On Dec. 24, Sardar Biglari, a principal in Biglari Capital Corp., San Antonio, wrote in a letter to Cracker Barrel’s board that he is willing to lead an effort that will culminate in the sale of the company and he is willing to make a bid for the company.
“We believe Cracker Barrel’s assets would be far more productive under our leadership than in the hands of present leadership,” Biglari wrote. “Thus, we are willing to purchase the business because we perceive a significant upside under our management. But other sophisticated buyers also should have the opportunity to bid for the company.”
In response, the board of directors for Cracker Barrel said its existing business strategy is currently the proper course of action for the long-term best interests of the company and its shareholders.
“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. “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.”