Cracker Barrel investors will meet to discuss the restaurant chain's future direction April 23 a press release reported Tuesday.
Sandar Biglari, who owns the biggest amount of Cracker Barrel shares at 20 - percent previously notified the company that it was not making the most of its earnings from stockholders. Biglari has also not been successful at getting a seat on Cracker Barrel's board. The company also refuted his idea about a $20 special dividend according to The Wall Street Journal.
"Sardar Biglari has run proxy contests to elect himself to Cracker Barrel's Board of Directors at each of the Company's last three annual meetings. He lost all three, by wide and increasing margins," the company said in a statement The Tennessean reported.
"Apparently not satisfied with these losses Mr. Biglari announced his intent to call a special meeting to vote on yet another proposal," the company said in the statement The Tennessean reported. "This special meeting would impose the same kind of cost and distraction that the Company sought to avoid when it voluntarily put Mr. Biglari's special dividend proposal on the annual meeting ballot," the statement said. "It is hard to avoid the conclusion that Mr. Biglari is now just engaged in harassment of the Company," the statement said.
Biglari feels a transaction of the company should be its board main focus. Biglari was also up for sending in a bid so the company can guide the next steps of negotiations. Biglari was also in talks with a financial institution to ensure money for the deal.
According to The Journal, laws in Tennessee does not allow Biglari's group in purchasing the company.
"Cracker Barrel's board of directors continues to believe that the execution of management's existing business strategy will create the most value for all shareholders," James Bradford, chairman of the board at Cracker Barrel said in a statement in December The Tennessean reported.
