Death of American staple as CEO tanks her own company's stock by announcing they're 'not as relevant' anymore

An iconic American eatery's stock has plummeted in recent week after the company's CEO said the restaurant is no longer 'relevant'.

Cracker Barrel, the Southern country-themed restaurants with 662 locations across the nation, has been diminishing in popularity over the past decade - with its loyal clientele of elderly people failing to return after the pandemic. 

The business tanked even more when its chief executive Julie Felss Masino told investors, 'We're just not as relevant as we once were.'

While speaking on an investor call, Masino, who took over the CEO position nine months ago, admitted, 'Some of our recipes and processes haven't evolved in decades.' 

Cracker Barrel is a U.S. chain of restaurants with a Southern country theme - known for serving all-American dishes like biscuits and gravy and fried chicken

Since the call, the 54-year-old company's shares fell by nearly 20 percent. 

On Thursday, Cracker Barrel traded as low as $45.35 - a 52-week low that marked its lowest level in over a decade. 

The stock closed today at $45.67 - down 2.1 per cent since Masino's comments. 

Cracker Barrel's yearly dividend was slashed from $1.30 per share to just 25 cents. 

Last Thursday, the Southern eatery announced plans to spend $700 million over the next three years to drive up its popularity. 

The restaurant rose to prominence after it was founded in 1969 as patrons flocked to its all-American dishes, like biscuits and gravy and fried chicken. 

But as its footfall plummeted in recent years, company management believe that some of the restaurant's problems can be fixed by updating the menu and marketing, as well as 'refreshing the interior and exterior' with a 'different color palette.'

Two of the stores have already been revamped with a makeover and 10 others are experimenting with a refreshed menu. 

Cracker Barrel is cutting 20 items from the traditional menu and replacing them with such dishes as 'premium savory chicken and rice, slow-braised pot roast and hashbrown casserole Shepherd's Pie.' The new menu items will be showcased this fall.

Cracker Barrel's stock has plummeted in recent week after the company's CEO said the restaurant is no longer 'relevant'

The business tanked even more when its chief executive Julie Felss Masino told investors, 'We're just not as relevant as we once were'

However, management don't anticipate the expensive re-brand to pay off until late 2026 and 2027.

Cracker Barrel has lost a significant 16 percent of diners over the past four years - and the trend is ongoing. 

'A big reason the stock is down is that there wasn't much of a plan,' Truist analyst Jake Bartlett told the New York Post. 

'They announced a plan for a plan but they didn't give investors enough information to judge whether reinvesting in the stores was a credible plan to address the traffic losses.'

One particular obstacle that the company is facing is attracting young customers. 'They have a lot of senior consumers, so long term they need to migrate away from that consumer,' Bartlett said.

However the company, which faced backlash for its anti-LGBT policies in the 1990s, has had a hard time keeping its senior clientele while bringing in Gen Z customers. 

Last year, Cracker Barrel was accused of 'going woke' when the restaurant lined its front porches with rainbow-colored rocking chairs during Pride Month - and customers even boycotted the chain, which has locations in 45 states. 

Cracker Barrel has lost a significant 16 percent of diners over the past four years - and the trend is ongoing

Cracker Barrel isn't the only classic American chain struggling to rally customers. The iconic casual seafood chain Red Lobster filed for Chapter 11 bankruptcy protection earlier this week after closing almost 100 restaurants. 

The seafood chain, which has closed restaurants in 27 states, was struggling with rising lease and labor costs in recent years and also promotions like its iconic all-you-can-eat shrimp deal that backfired.

Applebee's has also been rapidly shutting down locations - with 35 closures just this year.

The American grill chain, famous for its $10 burgers and 'dollaritas', closed 46 of its more than 1,500 locations due to 'underperformance' last year.

The franchise - which competes with the likes of Waffle House and Denny's - has been shutting hundreds of restaurants since 2017.