(Reuters) -Cracker Barrel Old Country Store faced fresh pressure ahead of its annual meeting after Biglari Capital said on Monday that proxy advisory firms have urged shareholders to vote against some incumbent board nominees. The restaurant chain has witnessed a turbulent year, with its stock diving after widespread criticism of its attempted logo redesign as […]
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Activist investor Biglari says ISS, others back move for changes at Cracker Barrel
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(Reuters) -Cracker Barrel Old Country Store faced fresh pressure ahead of its annual meeting after Biglari Capital said on Monday that proxy advisory firms have urged shareholders to vote against some incumbent board nominees.
The restaurant chain has witnessed a turbulent year, with its stock diving after widespread criticism of its attempted logo redesign as part of a restructuring.
Cracker Barrel’s attempt to change its logo triggered a public backlash from conservatives including U.S. President Donald Trump, forcing the company to revert to its original “Old Timer” branding.
Biglari, a long-time activist investor who tried to acquire the company in 2012, launched a fresh proxy battle in September, urging shareholders to vote to withhold the reelection of CEO Julie Felss Masino and board member Gilbert Dávila at the annual meeting set for November 20.
Institutional Shareholder Services (ISS), in a November 7 report, backed Biglari’s recommendation to vote against reelecting Dávila, but backed Masino’s reelection, saying “removing Masino would likely create disruption.”
Biglari said Glass Lewis has criticized Cracker Barrel’s leadership for inconsistent governance standards and strategic missteps. The proxy adviser also recommended shareholders to vote against reelecting Dávila, as well as director Jody Bilney, Biglari said in a statement.
Glass Lewis and Cracker Barrel did not immediately respond to Reuters requests for comment.
(Reporting by Koyena Das in Bengaluru; Editing by Pooja Desai and Sriraj Kalluvila)