What is Western Sizzlin, Really?
Sardar Biglari describes what Western Sizzlin (WSZL) really is in his recent letter to ITEX Corporation (ITEX) shareholders:
What you are getting is not a steakhouse even though that is how our name originated.
Western is a holding company, owning interests in other businesses, in whole and in part, with the prime objective of achieving high returns on capital in pursuit of maximizing long-term value for the benefit of all of its stockholders. We believe our holding company structure is an effective business model, as it allows our subsidiaries to focus on overseeing their day-to-day operations and Western to focus on allocating capital.
One area of specialization for Western is franchising. One of our subsidiaries, Western Sizzlin Franchise Corporation (”WSFC”), franchises 116 restaurants.
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One wonders how a business like Western Sizzlin continues to thrive when what is offers is mediocre at best.