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<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>1. General</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited condensed
consolidated financial statements of Biglari Holdings Inc. (“we”, “us”, “our”, “Biglari
Holdings”, or the “Company”) have been prepared in accordance with accounting principles generally accepted in
the United States of America applicable to interim financial information and with the instructions to Form 10-Q and Article 10
of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally
accepted in the United States of America for complete financial statements. In our opinion, all adjustments considered necessary
to present fairly the condensed consolidated Balance Sheet, the condensed consolidated Statements of Earnings, the condensed consolidated
Statements of Cash Flows and the condensed consolidated Statements of Changes in Shareholders’ Equity have been included,
and consist only of normal recurring adjustments. The condensed consolidated Statements of Earnings for the sixteen and twenty-eight
weeks ended April 11, 2012 and April 13, 2011 are not necessarily indicative of the condensed consolidated Statements of Earnings
for the entire fiscal years. For further information, refer to the consolidated financial statements and notes thereto included
in our Annual Report on Form 10-K for the fiscal year ended September 28, 2011.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Biglari Holdings Inc. is a diversified
holding company engaged in a number of diverse business activities.  The Company is led by Sardar Biglari, Chairman and Chief
Executive Officer of Biglari Holdings and its major operating subsidiaries. The Company’s long-term objective is to
maximize per-share intrinsic value of the Company. Our strategy is to reinvest cash generated from our operating subsidiaries into
any investments with the objective of achieving high risk-adjusted returns.  All major operating, investment, and capital
allocation decisions are made for the Company and its subsidiaries by Sardar Biglari, Chairman and Chief Executive Officer. </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><b><i> </i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Basis of Presentation and Consolidation</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of April 11, 2012, the condensed
consolidated financial statements include the accounts of (i) the Company, (ii) its wholly-owned subsidiaries Steak n Shake Operations,
Inc. (“Steak n Shake”), Western Sizzlin Corporation (“Western”), and Biglari Capital Corp. (“Biglari
Capital”), and (iii) investment related subsidiaries and limited partnerships (the “consolidated affiliated partnerships”).
As a result of the Company’s acquisitions of Western and Biglari Capital during fiscal year 2010, the Company acquired financial
interests in The Lion Fund, L.P. (the “Lion Fund”), Western Acquisitions, L.P., Mustang Capital Partners I, L.P. and
Mustang Capital Partners II, L.P., investment limited partnerships (collectively referred to as consolidated affiliated partnerships),
for which the Company has a substantive controlling interest. During the first quarter of fiscal year 2011, Mustang Capital Partners
I, L.P. and Mustang Capital Partners II, L.P. were liquidated and the funds distributed to the partners. During the third quarter
of fiscal year 2011, Western Mustang Holdings, L.L.C. sold its interests in Mustang Capital Management, L.L.C. and Mustang Capital
Advisors, L.P.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">	</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">We consolidate entities in which we
have a wholly-owned or controlling interest in the general partner. The consolidated affiliated partnerships’ assets and
liabilities are consolidated on the Company’s balance sheet even though outside limited partners have majority ownership
in all of the investment partnerships. The Company does not guarantee any of the liabilities of its subsidiaries that are serving
as general partners to these consolidated affiliated partnerships. All intercompany accounts and transactions have been eliminated
in consolidation.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Western’s and Biglari Capital’s March 31 quarter end for financial reporting purposes differs from
the end of the Company’s fiscal quarter of April 11, 2012. There were no significant transactions in the intervening period.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>2. New Accounting Standards</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2011, the Financial Accounting
Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2011−12, <i>Comprehensive
Income </i>(“ASU 2011−12”). The amendments in ASU 2011-12 superseded certain pending paragraphs in ASU 2011−05,
<i>Presentation of Comprehensive Income</i> (“ASU 2011−05”) to effectively defer only those changes in ASU 2011−05
that related to the presentation of reclassification adjustments out of accumulated other comprehensive income. The adoption of
ASU 2011−12 will not impact the measurement of net earnings or other comprehensive income.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In September 2011, the FASB issued ASU
2011−08, <i>Testing Goodwill for Impairment</i> (“ASU 2011−08”). ASU 2011−08 amends Accounting Standards
Codification (“ASC”) Topic 350, <i>Intangibles – Goodwill and Other </i>(“ASC Topic 350”), and allows
an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative impairment
test. An entity would not be required to calculate the fair value of a reporting unit unless the entity determines, based on qualitative
assessment, that it is more likely than not that its fair value is less than its carrying amount. The guidance is effective for
annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, which is effective for
the Company’s first quarter of fiscal year 2013. We do not believe that the adoption of ASU 2011–08 will have a material
effect on the Company’s condensed consolidated financial statements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2011, the FASB issued ASU 2011−05.
ASU 2011−05 amends ASC Topic 220, <i>Comprehensive Income</i> (“ASC Topic 220”), and allows entities the option
to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either
in a single continuous statement of comprehensive income or in two separate but consecutive statements. The guidance should be
applied retrospectively and is effective for interim and annual periods beginning after December 15, 2011, which is effective for
the Company’s first quarter of fiscal year 2013. The adoption of ASU 2011−05 will not impact the measurement of net
earnings or other comprehensive income.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2011, the FASB issued ASU 2011−04,
<i>Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs </i>(“ASU 2011−04”).
