This Under-the-Radar Stock Is Behind Steak 'n Shake's MAHA-Driven Growth. Should You Buy?
A company called Biglari is responsible for Steak 'n Shake's transformation.
Investors eyeing the Make America Healthy Again (MAHA) trend have taken notice of Steak n Shake, a restaurant chain that has embraced MAHA guidelines on its ingredients, leading to a notable increase in same-store sales. Steak n Shake, owned by Biglari Holdings (BH), has attracted attention due to its decision to replace fried fries with beef tallow, a change that sets it apart from competitors like McDonald's, which switched from beef tallow to vegetable oil in 1990.
The restaurant chain also uses grass-fed, grass-finished beef, seed-oil-free buns, milkshakes made with A2 milk and cane sugar, all of which seem to have resonated with customers. This strategy has contributed to a substantial 19.1% year-over-year increase in same-store sales in the third quarter of 2026, outperforming McDonald's, which saw a mere 1.5% rise in comparable sales.
However, the speculation surrounding Steak n Shake's stock is significant, as the company is not solely focused on restaurants. Biglari Holdings is also involved in insurance, oil and gas, and media, with only 68% of its revenue coming from restaurant operations. While the company reported an 8% revenue increase and a 113% rise in net income for the first nine months of 2026, the growth in same-store sales has not directly translated into overall revenue growth.
Furthermore, Steak n Shake has been closing more locations than opening new ones, potentially undermining the positive effects of its menu upgrades. Given this mixed performance and Biglari Holdings' diverse business interests, investors should exercise caution and consider limiting their exposure to the stock or avoiding it altogether.
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