Cracker Barrel (CBRL) Stock Falls 5% as CEO Change Catches Investors Off Guard

TLDR

• CEO Julie Masino is stepping down after a turbulent three-year tenure marked by a logo controversy and falling sales.
• David Deno, former CEO of Bloomin’ Brands, will take over on August 10.
• CBRL stock fell 5.4% to $50.82 on Monday following the announcement.
• The stock had nearly doubled year-to-date before Monday’s drop, after the company beat earnings and raised guidance.
• Last week, Cracker Barrel said it would divest its Maple Street Biscuit business and sold 26 locations in a sale-leaseback deal.

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Cracker Barrel announced Monday that CEO Julie Masino is stepping down, and the market didn’t take it well. CBRL stock dropped 5.4% to $50.82 midday.

Cracker Barrel Old Country Store, CBRL

David Deno, 69, who previously ran Bloomin’ Brands — parent of Outback Steakhouse — will take over as CEO on August 10. He will also join the board of directors.

Masino, 55, joined Cracker Barrel in 2023 with plans to modernise the brand for younger consumers. That included a new logo, menu changes, and removing antique decorations from restaurant walls.

The logo change became a flashpoint. President Trump publicly criticised the move, and the backlash — amplified by social media — forced Masino to reverse course. Sales and profit fell sharply in the aftermath.

At its worst, the stock lost more than half its value in 2025. It had been trading below where it stood before the logo controversy broke.

A Recent Recovery Cut Short

Despite the turbulence, Cracker Barrel’s business had been showing signs of life. The stock had nearly doubled year-to-date heading into Monday, driven by a stronger-than-expected earnings report and an upgraded full-year outlook.

Last week, the company said it expects to meet or exceed the high end of its revenue guidance of $3.27 billion to $3.30 billion for the fiscal year ending in July.

Activist investor Sardar Biglari had pushed for Masino’s removal last year, citing poor capital allocation. Shareholders voted to keep her in November, but one board member was removed.

The timing of Monday’s announcement caught some off guard. “This is a bit of a surprising move given the brand appeared to be gaining some same-store sale momentum,” Citi analysts wrote in a note.

Masino will stay on in an advisory role until October 9 to help with the transition. The company said it will provide her with separation payments and related benefits.

What Deno Brings

Deno has 40 years of experience across restaurants and retail. He led Bloomin’ Brands from 2019 to 2024. Before that, he held senior roles at Best Buy, Yum! Brands, and Pizza Hut.

Last week, Cracker Barrel also announced it would sell its Maple Street Biscuit business — a move Biglari had been pushing for — saying it had become a distraction and wasn’t contributing enough to sales.

The company also sold 26 company-owned locations and will lease them back. The sale-leaseback deal helped reduce debt but added to long-term obligations, analysts noted.

As of Friday’s close, CBRL had doubled in value year-to-date. Monday’s 5.4% drop erases some of that gain but leaves the stock well above its 2025 lows.