Western Sizzlin Corporation (WSZL)
From ValueWiki
Western Sizzlin Corporation operates 129 restaurants located in 19 states. Five of these restaurants are company owned and the remaining 124 are franchises. The restaurants include a family steakhouse concept and a steak and buffet concept. These restaurants operate under the names WesterN SizzliN Steak & More, WesterN SizzliN Wood Grill, Great American Steak & Buffet Company, and Quincy Steakhouses.
Western Sizzlin however is no mere restaurant chain company. Sardar Biglari, the Chairman of the Board and also the Chairman of The Lion Fund, is operating Western Sizzlin as an vehicle for investing in "stocks of businesses at prices below their intrinsic value."[1] The company's current investment involves a significant stake in Friendly Ice Cream.
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Company Analysis
- Western Sizzlin Corporation Snapshot[2]
- Outstading Shares: 1,191,850 as of 2006-09-30
- Transfer Agent: First National Bank of Omaha, Omaha, NE 68102-1596
- Western Sizzlin Corporation Contact Information
- Address: 1338 Plantation Road Roanoke, VA 24012 USA
- Website: http://www.western-sizzlin.com
- Phone: 540-345-3195
Stock Analysis
- Shareholders Equity (Q3): $12.8
- Cash from R.O.: $4.17
- Investment gains (since Q3): about $0.4-0.5
- Total = about $17.4 million
Not counting the value of goodwill and the Western Sizzlin franchise, tangible book value would be about $12 million. The market capitalization is currently $11.02 million as of February 23, 2007.
Sardar Biglari is a sophisticated investor and Chairman of The Lion Fund. His investment style is similar to that of Warren Buffett. Mr. Biglari is transforming Western Sizzlin into an investment vehicle to invest in businesses at prices below their intrinsic business value in a fashion similar to the way Warren Buffett transformed Berkshire Hathaway. If Mr. Biglari is successful in unlocking the value of Friendly Ice Cream by installing two people on to its Board, the value of Western Sizzlin will likely increase tremendously. Sardar Biglari may be successful in turning Western Sizzlin into a mini Berkshire Hathaway with massive appreciation potential.
Significant Events
- January 30, 2007 - Star Buffet buys Western Sizzlin franchise restaurant.
- December 19, 2006 - Results of Rights Offering announced.
- December 8, 2006 - Rights Offering expired.
News Feed
| 12/12/07 9:12 am | WESTERN SIZZLIN CORP Financials (EDGAR Online Financials) |
Leadership
- James C. Verney, President/CEO
- Robyn B. Mabe, CFO
- Sardar Biglari, Chairman
Risks
- The stock price is volatile and thinly traded.
- The company is controlled by a few shareholders. Four stockholders control 43% of the company. These shareholders include Sardar Biglari (Chairman), Shawn Sedaghat, Jonathan Dash, and Titas W. Greene (Director).
- The company has experienced a decline in their franchise base.
- The restuarants operate in a highly competitive environment.
- The company is remodeling restaurants, changing their format, and rebranding some. These changes may not work.
- The investment in Friendly Ice Cream may decline in value. Western Sizzlin is seek two board seats at Friendly Ice Cream. However, the attempt to place two board members without restrictions has been rejected so far.
Research Links
- Western Sizzlin Corporation Fundamentals
- Western Sizzlin Corporation Technical Analysis
Message Boards
- Western Sizzlin News
- Value Investing News - WSZL story links