ASU 2011−04 attempts to improve the comparability of fair value measurements disclosed in financial statements prepared in
accordance with U.S. GAAP and IFRS. Amendments in ASU 2011− 04 clarify the intent of the application of existing fair value
measurement and disclosure requirements, as well as change certain measurement requirements and disclosures. ASU 2011−04
was effective for the Company’s first quarter of fiscal year 2012 and was applied on a prospective basis. The adoption of
ASU 2011-04 did not have a material effect on the Company’s condensed consolidated financial statements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In January 2010, the FASB issued ASU
2010−06, <i>Improving Disclosures about Fair Value Measurements</i> (“ASU 2010−06”). ASU 2010−06
amends ASC Topic 820, <i>Fair Value Measurements and Disclosures</i> (“ASC Topic 820”), and requires additional disclosure
about significant transfers between levels 1, 2, and 3 of the fair value hierarchy as well as disclosure of changes in level 3
activity on a gross basis. In addition, the guidance clarifies existing requirements regarding the required level of disaggregation
by class of assets and liabilities and also clarifies disclosures of inputs and valuation techniques. The guidance became effective
beginning in the Company's second quarter of fiscal year 2010, except for the requirement to disclose level 3 activity on a gross
basis, which was effective as of the beginning of the Company's fiscal year 2012. The adoption did not have a material impact on
the Company's condensed consolidated financial statements.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>3.
Earnings Per Share</b></font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Earnings
per share of common stock is based on the weighted average number of shares outstanding during the year. For financial reporting
purposes all common shares of the Company held by the consolidated affiliated partnerships are recorded in Treasury stock on the
condensed consolidated Balance Sheet. For purposes of computing the weighted average common shares outstanding, the shares of
treasury stock attributable to the unrelated limited partners of the consolidated affiliated partnerships — based on their
proportional ownership during the period — are considered outstanding shares.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following table presents a reconciliation of basic and diluted weighted average common shares.</font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">Sixteen
Weeks Ended</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font: 10pt Times New Roman, Times, Serif">Twenty-Eight
Weeks Ended</font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 2pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 2pt; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-size: 2pt; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 2pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="3" style="font-size: 2pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-size: 2pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td colspan="7" style="font-size: 2pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">April
11,</font></td><td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">April
13,</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">April
11,</font></td><td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">April
13,</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">2012</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">2011</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">2012</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">2011</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -9.35pt; padding-left: 13.65pt"><font style="font: 10pt Times New Roman, Times, Serif">Basic earnings
per share:</font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; padding-bottom: 1pt; text-indent: -0.15pt; padding-left: 13.65pt"><font style="font: 10pt Times New Roman, Times, Serif">Weighted
average common shares</font></td><td style="width: 3%; font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,333,848</font></td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 3%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,327,685</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 3%; font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,333,685</font></td><td style="width: 1%; padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 3%; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,327,480</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -9.35pt; padding-left: 13.65pt"><font style="font: 10pt Times New Roman, Times, Serif">Diluted earnings
per share:</font></td><td style="font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.15pt; padding-left: 13.65pt"><font style="font: 10pt Times New Roman, Times, Serif">Weighted average
common shares</font></td><td style="font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,333,848</font></td><td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,327,685</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,333,685</font></td><td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,327,480</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -0.15pt; padding-left: 13.65pt"><font style="font: 10pt Times New Roman, Times, Serif">Dilutive
effect of stock awards</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">3,598</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">6,968</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">3,219</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">8,398</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.15pt; padding-left: 13.65pt"><font style="font: 10pt Times New Roman, Times, Serif">Weighted average
common and incremental shares</font></td><td style="font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,337,446</font></td><td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,334,653</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,336,904</font></td><td style="font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,335,878</font></td><td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify; padding-bottom: 1pt; text-indent: -9pt; padding-left: 22.5pt"><font style="font: 10pt Times New Roman, Times, Serif">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</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">705</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">705</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">1,030</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>4. Investments<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Investments consisted of the following:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; font-weight: bold; text-align: center">April 11, 2012</td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: center">September 28, 2011</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%">Cost</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">$       190,231</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="vertical-align: bottom; line-height: 115%; text-align: right">$        124,140</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%">Gross unrealized gains</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: top; line-height: 115%; font-weight: bold"> </td>
<td style="vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">         27,859</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right"> </td>
<td style="vertical-align: bottom; line-height: 115%; text-align: right">1,956</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%">Gross unrealized losses</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right"> (347</td>
<td style="vertical-align: bottom; padding-right: -0.1in; line-height: 115%; font-weight: bold">)</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; vertical-align: bottom; line-height: 115%; text-align: right">(10,775</td>
<td style="vertical-align: bottom; line-height: 115%">)</td></tr>
<tr>
<td style="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%">Fair value</td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: 0.7pt; line-height: 115%; font-weight: bold; text-align: right">$       217,743</td>
<td style="vertical-align: top; line-height: 115%"> </td>
<td style="vertical-align: top; line-height: 115%; text-align: center"> </td>
<td colspan="2" style="border-bottom: windowtext 1.5pt double; vertical-align: bottom; line-height: 115%; text-align: right">$        115,321</td>
<td style="vertical-align: top; line-height: 115%; text-align: right"> </td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Unrealized losses of marketable equity
securities at April 11, 2012 relate to securities that have been in an unrealized loss position for less than 12 months. A majority
of the gross unrealized losses at September 28, 2011 were due to one investment. Most of our investments at April 11, 2012 are
concentrated in one security.We consider several factors in determining other-than-temporary impairment losses including the current
and long-term business prospects of these issuers, the length of time and relative magnitude of the price decline and our ability
and intent to hold the investment until the price recovers.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Investment gains/losses are recognized
when investments are sold (as determined on a specific identification basis) or as otherwise required by GAAP. The timing of realized
gains and losses from sales can have a material effect on periodic earnings. However, such realized gains or losses usually have
little, if any, impact on total Shareholders’ equity because the investments are carried at fair value with any unrealized
gains/losses included as a component of Accumulated other comprehensive income in Shareholders’ equity.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Realized investment gains/losses were
as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Sixteen Weeks Ended</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Twenty-Eight Weeks Ended</td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 2pt"> </td><td style="font-size: 2pt; font-weight: bold"> </td>
