Cracker Barrel Shareholders Demand Change At Annual Meeting

Rhea-AI Summary

Biglari Capital, a major shareholder with 8.7% ownership in Cracker Barrel (NASDAQ:CBRL), has called for significant changes in the company's Board of Directors. In a recent statement, they highlighted that Director Norman Johnson faced the highest number of withhold votes in a decade, while the company's executive compensation program failed for the first time in history. Biglari Capital advocates for the addition of a director with substantial restaurant experience before the next annual meeting and urges a focus on the core business rather than acquisitions to maximize shareholder value.

Positive

• Biglari Capital owns 8.7% of Cracker Barrel, indicating strong support from major shareholders.
• The call for a director with restaurant experience may lead to improved strategic decisions.

Negative

• Director Norman Johnson received the most withhold votes in a decade, suggesting shareholder dissatisfaction.
• The executive compensation program failed for the first time, reflecting potential governance issues.

SAN ANTONIO, Nov. 19, 2020 /PRNewswire/ -- Biglari Capital Corp. (together with its affiliates, "Biglari Capital"), one of the largest and longest-standing shareholders of Cracker Barrel Old Country Store, Inc. (the "Company" or "Cracker Barrel") (NASDAQ:CBRL), owning 8.7% of the Company's common stock, issued the following statement:

Today, shareholders delivered a resounding message to the Board of Directors of Cracker Barrel that change is necessary. Director Norman Johnson received the most withhold votes of any director nominee in the last decade. Cracker Barrel's executive compensation program also failed for the first time in the Company's history. Biglari Capital expects the Cracker Barrel Board to add a director with substantial restaurant operating experience by the next annual meeting. Because there is more value to be created with the current base of Cracker Barrel stores than on any other activity, we encourage directors to focus management on the core business and reject any other acquisitions. We wish the directors of Cracker Barrel great success in creating value for all shareholders.  

 

View original content:http://www.prnewswire.com/news-releases/cracker-barrel-shareholders-demand-change-at-annual-meeting-301177407.html

SOURCE Biglari Capital Corp.

FAQ

What percentage of Cracker Barrel does Biglari Capital own?

Biglari Capital owns 8.7% of Cracker Barrel.

What significant event occurred during Cracker Barrel's annual meeting?

Director Norman Johnson received the most withhold votes in the past decade.

What change is Biglari Capital pushing for in Cracker Barrel's Board of Directors?

They are advocating for the addition of a director with substantial restaurant operating experience.

What happened to Cracker Barrel's executive compensation program?

It failed for the first time in the company's history.

What is Biglari Capital's stance on potential acquisitions by Cracker Barrel?

They encourage focusing on the core business and rejecting other acquisitions.