Biglari Capital Corp. Issues Letter to Shareholders of Cracker Barrel Old Country Store, Inc.
Biglari Capital Corp has issued a letter to Cracker Barrel (NASDAQ: CBRL) shareholders, highlighting the company's significant stock value decline from $100 to approximately $30 over the past five years. The letter criticizes the current board's performance and opposes their $700 million store renovation plan. Sardar Biglari and Milena Alberti-Perez are seeking board positions, emphasizing their restaurant turnaround experience. Biglari warns of potential further 50% losses if they aren't elected and criticizes recent management appointments, including a chief strategy officer from a cannabis company.
Biglari Capital Corp ha inviato una lettera agli azionisti di Cracker Barrel (NASDAQ: CBRL), sottolineando il significativo calo del valore delle azioni dell'azienda, passato da $100 a circa $30 negli ultimi cinque anni. La lettera critica le performance dell'attuale consiglio di amministrazione e si oppone al loro piano di ristrutturazione dei negozi da $700 milioni. Sardar Biglari e Milena Alberti-Perez stanno cercando posti nel consiglio, mettendo in evidenza la loro esperienza nel risanamento di ristoranti. Biglari avverte della possibilità di ulteriori perdite del 50% se non verranno eletti e critica le recenti nomine della dirigenza, inclusa quella di un chief strategy officer proveniente da un'azienda di cannabis.
Biglari Capital Corp ha emitido una carta a los accionistas de Cracker Barrel (NASDAQ: CBRL), destacando la significativa caída en el valor de las acciones de la empresa, de $100 a aproximadamente $30 en los últimos cinco años. La carta critica el desempeño del actual consejo de administración y se opone a su plan de renovación de tiendas de $700 millones. Sardar Biglari y Milena Alberti-Perez están buscando puestos en el consejo, enfatizando su experiencia en la reactivación de restaurantes. Biglari advierte sobre posibles pérdidas adicionales del 50% si no son elegidos y critica recientes nombramientos de la gerencia, incluyendo un director de estrategia proveniente de una empresa de cannabis.
Biglari Capital Corp는 Cracker Barrel (NASDAQ: CBRL) 주주들에게 서신을 발송하여 최근 5년 동안 회사의 주가가 $100에서 약 $30으로 크게 하락한 사실을 강조했습니다. 이 서신은 현재 이사회의 성과를 비판하고 그들의 $7억 매장 리노베이션 계획에 반대하고 있습니다. Sardar Biglari와 Milena Alberti-Perez는 이사직을 추구하며 그들의 식당 재건 경험을 강조하고 있습니다. Biglari는 그들이 선출되지 않으면 추가로 50%의 손실이 발생할 수 있다고 경고하며, 최근의 경영진 임명, 특히 대마초 회사 출신의 최고 전략 책임자 임명을 비판했습니다.
Biglari Capital Corp a adressé une lettre aux actionnaires de Cracker Barrel (NASDAQ: CBRL), soulignant la chute significative de la valeur boursière de l'entreprise, passant de 100 $ à environ 30 $ au cours des cinq dernières années. La lettre critique les performances du conseil d'administration actuel et s'oppose à leur plan de rénovation de magasin de 700 millions de dollars. Sardar Biglari et Milena Alberti-Perez cherchent à obtenir des sièges au conseil, en mettant l'accent sur leur expérience en matière de redressement de restaurants. Biglari avertit qu'il pourrait y avoir des pertes supplémentaires de 50 % s'ils ne sont pas élus et critique les récentes nominations de direction, y compris celle d'un directeur de la stratégie provenant d'une entreprise de cannabis.
Biglari Capital Corp hat einen Brief an die Aktionäre von Cracker Barrel (NASDAQ: CBRL) verschickt, in dem der signifikante Rückgang des Aktienwerts des Unternehmens von $100 auf etwa $30 in den letzten fünf Jahren hervorgehoben wird. Der Brief kritisiert die Leistung des aktuellen Vorstands und steht dem Plan zur Renovierung von Geschäften im Wert von $700 Millionen entgegen. Sardar Biglari und Milena Alberti-Perez streben nach Vorstandspositionen und betonen ihre Erfahrung im Bereich der Restaurantumgestaltung. Biglari warnt vor möglichen weiteren Verlusten von 50%, wenn sie nicht gewählt werden, und kritisiert die jüngsten Managemententscheidungen, einschließlich der Ernennung eines Chief Strategy Officer aus einem Cannabisunternehmen.
