Cracker Barrel shareholders ax DEI specialist over emblem flap, preserve CEO

Cracker Barrel shareholders voted Thursday to oust board member and DEI marketing executive Gilbert Dávila in the wake of the branding disaster that wiped out lots of of tens of millions of {dollars} in worth, however spared CEO Julie Felss Masino.

The binding vote capped months of turmoil triggered by Masino’s decision to replace the chain’s well-known “Old Timer” logo with a stripped-down design that ignited a political backlash, alienated core diners and despatched site visitors and shares plunging.

The revolt positioned Masino and Dávila squarely in the crosshairs of activist investor Sardar Biglari, who blamed them each for the rebrand and what he called years of mismanagement.

Gilbert Dávila, a DEI specialist and a member of Cracker Barrel’s board of administrators, was ousted by shareholders on Thursday. Cracker Barrel Old Country Store

Yet when ballots had been tallied Thursday, only one of them paid the price, according to The Wall Street Journal.

Cracker Barrel announced that a majority of shareholders voted to maintain Masino on the board.

Dávila, a marketing and diversity specialist who sat on Cracker Barrel’s public duty committee, didn’t secure enough votes and resigned. The company instantly cut the dimension of its board to 9 administrators.

Back in August, Masino defended the chain’s minimalist new emblem eradicating “Uncle Herschel” as a sensible highway-visibility upgrade.

“Part of this transformation is setting up success for the long term,” she said at the time.

Cracker Barrel CEO Julie Felss Masino was spared in the shareholder vote. REUTERS

The redesign also included transformed eating rooms and up to date advertising and marketing crafted with consulting firm Prophet.

The backlash was speedy and explosive as loyal diners accused the chain of erasing its heritage.

President Donald Trump urged Cracker Barrel to desert the change, writing, “Cracker Barrel should go back to the old logo, admit a mistake based on customer response (the ultimate Poll), and manage the company better than ever before.”

A branding disaster that wiped out lots of of tens of millions of {dollars} in worth from the company. Clint Brewer Photography / BACKGRID

Five days later, as sales cratered and associates revolted, Cracker Barrel reversed course on the rebrand.

The retreat didn’t stop the company’s slide. Traffic dropped 8% in the weeks after the rollout. Shares sank nearly 10% in a day, then stored plunging, ultimately tumbling more than 50% from mid-August highs.

The chain misplaced market share among Republican diners — its most loyal base — and fell from the fastest-growing breakfast model to last place, according to Consumer Edge data.

Masino conceded the misstep on a September earnings call, pledging to “lean into Uncle Herschel and the nostalgia around the brand.”

But Biglari, who has waged seven proxy battles against Cracker Barrel since 2011, seized the second.

He accused the board of mismanagement and blasted Masino’s leadership.

“Cracker Barrel’s share price continues to decline,” read a assertion from Biglari Capital last week.

Masino defended a new minimalist emblem as a sensible highway-visibility upgrade. AP

“We believe that only a new CEO with relevant turnaround experience in company-operated restaurants can fix the business and reverse the massive losses that Cracker Barrel shareholders have suffered under CEO Julie Masino.”

Masino publicly pushed back, saying, “Mr. Biglari’s playbook … is making many misinformed statements,” while warning that his campaign was destabilizing the chain.

But the proxy warfare gained momentum when advisory corporations ISS and Glass Lewis advisable voting against Dávila, citing the board’s oversight failures and the rebrand debacle.

The company launched a temporary assertion thanking Dávila for his 5 years of service, citing his contributions to the chain’s strategic plan and public-responsibility work.

Dávila’s removing now leaves Masino in full control of a recovery effort that has yet to stabilize the business. The stock had fallen almost 5% as of Thursday afternoon.

The Post has sought remark from Cracker Barrel.

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