Biglari 8-K Results of Operations and Financial Condition

Exhibit 99.1

BIGLARI HOLDINGS INC.

NEWS RELEASE

San Antonio, TX, May 21 – Biglari Holdings Inc. (NYSE: BH) announces its fiscal second quarter 2010 results:

Biglari Holdings Inc.’s operating results for the sixteen and the twenty-eight weeks, which ended April 14, 2010, are summarized below.  To become apprised fully of our results, shareholders should carefully study our 10-Q, which has been posted at www.biglariholdings.com.

(Amounts in $000s, except share and per share data)

	Sixteen Weeks Ended						Twenty-Eight Weeks Ended
	April 14,			April 8,			April 14,			April 8,
	2010			2009			2010			2009
Pre-tax operating earnings (loss)	$	7,840		$	2,606		$	15,689		$	(3,375	)
Realized investment gains/losses		522			-			834			-
Income taxes		(2,838	)		(353	)		(5,522	)		2,188
Net earnings (loss) attributable to Biglari Holdings Inc.	$	5,524		$	2,253		$	11,001		$	(1,187	)
Diluted net earnings (loss) per common and   common equivalent share*	$	3.84		$	1.58		$	7.66		$	(0.84	)
Weighted average diluted shares and equivalents*		1,437,806			1,427,720			1,436,746			1,420,134
* Adjusted for 1-for-20 reverse stock split effective December 18, 2009.

Net earnings for fiscal second quarter 2010 were $5.5 million, or $3.84 per diluted share, as contrasted with net earnings for the second quarter of fiscal year 2009 of $2.3 million, or $1.58 per diluted share. In the current quarter, net revenues increased 4.7% from $189 million to $197.8 million. Year-to-date net revenues increased 8% from $320.7 million to $346.3 million.

About Biglari Holdings Inc.

Biglari Holdings Inc. is a holding company engaged in a number of diverse business activities. The most important operating subsidiaries are engaged in investment management and the franchising and operating of restaurants.

The company’s long-term objective is to maximize its per-share intrinsic value. Strategically, the holding company reinvests cash generated from its operating subsidiaries into investments whose purpose is to achieve high risk-adjusted returns. All investment and other capital allocation decisions are made by Sardar Biglari, Chairman and Chief Executive Officer, on behalf of the company.

Comment on Regulation G

This press release contains certain non-GAAP financial measures. In addition to the GAAP presentations of net earnings, Biglari Holdings defines pre-tax operating earnings exclusive of investment gains/losses and income taxes but inclusive of noncontrolling interest.

Risks Associated with Forward-Looking Statements

This news release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These statements which may concern anticipated future results are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ markedly from those projected or discussed here. Biglari Holdings cautions readers not to place undue reliance upon any such forward-looking statements, for actual results may differ materially from expectations. Biglari Holdings does not update publicly or revise any forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. Further information on the types of factors that could affect Biglari Holdings and its business can be found in the company's filings with the SEC.

Condensed Consolidated Statements of Financial Position (Unaudited)
Biglari Holdings Inc.
(Amounts in $000s, except share and per share data)
	April 14,				September 30,
	2010				2009
Assets
Current assets:
Cash and cash equivalents		$	75,216		$	51,395
Investments			5,806			3,001
Receivables, net of allowance of $538 and $538, respectively			10,848			7,660
Inventories			8,125			6,595
Deferred income taxes			4,329			3,910
Assets held for sale			12,284			13,733
Other current assets			4,561			4,421
Total current assets			121,169			90,715
Property and equipment, net			392,609			399,635
Marketable securities held by consolidated affiliated partnerships			11,658			-
Goodwill			33,220			14,503
Other intangible assets, net			1,463			1,567
Other assets			8,420			8,076
Total assets		$	568,539		$	514,496
Liabilities and shareholders' equity
Liabilities
Current liabilities:
Accounts payable		$	25,962		$	22,293
Accrued expenses			33,628			30,381
Revolving credit			17,500			18,500
Current portion of obligations under leases			4,390			4,339
Current portion of long-term debt			148			20
Total current liabilities			81,628			75,533
Deferred income taxes			10,754			9,388
Obligations under leases			127,098			130,076
Long-term debt			25,396			48
Other long-term liabilities			9,377			7,404
Total liabilities			254,253			222,449
Commitments and contingencies
Redeemable noncontrolling interests of consolidated affiliated partnerships			12,004			-
Shareholders' equity
Common stock - $0.50 stated value, 2,500,000 shares authorized -  1,511,175 shares issued, 1,431,608 shares outstanding*			756			757
Additional paid-in capital			143,693			143,691
Retained earnings			178,732			167,731
Accumulated other comprehensive income			252			112
Treasury stock - at cost: 79,567 shares as of April 14, 2010; 77,796 shares as of September 30, 2009*			(21,151	)		(20,430	)
Biglari Holdings Inc. shareholders' equity			302,282			291,861
Noncontrolling interest			-			186
Total shareholders' equity			302,282			292,047
Total liabilities and shareholders' equity		$	568,539		$	514,496
* Adjusted for 1-for-20 reverse stock split effective December 18, 2009.

