(Reuters) – Restaurant chain Cracker Barrel Old Country Store Inc has rejected activist investor and top shareholder Sardar Biglari’s demand to sell itself.
Cracker Barrel said its board considered Biglari’s demand to start a sale process, but decided to continue with existing strategy for the “long-term best interests” of the company and its shareholders.
“We are disappointed that (Biglari) is seeking to call a special meeting to vote on a proposal requesting that the company commence a sale process, particularly in light of his defeat by substantial margins in three consecutive proxy contests,” Cracker Barrel Chairman James Bradford said in a statement.
Biglari’s investment firm Biglari Holdings, which owns a 19.9 percent stake in Cracker Barrel, could not be immediately reached for comment.
Biglari Holdings has been pushing for change at Cracker Barrel for over two years, saying the restaurant chain’s “earning power” was far too low under the current management.
Cracker Barrel shares fell 1 percent to $110.17 on Monday on the Nasdaq. Biglari Holding shares were down 0.7 percent at $514.20 on the New York Stock Exchange.