Longtime Cracker Barrel foe urges shareholders to vote against ‘worse than mediocre’ CEO after dismal earnings

Core Viewpoint - Activist investor Sardar Biglari has initiated his eighth proxy fight against Cracker Barrel, citing the chain's recent earnings miss, stock decline, and failed rebranding efforts as evidence of management's failure to protect shareholder value [1][3]. Group 1: Proxy Fight and Shareholder Concerns - Biglari is urging shareholders to vote against the re-election of CEO Julie Masino, criticizing the management for being "worse than mediocre" and for the "severe destruction of shareholder value" [1][3]. - Over a 14-year period, Biglari has attempted to gain a directorship at Cracker Barrel but has only succeeded in electing two candidates in 2022 and 2024, while proxy battles have cost the company millions [1]. - Biglari has previously held nearly 20% of Cracker Barrel's shares but currently owns a 2.9% stake, indicating a significant reduction in his investment [1]. Group 2: Financial Performance - Cracker Barrel's fourth-quarter earnings report revealed a miss on earnings per share, although revenue exceeded expectations; the company also projected weaker customer traffic for the upcoming year [2]. - Following the earnings report, Cracker Barrel's stock experienced a decline of approximately 10% in after-hours trading and was down more than 8% at the time of publication [2]. Group 3: Management Criticism - Biglari has criticized the management's strategies, claiming they have worsened existing challenges rather than resolving them, particularly highlighting the failed "brand refresh" as one of the worst brand blunders of the century [4]. - CEO Julie Masino's tenure has been marked by significant missteps, including misguided rebranding efforts and unsuccessful transformation initiatives, reflecting a troubling pattern of disregard for shareholder capital [4].