San Antonio, TX, Nov. 19,
2024 /PRNewswire/ -- Biglari Capital Corp. today
issued the following news release regarding Cracker Barrel Old
Country Store, Inc. (Nasdaq: CBRL)
As we quickly approach the 2024 Annual Meeting on
Thursday, November 21st,
Cracker Barrel continues to mislead investors. Stockholders do not
need to read between the lines, they only need to read the
Company's actual lines.
What Cracker Barrel says about its
$700 million plan on
the Eve of the Annual Meeting:
"Sardar Biglari continues to misrepresent
Cracker Barrel's capital spending plan. We are NOT
spending $600 - $700 million on store remodels
over the next three years as Mr. Biglari falsely claims. Our
strategic plan contemplates spending $225 - $325
million in incremental capital (i.e., over and above our
normal rates of capital spending). Store remodels are only a part
of this incremental amount. Other investments include improvements
to our technology and highly successful loyalty program in order to
drive traffic." (November 19,
2024 Press Release)
What Cracker Barrel Previously said about its
$700 million plan:
"Capital expenditures over the three-year
period of fiscal 2025 through fiscal 2027 of
approximately $600
million to $700 million, which assumes the Company's
store remodel initiative accelerates significantly following the
test of 25-30 stores in fiscal 2025." (May 16 Cracker Barrel Press release)
"For the three-year period, we anticipate
total capital expenditures of $600
million to $700 million.
This comprises the following amounts per year, approximately
$160 million to $180 million in fiscal 2025, approximately
$180 million to $220 million in fiscal 2026, and approximately
$260 million to $300 million in fiscal 2027." (May 16 Cracker Barrel Call – Craig Pommells, CFO Cracker Barrel)
The Cracker Barrel investment into technology and
tablets has been mentioned in strategic plans since 2017. Why is
the Company failing to execute? Why is the Board failing to provide
proper oversight?
A Recurring Theme: What Cracker Barrel has
been Saying for Seven Years
Fourth Quarter 2017 Cracker Barrel Earnings
Call: "We anticipate that capital expenditures for the
year will be in the range of $150 million to $160
million. The increase in our capital expenditures plan includes
…..key initiatives to support our three-year strategic plan. These
initiatives include off-premise, specialty coffee beverages, POS
system and server tablets, to name a few."
What Cracker Barrel Says on the Eve of the
Annual Meeting:
"Carl Berquist and Meg Crofton are
change agents for the Board and the business, while also serving as
important sources of stability and institutional knowledge."
(November 19, 2024 Press Release)
The Reality:
The two directors presided over a near 70%
destruction in Cracker Barrel's value. That is not a source of
stability. Sardar Biglari has more
institutional knowledge of Cracker Barrel and its operations than
any other Director.
Cracker Barrel stockholders have a clear choice
before them: take a chance on the two incumbents who have overseen
the destruction of almost 70% of the stock's value or elect the two
people who are best suited to help execute a turnaround and deliver
accountability and proper oversight.
Vote the GOLD Card for Milena Alberti-Perez and Sardar Biglari.
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SOURCE Biglari Capital Corp.
