Business magnate Sardar Biglari advocates for the replacement of Cracker Barrel CEO
In a dramatic turn of events, Cracker Barrel, the iconic American restaurant chain, is facing a shareholder vote on November 20, called by Sardar Biglari, the owner of Steak n Shake and a 2.9% shareholder of Cracker Barrel. The vote seeks the ousting of CEO Julie Masino and Compensation Committee Chair Gilbert Dávila.
This comes after a series of controversies that have plagued Cracker Barrel since the logo fallout began on August 19. The latest earnings report, published on a Wednesday, did not provide details about the impact of the logo controversy on other aspects of Cracker Barrel’s business beyond customer traffic. The report also did not mention any response from Cracker Barrel regarding Biglari’s filing.
Biglari has been a longtime critic of Cracker Barrel, and he argues that Masino has made multiple missteps since becoming CEO in 2023, including the recent logo and remodel plan controversy that has negatively impacted Cracker Barrel’s stock price and traffic. Traffic declined 8% following the logo reveal, and Cracker Barrel expects customer counts to be down 4% to 7% for the fiscal year, which ends next August.
Biglari also criticizes Dávila, who is the Board's marketing expert, for his role in shaping the decisions that led to the controversies and for approving excessive executive pay packages. He has attempted to make changes at Cracker Barrel multiple times in the past, with his most recent attempt being last November.
As of publication time, Cracker Barrel had not responded to a request for comment on Biglari’s filing. The stock of Cracker Barrel has declined 23% over the past month.
Joe Guszkowski, a senior editor with Restaurant Business covering technology and casual-dining chains, has been closely following the developments at Cracker Barrel. In a recent article, he highlighted the challenges faced by the company in its attempt to appeal to a younger audience and its policies regarding diversity, equity, and inclusion.
In the meantime, Cracker Barrel continues to operate as usual, and it remains to be seen how the shareholder vote will affect the company's leadership and future direction.
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