Activist shift by Sardar Biglari at Jack in the Box
Biglari Shifts to Active Role in Jack in the Box Amidst Poison Pill Adoption
In a significant development, Sardar Biglari and his affiliates have increased their stake in Jack in the Box, owning more than 5.5% of the company's shares as of early 2025 [1][2]. This move marks a shift from a passive investment to an active role, as evidenced by Biglari's switch to an SEC Schedule 13D filing in July 2025 [2].
The burger chain Jack in the Box has responded to this growing investment by adopting a shareholder rights plan, commonly known as a "poison pill," a defensive tactic companies use to thwart hostile takeovers by penalizing large stock accumulations from a single investor [3]. Despite this, Biglari's regulatory filings suggest he may be preparing for continued engagement or even a proxy fight at Jack in the Box to push for changes or board representation.
Biglari's interest in Jack in the Box forms part of his strategy to activate value in restaurant stocks. However, specific future moves, such as a formal proxy contest or board nominations, have not been publicly disclosed yet [3].
This change comes amidst a turbulent period for Jack in the Box, with weak sales for its flagship brand and the Mexican chain Del Taco, which it acquired in 2021. The company's market cap is less than the amount it paid for Del Taco four years ago [3].
Meanwhile, Jack in the Box's Editor-in-Chief focuses on restaurant finance, mergers and acquisitions, and the economy, with a particular emphasis on quick-service restaurants.
Elsewhere, El Pollo Loco is in talks with the private-equity firm CapitalSpring. Biglari Holdings, the investor and chairman of Steak n Shake, has also shown interest in the chicken chain [1]. Notably, Biglari has a history of proxy fights and securing board seats in restaurant companies, such as Cracker Barrel, where he successfully negotiated board representation through cooperation agreements [1].
In his federal securities filing, Biglari stated that he had no plans to exert control over the company when he first started buying up shares in 2023. However, as of the filing, Biglari does not have any specific plans or proposals in place [3]. The filing also mentions that Biglari told management he would not buy up more shares unless such investment was welcomed by the company [1].
As of the latest filing, Biglari Holdings' stake in Jack in the Box has increased from 5.5% to 9.8% [1]. The filing leaves open the possibility that Biglari may take actions in the future, but no formal actions have been announced to date. The poison pill gives shareholders the right to buy stock at half price if anybody amasses more than 12.5% of the company's shares [3]. Del Taco is expected to be sold by the end of the year [3].
Biglari is no longer a passive investor in Jack in the Box, and his growing stake and regulatory filings suggest he may be preparing for continued engagement or possibly a proxy fight at Jack in the Box to push for changes or board representation.
References:
[1] Yahoo Finance. (2025, August 10). Biglari Holdings Increases Stake in Jack in the Box. Retrieved from https://finance.yahoo.com/news/biglari-holdings-increases-stake-jack-170000192.html
[2] MarketWatch. (2025, July 15). Biglari Holdings files Schedule 13D for Jack in the Box. Retrieved from https://www.marketwatch.com/story/biglari-holdings-files-schedule-13d-for-jack-in-the-box-2025-07-15
[3] CNBC. (2025, August 12). Biglari Holdings takes activist stance in Jack in the Box. Retrieved from https://www.cnbc.com/2025/08/12/biglari-holdings-takes-activist-stance-in-jack-in-the-box.html
- Engaging in his strategy to activate value in restaurant businesses, Sardar Biglari has shown continued interest in Jack in the Box's finance, possibly using investing tactics to push for changes or board representation.
- Given the growing stake in Jack in the Box and regulatory filings, Biglari Holdings may be planning future moves, such as a formal proxy contest or board nominations, to further influence the business and restaurant finance decisions of the company.
