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.