |   | 224 |   |   |   | — |   |   |   | 71 |   |   |   | — |   |   |   | 139 |   |   |   | — |   |
| Incentive fee reallocation                         |   |                                                      | — |   |                                               |   | — |   |   |   | 2,510 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1,535 |   |   |   | — |   |
| Consolidated affiliated partnerships               |   |                                                      | 50      |   |                                               |   | — |   |   |   | 1,841 |   |   |   | — |   |   |   | 184 |   |   |   | — |   |   |   | 265 |   |   |   | — |   |
| Total Investment Management Operations             |   |                                                      | 164     |   |                                               |   | — |   |   |   | 4,575 |   |   |   | — |   |   |   | 255 |   |   |   | — |   |   |   | 1,939 |   |   |   | — |   |
|                                               |   |                                                      |    |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate and Other:                               |   |                                                      |    |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate and other                                |   |                                                      | (1,870  | )      |                                               |   | (259 | ) |   |   | (3,593 | ) |   |   | (853 | ) |   |   | (1,344 | ) |   |   | (620 | ) |   |   | (2,610 | ) |   |   | (989 | ) |
| Investment and derivative gains/losses             |   |                                                      | 398     |   |                                               |   | 522 |   |   |   | 3,451 |   |   |   | 834 |   |   |   | 251 |   |   |   | 374 |   |   |   | 2,174 |   |   |   | 567 |   |
| Total Corporate and Other                          |   |                                                      | (1,472  | )      |                                               |   | 263 |   |   |   | (142 | ) |   |   | (19 | ) |   |   | (1,093 | ) |   |   | (246 | ) |   |   | (436 | ) |   |   | (422 | ) |
|                                               |   |                                                      |    |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reconciliation of segments to consolidated amount: |   |                                                      |    |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Eliminations                                       |   |                                                      | — |   |                                               |   | — |   |   |   | (2,510 | ) |   |   | — |   |   |   | (463 | ) |   |   | — |   |   |   | (123 | ) |   |   | — |   |
|                                               |   | $                                                         | 8,440   |   |                                               | $      | 8,355 |   |   | $ | 21,546 |   |   | $ | 16,533 |   |   | $ | 5,645 |   |   | $ | 5,524 |   |   | $ | 15,108 |   |   | $ | 11,001 |   |

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Index

| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations  |
|---------------|---------------------------------------------------------------------------------------------------|

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Index

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Company-owned |   |   | Franchised |   |   | Total  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|------------|--------|--------|--------|--------|
| Steak n Shake                                                                                                        |   |          | 413    |   |       |   | 75     |   |   |   | 488 |   |
| Western                                                                                                              |   |          | 5      |   |       |   | 90     |   |   |   | 95 |   |
| Total                                                                                                                |   |          | 418    |   |       |   | 165    |   |   |   | 583 |   |

