land under 621 stores far exceeds current market capitalization
Why do you think most McDonalds sit on leased land ? CBRL is mostly OWNED locations, not leased, and not franchised. The market capitalization here is a mere pittance of where Biglari Holdings is going to drive this train. They could easily peal off the land for cash value, and then lease it back from the new owners, and announce a massive stock buyback with the rivers of cash.
If you took $800K as an average for property and buildings (this is an high average) , I have seen some of their properties and no way would they get this for all of them...So just as an average 800 X 610 properties = $488 mil....say $500 mil...to make it easy....At $77 + change they have a mrk cap of $1.8+ bil - $500 mil for property = $1.3 for the biz that makes $115 mil/yr ...thats 10-11 times earnings....but w/o property now they pay lease of $30-35 mil/yr....that makes it $80 mil net profit/yr x 12 = $960 mar cap = $50/share
I used to think restaurant bldg would appreciate like houses (or as houses once did). In fact, they do seem to have a finite life and are not infrequently torn down and replaced (not Cracker Barrels so far)
As far as land, why is it that it is generally a challenge to find and get to a Cracker Barrel (for the interstate traveler). I am a Cracker Barrel fan.
A land sale to a REIT is a one time event that should be done when value is maximized. I believe that the land will appreciate over time, rather than being fully valued currently. Mr. Biglari can do a land sale in order to pay down the debt after his acquisition is completed and he has fired Sandra..
I'm ok with your premise. What kind of thin skinned lame organization doesn't welcome a 20% owner to a seat at the table ? But, the situation is worse than that, because they wasted time and energy on developing a 'poison pill.' The best way to own CBRL is just keep accumulating BH, and laugh twice, to the bank.