Buyout Target: Cracker Barrel Old Country Store (CBRL)
Cracker Barrel Old Country Store (CBRL) insists it’s not for sale — but we’ve all heard that one before. How else do you hold out for a higher buyout offer?
Activist investor Sardar Biglari — CBRL’s largest shareholder with an almost 20% stake — is calling for the restaurant and gift shop operator to put itself up for sale. Biglari’s even willing to buy out CBRL himself.
Cracker Barrel management has outright dismissed the buyout proposal, saying it intends to stay the course — no matter how withering the criticism gets. CBRL was lambasted for pulling Duck Dynasty merchandise from its stores, only to reverse the decision a day later.
CBRL has had a good year — the stock is up 70%, largely on the buyout talk — but Biglari isn’t going away. As long as he keeps banging on about a buyout, CBRL shares should have a floor and more upside ahead.