Cracker Barrel Old Country Store Inc. (NASDAQ:CBRL) CEO Julie Masino is stepping down, the company announced Monday, nearly a year after its controversial branding modernization sparked political backlash.
David Deno will become the chain’s CEO on August 10, with Masino staying through October to support the leadership transition.
"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 stated.
Deno led Bloomin’ Brands as CEO from 2019 to 2024 and previously held executive leadership roles at Best Buy Co Inc. (NYSE:BBY) and Yum! Brands Inc. (NYSE:YUM), the parent company of KFC and Taco Bell.
Masino’s Revamp Triggered Backlash
Cracker Barrel hired former Taco Bell and Starbucks Corp. (NASDAQ:SBUX) executive Julie Masino in July 2023 to modernize the brand and attract new customers.
Last August, Cracker Barrel unveiled a simplified logo, removing the prominent “Old Country Store” branding and updating the design for better visibility on road signs and mobile apps, while retaining Uncle Herschel on its menu and merchandise.
This sparked widespread backlash, drawing criticism from loyal customers who called it “woke,” even prompting President Donald Trump to weigh in on the controversy. Also, Cracker Barrel co-founder Tommy Lowe criticized Masino’s $700 million rebranding effort, accusing her of losing touch with the brand’s core values and loyal customer base.
The company quickly reversed the decision, and Masino later said she felt "fired by America" after the logo controversy and public backlash
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Turnaround Gains Momentum Amid Restructuring
Things, however, began to turn around for the restaurant. In June, the company beat third-quarter revenue and EPS estimates despite a 2.9% year-over-year sales decline to $797.4 million. It said recent performance exceeded expectations and raised its full-year revenue guidance to $3.27 billion–$3.30 billion, above analyst estimates of $3.25 billion.
Earlier this month, Cracker Barrel said it completed a sale-leaseback of 26 company-owned stores, generating about $77 million to help reduce debt. The company also sold the Maple Street Biscuit Company trademark and 35 locations to Biscuit Belly, while deciding to close the remaining 16 locations.
Cracker Barrel expects to record $43 million–$47 million in fourth-quarter charges tied to the divestiture and business exit but says the move will boost adjusted EBITDA beginning in fiscal 2027 by sharpening its focus on the core brand.
Despite a 2.5% decline in comparable restaurant sales and a 0.5% increase in retail sales during the first 11 weeks of the fourth quarter, the company now expects to meet or exceed the high end of its $3.27 billion–$3.30 billion fiscal 2026 revenue guidance and surpass its $120 million–$125 million adjusted EBITDA target.
Benzinga’s Edge Rankings place Cracker Barrel in the 92nd percentile for momentum and the 21st percentile for quality, reflecting mixed performance. Check the detailed report here.
CRBL Price Action: On a year-to-date basis, the stock surged 95.27%, as per Benzinga Pro. On Monday, it closed 2.38% lower at $52.43.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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