<td colspan="7" style="font-size: 2pt; font-weight: bold; text-align: center"> </td><td style="font-size: 2pt; font-weight: bold"> </td>
<td colspan="7" style="font-size: 2pt; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: center; vertical-align: bottom">April 11,</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: center; vertical-align: bottom">April 13,</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: center; vertical-align: bottom">April 11,</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: center; vertical-align: bottom">April 13,</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">2012</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">2011</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">2012</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">2011</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left">Gross realized gains on sales</td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">378</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">366</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">4,357</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">3,250</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Gross realized losses on sales</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">(384</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(6</td><td style="text-align: left">)</td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>5. Consolidated Affiliated Partnerships<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Collectively, The Lion Fund L.P., Western
Acquisitions, L.P., Mustang Capital Partners I, L.P. and Mustang Capital Partners II, L.P. are referred to as consolidated affiliated
partnerships of the Company. Investments held directly by the consolidated affiliated partnerships usually consist of domestic
equity securities. Certain of the consolidated affiliated partnerships hold the Company’s common stock as investments. In
our condensed consolidated financial statements, the Company classifies this common stock as Treasury stock despite the shares
being legally outstanding. As of April 11, 2012 and September 28, 2011, the consolidated affiliated partnerships held 205,743
shares of the Company’s common stock ($69,221 at cost).</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Consolidated net earnings of the Company
include the realized and unrealized appreciation and depreciation of the investments held by consolidated affiliated partnerships,
other than realized and unrealized appreciation and depreciation of investments the consolidated affiliated partnerships hold in
the Company’s equity securities which has been eliminated in consolidation. </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In fiscal year 2010, Biglari Holdings
invested a total of $35,697 in the Lion Fund, both in the form of the acquisition of the general partner and as a direct limited
partner investment. The fair value of these investments in the Lion Fund totaled $51,000 as of the end of the fiscal 2012
second quarter. No amounts were invested in the year-to-date period in fiscal year 2012 or in fiscal year 2011. These investments
in the Lion Fund do not appear explicitly in the Company’s condensed consolidated Balance Sheet because of the requirement
to consolidate fully the Lion Fund (inclusive of third party interests) in the Company’s financial statements. Further,
the Lion Fund’s portfolio holds significant interests in Biglari Holdings’ common stock, which as described above is
classified on the Company’s condensed consolidated Balance Sheet as a reduction to Shareholders’ equity. Biglari Holdings’
pro-rata ownership of its Company common stock through the Lion Fund was 98,620 shares of stock (with a fair value of $39,729)
based on Biglari Holdings’ ownership interest in the Lion Fund as of the end of the fiscal 2012 second quarter.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the first quarter of fiscal year
2011, Mustang Capital Partners I, L.P. and Mustang Capital Partners II, L.P. were liquidated and the funds distributed to the partners.
The distribution of $15,660, including $1,421 of noncash distributions, is noted in the Distributions to noncontrolling interests
line in the reconciliation below.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the third quarter of fiscal year
2011, Western Mustang Holdings, L.L.C. sold its interests in Mustang Capital Management, L.L.C. and Mustang Capital Advisors, L.P.
As a result of the sale, the Company does not have involvement in the operations of Mustang Capital Management, L.L.C. and Mustang
Capital Advisors, L.P. Although these entities meet the definition of “discontinued operations,” as defined in FASB
ASC paragraph 205-20-45-1, <i>Reporting Discontinued Operations</i> (“ASC paragraph 205-20-45-1”), we have not separated
the results of operations because the amounts are immaterial to our consolidated financial numbers. Net earnings after tax related
to the entities were approximately $13 and $1,063 for the sixteen and twenty-eight weeks ended April 13, 2011, including $0 and
$1,246, respectively, that were attributable to noncontrolling interests.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes the cost
and fair value of the investments held by the consolidated affiliated partnerships, other than holdings of the Company’s
equity securities:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">April 11, <br />2012</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">September 28, 2011</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Equity securities:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-indent: 7.9pt">Cost</td><td style="width: 8%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 12%; font-weight: bold; text-align: right">14,811</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">19,122</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: 7.9pt">Fair value</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">17,005</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">18,783</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Investments held by consolidated affiliated
partnerships on the condensed consolidated Balance Sheet includes $6,598 and $0 of cash that is only available for use by the consolidated
affiliated partnerships at April 11, 2012 and September 28, 2011, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Realized investment gains/losses arise
when investments are sold (as determined on a specific identification basis). The net realized gains/losses from investments held
by consolidated affiliated partnerships, other than holdings of the Company’s equity securities, were as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Sixteen Weeks Ended</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Twenty-Eight Weeks Ended</td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 2pt"> </td><td style="font-size: 2pt; font-weight: bold"> </td>
<td colspan="7" style="font-size: 2pt; font-weight: bold; text-align: center"> </td><td style="font-size: 2pt; font-weight: bold"> </td>
<td colspan="7" style="font-size: 2pt; font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">April 11, 2012</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">April 13, 2011</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">April 11, 2012</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">April 13, 2011</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left">Net unrealized gains/losses</td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">1,683</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">154</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">2,381</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">379</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Net realized gains/losses from sale</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">159</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">105</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">1,585</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,567</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The limited partners of each of the
investment funds have the ability to redeem their capital upon certain occurrences; therefore, the ownership of the investment
funds held by the limited partners is presented as Redeemable noncontrolling interests of consolidated affiliated partnerships
and measured at the greater of carrying value or fair value on the accompanying condensed consolidated Balance Sheet. The maximum
redemption amount of the redeemable noncontrolling interests as of April 11, 2012 is $54,822.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following is a reconciliation of
the redeemable noncontrolling interests in the consolidated affiliated partnerships.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Twenty-Eight Weeks Ended</td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 2pt"> </td><td style="font-size: 2pt"> </td>
<td colspan="7" style="font-size: 2pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">April 11, 2012</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center"> </td><td style="border-bottom: Black 1pt solid; text-align: center">April 13, 2012</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%">Carrying value at beginning of period</td><td style="width: 8%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 12%; font-weight: bold; text-align: right">45,252</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">62,245</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Contributions from noncontrolling interests</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">1,107</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">691</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Distributions to noncontrolling interests</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(25</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(17,193</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Incentive fee</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(36</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,510</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Income / loss allocation</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">2,237</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,920</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Adjustment to redeemable noncontrolling interest to reflect maximum redemption value</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">6,287</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7,668</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt">Carrying value at end of period</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">54,822</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">52,821</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">   </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company, through its ownership of
