Cracker Barrel now expects fewer diners in the months ahead, and the stock is plunging

By Bill Peters

Restaurant chain says it plans to focus on 'nostalgia' to win back customers, after a logo change and remodeling efforts backfired

Cracker Barrel said it expects a same-store traffic decline of 4% to 7% for fiscal 2026.

Shares of Cracker Barrel Old Country Store Inc. slid more than 9% after hours on Wednesday after the Americana-themed restaurant chain forecast falling traffic in the months ahead, in the wake of a logo change and remodeling plans that turned off consumers.

Executives at the chain - known for its breakfast and meatloaf dishes, as well as its rocking chairs, fireplaces and games - said they expect a same-store traffic decline of 4% to 7% over its fiscal 2026. Cracker Barrel's (CBRL) fiscal year runs through July.

Management also forecast total revenue of $3.35 billion to $3.45 billion over that period. Wall Street was expecting revenue of $3.52 billion.

The chain issued the forecast after restoring its old logo, after diners and conservatives reacted angrily to a newer, pared-back one. This month, it also suspended remodeling plans, intended to make stores brighter and more welcoming, after a backlash response from customers who wanted it to keep its home-spun atmosphere.

Since Aug. 19, when Cracker Barrel initially changed its logo, customer traffic has fallen around 8%, Chief Financial Officer Craig Pommells said during the company's earnings call on Wednesday. He said the drop in demand was a bit more pronounced in the southeastern U.S., excluding Florida.

"We conducted extensive research to inform our strategic plan," Chief Executive Julie Masino said during that call. "But what cannot be captured in data is how much our guests see themselves and their own story in the Cracker Barrel experience, which is what's led to such a strong response to these changes."

The reversal on the logo and the store refreshes comes as Cracker Barrel tries to balance customers' nostalgia with efforts to stay competitive in a rapidly changing restaurant landscape.

"The choices people have, their expectations around food and experience, the way they travel and their technology have all changed dramatically over the last decade, and the company had not kept pace," Masino said during the call.

Masino said the company had rolled out a new marketing campaign focusing on "nostalgia around the brand" to win back customers. The four remodeled locations would have their older, traditional interiors restored, she said.

She also argued that the logo change and the remodels were only two pieces of a bigger plan to improve food quality and service, after years of underperformance. But analysts have noted that the remodel effort was set to take place over multiple years, raising questions about spending and sales in the years to come.

Cracker Barrel has tried compete more aggressively on dinner, as rival sit-down chains offer more value deals to entice customers grappling with higher costs of living. The chain is also trying maintain and repair restaurants and improve kitchen service.

The chain has brought old favorites back to its menu, while introducing newer ones, like pot roast and strip steak. It has tried to make its biscuits better, while changing up prep work for items like meatloaf and green beans. And amid the discounting fray, Masino called out Cracker Barrel's own deals priced at $10.99.

In Cracker Barrel's fiscal fourth quarter, revenue was $868 million. Same-store restaurant sales rose 5.4%. The company reported adjusted earnings of 74 cents.

Analysts polled by FactSet expected Cracker Barrel to report adjusted earnings of 77 cents a share for its fiscal fourth quarter, with revenue of $854.8 million and a same-store sales gain of 4%.

During Wednesday's call, Masino said that Cracker Barrel on Thursday would launch an initiative called "Front Porch Feedback," which allows rewards members a chance to share their thoughts about the restaurant chain. The company on Wednesday also said its board authorized a new stock-buyback program of up to $100 million.

In June - before the outrage over the logo change - Cracker Barrel had expressed optimism over the consumer response to those remodels, but said 2025 "had been a "a year of testing and learning" on remodels, and that it would share more about its approach to in September.

Truist analyst Jake Bartlett has remained optimistic on the company, citing its efforts to improve service and refresh its menu.

"The rebranding backlash has driven a significant dip in sales and a strategic pivot, but we expect potential positive catalysts," such as increased cash return and a solid margin outlook, he said in a research note on Monday.

He said that the chain's move away from remodels was "a positive," arguing it would not dramatically change sales growth and would increase its long-term free cash flow.

Still, Citi analyst Jon Tower recently said the plans to abandon remodels "ultimately adds less visibility into an already challenged story, in our view."

-Bill Peters

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09-17-25 2048ET