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!

Food Fight: Biglari Makes Another Run at Cracker Barrel

Stocks in this article: BH CBRL

On Sunday night, it took Boston Red Sox pitcher Ryan Dempster four tries to bean controversial New York Yankee slugger Alex Rodriguez. In this case, the fourth time was the charm.

Two days earlier, Biglari Holdings (BH) CEO Sardar Biglari commenced his third bid to gain seats on country restaurant chain Cracker Barrel's (CBRL) board of directors. In this case, Biglari is hoping that the third time will be the charm. He's got an uphill fight; plunking A-Rod was much easier.

Biglari Holdings has not so quietly built a 19.9% stake in Cracker Barrel over the past couple of years. Biglari can't increase it position beyond 20% due to a poison pill adopted by Cracker Barrel. It's not clear what change Sardar Biglari, and additional Biglari Holdings nominee Phil Cooley could effect by being added to Cracker Barrel's board.

Sardar Biglari has been very vocal in his criticism of Cracker Barrel, saying the company spends too much on billboard advertising, doesn't offer its' customers good value for the money, hasn't been transparent enough in its financial disclosures, and has failed to allocate its capital well.

Cracker Barrel has offered to buy back Biglari Holding's stake, which Biglari declined.

Getting elected to Cracker Barrel's board of directors won't be easy, as Biglari has been defeated twice before.

Shareholders may be unlikely to vote for Biglari and Cooley for one simple reason; stock performance. Cracker Barrel shares -- which have risen 60% year to date and more than 160% over the past two years -- have recently breached the $100 mark, an all-time high. Perhaps they are worth much more. Biglari, who turned around fast-food chain Steak n Shake, which is owned by Biglari Holdings, has some ideas on how to extract even greater value, but that may be a difficult argument to make to satisfied shareholders. CBRL Chart CBRL data by YCharts

Biglari's abrasive nature has done little to enamor him with Cracker Barrel shareholders, either. If he somehow is elected, I'd like to be a fly on the wall at those board meetings. It would be a clash of cultures at the very least.

1 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 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

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