Cracker Barrel stock surges as CEO Susan Cochran announces departure after 12 years in charge

By Tomi Kilgore

CEO transition comes a month after the Tennessee-based restaurant chain faced a backlash for how it celebrated Pride Month, and reported disappointing earnings

Cracker Barrel Old Country Store Inc. investors cheered Tuesday, after the Tennessee-based family restaurant chain's announced that it was making a leadership change.

The company (CBRL) said before the open that Chief Executive Officer Sandra Cochran will be stepping down after 12 years in charge. She will be succeeded as CEO by Julie Felss Masino, effective Nov. 1 after a transition period.

At that time, Cochran will become executive chair of the company's board of directors through September 2024.

The stock jumped 5.2% to six-week closing high of $97.48. It has now bounced 7.8% since closing at an 11-month low of $90.46 on June 23.

"Today's announcement represents the culmination of a multi-year CEO succession-planning process by our Board of Directors and Sandy, and we are thrilled to welcome Julie to the head of the Cracker Barrel table," said current Chairman William McCarten.

The CEO transition announcement comes a month after Cracker Barrel faced a backlash over how it celebrated Pride Month, with its campaign, "Bringing the Front Porch to Pride."

Also read: 'Cracker Barrel has fallen': Southern restaurant chain is latest to get criticized for inclusion campaign.

The company also reported in early June fiscal third-quarter profit, revenue and same-store sales that missed expectations, citing declines in casual dining traffic that occurred toward the end of the quarter.

Incoming CEO Masino has spent the last 5 1/2 years at Yum Brands Inc.'s (YUM) Taco Bell fast-food restaurant chain, where she was most recently president of international.

Cracker Barrel shares have shed 9.6% over the past three months, while the S&P 500 index has gained 9.6%.

-Tomi Kilgore

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07-19-23 0720ET

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