Biglari Capital and Western Investments Inc., is entitled to an incentive fee to the extent investment performance of the consolidated
affiliated partnerships exceeds specified hurdle rates. Any such fee is included in net earnings attributable to the Company in
the period in which the fee is earned.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Biglari Capital, the general partner
of the Lion Fund, earned a $36 incentive reallocation fee at December 31, 2011. At December 31, 2010, Biglari Capital earned a
$5,199 incentive reallocation fee; however, $2,689 was eliminated, for that amount represents the Company’s fee as a limited
partner, uncharged because the Company owns the general partner. The remaining $2,510 is an incentive fee that was charged and
reallocated from outside limited partners of the Lion Fund. The incentive fee is assessed only once a year, on December 31, and
no predictability of such earnings exists because the Lion Fund’s annual performance is unpredictable.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Net earnings attributable
to the Company only includes the Company’s share of earnings and losses related to our investments in the consolidated affiliated
partnerships; all other earnings or losses from the consolidated affiliated partnerships are allocated to the redeemable noncontrolling
interests.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>6. Assets Held for Sale<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Assets held for sale are composed of
the following:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">April 11, <br />2012</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">September 28, 2011</td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 4.3pt">Land and buildings</td><td style="width: 8%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 12%; font-weight: bold; text-align: right">5,740</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">6,262</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 4.3pt">Improvements</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">463</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">608</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 4.3pt">Total assets held for sale</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">6,203</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">6,870</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="margin: 0"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The April 11, 2012 balance included
the following assets: one office building, three restaurants, and nine parcels of land. The Company expects to sell these properties
by fiscal year end. For any of these properties that are not sold by then, we expect to classify them as other long term assets.</p>
<p style="margin: 0"></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>7. Other Current Assets<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Other current assets primarily include
prepaid rent, prepaid contractual obligations and current portion of capitalized loan acquisition costs.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>8. Property and Equipment<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment is composed of
the following:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: middle">
<td rowspan="2"> </td>
<td rowspan="2" style="text-align: center"> </td>
<td style="font-weight: bold; text-align: center">April 11, </td>
<td style="text-align: center">September 28,</td></tr>
<tr style="vertical-align: middle">
<td style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">2012</td>
<td style="border-bottom: windowtext 1pt solid; text-align: center">2011</td></tr>
<tr style="vertical-align: middle">
<td>Land  </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right; border-top-color: windowtext; border-top-width: 1pt">$160,421</td>
<td style="text-align: right; border-top-color: windowtext; border-top-width: 1pt">$161,339</td></tr>
<tr style="vertical-align: middle">
<td>Buildings  </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">149,927</td>
<td style="text-align: right">149,444</td></tr>
<tr style="vertical-align: middle">
<td>Land and leasehold improvements  </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">155,091</td>
<td style="text-align: right">153,731</td></tr>
<tr style="vertical-align: middle">
<td>Equipment  </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right">203,679</td>
<td style="text-align: right">202,933</td></tr>
<tr style="vertical-align: middle">
<td>Construction in progress  </td>
<td style="text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: right"> 2,567</td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"> 1,850</td></tr>
<tr style="vertical-align: middle">
<td> </td>
<td style="text-align: center"> </td>
<td style="font-weight: bold; text-align: right; border-top-color: windowtext; border-top-width: 1pt"> 671,685</td>
<td style="text-align: right; border-top-color: windowtext; border-top-width: 1pt"> 669,297</td></tr>
<tr style="vertical-align: middle">
<td>Less accumulated depreciation and amortization  </td>
<td style="text-align: center"> </td>
<td style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: right">(309,606)</td>
<td style="border-bottom: windowtext 1pt solid; text-align: right"> (297,561)</td></tr>
<tr style="vertical-align: middle">
<td>Property and equipment, net  </td>
<td style="text-align: center"> </td>
<td style="border-bottom: windowtext 2pt double; font-weight: bold; text-align: right; border-top-color: windowtext; border-top-width: 1pt">$362,079</td>
<td style="border-bottom: windowtext 2pt double; text-align: right; border-top-color: windowtext; border-top-width: 1pt">$371,736</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>9. Goodwill and Other Intangibles<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Goodwill</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Goodwill consists of the excess of the
purchase price over the fair value of the net assets acquired in connection with business acquisitions. There was no change to
the carrying value of goodwill from September 28, 2011.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">We are required to assess goodwill and
any indefinite-lived intangible assets for impairment annually, or more frequently if circumstances indicate impairment may have
occurred. The analysis of potential impairment of goodwill requires a two-step approach. The first step is the estimation of fair
value of each reporting unit. If step one indicates that impairment potentially exists, the second step is performed to measure
the amount of impairment, if any. Goodwill impairment exists when the estimated fair value of goodwill is less than its carrying
value.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">During the quarter ended September 28,
2011, we performed our annual assessment of the recoverability of our goodwill related to four reporting units related to our Steak
n Shake operations. During the second quarter of fiscal year 2012, we performed our annual assessment of our recoverability of
goodwill related to two reporting units related to our Western operations. The valuation methodology and underlying financial information
included in our determination of fair value require significant judgments to be made by management. We use both market and income
approaches to derive fair value. The judgments in these two approaches include, but are not limited to, comparable market multiples,
long-term projections of future financial performance, and the selection of appropriate discount rates used to determine the present
value of future cash flows. Changes in such estimates or the application of alternative assumptions could produce significantly
different results.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Other Intangibles</i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Other intangibles are composed of the
following:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td><td colspan="12" style="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><font style="font-size: 7pt"><b>April 11, 2012</b></font></td><td style="padding-bottom: 1pt"><font style="font-size: 7pt"><b> </b></font></td>
<td colspan="11" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 7pt"><b>September 28, 2011</b></font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 7pt"><b> </b></font></td><td style="font-weight: bold"><font style="font-size: 7pt"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font-size: 7pt"><b> </b></font></td><td style="font-weight: bold"><font style="font-size: 7pt"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font-size: 7pt"><b> </b></font></td><td style="font-weight: bold"><font style="font-size: 7pt"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center"><font style="font-size: 7pt"><b> </b></font></td><td><font style="font-size: 7pt"><b> </b></font></td>
<td colspan="3" style="text-align: center"><font style="font-size: 7pt"><b> </b></font></td><td><font style="font-size: 7pt"><b> </b></font></td>
<td colspan="3" style="text-align: center"><font style="font-size: 7pt"><b> </b></font></td><td><font style="font-size: 7pt"><b> </b></font></td>
<td colspan="3" style="text-align: center"><font style="font-size: 7pt"><b> </b></font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 7pt"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 7pt"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 7pt"><b>Gross
carrying amount</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 7pt"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 7pt"><b>Accumulated
amortization</b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 7pt"><b> </b></font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 7pt"><b>Total</b></font></td><td style="padding-bottom: 1pt"><font style="font-size: 7pt"><b> </b></font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 7pt"><b>Gross carrying
amount</b></font></td><td style="padding-bottom: 1pt"><font style="font-size: 7pt"><b> </b></font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 7pt"><b>Accumulated amortization</b></font></td><td style="padding-bottom: 1pt"><font style="font-size: 7pt"><b> </b></font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 7pt"><b>Total</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="width: 40%; text-align: left"><font style="font-size: 8pt">Right to operate</font></td><td style="width: 2%; font-weight: bold"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; font-weight: bold; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 6%; font-weight: bold; text-align: right"><font style="font-size: 8pt">1,480</font></td><td style="width: 1%; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%; font-weight: bold"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; font-weight: bold; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 6%; font-weight: bold; text-align: right"><font style="font-size: 8pt">(1,181</font></td><td style="width: 1%; font-weight: bold; text-align: left"><font style="font-size: 8pt">)</font></td><td style="width: 2%; font-weight: bold"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; font-weight: bold; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 6%; font-weight: bold; text-align: right"><font style="font-size: 8pt">299</font></td><td style="width: 1%; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 6%; text-align: right"><font style="font-size: 8pt">1,480</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 2%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 6%; text-align: right"><font style="font-size: 8pt">(1,117</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt">)</font></td><td style="width: 2%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 6%; text-align: right"><font style="font-size: 8pt">363</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left"><font style="font-size: 8pt">Franchise agreement</font></td><td style="font-weight: bold"><font style="font-size: 8pt"> </font></td>
<td style="font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; text-align: right"><font style="font-size: 8pt">5,310</font></td><td style="font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold"><font style="font-size: 8pt"> </font></td>
<td style="font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; text-align: right"><font style="font-size: 8pt">(1,062</font></td><td style="font-weight: bold; text-align: left"><font style="font-size: 8pt">)</font></td><td style="font-weight: bold"><font style="font-size: 8pt"> </font></td>
<td style="font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; text-align: right"><font style="font-size: 8pt">4,248</font></td><td style="font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">5,310</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">(797</font></td><td style="text-align: left"><font style="font-size: 8pt">)</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">4,513</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 1pt"><font style="font-size: 8pt">Other</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">810</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">(514</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font-size: 8pt">)</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">296</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">810</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(480</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">330</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="padding-bottom: 1pt"><font style="font-size: 8pt">Total</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">7,600</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">(2,757</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font-size: 8pt">)</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">4,843</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">7,600</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">(2,394</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">5,206</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 8pt">Intangible assets with indefinite lives</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">1,744</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">—  </font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">1,744</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">1,744</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">—  </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">1,744</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: transparent">
<td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 8pt">Total intangible assets</font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font-size: 8pt">9,344</font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font-size: 8pt">(2,757</font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font-size: 8pt">)</font></td><td style="font-weight: bold; padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><font style="font-size: 8pt">6,587</font></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">9,344</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">(2,394</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt">)</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 8pt">6,950</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><font style="font-size: 8pt"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Intangible assets subject to amortization
consist of franchise agreements acquired in connection with the acquisition of Western, a right to operate and favorable leases
acquired in connection with prior acquisitions and are being amortized over their estimated weighted average useful lives ranging
from eight to twelve years.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Amortization expense for the sixteen
weeks ended April 11, 2012 and April 13, 2011 was $187 and $200, respectively. Amortization expense for the twenty-eight weeks
ended April 11, 2012 and April 13, 2011 was $363 and $392, respectively. Total annual amortization expense for each of the next
five years will approximate $650.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Intangible assets with indefinite lives
consist of a trade name acquired in connection with the acquisition of Western and reacquired franchise rights acquired in connection
with previous acquisitions.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>10. Other Assets</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Other assets primarily include capitalized
software, non-qualified plan investments, non-current portion of capitalized loan acquisition costs, and a note receivable.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>11. Borrowings</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">There were no material changes in our
borrowings from September 28, 2011.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Steak n Shake’s Credit Facility
includes customary affirmative and negative covenants and events of default, as well as financial covenants relating to a maximum
total leverage ratio and a minimum consolidated fixed charge coverage ratio.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Steak n Shake was in compliance with
all covenants under the Credit Facility as of April 11, 2012.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying amounts for debt reported
in the condensed consolidated Balance Sheet do not differ materially from their fair values at April 11, 2012.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>12. Other Long-term Liabilities<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Other long-term liabilities include
deferred rent expense, non-qualified plan obligations, deferred gain on sale-leaseback transactions, uncertain tax positions, and
deferred compensation.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>13. Income Taxes<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Our effective income tax rate for the
twenty-eight weeks ended April 11, 2012 was 30.8%, compared to our effective income tax rate of 32.6% in the same period in the
prior year. The decrease in the tax rate is attributable to dividends received from equity investments which are taxed at lower
rates than the income derived from wholly owned businesses.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">As of April 11, 2012 and September 28,
2011, we had approximately $1,913 and $1,750, respectively, of unrecognized tax benefits, which are included in Other long-term
liabilities in the condensed consolidated Balance Sheet.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>14. Commitments and Contingencies<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">We are involved in various legal proceedings
and have certain unresolved claims pending. We believe, based on examination of these matters and experiences to date, that the
ultimate liability, if any, in excess of amounts already provided in our condensed consolidated financial statements is not likely
to have a material effect on our results of operations, financial position or cash flows.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>15. Fair Value of Financial Assets
and Liabilities<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value framework as established
in ASC paragraph 820-10-50-2 requires the categorization of assets and liabilities into three levels based upon the assumptions
(inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair values, whereas Level 3 generally
requires significant management judgment. The three levels are defined as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="width: 4%; vertical-align: top; line-height: 115%">•</td>
<td style="width: 96%; vertical-align: bottom; line-height: 115%">Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.</td></tr>
<tr>
<td style="vertical-align: top; line-height: 115%">•</td>
