Cracker Barrel Stock Dips After CEO Says Restaurant Is No Longer ‘Relevant,’ Social Media Blames The Restaurant’s ‘Jim-Crow’ Vibe

Cracker Barrel Stock Dips After CEO Says Restaurant Is No Longer ‘Relevant,’ Social Media Blames The Restaurant’s ‘Jim-Crow’ Vibe

Cracker Barrel’s stock has faced a significant decline over the past week following admissions from its CEO regarding the chain’s relevance in the current market.

The chain’s stock plummeted by nearly 20% in the last few days, hitting a 52-week low and marking its lowest level in over a decade. Additionally, Cracker Barrel slashed its yearly dividend from $1.30 per share to 25 cents per share, further fueling investor apprehension.

This comes in the wake of Julie Felss Masino, the CEO of the 54-year-old eatery, acknowledging during a conference call that the iconic biscuits-and-gravy chain is “just not as relevant” as it once was.

Julie Felss Masino’s remarks coincide with the chain’s decade-long decline in customers, worsened by the departure of senior patrons during the pandemic, with many yet to return. In reaction, Cracker Barrel unveiled plans to invest up to $700 million over the next three years to rejuvenate its restaurants and recapture relevance.

Cracker Barrel’s plans include menu overhauls, store renovations, and an improved guest experience.

The news of Cracker Barrel’s struggles and stock drop stirred up chatter on social media, with many users humorously blaming the pandemic for wiping out their customer base.

One X user commented,

“I’m gonna guess that these customers haven’t returned to any pre-pandemic habits including being alive.”

Other users blame the restaurant’s old time aesthetic.

Another X user wrote,

“Maybe if it didn’t literally feel like walking through the Jim Crow era when walking through their little store to the restaurant they might have more customers.”

See more reactions below:

Cracker Barrel isn’t alone in its challenges, as reports indicate Red Lobster is closing dozens of restaurants following a recent bankruptcy filing. The chain has been hit hard by a mix of mismanagement, declining foot traffic, and financial missteps.

Are you still hitting up the good ole’ Cracker Barrel? Let us know in the comments below!