/C O R R E C T I O N -- Biglari Capital Corp./
Proxy advisory firms ISS and Glass Lewis have endorsed the need for change at Cracker Barrel (CBRL), with Glass Lewis recommending votes for two of Biglari Capital's nominees and ISS supporting one. The firms cited poor performance and shareholder value destruction under incumbent directors Carl Berquist and Meg Crofton. Both advisory firms expressed concerns over the company's $700 million transformation plan, with analysts doubting its financial objectives.
Biglari Capital urges shareholders to vote for all three of its nominees: Sardar Biglari, Milena Alberti-Perez, and Michael Goodwin. Glass Lewis particularly praised Alberti-Perez's financial expertise and her track record of improving shareholder value at Pitney Bowes. The advisory firms highlighted Cracker Barrel's negative total shareholder return over three and five-year periods, describing the performance as 'unacceptable'.
Le società di consulenza proxy ISS e Glass Lewis hanno sostenuto la necessità di un cambiamento in Cracker Barrel (CBRL), con Glass Lewis che raccomanda di votare a favore di due dei candidati di Biglari Capital e ISS che ne supporta uno. Le aziende hanno citato una scarsa performance e una distruzione di valore per gli azionisti sotto la guida dei direttori attuali Carl Berquist e Meg Crofton. Entrambe le società di consulenza hanno espresso preoccupazioni riguardo al piano di trasformazione da 700 milioni di dollari dell'azienda, con gli analisti che dubitano dei suoi obiettivi finanziari.
Biglari Capital esorta gli azionisti a votare per tutti e tre i suoi candidati: Sardar Biglari, Milena Alberti-Perez e Michael Goodwin. Glass Lewis ha particolarmente elogiato l'esperienza finanziaria di Alberti-Perez e il suo curriculum di successo nell'incrementare il valore per gli azionisti presso Pitney Bowes. Le società di consulenza hanno evidenziato il rendimento totale negativo per gli azionisti di Cracker Barrel nel corso di tre e cinque anni, descrivendo la performance come 'inaccettabile'.
Las firmas de asesoría de votos ISS y Glass Lewis han respaldado la necesidad de un cambio en Cracker Barrel (CBRL), con Glass Lewis recomendando votos a favor de dos de los nominados de Biglari Capital y ISS apoyando a uno. Las firmas citaron un bajo rendimiento y la destrucción de valor para los accionistas bajo la dirección de los directores actuales Carl Berquist y Meg Crofton. Ambas firmas de asesoría expresaron preocupaciones sobre el plan de transformación de 700 millones de dólares de la compañía, con analistas dudando de sus objetivos financieros.
Biglari Capital insta a los accionistas a votar por los tres nominados: Sardar Biglari, Milena Alberti-Perez y Michael Goodwin. Glass Lewis elogió especialmente la experiencia financiera de Alberti-Perez y su historial de mejora en el valor para los accionistas en Pitney Bowes. Las firmas de asesoría destacaron el rendimiento total negativo para los accionistas de Cracker Barrel durante períodos de tres y cinco años, describiendo el rendimiento como 'inaceptable'.
프록시 자문 회사인 ISS와 Glass Lewis는 Cracker Barrel (CBRL)에서의 변화 필요성을 지지했으며, Glass Lewis는 Biglari Capital의 두 후보에 대한 투표를 추천하고 ISS는 한 후보를 지지했습니다. 두 회사는 현재 이사인 Carl Berquist와 Meg Crofton 아래에서의 저조한 성과와 주주 가치 파괴를 언급했습니다. 두 자문 회사는 회사의 7억 달러 규모 변혁 계획에 대한 우려를 표명했으며, 분석가들은 재정적 목표에 대한 의구심을 드러냈습니다.
Biglari Capital은 주주들에게 세 명의 후보인 Sardar Biglari, Milena Alberti-Perez, Michael Goodwin에 투표할 것을 촉구합니다. Glass Lewis는 특히 Alberti-Perez의 재정 전문성과 Pitney Bowes에서 주주 가치를 향상한 경력을 높이 평가했습니다. 자문 회사들은 Cracker Barrel의 3년 및 5년 기간 동안의 부정적인 총 주주 수익률을 강조하며, 이러한 성과를 '수용할 수 없다'고 표현했습니다.
