Cracker Barrel CEO Stepping Down After Logo Controversy, Activist Pressure -- Update

By Heather Haddon and Connor Hart

Cracker Barrel Chief Executive Julie Masino is stepping down, ending a three-year tenure that promised significant changes to the family dining chain but put it at the center of a political firestorm before she walked back some of her plans.

Masino sought to update the brand that first opened in 1969 for a younger generation of consumers, with initiatives that included remaking the folksy logo atop Cracker Barrel restaurants, pulling antique tchotchkes off the walls and changing the menu.

But many of the changes ended up alienating some core diners and conservatives. The resulting controversy, magnified on social media by online bots, led her to scrap much of her strategy and contend with plummeting sales and profit. The company's stock price fell sharply, and Masino cut staff and costs to try to stem the losses.

Despite the firestorm last year, Cracker Barrel's business had recently shown signs of improvement. Masino will get a $4.6 million payout over a two-year period as long as she remains terminated without cause, according to a company filing. The company will also continue to provide her benefits, including protection services, as necessary. Her annual compensation was $6.4 million, including a base salary of $1 million plus stock awards, according to a company filing in 2025.

Masino will be succeeded on Aug. 10 by David Deno, the former chief executive of Outback Steakhouse owner Bloomin' Brands. Deno, 69 years old, has 40 years of experience in retail and restaurants, including leadership positions at Best Buy and Yum Brands. The company said he was selected after a search process. His pay package calls for a base salary of $1 million, plus stock awards, the company filing said.

Shares slumped as much as 6% in Monday trading before recovering to close down nearly 2.4% at $52.43.

Deno will also join the board of directors. Masino, 55, will stay on in an advisory role until Oct. 9 to support a smooth transition, the company said.

"Cracker Barrel is a truly iconic American brand, defined by its unique combination of warm country hospitality, timeless appeal, and deep connection with guests across generations," Deno said in a written statement.

The Lebanon, Tenn.-based Cracker Barrel last August reversed its logo change -- which replaced its longtime logo that features a man in overalls leaning against a barrel, with a streamlined version bearing just the chain's name -- after everyone from die-hard customers to President Trump weighed in, accusing the company of abandoning its heritage and tradition.

Shares in Cracker Barrel plunged amid the controversy, losing more than half their value.

Activist investor Sardar Biglari sought to replace Masino last year, citing Cracker Barrel's "poor capital allocation record" and saying that its transformation plan didn't boost investor confidence. Shareholders voted to retain Masino in November, but the company removed another board member.

Masino abandoned many elements of her strategy after the widespread backlash, and her last earnings report sent Cracker Barrel's shares up sharply. The company lifted its full-year outlook after reporting a higher quarterly profit. Cost cuts had helped the chain's bottom line, and sales remained down compared with last year but were improving.

Last week, Cracker Barrel said it would divest itself from its Maple Street Biscuit business, a plank of Biglari's activist campaign with the company. Maple Street had become a distraction for Cracker Barrel and wasn't contributing enough in sales, Biglari had said.

Cracker Barrel said it was also on track to meet or exceed its full-year outlook, and said it sold 26 of its company-owned locations and would lease them back. The move helped it to reduce debt but contributed to the company's long-term obligations, Wall Street analysts said.

Some investors weren't happy with the abrupt switch after the company's momentum seemed to be returning. As of Friday's close, shares had doubled in value year to date.

"This is a bit of a surprising move given the brand appeared to be gaining some same-store sale momentum," Citi analysts said in a note Monday.

Write to Heather Haddon at heather.haddon@wsj.com and Connor Hart at Connor.Hart@wsj.com

(END) Dow Jones Newswires

July 27, 2026 16:42 ET (20:42 GMT)