1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Articles (4624) 

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)


Please leave your comment:

Performances of the stocks mentioned by CanadianValue

User Generated Screeners

browntroutFwd PE <=9, Gross Margin >= 25
gelayor65All Stocks With Blackrock Heav
jan.ellsbergerHernhag rev5
jan.ellsbergerHernhag rev4
jan.ellsbergerHernhag rev3
jan.ellsbergerHernhag rev2
BoubaPFS Value Sector
eae010Forward Growth Edited
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat