The largest shareholder of Cracker Barrel Old Country Store Inc. called Wednesday for the sale of the Lebanon-based restaurant and retail chain.
Sardar Biglari, three times rejected to be on Cracker Barrel’s board of directors, filed a letter with the Securities Exchange Commission that called for a special shareholders’ meeting to vote on a non-binding resolution to recommend the board “pursue an extraordinary transaction” or Cracker Barrel’s sale.
Biglari, head of Biglari Holdings – parent company of Steak ‘N Shake and Western Sizzlin’ – holds a 20-percent stake in Cracker Barrel.
In his letter, Biglari said he does not believe Cracker Barrel’s board and management are not able to “maximize the [company’s] intrinsic business value.” Biglari also called upon Cracker Barrel’s board and management to “create an immediate realization of value for the benefit of all stockholders.”
Biglari controls more than 4.7 million shares of Cracker Barrel stock.
At its annual shareholders’ meeting Cracker Barrel shareholders voted overwhelmingly to reject Biglari and Philip L. Cooley’s bids to be placed on the company’s board of directors. Shareholders also rejected Biglari’s proposal that Cracker Barrel declare a special cash dividend of $20 per share.