NEW YORK, July 27, 2026, 10:08 a.m. EDT — U.S. markets have opened.
- Cracker Barrel stock dropped 2.5% to $52.39 in most recent trading.
- David Deno will take over as chief executive on Aug. 10, while Julie Felss Masino remains with the company as an advisor until Oct. 9.
- Comparable restaurant sales are still 2.5% lower so far this quarter. However, management has increased its profit guidance for fiscal 2026.
Shares of Cracker Barrel Old Country Store declined 2.5% on Monday following the announcement that David Deno will become the restaurant chain’s next chief executive, succeeding Julie Felss Masino on Aug. 10.
The action prompted a strong comparative response. Shares of four listed casual-dining competitors rose by an average of 3.9%.
That put Cracker Barrel roughly 6.3 percentage points below the group. The difference indicates investor worries focused on execution over broader restaurant industry issues.
The distinction is significant since Cracker Barrel is already valued at a higher earnings multiple. Its stock was trading at 45.6 times its trailing earnings, while all peers listed below were less expensive.
| Company | Latest price | Intraday move | Trailing P/E |
|---|---|---|---|
| Cracker Barrel Old Country Store NASDAQ:CBRL | $52.39 | down 2.5% | 45.6x |
| Darden Restaurants NYSE:DRI | $202.80 | up 3.3% | 21.5x |
| Texas Roadhouse NASDAQ:TXRH | $198.58 | up 2.7% | 31.7x |
| Brinker International NYSE:EAT | $195.76 | up 4.7% | 19.2x |
| Bloomin’ Brands NASDAQ:BLMN | $8.32 | up 4.8% | 33.3x |
Quotes shown are the most recent as of just before 10 a.m. EDT. Ratios are calculated from trailing reported earnings rather than analyst projections.
Cracker Barrel’s multiple is also influenced by its low earnings level. The company reported trailing earnings of only $1.15 per share, making the ratio responsive to even slight shifts in profit.
The company stated that Masino is stepping down from its board as well. She will continue to serve as an adviser throughout the transition period. Cracker Barrel has not provided a reason for her exit.
Deno was CEO of Bloomin’ Brands between 2019 and 2024. Prior to that, he was the company’s chief financial officer and played a key role in taking it public. His experience in the restaurant and retail industries covers over 40 years.
Deno stated his aim is to prioritise profitable growth and “unlock the full potential of this remarkable brand.” Board chairman Carl Berquist described Deno as the ideal leader to enhance both operational and financial momentum. PR Newswire
Traffic continues to pose challenges. Cracker Barrel reported a drop of roughly 2.5% in comparable restaurant sales over the initial 11 weeks of its fiscal fourth quarter. Comparable sales in retail increased by about 0.5%.
Management anticipates revenue will meet or surpass the upper end of its previous guidance, which was set at $3.27 billion to $3.30 billion. Adjusted EBITDA is also projected to come in above its earlier forecast of $120 million to $125 million.
The gain comes after a challenging year. Revenue for the third quarter slipped 2.9% to $797.4 million. Comparable restaurant sales were down 2.6%, with adjusted EBITDA decreasing to $40.3 million from $48.1 million.
Adjusted earnings reached 29 cents per share. GAAP earnings reflected a $47.4 million benefit from a litigation settlement, so the adjusted results provide a clearer view of core performance.
Cracker Barrel has taken steps to strengthen its balance sheet, generating roughly $77 million by disposing of 26 properties and then leasing them back. The funds will be used to pay down debt.
The company has divested the majority of Maple Street Biscuit Company assets, with the last 16 sites set to shut down. Executives expect the withdrawal to boost adjusted EBITDA from fiscal 2027 onwards.
Initial estimates indicate non-cash charges for the fourth quarter are expected to range between $37 million and $39 million. Associated cash expenses are projected at $6 million to $8 million over fiscal 2026 and 2027.
The transition comes after several months of criticism regarding Cracker Barrel’s updated logo and restaurant renovation initiatives. Masino was also the target of activist pressure, but shareholders voted to keep her in place in November.
Key risks include ongoing declines in traffic, inflationary pressures, debt challenges, and potential disruptions from transition efforts. Cracker Barrel also cites negative media coverage and activist involvement as significant uncertainties.
Deno takes on the business days ahead of the July 31 fiscal year-end. His immediate task is to maintain profit recovery while avoiding a sharper drop in sales. Monday’s valuation and peer comparison indicate that investors remain cautious and are looking for proof of results.
