Biglari now disagrees with Cracker Barrel and ISS

Sardar Biglari says he's glad proxy advisory firm Institutional Shareholder Services thinks the ROI of Cracker Barrel Old Country Store's new restaurants is an important factor for investors to consider as they weigh their options ahead of this Thursday's annual shareholders' meeting. But Biglari, who wants two board seats to represent his 18 percent stake in Lebanon-based Cracker Barrel, disagrees with how ISS interprets the data Cracker Barrel has disclosed.

ISS' above statement is factually wrong. An estimate of $270,000 per store of incremental G&A expense rather than $235,000 per store in our analysis would reduce return on investment. Yet ISS concludes that return increased from 3.7% to 10.7% — a mathematical impossibility! We urge shareholders to do their own analysis.

Biglari is having to walk a bit of a fine line with the tone of his protests. When ISS last week endorsed Cracker Barrel's director slate, it said it was not impressed by Biglari's "unnecessarily combative" approach.