In a recent letter, Cracker Barrel’s largest investor, Sardar Biglari, urged the company to find a buyer, and even mentioned the possibility of making an offer himself. However, Cracker Barrel says it will not make a sale.
“We are disappointed that Mr. Biglari is seeking to call a special meeting to vote on a proposal requesting that the company commence a sale process, particularly in light of his defeat by substantial margins in three consecutive proxy contests,” said James Bradford, chairman of the board at Cracker Barrel. “Cracker Barrel’s board of directors continues to believe that the execution of management’s existing business strategy will create the most value for all shareholders. The board regularly evaluates all options to serve the best interests of the company and its shareholders and will continue to do so.”
In his letter, Biglari acknowledged that, by law, he cannot actually make a bid on the company himself. However, he asked for the board’s support in making a change to that law. “We request that the Board support our efforts to seek an amendment to the state law that would give all shareholders the ability to decide the future of their Company,” the letter said. “We think Cracker Barrel’s earning power is far too low in your hands. Current management appears relatively successful because of the dismal performance under the former CEO.”