| Metric | Details |
|---|---|
| Entity / Legal Name | Steak ’n Shake Inc. (subsidiary of Biglari Holdings Inc.) |
| Parent Company | Biglari Holdings Inc. (NYSE: BH) |
| S&P / Moody‑s Rating | NR (Not Rated) |
| Investment Grade Status | Not Rated — Distressed / Turnaround |
| Sector | Restaurant / Quick Service / Fast Casual (Steakburger) |
| Headquarters | San Antonio, Texas (Biglari HQ) / Indianapolis, Indiana (brand origin) |
| US Location Count | ~300+ restaurants (significantly reduced from peak of 625+) |
| Cap Rate Range | 7.00% – 9.00%+ |
| Typical Lease Term | 10 – 20 years (NNN) |
| Guarantee Type | Franchisee (majority converted to franchise partner model) |
| Typical Building Size | 3,000 – 5,000 SF (freestanding) |
| Typical Price Range | $1,000,000 – $3,500,000 |
Steak ’n Shake Business Overview & NNN Investment Profile
Steak ’n Shake is a steakburger and milkshake chain that has been in operation since 1934, making it one of the oldest QSR brands in America. The brand reached a peak of over 625 locations before undergoing a dramatic contraction and restructuring under Biglari Holdings (NYSE: BH), the controversial holding company controlled by Sardar Biglari. The chain has transitioned from a company-operated model to a “franchise partner” model, converting most locations to franchisees who operate with minimal corporate oversight. The brand currently operates approximately 300 locations, primarily in the Midwest and Southeast.
For NNN investors, Steak ’n Shake properties represent a high-yield, high-risk proposition. The brand carries no credit rating from any major agency, the parent company has a history of financial complexity and declining restaurant count, and the franchise partner model means individual operators bear virtually all operational risk. However, the physical properties are often well-located freestanding drive-thru restaurants on prime pad sites that carry strong underlying real estate value. Experienced NNN investors who can evaluate the real estate independently of the tenant risk may find value in Steak ’n Shake properties, particularly when priced at 8%+ cap rates with significant re-tenanting potential for other QSR brands.
Steak ’n Shake’s parent Biglari Holdings carries no credit rating from S&P, Moody‑s, or Fitch. The company’s unconventional corporate structure, declining restaurant count, and franchise partner conversion model create substantial uncertainty for NNN investors. This is not an investment-grade credit by any measure. The NNN market prices Steak ’n Shake properties primarily on the value of the underlying real estate and the strength of the individual franchise partner rather than on the brand’s corporate credit. Due diligence must include a thorough evaluation of the specific operator’s financial capacity and the property’s alternative-use value.
Cap Rate Analysis & Pricing for Steak ’n Shake NNN Properties
Steak ’n Shake NNN properties trade in the 7.00% to 9.00%+ cap rate range as of Q1 2026, among the widest in the restaurant NNN market. Properties with strong franchise partners and long remaining terms in primary markets may approach 7.00%, while locations with weaker operators, shorter terms, or secondary markets may price at 9.00% or wider. The wide cap rate range also reflects the significant variance in property quality across the system. Pricing typically ranges from $1 million to $3.5 million.
| Comparable Restaurant NNN Tenant | S&P / Moody‑s | Cap Rate Range |
|---|---|---|
| Applebee‑s (Dine Brands) | B+ / B1 | 6.50% – 8.00% |
| Burger King (RBI) | BB / Ba3 | 5.50% – 7.00% |
| Wendy‑s | B / Ba3 | 5.50% – 6.75% |
No. Biglari Holdings carries no credit rating from any major agency. The brand is considered distressed and in turnaround mode, having closed hundreds of locations in recent years.
Steak ’n Shake NNN properties trade in the 7.00% to 9.00%+ cap rate range as of Q1 2026, reflecting the unrated credit, declining brand footprint, and franchise partner operating model.
The investment thesis is real estate value, not tenant credit. Many Steak ’n Shake locations occupy prime freestanding drive-thru pad sites that could be easily re-tenanted to other QSR brands at higher rents. At 8%+ cap rates, investors are compensated for the tenant risk while retaining strong alternative-use optionality on the underlying real estate.
Biglari Holdings converted most company-owned locations to a “franchise partner” model where individual operators run the restaurants with minimal corporate support. This shifts operational risk to the franchisee and means the NNN lease guarantee depends entirely on the individual operator’s financial capacity.
The Only Steak ’n Shake NNN Advisor Whose Fee Comes From the Deal, Not From You
In NNN buyer representation, the listing broker typically pays a cooperating commission to the buyer’s broker. On the majority of transactions, this means there is no separate fee to you as the buyer. Where a cooperating commission is not available, our compensation is agreed upon with you in advance so there are never surprises.
Find It — Steak ’n Shake NNN properties evaluated with a real-estate-first approach: franchise partner financial review, alternative-use analysis, and pad site value assessment before you commit.
Fund It — High-yield NNN on prime drive-thru real estate requires lenders who underwrite the real estate, not just the tenant. We have 150+ lender relationships.
Exit It — Selling a Steak ’n Shake property? Prime drive-thru pad sites attract QSR re-tenanting interest that can exceed current rents. We evaluate both tenant-in-place and re-tenanting exit strategies.
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