Why Cracker Barrel investors may feel they have to vote for Biglari

From Jonathan Maze at Restaurant Finance Monitor comes an interesting take on the upcoming Cracker Barrel Old Country Store annual shareholders' meeting. Some of the investors being asked to put top shareholder Sardar Biglari and his lieutenant Phil Cooley on the board may vote to do so, Maze says, purely out of fear.

It seems unlikely Biglari would try a third straight proxy — two straight contested proxies is rare as it is. While Biglari has said publicly that his company is a Cracker Barrel shareholder for the long-term, it seems unlikely to us that he would tolerate the outsider activist role. That means the most likely scenario following a Biglari loss would be a sale of his stock — and suddenly all of these advantages would go away as the market gets flooded with shares.

Biglari, seeking to win the endorsement of  Institutional Shareholder Services, has sent the proxy advisory firm Maze's piece.