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Index

|                                                                    |   | Sixteen Weeks Ended |   |   | Twenty-Eight Weeks Ended |   |
|-------------------------------------------------------------------------|--------|---------------------|--------|--------|--------------------------|--------|
|                                                                    |   | April 13,           |   |   | April 14,                |   |   | April 13, |   |   | April 14, |   |
|                                                                    |   | 2011                |   |   | 2010                     |   |   | 2011 |   |   | 2010 |   |
| Net revenues                                                            |   |                |   |   |                     |   |   |   |   |   |   |   |
| Restaurant Operations:                                                  |   |                |   |   |                     |   |   |   |   |   |   |   |
| Net sales                                                               |   |                | 98.4   | %      |                     |   | 99.1 | % |   |   | 97.6 | % |   |   | 99.1 | % |
| Franchise fees                                                          |   |                | 1.1    |   |                     |   | 0.6 |   |   |   | 1.2 |   |   |   | 0.6 |   |
| Other revenue                                                           |   |                | 0.3    |   |                     |   | 0.3 |   |   |   | 0.3 |   |   |   | 0.3 |   |
| Total                                                                   |   |                | 99.8   |   |                     |   | 100.0 |   |   |   | 99.1 |   |   |   | 100.0 |   |
| Investment Management Operations:                                       |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Management fee income                                                   |   |                | 0.1    |   |                     |   | 0.0 |   |   |   | 0.1 |   |   |   | 0.0 |   |
| Consolidated Affiliated Partnerships:                                   |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Investment gains/losses                                                 |   |                | 0.1    |   |                     |   | 0.0 |   |   |   | 0.8 |   |   |   | 0.0 |   |
| Other income/loss                                                       |   |                | (0.0   | )      |                     |   | 0.0 |   |   |   | 0.1 |   |   |   | 0.0 |   |
| Total                                                                   |   |                | 0.2    |   |                     |   | 0.0 |   |   |   | 0.9 |   |   |   | 0.0 |   |
| Total net revenues                                                      |   |                | 100.0  |   |                     |   | 100.0 |   |   |   | 100.0 |   |   |   | 100.0 |   |
|                                                                    |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Costs and expenses                                                      |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales (1)                                                       |   |                | 27.7   |   |                     |   | 27.5 |   |   |   | 27.4 |   |   |   | 26.8 |   |
| Restaurant operating costs (1)                                          |   |                | 49.4   |   |                     |   | 49.9 |   |   |   | 48.6 |   |   |   | 49.7 |   |
| General and administrative                                              |   |                | 6.9    |   |                     |   | 5.8 |   |   |   | 6.9 |   |   |   | 5.9 |   |
| Depreciation and amortization                                           |   |                | 4.1    |   |                     |   | 4.5 |   |   |   | 4.1 |   |   |   | 4.6 |   |
| Marketing                                                               |   |                | 5.1    |   |                     |   | 5.0 |   |   |   | 5.3 |   |   |   | 5.1 |   |
| Rent                                                                    |   |                | 2.4    |   |                     |   | 2.5 |   |   |   | 2.4 |   |   |   | 2.5 |   |
| Pre-opening costs                                                       |   |                | 0.0    |   |                     |   | 0.0 |   |   |   | 0.0 |   |   |   | 0.0 |   |
| Asset impairments and provision for restaurant closings                 |   |                | (0.1   | )      |                     |   | (0.0 | ) |   |   | 0.0 |   |   |   | 0.0 |   |
| Loss on disposal of assets                                              |   |                | 0.1    |   |                     |   | 0.1 |   |   |   | 0.1 |   |   |   | 0.0 |   |
| Other operating (income) expense                                        |   |                | (0.0   | )      |                     |   | (0.2 | ) |   |   | 0.2 |   |   |   | (0.1 | ) |
|                                                                    |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense)                                                  |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest, dividend and other investment income                          |   |                | 0.1    |   |                     |   | 0.1 |   |   |   | 0.0 |   |   |   | 0.1 |   |
| Interest on obligations under leases                                    |   |                | (1.5   | )      |                     |   | (1.7 | ) |   |   | (1.5 | ) |   |   | (1.7 | ) |
| Interest expense                                                        |   |                | (0.4   | )      |                     |   | (0.1 | ) |   |   | (0.4 | ) |   |   | (0.1 | ) |
| Realized investment gains/losses                                        |   |                | 0.2    |   |                     |   | 0.3 |   |   |   | 0.9 |   |   |   | 0.2 |   |
| Derivative gains/losses                                                 |   |                | 0.0    |   |                     |   | 0.0 |   |   |   | 0.1 |   |   |   | 0.0 |   |
| Total other income (expense)                                            |   |                | (1.7   | )      |                     |   | (1.5 | ) |   |   | (1.0 | ) |   |   | (1.5 | ) |
|                                                                    |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Earnings before income taxes                                            |   |                | 4.0    |   |                     |   | 4.2 |   |   |   | 5.8 |   |   |   | 4.7 |   |
|                                                                    |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                                                            |   |                | 1.3    |   |                     |   | 1.4 |   |   |   | 1.9 |   |   |   | 1.6 |   |
|                                                                    |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings                                                            |   |                | 2.7    |   |                     |   | 2.8 |   |   |   | 3.9 |   |   |   | 3.2 |   |
| Earnings/loss attributable to noncontrolling interest                   |   |                | 0.0    |   |                     |   | 0.0 |   |   |   | 0.0 |   |   |   | (0.0 | ) |
| Earnings/loss attributable to redeemable noncontrolling interests:      |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income/loss allocation                                                  |   |                | (0.1   | )      |                     |   | 0.0 |   |   |   | (0.5 | ) |   |   | 0.0 |   |
| Incentive fee reallocation                                              |   |                | 0.0    |   |                     |   | 0.0 |   |   |   | 0.7 |   |   |   | 0.0 |   |
| Total earnings/loss attributable to redeemable noncontrolling interests |   |                | (0.1   | )      |                     |   | 0.0 |   |   |   | 0.2 |   |   |   | 0.0 |   |
|                                                                    |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings attributable to Biglari Holdings Inc.                      |   |                | 2.7    | %      |                     |   | 2.8 | % |   |   | 4.1 | % |   |   | 3.2 | % |

