Cracker Barrel CEO Julie Masino seemed to be making progress undoing damage from the firestorm that followed the restaurant’s decision last year to redesign its folksy logo. Financial performance had improved in recent quarters, and the stock had doubled this year.
So Wall Street was stumped when the company announced on Monday that she was stepping down next month to be replaced by a veteran restaurant industry executive, David Deno, former CEO of Outback Steakhouse owner Bloomin’ Brands. Cracker Barrel shares fell 6% on the news before paring some of those losses.
What may be more head-scratching than Masino’s abrupt departure may be Cracker Barrel’s selection of Deno to replace her.
Cracker Barrel hired Deno after what it called a “comprehensive succession planning and search process,” and the board appears to be prioritizing a steady hand. He has experience as a finance chief and an operations chief, which will be an asset.
At the same time, however, the 69-year-old will have to prove quickly that he knows how to attract the younger customer base that’s eluded Cracker Barrel without alienating its core diner, and that he can devise and execute a longer-term plan.