<td style="vertical-align: bottom; padding-right: 4.5pt; line-height: 115%">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.</td></tr>
<tr>
<td style="vertical-align: top; line-height: 115%">•</td>
<td style="vertical-align: bottom; padding-right: 4.5pt; line-height: 115%">Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following methods and assumptions
were used to determine the fair value of each class of the following assets and liabilities recorded at fair value in the condensed
consolidated Balance Sheet.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Cash equivalents: </i>Cash equivalents
primarily consist of money market funds. Money market funds that are carried at fair value, based on quoted market prices, are
classified within Level 1 of the fair value hierarchy. All other cash equivalents carried at fair value based on observable inputs
for which a quoted market price is not available are classified within Level 2 of the fair value hierarchy. Consolidated affiliated
partnerships did not hold cash equivalents at April 11, 2012 and September 28, 2011.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Equity securities:</i> The Company’s
investments in equity securities are carried at fair value, based on quoted market prices, and are classified within Level 1 of
the fair value hierarchy. </p>
<p style="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Non-qualified deferred compensation
plan investments: </i>The assets of our Non-Qualified Savings Plan are set up in a rabbi trust. They represent mutual funds that
are carried at fair value, based on quoted market prices, and are classified within Level 1 of the fair value hierarchy.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Investment held by consolidated affiliated
partnership: </i>Investments of $196 and $193 as of April 11, 2012 and September 28, 2011, respectively, have been classified within
Level 3 of the fair value hierarchy and represent a private security.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Investment derivatives and interest
rate swaps: </i>Investment derivatives and interest rate swaps are marked to market each reporting period with fair value based
on readily available market quotes, and are classified within Level 2 of the fair value hierarchy. Interest rate swaps at April
11, 2012 and September 28, 2011 represent the mark to market adjustment for Steak n Shake’s interest rate swap.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair values of financial assets
and liabilities were as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 7pt"> </font></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 9pt Times New Roman, Times, Serif">
<tr style="vertical-align: middle">
<td style="font-weight: bold"><font style="font: 7pt Times New Roman, Times, Serif"> </font></td>
<td colspan="11" style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center"><font style="font: 7pt Times New Roman, Times, Serif">April
11, 2012</font></td>
<td><font style="font: 7pt Times New Roman, Times, Serif"> </font></td>
<td colspan="11" style="border-bottom: windowtext 1pt solid; text-align: center"><font style="font: 7pt Times New Roman, Times, Serif">September
28, 2011</font></td></tr>
<tr style="vertical-align: middle">
<td style="font-size: 1pt; font-weight: bold; text-align: right"><font style="font: 7pt Times New Roman, Times, Serif"> </font></td>
<td colspan="11" style="border-top: windowtext 1pt solid; font-size: 1pt; font-weight: bold; text-align: right"><font style="font: 7pt Times New Roman, Times, Serif"> </font></td>
<td style="font-size: 1pt; text-align: right"><font style="font: 7pt Times New Roman, Times, Serif"> </font></td>
<td colspan="11" style="border-top: windowtext 1pt solid; font-size: 1pt; text-align: right"><font style="font: 7pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: middle">
<td style="font-weight: bold"><font style="font: 7pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center"><font style="font: 7pt Times New Roman, Times, Serif">Level
1</font></td>
<td style="font-weight: bold"><font style="font: 7pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center"><font style="font: 7pt Times New Roman, Times, Serif">Level
2</font></td>
<td style="font-weight: bold"><font style="font: 7pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center"><font style="font: 7pt Times New Roman, Times, Serif">Level
3</font></td>
<td><font style="font: 7pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center"><font style="font: 7pt Times New Roman, Times, Serif">Total</font></td>
<td style="font-weight: bold"><font style="font: 7pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; text-align: center"><font style="font: 7pt Times New Roman, Times, Serif">Level
1</font></td>
<td style="text-align: center"><font style="font: 7pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; text-align: center"><font style="font: 7pt Times New Roman, Times, Serif">Level
2</font></td>
<td style="text-align: center"><font style="font: 7pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; text-align: center"><font style="font: 7pt Times New Roman, Times, Serif">Level
3</font></td>
<td style="text-align: center"><font style="font: 7pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; text-align: center"><font style="font: 7pt Times New Roman, Times, Serif">Total</font></td></tr>
<tr style="vertical-align: middle">
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif">Assets</font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: middle">
<td><font style="font: 8pt Times New Roman, Times, Serif">Cash equivalents  </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">21,131</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">21,131</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">88,022</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">88,022</font></td></tr>
<tr style="vertical-align: middle">
<td><font style="font: 8pt Times New Roman, Times, Serif">Equity securities:</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: middle">
<td><font style="font: 8pt Times New Roman, Times, Serif">   Restaurant/Retail  </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">211,721</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">211,721</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">89,971</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">89,971</font></td></tr>
<tr style="vertical-align: middle">
<td><font style="font: 8pt Times New Roman, Times, Serif">   Other  </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">6,022</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">6,022</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">25,350</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">25,350</font></td></tr>
<tr style="vertical-align: middle">
<td><font style="font: 8pt Times New Roman, Times, Serif">Equity securities held by consolidated affiliated partnerships: </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: middle">
<td><font style="font: 8pt Times New Roman, Times, Serif">   Restaurant/Retail  </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">9,752</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">9,752</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">7,677</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">7,677</font></td></tr>
<tr style="vertical-align: middle">
<td><font style="font: 8pt Times New Roman, Times, Serif">   Other  </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">7,057</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">7,057</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">10,913</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">10,913</font></td></tr>
<tr style="vertical-align: middle">
<td><font style="font: 8pt Times New Roman, Times, Serif">Non-qualified deferred compensation plan investments  </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">736</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">736</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">546</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">546</font></td></tr>
<tr style="vertical-align: middle">
<td><font style="font: 8pt Times New Roman, Times, Serif">Investment held by consolidated affiliated partnership  </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">196</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">196</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">-</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">193</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">193</font></td></tr>
<tr style="vertical-align: middle">
<td><font style="font: 8pt Times New Roman, Times, Serif">Total assets at fair value  </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">$235,288</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">$21,131</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">$196</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">$256,615</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">$134,457</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">$88,022</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">$193</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">$222,672</font></td></tr>
<tr style="vertical-align: middle">
<td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 2pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 2pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 2pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 2pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 2pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 2pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 2pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 2pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: middle">
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif">Liabilities</font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: windowtext 1pt solid; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: middle">
<td><font style="font: 8pt Times New Roman, Times, Serif">Interest rate swaps  </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 2pt double; font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif">$ </font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 2pt double; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">$368</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 2pt double; font-weight: bold; text-align: center"><font style="font: 8pt Times New Roman, Times, Serif">$