Les sociétés de conseil en actionnaires ISS et Glass Lewis ont soutenu la nécessité d'un changement chez Cracker Barrel (CBRL), Glass Lewis recommandant de voter pour deux des candidats de Biglari Capital et ISS soutenant l'un d'eux. Les entreprises ont cité une mauvaise performance et une destruction de valeur pour les actionnaires sous la direction des administrateurs en place Carl Berquist et Meg Crofton. Les deux cabinets de conseil ont exprimé des préoccupations concernant le plan de transformation de 700 millions de dollars de l'entreprise, les analystes doutant de ses objectifs financiers.
Biglari Capital exhorte les actionnaires à voter pour ses trois candidats : Sardar Biglari, Milena Alberti-Perez et Michael Goodwin. Glass Lewis a particulièrement salué l'expertise financière d'Alberti-Perez et son bilan d'amélioration de la valeur pour les actionnaires chez Pitney Bowes. Les cabinets de conseil ont mis en lumière le rendement total négatif pour les actionnaires de Cracker Barrel sur des périodes de trois et cinq ans, qualifiant la performance de 'inacceptable'.
Die Proxy-Beratungsunternehmen ISS und Glass Lewis haben die Notwendigkeit einer Veränderung bei Cracker Barrel (CBRL) unterstützt, wobei Glass Lewis empfiehlt, für zwei der Nominierten von Biglari Capital zu stimmen, und ISS einen unterstützt. Die Firmen verwiesen auf schlechte Leistungen und die Zerstörung von Shareholder-Werten unter den amtierenden Direktoren Carl Berquist und Meg Crofton. Beide Beratungsunternehmen äußerten Bedenken hinsichtlich des 700 Millionen Dollar schweren Transformationsplans des Unternehmens, während Analysten an den finanziellen Zielen zweifelten.
Biglari Capital fordert die Aktionäre auf, für alle drei seiner Nominierten zu stimmen: Sardar Biglari, Milena Alberti-Perez und Michael Goodwin. Glass Lewis lobte insbesondere die finanzielle Expertise von Alberti-Perez und ihre Erfolgsbilanz bei der Verbesserung des Shareholder-Wertes bei Pitney Bowes. Die Beratungsunternehmen hoben die negative Gesamtrendite für Aktionäre von Cracker Barrel über einen Zeitraum von drei und fünf Jahren hervor und bezeichneten die Leistung als 'inakzeptabel'.
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In the news release, Independent Proxy Advisory Firms ISS and Glass Lewis Agree Biglari Capital Has Made Compelling Case for Change at Cracker Barrel, issued 12-Nov-2024 by Biglari Capital Corp. over PR Newswire, we are advised by the company to disregard the original first sentence and the November 11, 2024 date below it. The complete, corrected release follows:
Independent Proxy Advisory Firms ISS and Glass Lewis Agree Biglari Capital Has Made Compelling Case for Change at Cracker Barrel
Glass Lewis Recommends that Shareholders Vote FOR Two of Biglari Capital's Nominees and ISS Recommends Shareholders Vote FOR One of Biglari Capital's Nominees
Incumbent Directors Carl Berquist and Meg Crofton Have Overseen Observably Poor Performance and Significant Shareholder Value Destruction
ISS and Glass Lewis Both Cite Substantial Analyst Concern Over the Company's Costly Transformation Plan
Biglari Capital Urges Shareholders to Vote the GOLD Proxy Card for All Three of Its Director Nominees.
Dear Shareholders of Cracker Barrel Old Country Store Inc. ("Cracker Barrel" or the "Company"):
Cracker Barrel is at a pivotal moment. Under the leadership of the current Board of Directors (the "Board"), Cracker Barrel has suffered for years from strategic missteps, capital misallocation, and significant shareholder value destruction.
In separate reports published on November 8, 2024, Glass Lewis and Institutional Shareholder Services ("ISS"), two independent proxy advisory firms, concluded that Biglari Capital Corp. ("Biglari Capital," "we" or "our") have made the case for change at Cracker Barrel.
