Sunday, March 7, 2010

A Picture of Sardar Biglari Welcoming you to Steak 'n Shake.

Recently, it has come up in the news media that "Biglari, a supremely confident Warren Buffett disciple, hasn’t been shy about attaching his own name to the Steak n Shake chain. A photo and greeting from Biglari now welcome guests at each of Steak n Shake’s 486 locations in 21 states."

Frankly, this statement, when taken in the context of the article that does nothing but lambast all things Sardar Biglari, is very misleading... The below picture is worth a thousand words of retort; the article should have said "a photo of Sardar Biglari with numerous smiling Steak 'n Shake employees welcomes you to the restaurant chain." In addition, the text at the bottom of the photo talks about the long tradition of quality at Steak n' Shake and also lets you know that the people there care about you, the customer.

Personally, I like the fact that he is attaching himself to the chain in the way that he did in this picture. I think that it is important for people to know who they are doing business with, not only that, but I think that people like knowing who they are doing business with. I view this as a smart capital allocation decision and am happy to see my company's cash being spent in such a manner. Surely this $200 dollar per store capital expenditure will contribute to an additional $40 bucks in cash flow per year.

As was pointed out by the Manual of Ideas, the article written is on a subject that I know a great deal about; honestly, I wonder how a person with half of a brain could have gotten so many of 'the facts' dead wrong.

Disclosure: Long SNS. This is not investment advice. Do your own research before doing anything.

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