How the fight over Cracker Barrel's logo marked the beginning of the end for its CEO

By Bill Peters

Cracker Barrel must decide between appealing to its most loyal diners or potentially alienating them by breaking from its roots. 'It's a chain that's in quite a difficult position,' analyst says.

Julie Masino will step down as Cracker Barrel's CEO on Aug. 10.

When Julie Masino became Cracker Barrel's CEO in 2023, she arrived with plans to modernize a restaurant chain known for breakfast, meatloaf, rocking chairs and a homespun atmosphere. But in the end, the chain's traditions won out.

The chain on Monday announced that Masino would step down as CEO on Aug. 10, following a logo change last year that angered conservatives and loyal customers. The chain has experienced other problems as well, including remodels that backfired, agitation among activist investors and same-store sales that have wobbled over Masino's three-year tenure.

She will be replaced by David Deno, a four-decade retail- and restaurant-industry veteran.

The move came a little less than a year after Cracker Barrel (CBRL) revamped its logo to remove "Uncle Herschel," the man leaning against a barrel in its restaurant signage. The company was pressured into reversing that change a week later after criticism from the right, including President Donald Trump. Meanwhile, same-store sales have fallen for three straight quarters, according to FactSet, although the declines have narrowed each period.

Neil Saunders, a retail analyst at Global Data, sees the appointment of Deno - who is 69 and most recently served as CEO of Outback Steakhouse parent Bloomin' Brands (BLMN) from 2019 to 2024 - as a bit of a surprise, given Cracker Barrel's improving sales trajectory. But he said investors still had reservations about the company's direction.

"The rebranding did spook investors," he said. "Although we've moved on since that point, I think there still is a question mark in investors' minds as to whether Masino understands the Cracker Barrel business intimately."

Jo-Ellen Pozner, a management professor at Santa Clara University, also saw the move as unexpected. She added that it was likely an effort to re-engage core customers - even as industry competition for inflation-fatigued consumers remains fierce.

"It feels like this is the moment when Cracker Barrel should be broadening its base, and engaging in a strategic shift," she said. "Instead, we're seeing just the opposite."

Monday's announcement appeared to leave investors uneasy as well, following hopes that the worst of the culture-war fallout from the logo change was in the rearview. Shares closed down 2.4% on Monday.

The stock is up 106% so far this year, but it's off 20% since Masino took the helm in early November 2023.

Seeking relevance

When Masino came aboard in 2023 after stints at Yum Brands' (YUM) Taco Bell and Starbucks (SBUX), the restaurant industry was in a similar spot to where it is now. The costs of dining out were rising, and consumers were getting more cautious.

Meanwhile, Cracker Barrel, founded in 1969, was showing its signs of age as consumers focused on wellness and alternative diets and ordered more food online. There were concerns about the chain's ability to win over younger consumers, after serving an older generation for decades.

Less than a month into the job, Masino, said during an earnings call: "We need to improve our relevance."

That meant improving service speeds, making stores more welcoming, and punching up the menu for breakfast, lunch and dinner. The chain was not known as much for evening meals.

The company tried to lean into its loyalty program and a partnership with Dolly Parton. It worked to pare down menus and offer dinner deals, and rolled out items like slow-braised pot roast and hash-brown casserole shepherd's pie.

"We have a lot of terrific menu items, but some of our recipes and processes haven't evolved in decades," Masino said in 2024.

The company began looking at ways to make the tables more comfortable, and ways to give restaurants - known for Southern styles, fireplaces, taxidermy, wall knick-knacks and its triangle peg game at tables - a brighter, cleaner look. But not everyone was onboard.

When the chain last year unveiled a new, pared-back logo - bearing only the words "Cracker Barrel" against a yellow background - the news spread through social media, and not in a good way. Some felt it infringed on their sense of nostalgia. Familiar culture-war talking points re-emerged. Some conservatives online ran with the news and complained it was "woke." Even Trump said the company should restore its old logo.

A week later, it did. But even after, Cracker Barrel warned of fewer visits from consumers. In September, Cracker Barrel's CFO said customer traffic had fallen 8% since Aug. 19, when the company initially modified its old logo. The company eventually halted some remodels and parted ways with a marketing firm it had worked with on the new logo, and streamlined leadership. Analysts grew worried.

Last week, the company completed a sale-leaseback deal for 26 stores, bringing in around $77 million in proceeds. It also said it had sold off the trademark and other assets related to Maple Street Biscuit Co. a fast-casual chain it had owned, and said it would close that chain's 16 remaining locations. In turn, Cracker Barrel raised its profit outlook for this fiscal year.

On Monday, Cracker Barrel did not offer a reason for Masino's departure. Deno, in a statement, highlighted the chain's "timeless appeal, and deep connection with guests across generations."

But Pozner said that after Masino's efforts, the company was running out of ways to change. Saunders also noted that Cracker Barrel is still not exactly a destination for diners outside of its most loyal customers.

"If they change, they alienate the loyal customers," he said. "If they don't change, they perhaps don't attract the new customers."

"So it's a chain that's in quite a difficult position," he added. "Because it arguably does need some change. But it can't be too radical with it, because we've seen what happens when they are."

-Bill Peters

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07-28-26 0701ET