India, July 27 -- Cracker Barrel's stock fell more than 3% after the company announced an unexpected leadership change, with CEO Julie Masino stepping down and former Bloomin' Brands CEO David Deno taking over. Julie Masino will officially step down as Cracker Barrel's CEO and board member on August 10.

Although leaving the CEO role, Masino will stay with the company as an adviser until October 9 to help ensure a smooth leadership transition. David Deno has been appointed as Cracker Barrel's new CEO and will also join the company's board of directors. Deno previously served as CEO of Bloomin' Brands, the company behind Outback Steakhouse and Carrabba's Italian Grill.

Independent Chairman Carl Berquist said the company selected Deno afte...