Cracker Barrel CEO Stepping Down -- 6th Update

By Heather Haddon and Connor Hart

Embattled Cracker Barrel Chief Executive Julie Masino is stepping down, ending a three-year tenure that brought massive changes to the family dining chain but put it at the center of a political firestorm.

The restaurant chain was widely criticized by customers and President Trump for Masino's efforts to modernize the eatery and its stores. She pressed forward with a revamp that included remaking the folksy logo atop Cracker Barrel restaurants, pulling antique tchotchkes off the walls and changing the menu.

Masino will be succeeded Aug. 10 by David Deno, 69 years old, the former chief executive of Outback Steakhouse owner Bloomin' Brands. Deno has 40 years of experience in retail and restaurants, including leadership positions at Best Buy and Yum Brands.

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

Shares slumped more than 5% when the market opened Monday.

"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 statement.

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 Trump weighed in, accusing the company of abandoning its heritage and tradition.

Activist investor Sardar Biglari had vowed to remove Masino through a proxy battle. Masino responded by casting aside her original plans and focusing back on the brand's core customers.

Shares in Cracker Barrel plunged amid the controversy, losing more than half their value, though the stock started to recover. This summer, when the company reported improved earnings and a brighter outlook for the rest of 2026, shares shot up 35%.

The damage had already been done, though. Biglari cited Cracker Barrel's "poor capital allocation record" and said 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 following 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 to last year but were improving.

Last week, Cracker Barrel said it would divest itself from its Maple Street Biscuit Co. 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 11:09 ET (15:09 GMT)