If Q4 misses quotes after rebranding, cracker barrel sharing slides 10%
Cracker Barrel said it is focusing on improving the guest experience after it rebounded the brand earlier this summer.
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Following criticism from fans over the change to the popular “old timer” logo, Cracker Barrel is currently facing heat from investors and competing executives.
The buyer of the Billboard in Nashville, Tennessee is CEO of Steak ‘N Shake of fast food chain Sardar Biglari, confirmed in a social media post on Thursday, September 18th.
Biglari, a longtime investor in Cracker Barrel and who owns nearly 3% of the company’s stake, is leading a proxy battle to remove Cracker Barrel CEO Julie Felss Masino, according to a September 18 filing with the Securities and Exchange Commission. Masino has been in this role since July 2023.
“Yes, this sign is responsible,” reads Steak ‘n Shake’s post on X. “The Cracker Barrel board of directors failed shareholders. It has spent over a decade fighting with one of its biggest shareholders, rather than working together for the company’s interests.”
A post from Steak n’Shake adds that cracker barrels are at the forefront of the “diversity, equity, inclusive) movement. However, the chain “has “degraded food quality and burned millions with failed acquisitions.”
“Now we run a proxy contest at our own expense to fire the CEO. Biglari is doing work that was cancelled by the board,” the post continues, reflecting similar points raised in a submission to the SEC in Biglari’s proxy application. “I’ll fire the CEO! Save the cracker barrel!”
“The stunt we’d expect from him.”
In a statement sent via email to USA Today on Friday, September 19, Cracker Barrel also confirmed that Biglari was behind the sign.
“This sign is exactly like the stunt you’d expect from him,” the statement reads. “For 14 years, shareholders have rejected selfish campaigns against cracker barrels. Starting personal attacks from billboards to disrupt businesses like cracker barrels is not something Tennessees would expect or take for granted.”
According to the Wall Street Journal, since 2011, Biglari has held seven proxy contests at Cracker Barrel. In a SEC application dated September 18, Biglari said he and his associates own 654,141 cracker barrel stocks, or 2.9% of the company’s shares.
In a call from investors following Cracker Barrel’s fourth quarter earnings report on September 17, the company’s chief financial officer Craig Penmelis said customer traffic fell by about 1% in early August. Since August 19, the official logo’s change date, traffic has fallen by around 8%, adding that the company is expecting a further 7% to 8% if the similar trend continues.
Despite the dilemma of changing logos, quarterly total revenue rose 4.4% to $868 million, according to Penmelis.
Cracker barrels have returned to the “old timer” logo after public protest
After announcing a switch from the “old timer” logo in August, Cracker Barrel was soon hit with backlash, including President Donald Trump.
“Cracker Barrel needs to go back to its old logo, acknowledge mistakes based on customer response (the ultimate poll) and manage the company more than ever,” Trump said in a post on Truth Social on August 26.
With public protest, Mayno confirmed that the cracker barrel would return the logo to its original.
“We would like to thank our guests for sharing their voices and their passion for cracker barrels over the last few weeks,” Messino said in writing. “We listen, go back to the ‘Old Timer’ logo, pause with a modification, and put more emphasis on the kitchen and other areas that improve the guest experience. ”
Contributor: Michelle Del Rey, USA Today
Jonathan Limehouse covers USA Today’s broken and trending news. Contact him at jlimehouse@gannett.com.
