Cracker Barrel is set to pay outgoing CEO Julie Masino several million dollars in severance pay after her departure from the company, while also covering security costs for a period of time.
The restaurant chain announced on Monday that Masino would step down as CEO on Aug. 10 and will remain with the company in an advisory role until Oct. 9. David Deno will replace her as CEO.
The company disclosed in a transition agreement filed with the Securities and Exchange Commission (SEC) that Masino will receive $4.63 million over the two years following the end of her employment at Cracker Barrel.
The filing also indicated that Cracker Barrel will continue to pay for Masino’s protective services for a “reasonable period of time” after the end of her advisory role with the company.
CRACKER BARREL CEO JULIE MASINO TO STEP DOWN
Masino’s departure comes after an unsuccessful attempt to rebrand the restaurant chain last year sparked blowback from customers and impacted the company’s sales.
Among the changes pursued prior to the reversal was the removal of the “old timer” from the company’s logo, as well as adjustments to the interior layout of the restaurants that have long included a general store.
The rebrand was part of a $700 million overhaul across the company’s 660-plus restaurants, which also included a revamped menu and decluttered dining rooms.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CBRL | CRACKER BARREL OLD COUNTRY STORE INC. | 55.89 | +2.08 | +3.87% |
In the company’s announcement of the leadership transition, Carl Berquist, the independent chairman of the Cracker Barrel board, thanked Masino for “her leadership and commitment to Cracker Barrel.”
Berquist added that the company appreciates “her partnership to ensure a smooth leadership transition as we remain focused on the work underway to continue to serve our guests, support our employees, and execute our strategic priorities.”
Cracker Barrel’s announcement also included a statement from Deno, who said the chain is a “truly iconic American brand, defined by its unique combination of warm country hospitality, timeless appeal, and deep connection with guests across generations.”
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Masino’s departure and her upcoming replacement by Deno comes as the company is still struggling to return traffic to where it was before the rebranding controversy.
The company said in its third-quarter earnings last month that traffic was improving relative to the recent trend; it remained lower than where it was in the prior year.
Cracker Barrel CFO Craig Pommells noted that comparable store sales decreased 2.6%, with traffic down 6.7%, though he added that, “Although traffic remained negative, we are encouraged by the gradual improvement in the underlying trend.”
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