ISS did not mince words in its report, advising that, "Shareholders that intend to vote their shares at this upcoming meeting are not able to take a 'wait and see' approach, but instead must reach a judgment now about whether the current state of affairs of the company merits immediate change at the board level. In light of the factors covered by this analysis, the dissident has made the case for change."1
In its report, Glass Lewis recommended shareholders use our GOLD proxy card to support Milena Alberti-Perez and withhold their votes on Meg Crofton. Unlike ISS, Glass Lewis recognized the benefit of having Ms. Alberti-Perez on the Board, stating:2
"Given the specific concerns identified here, we take the view that Ms. Alberti-Perez offers prospectively critical financial and capital allocation expertise, and has, in connection with her May 2023 appointment to the board of Pitney Bowes following a campaign by Hestia Capital, contributed to significant improvements in shareholder value (i.e. Pitney Bowes TSR +
Also, unlike ISS, Glass Lewis wasn't fooled by Cracker Barrel's assertions, as they unequivocally stated:
"….the Cracker Barrel board asserts that Ms. Alberti-Perez's financial skills are inferior to those of Mr. Berquist, a position we consider rather tenuous, given the Company's manifest inability to translate major capital investments into improved operational positioning and increased shareholder value during the latter's service on the board;"
"the board highlights Ms. Crofton's director service at Tupperware in support of her consumer products/industry experience, but does not acknowledge that during her nearly eight-year board tenure, Tupperware's shares lost
"the board's assertion that Ms. Alberti-Perez's financial turnaround expertise is not relevant for a firm poised to embark on a major, high-cost and, to date, skeptically received transformation program following years of overt underperformance and poorly executed capital-intensive initiatives is, in our view, questionable.
We urge all Cracker Barrel shareholders to protect their investment in Cracker Barrel by voting the GOLD proxy card for all three Biglari Capital nominees: Sardar Biglari, Milena Alberti-Perez, and Michael Goodwin.
The Current Board Has Overseen Unacceptably Poor Performance
As ISS notes, "the company has posted negative TSR [total shareholder return] for the three- and five-year periods ending on the unaffected date, and since the company announced the hiring of its current CEO on July 18, 2023…. It is not possible to describe this performance as anything but unacceptable."
Glass Lewis similarly observes that, "Cracker Barrel's recent historical metrics are, by any reasonable standard, observably poor," and that, "none of the observed current operational metrics suggest Cracker Barrel is performing well against its chosen peer set."
Long-Serving Incumbent Directors Carl Berquist and Meg Crofton Should Be Held Accountable for the Failure of the Board to Address Cracker Barrel's Problems
A board that has failed for so long to effect a turnaround must be held accountable by its shareholders. For that we look to the two longest-serving incumbent directors, Carl Berquist and Meg Crofton. ISS writes that, "it is clear that the two targeted incumbents have had the longest time horizon with which to gauge the company's previous peer-matching performance against its subsequent stumbles, and to take appropriate action."
Glass Lewis draws attention to "the fact that the Company's performance since the respective appointments of Mr. Berquist and Ms. Crofton has been exceptionally substandard. In these regards, we believe investors have cause to scrutinize the board's determination to raise concern about theoretical trading consequences associated with the Dissident's minority slate campaign while functionally circumnavigating the very real and unambiguous declines observed during these two director's tenures."
Glass Lewis further says that "Cracker Barrel investors have seen significant regression in operational performance and competitive positioning over the last several years, with concurrent deterioration in trading values and associated valuation metrics. To date, these and other quantitative touchpoints remain largely unaddressed by the incumbent board, beyond brief and broad acknowledgment of 'post-pandemic challenges and underperformance'. All other factors held equal and with reference to the metrics noted above, we do not consider the Company's response demonstrates suitably thorough recognition of the scale of Cracker Barrel's decline, including during longer periods directly overseen by the directors targeted here."
Regarding the specific qualifications of the targeted incumbent directors, Glass Lewis says that neither director offers, "what we would consider to be material, direct restaurant expertise external to their service on the Cracker Barrel board, and their respective tenures as executives of hospitality/retail firms each ended nearly a decade ago."
We Believe the Cracker Barrel Board Needs Fresh Perspectives and Relevant Experience Before It Wastes
ISS and Glass Lewis share our concerns regarding the Company's "three-year transformation plan," with ISS noting that "the analyst community does not expect the company's plan to meet its financial objectives." Glass Lewis also cites the "considerable skepticism" of analysts, stating that their estimates imply a "substantial" level of doubt and a "very limited buy-in". The extensive list of concerns Glass Lewis raises regarding the plan include the Company's reliance on just two test remodels; the inability of the Board to provide "substantive insight into the 'data-driven review' which gave rise to the current program;" and the absence of any specific metrics detailing the early progress of the plan.
