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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.


About the author:


Rating: 3.3/5 (8 votes)


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