-</font></td>
<td style="font-weight: bold"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 2pt double; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">$368</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 2pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">$
-</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 2pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">$439</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 2pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">$
-</font></td>
<td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-top: windowtext 1pt solid; border-bottom: windowtext 2pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">$439</font></td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">There were no changes in our valuation
techniques used to measure fair values on a recurring basis.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">A reconciliation of the beginning and
ending balances of assets measured at fair value on a recurring basis using Level 3 inputs is as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 8pt"> </font></td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Twenty-Eight
Weeks Ended</font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 2pt; font-weight: bold"><font style="font-size: 8pt"> </font></td><td style="font-size: 2pt; font-weight: bold"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-size: 2pt; font-weight: bold; text-align: center"><font style="font-size: 8pt"> </font></td><td style="font-size: 2pt"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-size: 2pt; text-align: center"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; padding-left: 0.05in"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; text-align: center"><font style="font-size: 8pt"> </font></td>
<td style="font-weight: bold; text-align: center"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; text-align: center; vertical-align: bottom"><font style="font-size: 8pt">April
11,</font></td><td style="font-weight: bold; text-align: center"><font style="font-size: 8pt"> </font></td><td style="text-align: center"><font style="font-size: 8pt"> </font></td>
<td style="text-align: center"><font style="font-size: 8pt"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 8pt">April
13,</font></td><td style="text-align: center"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; padding-bottom: 1pt; padding-left: 0.05in; text-align: center"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; text-align: center"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font-size: 8pt">2012</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: center"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; text-align: center"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: center"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 8pt">2011</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; padding-left: 0.05in">Beginning of period balance</td><td style="width: 8%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 12%; font-weight: bold; text-align: right">193</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">323</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 0.05in">Gain included in earnings</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">3</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">13</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt; padding-left: 0.05in">End of period balance</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">196</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">336</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For the year-to-date period in fiscal
year 2012, the Company had no significant fair value adjustments applicable to items that are subject to non-recurring fair value
measurement after the initial measurement date.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>16. Related Party Transactions<br style="mso-special-character: line-break" />
<br style="mso-special-character: line-break" />
</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Mr. Biglari, along with his affiliates,
and certain directors of the Company make investments in the Lion Fund (other than the amounts invested by the Company), which
are not subject to special profits, interest allocations, or incentive allocations. However, Mr. Biglari does not pay an incentive
allocation fee as a limited partner in the Lion Fund. As of April 11, 2012 and September 28, 2011, the total fair value of these
investments was approximately $2,646 and $1,997, respectively.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>17. Business Segment Reporting</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Net revenue and earnings before income
taxes and noncontrolling interests for the sixteen and twenty-eight weeks ended April 11, 2012 and April 13, 2011 were as follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 9pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Net Revenue</td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 1pt; text-align: right"> </td><td style="font-size: 1pt; font-weight: bold"> </td>
<td colspan="15" style="font-size: 1pt; font-weight: bold; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Sixteen Weeks</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Twenty-Eight Weeks</td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 2pt; font-weight: bold"> </td><td style="font-size: 2pt"> </td>
<td colspan="7" style="font-size: 2pt; text-align: center"> </td><td style="font-size: 2pt"> </td>
<td colspan="7" style="font-size: 2pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; padding-bottom: 1pt; text-indent: -0.2in; padding-left: 0.2in"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">2012</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">2011</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">2012</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">2011</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left; text-indent: -0.2in; padding-left: 0.2in">Operating Business:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0.2pt; padding-left: 1.1pt">Restaurant Operations:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left; text-indent: 0.25pt; padding-left: 14.6pt">Steak n Shake</td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">217,921</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">207,142</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 10%; font-weight: bold; text-align: right">378,413</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">359,038</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; text-indent: 0.25pt; padding-left: 0.2in">Western</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">3,830</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,770</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">7,528</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7,489</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -0.2in; padding-left: 0.2in">Total Restaurant Operations</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">221,751</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">210,912</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">385,941</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">366,527</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.2in; padding-left: 0.2in"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: -0.2in; padding-left: 0.2in">Investment Management:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0.25pt; padding-left: 14.6pt">Management fees</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">114</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">224</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: 0.25pt; padding-left: 14.6pt">Consolidated affiliated partnerships</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,933</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">251</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">4,133</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,248</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -0.2in; padding-left: 0.2in">Total Investment Management Operations</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,933</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">365</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">4,133</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,472</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt; text-indent: -0.2in; padding-left: 0.2in"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">223,684</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">211,277</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">390,074</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">369,999</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The earnings presentation was adjusted
from the prior year to show interest expense, excluding interest allocated to operating businesses, as a reconciliation of segments
to consolidated amounts in order to more accurately reflect the earnings before and after tax of the restaurant operations.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Earnings before income taxes</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Net earnings attributable to <br />Biglari Holdings Inc.</td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 2pt; text-align: right"> </td><td style="font-size: 2pt; font-weight: bold"> </td>
<td colspan="15" style="font-size: 2pt; font-weight: bold; text-align: right"> </td><td style="font-size: 2pt; font-weight: bold"> </td>
<td colspan="15" style="font-size: 2pt; font-weight: bold; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Sixteen Weeks</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Twenty-Eight Weeks</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Sixteen Weeks</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Twenty-Eight Weeks</td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 2pt; text-align: right"> </td><td style="font-size: 2pt; font-weight: bold"> </td>
