Cracker Barrel Old Country Store(CBRL) announced today that it had added Norman Johnson to its Board of Directors. The company proudly points out that he is the 7th new Board member added in the past 18 months. Consistent with the company’s position in response to Sardar Biglari’s campaign for a Board seat, Mr. Johnson’s business experience was, most recently, at a filtration company, avoiding the danger of having a competitor from the restaurant industry on the Board.
We’re sure that the business experience Mr. Johnson has from the filtration industry is top notch, but we question what makes him the best candidate for this seat. We also look forward to seeing how much of his own money he will use to purchase shares of the company.
Biglari, who mounted a proxy fight last year and lost, has continued to buy shares through Biglari Holdings(BH), reporting a 17.3% stake in the most recent filing. Cracker Barrel has done everything it can to avoid giving Biglari a seat; just last week the Chairman of the Board agreed to step down. It will be interesting to see how long it can persist in denying the will of such a large and aggressive shareholder.
Disclosure: The author owns shares of BH