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