<td colspan="7" style="font-size: 2pt; font-weight: bold; text-align: right"> </td><td style="font-size: 2pt; font-weight: bold"> </td>
<td colspan="7" style="font-size: 2pt; font-weight: bold; text-align: right"> </td><td style="font-size: 2pt; font-weight: bold"> </td>
<td colspan="7" style="font-size: 2pt; font-weight: bold; text-align: right"> </td><td style="font-size: 2pt; font-weight: bold"> </td>
<td colspan="7" style="font-size: 2pt; font-weight: bold; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; padding-bottom: 1pt; text-indent: -0.2in; padding-left: 0.2in"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">2012</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">2011</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">2012</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">2011</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">2012</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">2011</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom">2012</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">2011</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left; text-indent: -0.2in; padding-left: 0.2in">Operating Business:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0.2pt; padding-left: 1.1pt">Restaurant Operations:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 28%; text-align: left; text-indent: 0.25pt; padding-left: 14.6pt">Steak n Shake</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 5%; font-weight: bold; text-align: right">13,070</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 5%; text-align: right">9,475</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 5%; font-weight: bold; text-align: right">26,719</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 5%; text-align: right">19,031</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 5%; font-weight: bold; text-align: right">8,738</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 5%; text-align: right">6,778</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 5%; font-weight: bold; text-align: right">17,697</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 5%; text-align: right">13,367</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; text-indent: 0.25pt; padding-left: 0.2in">Western</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">463</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">454</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">854</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">877</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">287</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">281</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">528</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">538</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -0.2in; padding-left: 0.2in">Total Restaurant Operations</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">13,533</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">9,929</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">27,573</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">19,908</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">9,025</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7,059</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">18,225</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">13,905</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.2in; padding-left: 0.2in"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: -0.2in; padding-left: 0.2in">Investment Management:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0.25pt; padding-left: 14.6pt">Biglari Capital Corp. (Incentive Fee)</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">36</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,510</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">22</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,535</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0.25pt; padding-left: 14.6pt">Management fees</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">114</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">224</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">71</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">139</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: 0.25pt; padding-left: 14.6pt"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: 0.25pt; padding-left: 14.6pt">Consolidated affiliated partnerships</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,476</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">50</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">3,574</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,841</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">191</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">467</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(79</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -0.2in; padding-left: 0.2in">Total Investment Management Operations</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1,476</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">164</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">3,610</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,575</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">191</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">73</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">489</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,595</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.2in; padding-left: 0.2in"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left; text-indent: -0.2in; padding-left: 0.2in">Corporate and Other:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: -0.9pt; padding-left: 0.2in">Corporate and other</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(5,187</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,184</td><td style="text-align: left">)</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(8,312</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,446</td><td style="text-align: left">)</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(3,351</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(737</td><td style="text-align: left">)</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(5,133</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,555</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -0.9pt; padding-left: 0.2in">Investment and derivative gains/losses</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">378</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">398</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">3,973</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,451</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">234</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">251</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,463</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,174</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -0.2in; padding-left: 0.2in">Total Corporate and Other</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(4,809</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(786</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(4,339</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,005</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(3,117</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(486</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(2,670</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">619</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.2in; padding-left: 0.2in"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left; text-indent: -0.2in; padding-left: 0.2in">Reconciliation of segments to consolidated amount:</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"> </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-indent: -0.9pt; padding-left: 0.2in">Eliminations</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(36</td><td style="font-weight: bold; text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,510</td><td style="text-align: left">)</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(463</td><td style="text-align: left">)</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">—  </td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(123</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -0.9pt; padding-left: 0.2in">Interest expense, excluding interest allocated to operating businesses</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(2,533</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(867</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(4,388</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,432</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(1,571</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(538</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">(2,721</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(888</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt; text-indent: -0.2in; padding-left: 0.2in"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">7,667</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,440</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">22,420</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,546</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">4,528</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,645</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">13,323</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,108</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Biglari Capital, the general partner of the Lion Fund,
earned a $36 incentive reallocation fee at December 31, 2011. At December 31, 2010, Biglari Capital earned a $5,199 incentive
reallocation fee; however, $2,689 was eliminated, for that amount represents the Company’s fee as a limited partner, which
was uncharged because the Company owns the general partner. The remaining $2,510 is an incentive fee that was charged and reallocated
from outside limited partners of the Lion Fund. The incentive fee is assessed only once a year, on December 31, and no predictability
of such earnings exists because the Lion Fund annual performance is unpredictable.</font></p>
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