By DEE-ANN DURBIN
Cracker Barrel mentioned Wednesday it expects decrease gross sales and weaker buyer visitors within the coming yr because the controversy over its deliberate emblem change continues to play out.
In a convention name with traders, Cracker Barrel mentioned visitors at its eating places was down 1% in early August, earlier than it introduced it was adopting a extra simplified emblem. The brand new emblem dropped the picture of an older man in overalls leaning on a barrel and eliminated the phrases “Outdated Nation Retailer.”
However after the announcement on Aug. 18 and the outcry that adopted from many longtime followers, restaurant visitors dropped 8%. Cracker Barrel mentioned Wednesday that visitors will probably be down between 7% and eight% within the first quarter and will decline 4% to 7% for the complete 2026 fiscal yr.
Cracker Barrel’s shares dropped 9% in after-hours buying and selling Wednesday.
Cracker Barrel CEO Julie Felss Masino mentioned the corporate carried out intensive analysis earlier than releasing the brand new emblem and launching a plan to rework its 660 U.S. eating places. The corporate has since scrapped the brand new emblem and paused the transforming.
Masino mentioned the 4 eating places which have been reworked — with new paint, new lighting, extra snug seating and different modifications — shall be transitioned again to their former decor. Remodels that had begun at 58 different eating places can even be halted, she mentioned.
“What can’t be captured in information is how a lot our friends see themselves and their very own story within the Cracker Barrel expertise, which is what’s led to such a powerful response to those modifications,” Masino mentioned throughout a convention name with traders Wednesday.
Masino mentioned Cracker Barrel will proceed different points of its plan to spice up gross sales and entice new prospects, together with menu innovation and kitchen upgrades. She mentioned advertising will lean into nostalgia and followers’ love for Uncle Herschel, the character pictured on the model’s emblem.
The corporate can also be persevering with to develop its loyalty program. Masino mentioned the 2-year-old program now has 9 million members and gained 300,000 new members in simply the final 4 weeks. Masino mentioned one new loyalty perk would be the capability to offer the corporate suggestions after each restaurant go to.
“We’re shifting forward with a powerful plan to regain visitors and the momentum we had a month in the past,” Masino mentioned. “There’s a lot to be optimistic about.”
The Lebanon, Tennessee-based firm mentioned it expects whole income of $3.35 billion to $3.45 billion in its 2026 fiscal yr, which started Aug. 2. That’s decrease than the $3.48 billion Cracker Barrel reported in its 2025 fiscal yr.
It expects a $25 million hit because of U.S. tariffs on imported items within the 2026 fiscal yr. The corporate mentioned it’s adjusting among the merchandise bought in its shops to mitigate that.
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