- None.
- Stock value declined 70% over past 5 years
- Company plans to spend $700M (70% of market value) on store renovations
- Biglari's investment decreased from $350M to $100M
- Recent management appointments lack restaurant industry experience
- Warning of potential additional 50% stock value loss
Insights
The shareholder letter from Biglari Capital Corp reveals significant concerns about Cracker Barrel's performance and leadership. The stock has experienced a dramatic
The proxy fight seeks to replace two board members with Biglari and Alberti-Perez. Critical concerns include the lack of restaurant turnaround experience among current leadership and questionable strategic decisions, such as hiring a chief strategy officer from a struggling cannabis company. The aggressive remodeling plan could potentially harm the brand's core identity and further strain financial resources.
This proxy battle highlights deeper operational challenges at Cracker Barrel. The brand's traditional appeal and authenticity are at risk with the proposed modernization strategy. Historical evidence from similar casual dining chains suggests that expensive remodeling programs often fail to address fundamental business issues like declining traffic and changing consumer preferences.
The lack of active institutional investors and reliance on index funds for ownership creates a challenging environment for implementing meaningful change. The proposed board changes could bring needed industry expertise and aligned shareholder interests, but the
Dear Shareholders of Cracker Barrel Old Country Store Inc.:
If you had
Our group had approximately
This election should be simple. It is about voting for Milena Alberti-Perez and myself instead of two directors, Carl Berquist and Meg Crofton, who have overseen a loss of about
Despite all of the Company's failures, the board members are spending shareholders' money to defend themselves. They could have settled but they fear letting accountability into the boardroom. They value collegiality over accountability. You and I should be concerned that they could lose our remaining investment. Therefore, the consequences of this election are enormous.
Making no decision is bad enough, but the kind of decisions the Board and management are making is actually worse. Recent managerial appointments are beyond comprehension. For instance, there is a new chief strategy officer who has no restaurant background; his last post was chief strategy officer of a cannabis company whose stock declined by over
The Company's big strategy to turn itself around is to spend
Cracker Barrel Old Country Store is a history-steeped place that channels Americana; there are a few brands like it, and none require wholesale changes to their aesthetic. The day Cracker Barrel opened, it was already old — its theme derived from the 1920s. I am concerned that not only will the remodel not work but it could actually damage the brand further. These decisions are taking us down the same path, I believe, as Ruby Tuesday, Red Lobster, TGI Fridays, and the like. Let me make my position clear: The company's
Why do we need your vote? Most large active investors have stayed away from Cracker Barrel stock and many index funds now own it. Unfortunately, index funds do not have the time to evaluate individual companies. Moreover, proxy advisory firms emphasize governance over shareholder returns. This approach ignores the reality that most companies with a trillion-dollar market value have a poor governance record by their measure despite producing excellent shareholder returns. To these advisory firms, I can only quote Samuel Johnson: "I have found you an argument; but I am not obliged to find you an understanding." Any capitalist who uses his or her own money to own this stock would be displeased by the current Board and would want board members with both experience and a significant ownership stake to help fix the Company.
We have had a 13-year investment in the Cracker Barrel stock, and my prior predictions proved correct. I now believe there is a significant risk of a
The best we can do is to make sure we obtain the support of the investors who know and care about Cracker Barrel and its long-term performance, and want to make money in the stock over time.
If you side with us, please be sure to vote the GOLD card, checking the boxes for Sardar Biglari and Milena Alberti-Perez.
Sincerely,
/s/ Sardar Biglari
Sardar Biglari
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SOURCE Biglari Capital Corp.
FAQ
How much has Cracker Barrel (CBRL) stock value declined since 2019?
How much is Cracker Barrel (CBRL) planning to spend on store renovations?
Who is Biglari Capital Corp proposing for Cracker Barrel's board positions?
How much has Biglari Capital's investment in Cracker Barrel (CBRL) decreased?