Responding to the Company's recent statements that some material portion of the outlay would be utilized to address "necessary updates that fell behind due to the pandemic and supply chain issues," Glass Lewis identifies what it calls, "an optical conflict between the suggestion that the current board, including the longer tenured members targeted by Biglari here, allowed the Company to 'fall behind' on critical maintenance capex for multiple years (notably, while messaging to investors in 1Q22 that the Company had adequate funds to return capital and invest in stores), but is also well positioned to undertake a 'disciplined approach' to the current program."
Glass Lewis concludes that "there is adequate cause to conclude the Cracker Barrel board would, at this particularly critical juncture, benefit from additional oversight capacity expressly centered on capital allocation… [and] Ms. Crofton, as the longest serving Cracker Barrel director and a member with relatively limited finance and capital allocation expertise, represents the most suitable incumbent director for investors to hold accountable here."
NOW is the Time to Protect Your Investment by Voting for All Three of Biglari Capital's Nominees on the GOLD Proxy Card
Glass Lewis writes that, "Cracker Barrel would — based on trailing performance and execution, and clear uncertainty regarding the touchstones and trajectory of management's high-consequence transformation plan — benefit from an incremental reconstitution of the board's longer-serving membership."
In its conclusion, ISS says that, "the market has determined that the company's shares were worth less than at any close in nearly 15 years, the company's TSR has significantly underperformed its peer median for all customarily measured periods, and analyst consensus is that the company's transformation plan, which involves capital expenditures of well over half the company's market capitalization, is not expected to achieve stated sales or profitability goals"—thus demonstrating the urgent need for change.
To help reverse Cracker Barrel's downward trajectory, Biglari Capital has nominated a slate of proven leaders:
- Sardar Biglari: a turnaround expert with a track record of creating shareholder value at Steak 'n Shake and Biglari Holdings.
- Milena Alberti-Perez: a financial expert with a history of capital allocation and shareholder value creation.
- Michael Goodwin: an accomplished technology leader who brings modern insights to the boardroom.
Glass Lewis writes specifically regarding Ms. Alberti-Perez that she "offers prospectively critical financial and capital allocation expertise, and has, in connection with her May 2023 appointment to the board of Pitney Bowes following a campaign by Hestia Capital, contributed to significant improvements in shareholder value." Glass Lewis further notes that, "her election would be in place of one of the Company's two longest serving board members, neither of which we believe has a compelling track record of preserving and enhancing value during their service on the Cracker Barrel board."
Glass Lewis also notes Mr. Biglari's "recent success in driving improved performance at Biglari Holdings (including superior shareholder returns relative to Cracker Barrel and improved profitability at Steak 'n Shake)" and acknowledges that the balance of the proposals he has publicly advanced for Cracker Barrel (e.g. a possible divestiture of Maple Street Biscuit Company, a pause on new store openings, a review of unit economics among Cracker Barrel's existing stores and a restoration of higher dividends only after addressing operational failings), "does not appear to be unreasonable in the context of challenges presently faced by the Company."
This may be the last time shareholders will have the opportunity to protect their investment. We have had a 13-year investment in the stock, and our prior predictions proved correct. We firmly believe if Biglari Capital nominees are not elected to the Board now, there is a high-risk that the current strategy would result in an irreversible decline in Cracker Barrel's share price. We urge you to vote FOR all three of Biglari Capital's nominees on the GOLD proxy card.
Visit enhancecrackerbarrel.com for more information.
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1 Permission to use quotations from the ISS report was neither sought nor obtained. Emphases added.
2 Permission to use quotations from the Glass Lewis report was neither sought nor obtained. Emphases added.
3 Pitney Bowes Inc.'s share price closed at
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SOURCE Biglari Capital Corp.
FAQ
What did ISS and Glass Lewis recommend for Cracker Barrel's (CBRL) board nominations in November 2024?
How much is Cracker Barrel's (CBRL) transformation plan worth and what concerns were raised?
Who are Biglari Capital's three nominees for Cracker Barrel's (CBRL) board in 2024?
What has been Cracker Barrel's (CBRL) performance under current board members Berquist and Crofton?
