Engine Capital Plans To Nominate Four Director Candidates For CST Brands

(RTTNews) - Engine Capital, L.P. , a shareholder of CST Brands, Inc. (CST), announced it intends to deliver a formal nomination of four director candidates, Rocky Dewbre, Brad Favreau, Daniel Pastor and Bryan Smith, Jr., for election to the board of directors of CST at the Company's upcoming 2016 annual meeting of shareholders.

On December 9, 2015, Engine sent to the Board a detailed letter highlighting the operational and financial underperformance of the Company since its spin-off from Valero Energy Corp. in 2013. The letter also highlighted the strategic quandary facing the Company and concluded that the Company needs to start improving its performance or start a review of strategic alternatives given the significant strategic value of the Company. It believes a significant number of shareholders share our concerns and have reached a similar conclusion.

Since writing initial letter, the company has provided more details on its Flash Foods acquisition, announced its intention to pursue a real estate venture and recently announced its fourth quarter 2015 results. These new details continue to be disappointing and confirm that the status quo is not acceptable, Engine Capital said.