This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Biglari Wants to Make You Money

Stocks in this article: BH CRBL

He still believes that there is a great deal of waste at CBRL, including too much spending ($56 million) on billboard advertising, among other things. He also believes that Cracker Barrel patrons are not getting enough value for their money. Biglari did state strongly, however, that the end game with CBRL is not seats on the board, but simply to make money.

Cracker Barrel shareholders have certainly done well, with shares up nearly 50% over the past year. During the same period, BH shares are down 10%. That's quite a disconnect considering that BH, whose market cap is $462 million, owns $386 million worth of CBRL shares. Each share of BH represents ownership of nearly 4 shares of CBRL. While BH's book value has increased significantly over the past years, the share price has not followed; yet anyway.

One of the great aspects of this meeting is that the bulk of it is Q&A from shareholders. One shareholder suggested to Sardar Biglari that he should perhaps take a less aggressive stance when attempting to acquire companies and get seats on the board, a direct reference to the negative press surrounding the Cracker Barrel pursuit. He raised Berkshire Hathaway (BRK.A) as an example of an acquirer that partners with companies, one that companies welcome, and does not scare them away.

I've had the same thought. A little finesse can go a long way. But finesse does not appear to be part of Biglari's makeup. While he handled the suggestion well, and calmly refuted it, I don't get the sense that he'll be changing his ways.

As for the many comparisons that BH has had to Berkshire Hathaway, and Biglari himself to Warren Buffet, Biglari said, "If anyone owns BH thinking they have the next Berkshire Hathaway, they need to look elsewhere."

Nice quote, but BH shareholders are expecting big things from their controversial and non-traditional CEO. That's why many of us have been there since Biglari took over Steak 'n Shake. We see promise in his abilities as a capital allocator, and have rewarded him well for his efforts.

At the time of publication, Heller had was long BH.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs