Why Is Sardar Biglari on a Rocking Chair?

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Shares of Cracker Barrel Old Country Store (Nasdaq: CBRL  ) popped nearly 5% higher yesterday, after a 13D Securities and Exchange Commission filing by Sardar Biglari's Biglari Holdings (NYSE: BH  ) showed that the Warren Buffett-esque company had a 9.7% stake in the comfort food eatery chain.

Some may speculate that a buyout is in the works, but that isn't necessarily in sync with Biglari's opportunistic nature. Biglari Holdings may have been birthed through the acquisition of Steak n Shake, but Biglari is a light eater.

He has purchased stakes in Red Robin Gourmet Burgers (Nasdaq: RRGB  ) and Sonic (Nasdaq: SONC  ) in the past, only to regurgitate them later. Biglari is an investor who isn't afraid to trade. He eyes restaurants the way a teen does when asked where he wants to eat. He'll settle for what's cheap and convenient, but then he'll be hungry for something different a short time later.

I'll admit to ripping into Biglari when he was just getting started with his Steak n Shake makeover. He came off as a huge Buffett copycat.

There's only one Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  ) , and obviously only one Buffett. Biglari was a full-on Wuffett. That's my own slang for a wannabe Buffett.

After making a logical investment in Western Sizzlin, he turned his attention to a small insurer for his next purchase. That's so Buffett.

There was also the needless reverse split, which at the time seemed just like a stunt to command a lofty share price to be mentioned in the same breath as Berkshire Hathaway as one of the handful of stocks trading in the triple digits.

I also was suspicious of the name change. Biglari Holdings? Berkshire Hathaway? Those two can swipe monogrammed handkerchiefs and no one would notice! Nice ticker symbol, to boot.

"Remember when Octomom tried to look like Angelina Jolie?" I joked at the time.

Trust me when I tell you that it was a good shot. Octomom was pretty relevant in 2009.

However, Biglari has proven himself to be pretty adept. The stock is trading higher since its late 2009 reverse split. Earnings are growing. I don't make Biglari jokes anymore.

As a Cracker Barrel investor for years, I certainly wouldn't mind a buyout at a healthy premium. However, I also know I'm not getting it. This isn't Biglari's style, and he's simply taking advantage of an attractive price for an iconic Southern-style chain that has made it through several decades of fickle diners.

He may very well be rocking back and forth in one of the many chairs that line the rustic front porch of the roadside institution, but that's about it. He'll move one way. He'll move the other. He'll get up and go eat somewhere else.

Are you a believer in Sardar Biglari? Share your thoughts in the comment box below.

The Motley Fool owns shares of Berkshire Hathaway, Biglari Holdings, and Red Robin Gourmet Burgers. Motley Fool newsletter services have recommended buying shares of Berkshire Hathaway. Motley Fool newsletter services have recommended creating a write covered strangle position in Red Robin Gourmet Burgers. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Longtime Fool contributor Rick Munarriz loves comfort food, in moderation. He does own shares in Cracker Barrel. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.

Read/Post Comments (0) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1507809, ~/Articles/ArticleHandler.aspx, 10/21/2016 9:15:04 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 11 hours ago Sponsored by:
DOW 18,162.35 -40.27 0.00%
S&P 500 2,141.34 -2.95 0.00%
NASD 5,241.83 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/20/2016 4:02 PM
BH $434.17 Down +0.00 +0.00%
Biglari Holdings CAPS Rating: ***
BRK-A $216975.00 Down +0.00 +0.00%
Berkshire Hathaway… CAPS Rating: *****
BRK-B $144.49 Down +0.00 +0.00%
Berkshire Hathaway… CAPS Rating: *****
CBRL $132.12 Down +0.00 +0.00%
Cracker Barrel Old… CAPS Rating: ****
RRGB $43.25 Down +0.00 +0.00%
Red Robin Gourmet… CAPS Rating: ***
SONC $25.33 Down +0.00 +0.00%
Sonic CAPS Rating: **