Tags: Biglari | Cracker Barrel | dividend | twenty dollar

Cracker Barrel's Biggest Shareholder Wants Company to Pay $20 Special Dividend

Tuesday, 17 Sep 2013 01:46 PM

Cracker Barrel's largest shareholderwants the restaurant chain to pay a special dividend worth $20.

In a form filed with the Securities and Exchange Commission, , Sardar Biglari, said he has met with Cracker Barrel Chairman James Bradford and proposed a plan to change the company's capital structure and return cash to shareholders. Biglari wants the company to call a shareholder meeting so other shareholders can vote on the idea. The company had 23.8 million shares on the market as of May 28, which translates to a total payment of almost $476 million.

Biglari controls 4.7 million shares of Cracker Barrel, or 19.9 percent of its shares. His Biglari Holdings fund also runs the Steak n Shake and Western Sizzlin restaurant chains. Biglari has twice sought a spot on Cracker Barrel's board of directors, but shareholders have not elected him.

Cracker Barrel said it will respond to the letter after reviewing it. The Lebanon, Tenn., company is scheduled to report its fiscal fourth-quarter results on Wednesday.

Cracker Barrel Old Country Store Inc. has 624 company-owned locations in 42 states. The company's shares are up 63.6 percent over the last year and are trading around all-time highs. On Tuesday shares rose $2.33, or 2.2 percent, to $107.02 and went as high as $107.98.

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Cracker Barrel's largest shareholderwants the restaurant chain to pay a special dividend worth $20.
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2013-46-17
Tuesday, 17 Sep 2013 01:46 PM
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