Cracker Barrel shareholders voted to remove board member and DEI marketing executive Gilbert Dávila while keeping President and CEO Julie Felss Masino in place. The vote, held at the company’s annual meeting on November 20, reduced the board from ten to nine directors and forced Dávila’s resignation.
The vote came after a series of financial setbacks. In Q4 2025 the company reported earnings per share of $0.74, missing analysts’ consensus of $0.77 by $0.03, while revenue of $868.01 million beat expectations of $853.90 million. The miss was driven by a 4% decline in restaurant traffic and higher labor costs, offset by a 3% lift in retail sales.
The underlying driver of shareholder discontent is the August 2025 logo redesign and store remodels that sparked a public backlash. Management had to reverse the new logo and suspend remodels, a move that cost the company an estimated $15 million in marketing and construction expenses. The backlash also contributed to a projected 7‑8% decline in store traffic for fiscal Q1 2026 and a 4‑7% drop for the full fiscal year.
Segment analysis shows that restaurant revenue fell 5% YoY, while retail sales grew 2% due to a 1.5% increase in average transaction size. The company’s guidance for fiscal 2026 calls for total revenue of $3.45 billion to $3.50 billion, a slight uptick from the $3.40 billion to $3.45 billion range previously issued. Management attributes the modest lift to a renewed focus on core menu items and a phased return to the original logo.
Board and activist investor statements underscore the tension. The board said it remains “focused on delivering high‑quality food and experiences while staying true to heritage,” while activist Sardar Biglari warned that the company’s leadership is “out of touch with its customer base.” CEO Masino, in a Q1 2025 earnings call, emphasized that the company’s “investment year” is still on track and that it has raised its EBITDA guidance.
Investor sentiment turned negative after the vote, with analysts citing the combination of a missed EPS, the rebranding controversy, and the removal of a DEI executive as signals of governance and strategic uncertainty. The market reaction reflected concerns over the company’s ability to regain customer trust and navigate competitive pressures in the casual dining sector.
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