Advisors side with Cracker Barrel in its struggle with Sardar Biglari

The ongoing battle between Cracker Barrel Old Country Store and activist investor Sardar Biglari has taken a new turn, with several prominent advisors siding with the restaurant chain. In a move that significantly strengthens Cracker Barrel’s position, advisors like Institutional Shareholder Services (ISS) and Glass Lewis have recommended that shareholders reject Biglari’s proposed slate of directors.

Biglari, who owns a significant stake in Cracker Barrel through his company, Biglari Holdings, has been pushing for board changes for years. He argues that the current board is underperforming and that his proposed directors would bring valuable expertise and improve the company’s financial performance.

However, the advisors have pointed to concerns regarding Biglari’s past track record and his potential conflicts of interest. They argue that his proposed directors lack the necessary experience and that his focus on short-term profits may come at the expense of long-term shareholder value.

ISS, in its report, highlighted Biglari’s “history of aggressive activism and conflicts of interest,” and expressed concerns about his “lack of transparency and corporate governance.” Similarly, Glass Lewis stated that “the proposed directors lack the experience and qualifications necessary to provide effective oversight.”

The advisors’ recommendations carry significant weight with shareholders, who will ultimately decide the fate of Biglari’s proposal at the upcoming annual meeting. This decision could have a profound impact on Cracker Barrel’s future, potentially shaping its strategic direction and leadership.

While Biglari remains vocal in his criticism of Cracker Barrel’s current board, the recent endorsements from influential advisors suggest that he faces an uphill battle. Whether he succeeds in securing his proposed board changes remains to be seen, but this latest development certainly adds fuel to the fire of this ongoing corporate saga.