Biglari urges shareholders to vote against Cracker Barrel directors

SAN ANTONIO - Biglari Capital Corp. has called on Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) shareholders to vote against certain company directors at the upcoming annual meeting, according to a statement released Thursday.

The investment firm cited concerns over Cracker Barrel's declining share price, which has fallen 30% since early October and approximately 70% over the past five years. According to InvestingPro data, CBRL shares have plummeted 44% over the past six months alone and are currently trading just above their 52-week low of $28.60. Biglari specifically targeted CEO Julie Masino, claiming her leadership has resulted in over $1 billion in market value destruction since her appointment in August 2023.

"We believe that only a new CEO with relevant turnaround experience in company-operated restaurants can fix the business," Biglari stated in the press release.

The firm highlighted that short interest in Cracker Barrel stock remains high at approximately 25% of float, suggesting market expectations of further share price declines despite the already significant drop in value. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with technical indicators showing the shares in oversold territory.

Biglari is urging shareholders to use its gold proxy card to vote against Masino and another unspecified director at the 2025 annual meeting. The investment firm argues this would send a message to the board that "the status quo is no longer acceptable."

Cracker Barrel's management has maintained its commitment to its current transformation strategy despite the ongoing stock performance issues, according to Biglari's statement.

The restaurant chain, known for its Southern-style food and country stores, has not yet publicly responded to Biglari's latest communication to shareholders.

In other recent news, Cracker Barrel Old Country Store, Inc. has seen several significant developments. The company reported improved fourth-quarter sales, although it experienced a 1% decline in customer traffic. This decline worsened to approximately 8% following a controversial logo change. Additionally, Cracker Barrel's fiscal 2026 guidance led UBS to lower its price target to $48 while maintaining a Neutral rating. Piper Sandler also adjusted its price target to $49, citing concerns over customer traffic despite a 5.4% growth in same-store sales.

Leadership changes were announced as part of Cracker Barrel's strategy to enhance food quality, with Doug Hisel promoted to Senior Vice President of Store Operations. Proxy advisory firms, including Glass Lewis, ISS, and Egan-Jones, have recommended that shareholders vote against several incumbent directors at the upcoming annual meeting. Egan-Jones specifically pointed out a nearly 80% decline in net income for fiscal year 2025. These developments provide a multifaceted view of Cracker Barrel's current position and challenges.

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