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CanadianValue
CanadianValue
Articles (4619) 

Why Sardar Biglari is Wrong for Cracker Barrel – Cracker Barrel's "No Biglari" Presentation

November 03, 2011 | About:


I can’t recall ever seeing anything quite like this.

I came across Biglari in 2006 after reading his Lion Fund letters to investors. I thought he had potential to be an exceptional wealth creator. What I didn’t imagine was how controversial he would be.

Cracker Barrel is out with a presentation explaining their side of the proxy contest with Biglari.

Their summary of why Biglari is wrong for Cracker Barrel:



1) Biglari has repeatedly refused to disclose his specific plans for the business


2) Biglari gained initial board representation at Steak ‗n Shake and then took control over time

without paying a premium, with most Board members exiting the Board after he joined it




3) Slashed operational investment at Steak n Shake – focused only on short-term


4) Proposed excessive compensation plan for himself


5) Proposed dual class of stock at Biglari Holdings for acquisitions – has delayed special meeting twice,

and now it is “on hold”


6) Returns little cash to shareholders


7) Presence on our Board would create a serious conflict of interest – he is the CEO of a family

restaurant competitor and CEO of a restaurant acquisition vehicle




The presentation linked below is 39 pages of “anti-Biglari” fun.

http://files.shareholder.com/downloads/CBRL/1483548334x0x513851/2CF0DA46-8FA6-4D7E-97A6-70095D6CED0D/CBRL_IP_11.1.11.pdf

About the author:

CanadianValue
http://valueinvestorcanada.blogspot.com/

Rating: 3.3/5 (8 votes)

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