The co-founder of Cracker Barrel Old Country Store Inc. (NASDAQ:CBRL), Tommy Lowe, has publicly criticized the company’s CEO, Julie Felss Masino, for being disconnected from the brand’s core values and its loyal customer base.
Co-Founder Criticizes CEO's $700 Million Rebranding Plan
Lowe, 93, who played a pivotal role in establishing the first Cracker Barrel store in 1969, voiced his concerns about the company’s current leadership. He accused Masino, who assumed the role of CEO in 2023, of implementing changes that are not aligned with the restaurant’s Southern country theme, reported Fox Business on Friday.
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“Taco Bell is not Cracker Barrel,” Lowe told Fox Business. “… She knows very little about Cracker Barrel’s operation -- the history, the food. The idea she’s come up with … doesn’t fit the customer.”
Notably, Masino was formerly President, International at Taco Bell, a Yum! Brands, Inc. (NYSE:YUM) subsidiary.
He also criticized the board of directors for not intervening, stating that they, too, are disconnected from the company’s operations and customer base.
Lowe particularly pointed out the $700 million rebranding effort, which he deemed a “waste of money” and stated that it “was worth nothing.” Lowe praised the recent decision to revert to the original logo, which features the iconic “Old Timer” leaning on a barrel.
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Cracker Barrel Halts Remodels, Backlash ‘Temporary’ Say Analysts
Cracker Barrel has been facing a series of challenges, as the company encountered strategic uncertainty and operational headwinds, coinciding with a controversial logo change and a $700 million rebranding plan.
In its fourth-quarter earnings call, CEO Julie Masino confirmed that the company would suspend its $600–$700 million capital plan and restore remodeled stores to their original design. "We will not proceed with these modern stores," Masino stated.
Despite these challenges, Cracker Barrel has been trying to shift the focus to its growth plans. The company was expected to report fourth-quarter revenue of $855.3 million, a decrease from $894.4 million in the previous year’s fourth quarter.
Despite these setbacks, analysts initially believed that the rebranding backlash was temporary. However, with the co-founder’s public criticism, it remains to be seen how the company will navigate these challenges and regain its footing in the market.
Benzinga's Edge Rankings place Cracker Barrel in the 39th percentile for momentum and the 58th percentile for growth, reflecting its average performance in both areas. Check the detailed report here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
