A board member from Cracker Barrel has stepped down following controversy surrounding his background in diversity, equity, and inclusion (DEI). The restaurant chain announced this change on Thursday after shareholders voted to elect nine out of ten board nominees during the annual meeting.
Gilbert Dávila, the independent director who resigned, had been a board member since 2020. In a statement, the board expressed appreciation for Dávila’s contributions over his five-year tenure, highlighting his role in developing the company’s strategic plans.
Despite the board’s hopes to retain Dávila, activist investor Sardar Biglari pushed for changes during the meeting, citing concerns about the company’s performance and recent marketing decisions. Biglari’s firm believes the current leadership is out of touch with the needs of Cracker Barrel’s customer base.
Earlier this year, Cracker Barrel faced criticism over a rebranding effort that many felt did not resonate with its traditional customer base. Biglari referred to the current board and management as disconnected, claiming they had mismanaged acquisitions and store openings, and failed to establish a successful transformation plan.
Proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis advised shareholders to consider voting against Dávila based on these concerns. However, neither firm recommended removing the CEO, Julie Felss Masino, from her position.
The company responded to Biglari’s campaign by labeling it a “costly and distracting” effort that had not brought about successful changes in the past. Cracker Barrel reaffirmed its commitment to its core values, emphasizing family, hard work, and home-cooked meals. The company’s leadership expressed determination to return to growth while honoring the tradition that has made Cracker Barrel a popular choice for families.
In a concluding statement, they reiterated their focus on providing quality food and experiences, aiming to welcome families for many years to come while enhancing value for shareholders.