----

Index

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Index

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Index

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Index

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Index

|   | · | the ability of the restaurant operations to increase store traffic on a profitable basis; |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | competition in the restaurant industry for customers, staff, locations, and new products; |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | disruptions in the overall economy and the financial markets; |
|--------|--------|---------------------------------------------------------------|

|   | · | the Company’s ability to comply with the restrictions and covenants to its debt agreements; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | declines in the market price of our common stock, which could adversely affect our goodwill impairment analysis; |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | the potential to recognize additional impairment charges on our long−lived assets; |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | fluctuations in food commodity and energy prices and the availability of food commodities; |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | the ability of our franchisees to operate profitable restaurants; |
|--------|--------|-------------------------------------------------------------------|

|   | · | the poor performance or closing of even a small number of restaurants; |
|--------|--------|------------------------------------------------------------------------|

|   | · | changes in customer preferences, tastes, and dietary habits; |
|--------|--------|--------------------------------------------------------------|

|   | · | changes in minimum wage rates and the availability and cost of qualified personnel; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | harsh weather conditions or losses due to casualties; |
|--------|--------|-------------------------------------------------------|

|   | · | unfavorable publicity relating to food safety or food−borne illness; |
|--------|--------|----------------------------------------------------------------------------|

|   | · | exposure to liabilities related to the ownership and leasing of significant amounts of real estate; |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | our ability to comply with existing and future governmental regulations; |
|--------|--------|--------------------------------------------------------------------------|

|   | · | our ability to adequately protect our trademarks, service marks, and other components of our brand; |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | changes in market prices of our investments; and |
|--------|--------|--------------------------------------------------|

|   | · | other risks identified in the periodic reports we file with the Securities and Exchange Commission. |
|--------|--------|-----------------------------------------------------------------------------------------------------|

| Item 3.  | Quantitative and Qualitative Disclosures about Market Risk  |
|---------------|------------------------------------------------------------------|

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Index

| Item 4.  | Controls and Procedures   |
|---------------|-------------------------------------|

----

Index

Pa

| Item 1A.  | Risk Factors  |
|----------------|--------------------|

| Item 2.  | Unregistered Sales of Equity Securities And Use Of Proceeds  |
|---------------|-------------------------------------------------------------------|

| Period                                     |   | Total Number of Shares Purchased |    |   | Average Price Paid per Share |   |    | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   |   | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs |   |
|--------------------------------------------|--------|----------------------------------|---------|--------|------------------------------|--------|---------|----------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------------------|--------|
|                                       |   |                             |    |   |                         |   |    |                                                                             |   |   |                                                                                                         |   |
| December 23, 2010 – January 22, 2011 |   |                             | — |   |                         | $      | — |                                                                             |   |   | —                                                                                                      |   |   | $ | — |   |
| January 23, 2011 – February 22, 2011 |   |                             | — |   |                         | $      | — |                                                                             |   |   | —                                                                                                      |   |   | $ | — |   |
| February 23, 2011 – March 22, 2011   |   |                             | — |   |                         | $      | — |                                                                             |   |   | —                                                                                                      |   |   | $ | — |   |
| March 23, 2011 – April 13, 2011      |   |                             | 1,189   |   |                         | $      | 403.69  |                                                                             |   |   | —                                                                                                      |   |   | $ | — |   |

----

Index

| Item 6. | Exhibits |
|---------|----------|

| ExhibitNumber |   | Description                                                                                                                                |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                       |
| 10.01         |   | Third Amendment to Credit Agreement by and between Steak n Shake Operations, Inc. and Fifth Third Bank, dated as of October 13, 2010       |
|          |   |                                                                                                                                       |
| 10.02         |   | Fourth Amendment to Credit Agreement by and between Steak n Shake Operations, Inc. and Fifth Third Bank, effective as of February 15, 2011 |
|          |   |                                                                                                                                       |
| 31.01         |   | Rule 13(a)-14(a)/15d-14(a) Certification of Chief Executive Officer                                                                        |
|          |   |                                                                                                                                       |
| 31.02         |   | Rule 13(a)-14(a)/15d-14(a) Certification of Chief Financial Officer                                                                        |
|          |   |                                                                                                                                       |
| 32.01         |   | Section 1350 Certifications                                                                                                                |

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Index

SIG

|   | BIGLARI HOLDINGS INC. |                            |
|--------|-----------------------|---------------------------------|
|   |                  |                            |   |
|   | By:                   | /s/ Duane E. Geiger        |   |
|   |                  | Duane E. Geiger                 |   |
|   |                  | Interim Chief Financial Officer |   |
|   |                  |                            |   |

----