Cracker Barrel and activist investor Sardar Biglari are once again locked in a bitter battle over the future of the company. The fight has escalated following Biglari’s latest criticisms of the chain’s rebranding strategy, a move that sparked backlash from customers and even ridicule from rival Steak ’n Shake, which Biglari controls.
The company issued a sharp rebuke, accusing Biglari of launching seven proxy solicitations in just 14 years for “purely self-interested reasons.” In a statement to Fox News Digital, Cracker Barrel said, "Mr. Biglari has pursued an unprecedented seven proxy solicitations against the Company in just 14 years, each time for what we believe are purely self-interested reasons. Thankfully, our shareholders have consistently rejected his proposals and nominees by overwhelming margins each time. We believe his actions and poor performance at Steak 'n Shake and Western Sizzlin’ remain cautionary tales."
Biglari’s latest broadside came in October 2024, shortly after a two-year standstill agreement expired. In a scathing open letter, he blasted the board’s “strategic transformation plan,” mocking store remodels and new decor. According to Biglari, the problem isn’t in the seating arrangements but in declining customer traffic. He accused the board of being “flawed” and out of touch with the chain’s loyal customer base.
Cracker Barrel countered that Biglari failed to raise objections during a June 2024 meeting with new CEO Julie Felss Masino. The company claimed he offered no real solutions or pushback against dividend cuts and transformation efforts at the time. However, Steak ’n Shake COO Dan Edwards disputed this, telling Fox News Digital that Biglari urged Masino to focus on food and service quality rather than a superficial rebrand. He accused Cracker Barrel of smearing Biglari publicly instead of engaging with his advice.
The feud has also spilled into the public sphere. After Cracker Barrel’s redesign—which ditched its “Old Timer” logo and Americana-style interiors in favor of a modern look—triggered fan outrage, Steak ’n Shake mocked the move online. Posts accused Cracker Barrel of “deleting personality” from its brand, and even featured MAGA-style hats calling for Masino to be fired. The uproar forced Cracker Barrel to reverse course, restoring its classic branding after a steep stock drop wiped out $90 million in market value.
Analysts remain skeptical of Biglari’s intentions. Ken Squire, who tracks activist investors, said his repeated proxy fights border on harassment and distract from long-term shareholder value. He even listed Biglari on his “Hall of Shame” for alleged self-dealing. Edwards dismissed the criticism as politically motivated, arguing that Steak ’n Shake’s performance—including strong same-store sales growth—proves Biglari’s effectiveness as a leader.
Still, questions about Biglari’s record linger. Steak ’n Shake has closed hundreds of locations in recent years, and Western Sizzlin’ has shrunk dramatically under his watch. Even so, Biglari’s defenders argue that he’s turned around failing businesses before and remains focused on building value. With Cracker Barrel’s stock down billions in market value over the past decade, the battle between Biglari and the board shows no signs of slowing—and both sides appear more entrenched than ever.