If Biglari plans were implemented, the stock would be 20% higher.
Let's recap; stop opening marginal new stores, stop wasting money on billboards and other lame advertising, borrow money at the lowest rates in US history, large one time cash dividends to shareholders.
Well, we got a partial loaf, the quarterly dividend was increased. Why does the management of this public company continue to insult their largest Owner ? If the thin skins in Lebanon, Tennessee, can't take the heat, why is this a public company ? So that they can get paid outrageous amounts of money in the corporate headquarters tower ? Why not borrow money to do a leverage buyout of shareholders and take this private ? Private companies don't have to face the music, and scrutiny, of public shareholders.
how do you know how effective the billboards are? please don't refer to ss sales, because a lot of factors go into that. what is source for how new stores are doing, and how long does it take for a new store to ramp up?
I actually think billboards might be effective for CBRL. Biglari was commenting on how much they were paying for them. I don't recall CBRL ever defending what they were paying. Maybe they did and I forgot ?
In any event, the one time dividend wouldn't create value, it would create debt. I don't think it would have helped CBRL shares although it would have helped biglari because he could have cashed out while still owning the same %.
I think it would have helped BH more than it would have helped CBRL.
Theres no chance that CBRL is going to go private. That's silly. The vast majority of its shareholders not named biglari support them.