Cracker Barrel shareholders ax DEI specialist over logo flap, spare CEO

Core Insights - Cracker Barrel shareholders voted to oust board member Gilbert Dávila due to a branding crisis that resulted in a significant loss of company value, while CEO Julie Felss Masino retained her position [1][4][16] Group 1: Branding Crisis - The crisis was triggered by Masino's decision to replace the iconic "Old Timer" logo, leading to a political backlash and alienation of core diners, which caused a decline in traffic and share prices [1][6][8] - Following the rebranding, Cracker Barrel experienced an 8% drop in traffic and a nearly 10% decline in shares on a single day, with overall shares tumbling more than 50% from mid-August highs [8][9] - The company lost market share among its core Republican diner base, falling from the fastest-growing breakfast brand to last place [9] Group 2: Shareholder Actions - Activist investor Sardar Biglari criticized both Masino and Dávila for the rebranding and alleged years of mismanagement, leading to a proxy battle [2][13] - Advisory firms ISS and Glass Lewis recommended voting against Dávila, citing failures in board oversight related to the rebranding [16] - Dávila's removal from the board reduced its size to nine directors, leaving Masino in full control of the recovery efforts [5][16] Group 3: Company Response - Masino defended the new logo as a practical upgrade for highway visibility and acknowledged the misstep during a September earnings call, promising to embrace the brand's nostalgia [5][13] - Despite the backlash, Masino's leadership was spared in the shareholder vote, indicating a divided opinion among shareholders regarding the company's direction [4][16]