Cracker Barrel Board Member Resigns Amid Stock Decline
During a recent episode of “The Big Money Show,” panelists discussed the sharp decline in Cracker Barrel’s stock price following the chain’s unsuccessful rebranding efforts.
The company revealed that a board member, known for a contentious career in diversity, equity, and inclusion, has stepped down. This announcement was made on Thursday.
At the annual meeting, shareholders voted for nine out of the company’s ten board candidates, including CEO Julie Fels Masino. Following these results, independent director Gilbert Davila announced his resignation, leaving the board with nine members.
In a statement, the board expressed gratitude for Davila’s contributions over his five years at Cracker Barrel. They acknowledged his leadership in developing strategic plans and managing the compensation committee effectively, noting that they are thankful for his dedication during his tenure.
Interestingly, Cracker Barrel had urged shareholders to keep Davila on the board; he joined in 2020.
This vote was somewhat of a win for activist investor Sardar Biglari, who had expressed concerns over the company’s performance and the contentious rebranding that took place this August.
In a letter to shareholders, Biglari criticized the board and management for being out of touch with customer needs, stating that the board struggled with acquisitions and new store openings, hired the wrong CEO, and approved a failed strategic transformation plan that embarrassed the company.
Earlier this month, significant advisory firms, Institutional Shareholder Services (ISS) and Glass Lewis, recommended that shareholders vote against some of Cracker Barrel’s board members, including Davila, who previously headed the compensation committee. Neither firm suggested removing the CEO.
It was noted that Biglari has a track record of contentious campaigns, previously launching initiatives that were termed distracting and costly. His long-standing history of such actions against Cracker Barrel raised eyebrows, as he consistently pushed initiatives tied to his other business interests.
Amid these developments, Cracker Barrel reaffirmed its commitment to providing families with high-quality offerings and experiences, insisting that they remain grounded in the traditions that define the brand.
