Investor called Cracker Barrel transformation plan 'folly' before rebranding
14 days ago
- #Corporate Governance
- #Cracker Barrel
- #Rebranding
- Cracker Barrel's CEO Julie Felss Masino and the board ignored warnings from top investor Sardar Biglari about the $700M rebranding plan, which he called 'obvious folly'.
- Biglari criticized the board's management and the rebranding strategy, arguing it wouldn't solve the company's declining traffic and would damage the brand further.
- Despite Biglari's warnings and shareholder concerns, Cracker Barrel proceeded with the rebranding, which included removing the iconic logo and modernizing stores.
- The rebranding led to backlash from customers and investors, with the stock price dropping, validating Biglari's earlier criticisms.
- Biglari attempted to replace board members but was unsuccessful, as shareholders sided with management in a November 2024 vote.
- By August 2025, the rebranding was implemented, but the negative reaction and stock decline reinforced Biglari's warnings as prophetic.