Sardar Biglari advocates for the removal of Cracker Barrel's current CEO from his position
In a tumultuous turn of events, American restaurant chain Cracker Barrel is facing a shareholder vote on November 20, following a decline in stock price and traffic due to the unveiling of its new logo and remodel plan.
The controversy began in August, leading to a 23% decline in the chain's stock over the past month. The instigator of this turmoil is Sardar Biglari, owner of Steak n Shake and a 2.9% shareholder of Cracker Barrel. Biglari has been a longtime critic of the company and has repeatedly attempted to make changes, with his most recent attempt in November 2020 being unsuccessful.
Biglari's latest move is a statement asking for the ousting of CEO Julie Felss Masino and Compensation Committee Chair Gilbert Dávila. He believes that Masino's leadership, which has overseen modernization and rebranding efforts, has led to multiple missteps, including the recent controversy over the new logo and remodel plan.
Biglari is also critical of Dávila, the Board's marketing expert, for helping to shape the controversial decisions and for approving large executive pay packages. He believes these decisions have contributed to the decline in traffic, with the chain expecting a 4% to 7% drop for the fiscal year, which ends next August. Traffic declined 8% following the logo reveal.
The institution that has repeatedly and unsuccessfully attempted to implement changes at Cracker Barrel is the company's leadership under CEO Julie Felss Masino. The next attempt is not explicitly dated but follows the halt of the previous $700 million renovation plans after the public and customer criticism in 2025.
Cracker Barrel published its first earnings report since the logo fallout began on August 19. The report did not provide any insights into the company's plans for the future, leaving shareholders and the public in suspense.
Biglari, a prolific businessman and activist investor, is known for his involvement in various companies' governance. His actions at Cracker Barrel are a testament to his commitment to holding companies accountable for their decisions and performance.
As the shareholder vote approaches, the future of Cracker Barrel remains uncertain. Whether the shareholders will vote in favour of Biglari's request and if this will mark a new direction for the iconic restaurant chain, only time will tell.
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