LEBANON, TN – Shareholders of Cracker Barrel (NASDAQ:CBRL) Old Country Store, Inc. (NASDAQ:CBRL) voted on several key proposals and elected board members during the company's annual meeting held on Thursday. The results, certified by First Coast Results, Inc. and announced today, reflect a decisive outcome on management and shareholder-driven initiatives.
The election of directors saw ten out of twelve nominees secure their seats on the board. Notably, Carl T. Berquist, Jody L. Bilney, Meg G. Crofton, and other company-recommended nominees were elected, while Biglari nominees Milena Alberti-Perez and Sardar Biglari did not receive enough support.
In an advisory vote, shareholders approved the compensation of the company's named executive officers, commonly referred to as "say-on-pay." The vote concluded with 13,253,499 votes for, 2,987,575 votes against, and 352,390 abstentions. It was noted that entities affiliated with Sardar Biglari opposed the compensation proposal with approximately 2 million shares.
Additionally, the company's shareholder rights agreement was approved with 12,221,302 votes in favor, against 4,194,353 votes, and 177,808 abstentions. The same Biglari entities voted against this proposal as well.
The appointment of Deloitte & Touche LLP as the independent registered public accounting firm for fiscal year 2025 received strong shareholder support, with 17,113,423 votes for, 382,780 votes against, and 224,760 abstentions.
However, a shareholder proposal requesting the disclosure of targets to reduce greenhouse gas emissions did not pass. The proposal saw 5,450,916 votes for, 8,759,815 votes against, and 2,382,732 abstentions.
These results come as Cracker Barrel continues to navigate the competitive retail and food service industry, with governance and environmental issues increasingly at the forefront of shareholder concerns. The company's annual meeting serves as a platform for shareholders to voice their priorities and influence the company's strategic direction.
This news is based on the latest 8-K filing by Cracker Barrel Old Country Store, Inc. with the SEC.
In other recent news, Cracker Barrel Old Country Store, Inc. reported first-quarter revenues of $845 million and a 2.9% increase in same-store sales. Despite these robust figures, the company's adjusted EBITDA fell short of Citi's projection, leading the firm to maintain a sell rating on Cracker Barrel. In response to these financial results, Piper Sandler, Truist Securities, and BofA Securities adjusted their price targets for the company.
Simultaneously, Cracker Barrel has been under scrutiny from Biglari Capital Corp., which challenged the company's capital expenditure plans and the effectiveness of its board. Biglari Capital is advocating for the election of its nominees to the board at the upcoming annual meeting.
In recent developments, Cracker Barrel's board urged shareholders to reject Biglari's proposals. The company's fiscal 2025 plans include 25 to 30 store remodels and the opening of new locations, projecting a revenue of $3.4 billion to $3.5 billion. These are the recent developments for Cracker Barrel.
InvestingPro Insights
Following the annual meeting results, it's worth considering some additional financial insights about Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL). According to InvestingPro data, the company's market capitalization stands at $1.15 billion, with a P/E ratio of 28.3. This valuation comes amid a challenging year for the stock, which has seen a total price return of -35.05% over the past year.
Despite the recent stock performance, InvestingPro Tips highlight that Cracker Barrel has maintained dividend payments for 43 consecutive years, demonstrating a commitment to shareholder returns even in tough times. This consistency aligns with the company's focus on shareholder value, as evidenced by the recent approval of executive compensation and shareholder rights agreement at the annual meeting.
However, investors should note that two analysts have revised their earnings downwards for the upcoming period, which could impact future performance. This caution from analysts may be reflected in the company's current trading at a high EBIT valuation multiple.
For those interested in a deeper dive into Cracker Barrel's financials and future prospects, InvestingPro offers 7 additional tips that could provide valuable insights for investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.