Cracker Barrel logo backlash continues to hit sales
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Cracker Barrel reported its quarterly earnings on Tuesday. Photo: Paul Weaver/SOPA Images/LightRocket via Getty Images
Cracker Barrel's summer backlash over an aborted logo-and-store redesign continues to weigh on traffic and profits, executives said Tuesday, as the chain works to bring guests back.
Why it matters: The Tennessee-based chain was pulled into a political firestorm that shook its core customer base and forced a redesign reversal — fallout still shaping its recovery.
Driving the news: Cracker Barrel reported a 5.7% drop in revenue to $797.2 million and said same-store restaurant sales fell 4.7% and retail sales dropped 8.5%.
- Traffic fell 1% in early August but dropped about 9% for the rest of the quarter, and quarter-to-date traffic is down roughly 11%, executives said.
- Cracker Barrel stock fell 8.3% in after-hours trading Tuesday.
What they're saying: "The past few months have been difficult for Cracker Barrel and for our 70,000 team members," CEO Julie Masino said during Tuesday's earnings call.
- "We certainly have more work to do to regain the trust and confidence" of consumers who have been slower to return, Masino said.
State of play: CFO Craig Pommells said the company expects a slower recovery than previously projected, citing both the brand fallout and a softer industry backdrop.
- Cracker Barrel cut its full-year adjusted outlook to $70 million to $110 million, roughly half of what it had expected earlier this year.
Zoom in: Cracker Barrel is leaning into a back-to-basics turnaround that includes reversing parts of a kitchen overhaul that had hurt food consistency.
- The company is also restoring fan favorites like Uncle Hershel's Breakfast, Campfire Meals and chicken and rice, with more returning in 2026.
- "We are returning dishes to the menu that our guests have told us they love and miss," Masino said.
What's next: Cracker Barrel is amplifying its heritage messaging after the redesign controversy.
- "We are reassuring guests that the Cracker Barrel they love hasn't gone anywhere," Masino said.
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