Cracker Barrel's stock has taken a beating since the restaurant chain held an investor call in which its new CEO admitted the Southern country restaurant chain isn't as "relevant" as it once was.

Julie Felss Masino, who became Cracker Barrel's CEO nine months ago, told investors during the May 16 call that the 54-year-old eatery "was not delivering the financial results that shareholders deserve."

"Cracker Barrel is a great concept and a great company," Masino said. "... But to ignite growth, we must revitalize the brand."

Before Masino and Cracker Barrel's leadership held the meeting, the company's stock hovered around $60 per share, but a day after the call, it dropped almost 20%, to about $48 per share, according to NASDAQ.

The stock closed Thursday at $45.75 per share.

'Some of our recipes and processes haven't evolved in decades,' CEO Julie Felss Masino says

The reason for the call involved laying out a 10-plus-year strategic plan for Cracker Barrel that would improve margins and growth potential, according to Masino.

Since Cracker Barrel's 2019 fiscal year, the company's store traffic year to date is "down approximately 16%," Masino told investors.

"Although the casual dining industry is also significantly down during this period, the reality is we've lost some market share, especially at dinner," the CEO said.

Masino attributed the decline in the company to the COVID-19 pandemic, inflation, a lack of relevancy and a stagnant menu.

"We have a lot of menu items but some of our recipes and processes haven't evolved in decades," Masino said. "While there are examples where this makes complete sense, like handmade dumplings and biscuits for example, there are others where it does not like hand cutting lettuce and pineapple."

This fall, Cracker Barrel plans to remove 20 items from its menu and replace them with dishes such as “premium savory chicken and rice, slow-braised pot roast and hashbrown casserole Shepherd’s Pie," Masino told investors.

She did not say which menu items will be removed.

Cracker Barrel to spend $700 million to combat decline in traffic

To assist in revamping Cracker Barrel, the company hired an industrial engineering firm to improve its business model, find ways to improve efficiencies, simplify its processes and reduce the amount of "fixed labor currently required in the back of house," according to Masino.

Other tactics the Tennessee-based chain is employing include conducting a full review of its menu to determine what items are profitable or not, using data science and tools to enhance pricing capabilities and remaining focused on third-party delivery and catering, Masino said.

Although a strategic plan is in place, Cracker Barrel expects its third and fourth-quarter financial results for fiscal year 2024 to be "below its previous expectations, primarily due to weaker than anticipated traffic," according to a company news release.

To combat the decline in traffic, Cracker Barrel intends to spend as much as $700 million over the next three years, including on marketing, its menu and "refreshing the interior and exterior" of its restaurants with a "different color palette," Masino said during the call.

The expectation is for the new strategic plan and spending to result in fiscal 2027 sales of approximately $3.8 billion to $3.9 billion, according to Cracker Barrel's release.

"Cracker Barrel shared its multi-year strategic plan last week, which includes investing more in our stores to freshen up our approach over time," the company said in a statement emailed to USA TODAY. "We are excited about what this means for our guest experience, including refreshed restaurants, and delivering food and an experience guests love. This also includes an update on our retail assortments to ensure our products are relevant to our guests, as well as investment in our team member experience. As we execute our plans, we believe we’ll create substantial value for all our stakeholders and will set the stage for Cracker Barrel to thrive for decades to come."