Company: BRID
Filing Date: 2025-02-27
Form Type: DEF 14A
Source: 0001493152-25-008406
Chunk: 46

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-02-27
Form: DEF 14A
Chunk 46
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 today is essentially the same price it was ten years ago. This compares extremely unfavorably to a 184% gain in the S&P 500 index within the same timeframe.

I also find it alarming the company has 120,000 shares remaining available for repurchase under its previous 2,000,000 share repurchase plan (authorized by the Board of Directors over 20 years ago) and not a single share has been repurchased in the past eight years. This is despite the share price selling at a 36% discount to shareholder’s equity of $126,805,000 and its balance sheet reveals a net cash position of nearly $15,000,000. In addition, liquidity measures are high, as BRID’s “current ratio” at the end of the third quarter, resides at a superior 4.27 figure.

To repurchase the remaining shares would deplete the company’s cash position by a mere 7%. A miniscule amount indeed, which would inject immediate confidence in the market as well as the luxury of buying shares back at pennies on the dollar. It is clear outside shareholders are not being served as well as they could.

Conclusion: Going private means a company does not have to comply with costly and time-consuming regulatory requirements, such as the Sarbanes-Oxley Act of 2002 and elements of corporate governance. This frees up management and provides additional resources for more productive endeavors such as product development, and marketing. In addition, minority shareholders would be able to monetize a very undervalued stock at a higher

share price.

Board of Directors’ Statement in Opposition to Proposal 3 (Shareholder Proposal)

THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE “AGAINST” THIS PROPOSAL.

The Board of Directors remains committed to enhancing shareholder value and achieving a fair return for our shareholders through developing, producing, selling and distributing superior quality food products that provide consistent value to our customers. While the Board regularly considers returning capital to shareholders, both the Board and management are currently focused on generating shareholder value by reinvesting in the Company’s growth, striving to maintain a competitive edge through forward-thinking strategies, and minimizing debt, rather than distributing dividends, repurchasing shares through the stock repurchase program (described below), or undertaking the time and expense of taking the Company private. By reinvesting in the Company, the Board and management are demonstrating their commitment to long-term growth and a strategic mindset to poise the Company for sustained success. For instance, during