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LEBANON, Tenn. - Cracker Barrel (NASDAQ:CBRL) Old Country Store, Inc. (NASDAQ:CBRL) today disclosed that The Lion Fund II, L.P., an affiliate of Biglari Holdings Inc., has expressed its intention to nominate five candidates for election to the restaurant and retail chain's Board of Directors at the upcoming 2024 Annual Meeting of Shareholders.
This latest development represents the sixth occasion on which Biglari has proposed nominees for Cracker Barrel's Board, the fourth instance of Biglari nominating himself, and the seventh proxy contest initiated by Biglari in the past 13 years. In previous instances, Cracker Barrel's shareholders have consistently rejected the nominees and proposals put forward by Biglari.
The current Board of Cracker Barrel comprises ten directors, with nine serving independently and six having joined within the last four years. The Board has been actively involved in the company's strategic transformation efforts aimed at enhancing brand relevance, delivering quality food and experiences, and driving long-term growth in sales and profitability. These initiatives are being spearheaded by Julie Masino, the newly appointed CEO, and have garnered the support of the independent directors, including one appointed as part of a settlement with Biglari in 2022.
Despite the announcement of the proxy contest by Biglari, Cracker Barrel's Nominating and Corporate Governance Committee plans to thoughtfully review the nominations as part of its commitment to good governance. The Board will issue formal recommendations to its shareholders in the future.
The company will file a preliminary and definitive proxy statement along with a WHITE proxy card with the U.S. Securities and Exchange Commission (SEC) to solicit proxies for the Annual Meeting. Shareholders and investors are encouraged to read these documents thoroughly upon availability for important information regarding the Annual Meeting.
Cracker Barrel, established in 1969, operates approximately 660 company-owned locations across 44 states and owns the fast-casual Maple Street Biscuit Company. The company remains focused on providing homestyle food and unique retail products while ensuring a memorable experience for guests.
This article is based on a press release statement from Cracker Barrel Old Country Store, Inc.
In other recent news, Cracker Barrel Old Country Store, Inc. announced its third-quarter fiscal results, reporting a revenue of $817.1 million and an adjusted EBITDA of $47.9 million. Despite missing same-store sales expectations, the company reported an adjusted earnings per share beat, primarily due to tax benefits. In light of these results, Truist Securities revised its outlook on Cracker Barrel, reducing the price target to $46 from the previous $51 while maintaining a Hold rating on the stock. The firm suggests that Cracker Barrel's financial outcomes may continue to face challenges until an uptick in spending by lower-income consumers and a reduction in competitive discounting.
In addition to financial results, Cracker Barrel announced the appointment of Sarah Moore as its new Chief Marketing Officer. Moore, who has a significant track record in the hospitality industry, is set to leverage her expertise in marketing and brand building to further Cracker Barrel’s strategic growth. These are recent developments for the company, which is taking steps to address issues and improve its financial outlook for the future.
InvestingPro Insights
In light of the recent developments at Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL), investors and stakeholders may find the following InvestingPro Insights particularly relevant:
Cracker Barrel has recently demonstrated resilience in its stock performance, with a significant return over the last week, as indicated by an 8.94% price total return. This rebound is noteworthy, especially considering the broader context where the stock has experienced a substantial decline over the last six months, with a 41.72% drop in the same period. Despite these fluctuations, the company has a notable history of maintaining dividend payments for 43 consecutive years, showcasing a commitment to shareholder returns.
From a valuation perspective, Cracker Barrel's market capitalization currently stands at $900.75 million, with a price-to-earnings (P/E) ratio of 14.87. The adjusted P/E ratio for the last twelve months as of Q3 2024 is at 10.89, which could suggest a more attractive valuation for investors considering the company's earnings potential.
While the company's short-term obligations exceed its liquid assets, which may raise concerns about its immediate financial flexibility, analysts predict that Cracker Barrel will be profitable this year. This forecast is supported by the company's performance over the last twelve months, during which it has remained profitable.
For those interested in further analysis and additional InvestingPro Tips, Cracker Barrel has 6 more tips available on InvestingPro. These tips can provide deeper insights into the company's financial health and future prospects, which could be particularly valuable in light of the ongoing proxy contest and the company's strategic transformation efforts.
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