1. What is your assessment of Cracker Barrel’s ROE over time? What largely drive

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1. What is your assessment of Cracker Barrel’s ROE over time? What largely drives Cracker Barrel’s ROE (ROA vs Financial leverage)? Why can high leverage be problematic? (Hint: start with a strategic analysis of Cracker Barrel’s business model; then use the alternate DuPont analysis in Case Exhibit 12)
2. Do you agree with Biglari’s critique of the company’s performance? Which aspect of his argument reasonate the most with you?
3. Do you agree with Biglari’s choice of peer companies? If not, what peer group would you choose and why?
5. Imagine the new CEO hires you as her advisor. What suggestions would you have to improve the performance of the company?
6. How would you have voted on Biglari’s election – for him or against him? Why?

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