Condensed Consolidated Statements of Operations (Unaudited)
Biglari Holdings Inc.
(Amounts in $000s except share and per share data)
	Sixteen Weeks Ended						Twenty-Eight Weeks Ended
	April 14,			April 8,			April 14,			April 8,
	2010			2009			2010			2009
Revenues
Net sales	$	196,650		$	187,975		$	344,236		$	318,694
Franchise fees		1,192			1,054			2,111			2,012
Total revenues		197,842			189,029			346,347			320,706
Costs and expenses
Cost of sales		54,160			50,714			92,639			85,831
Restaurant operating costs		98,394			96,423			171,551			168,019
General and administrative		11,609			10,799			20,394			19,444
Depreciation and amortization		8,962			9,606			15,885			17,049
Marketing		9,882			9,873			17,609			17,416
Interest		3,527			4,049			6,081			7,651
Rent		4,936			4,659			8,629			8,224
Asset impairments and provision for restaurant closing		(28	)		741			143			917
Loss (gain) on disposal of assets		122			47			99			(12	)
Total costs and expenses		191,564			186,911			333,030			324,539
Other income (expense)
Other income		1,741			726			2,677			1,254
Other expense		(186	)		(238	)		(295	)		(796	)
Other income (expense), net		1,555			488			2,382			458
Realized investment gains/losses		522			-			834			-
Earnings (loss) before income taxes		8,355			2,606			16,533			(3,375	)
Income taxes		2,838			353			5,522			(2,188	)
Net earnings (loss)		5,517			2,253			11,011			(1,187	)
Less: (Loss) earnings attributable to noncontrolling interest		(7	)		-			10			-
Net earnings (loss) attributable to Biglari Holdings Inc.	$	5,524		$	2,253		$	11,001		$	(1,187	)
Basic earnings (loss) per common and   common equivalent share*	$	3.87		$	1.58		$	7.70		$	(0.84	)
Diluted earnings (loss) per common and   common equivalent share*	$	3.84		$	1.58		$	7.66		$	(0.84	)
Weighted average shares and equivalents*
Basic		1,428,699			1,423,918			1,427,835			1,420,134
Diluted		1,437,806			1,427,720			1,436,746			1,420,134
* Adjusted for 1-for-20 reverse stock split effective December 18, 2009.

Condensed Consolidated Statements of Cash Flows (Unaudited)
Biglari Holdings Inc.
(Amounts in $000s)
	Twenty-Eight Weeks Ended
	April 14,			April 8,
	2010			2009
Operating activities
Net earnings (loss)	$	11,011		$	(1,187	)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization		15,885			17,049
Provision for deferred income taxes		1,519			1,748
Asset impairments and provision for restaurant closing		143			917
Stock-based compensation and other non-cash expenses		900			1,942
Loss (gain) on disposal of assets		99			(12	)
Realized investment gains		(834	)		-
Changes in receivables and inventories		(3,152	)		9,312
Changes in other assets		(126	)		(2,098	)
Changes in accounts payable and accrued expenses		5,650			(1,868	)
Net cash provided by operating activities		31,095			25,803
Investing activities
Additions of property and equipment		(4,648	)		(2,612	)
Proceeds from property and equipment disposals		711			6,590
Purchases of investments		(9,532	)		-
Sale of investments		9,169			-
Cash from merger activities		1,208			-
Net cash (used in) provided by investing activities		(3,092	)		3,978
Financing activities
Proceeds from revolving credit facility		-			7,400
Payments on revolving credit facility		(1,000	)		(4,580	)
Principal payments on long-term debt		(8	)		(4,482	)
Proceeds from property sale-leaseback		-			2,005
Principal payments on direct financing lease obligations		(2,253	)		(2,407	)
Proceeds from exercise of stock options and employee stock purchase plan		210			566
Cash paid in lieu of fractional shares		(711	)		-
Repurchase of employee shares for tax withholding		(199	)		(128	)
Distributions to noncontrolling interest		(221	)		-
Net cash used in financing activities		(4,182	)		(1,626	)
Increase in cash and cash equivalents		23,821			28,155
Cash and cash equivalents at beginning of period		51,395			6,855
Cash and cash equivalents at end of period	$	75,216		$	35,010