New York
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Customer visits to Cracker Barrel fell after intense backlash to its proposed logo change and renovations, the company said in its earnings call Wednesday, and it expects a continued decline in the coming months.
Traffic has fallen 8% since the chain initially changed its logo on August 19, the company said. If trends continue, it expects a traffic decline of 7% to 8% for the rest of the first quarter of its 2026 financial year.
The company said it expects earnings for its first quarter, which began August 1, to be “significantly below” the prior year due to both lower traffic and roughly $16 million in investments in advertising and marketing.
Cracker Barrel shares closed down 3.16% on Wednesday and fell 9.58% in after hours trading.
The old-timey chain had recently scrapped major parts of its turnaround plan after right-wing backlash. It dropped its minimalist logo last month, and then halted restaurant remodels last week.
The backlash began when Cracker Barrel rolled out a new logo that got rid of its “old-timer” figure and the barrel in August. It sent the stock sinking as much as 12% amid backlash stoked by right-wing figures online. Even the president jumped in when the chain reverted back to its old logo.
“All of your fans very much appreciate it. Good luck into the future. Make lots of money and, most importantly, make your customers happy again!” Donald Trump posted on Truth Social.
The company’s earning report released Wednesday doesn’t include the impacts from the logo change saga. For the quarter ending August 1, restaurant same-store sales grew 5.4%, while retail same-store sales fell 0.8%. It was its fifth consecutive quarter of growing same-store restaurant sales, the company said.
Cracker Barrel’s CEO, Julie Masino, said during the earnings call that the company adjusted its investment plan after the logo change backlash.
“We’re moving ahead with a strong plan to regain traffic and the momentum we had a month ago. There is a lot to be optimistic about, and our teams are focused on getting back to a positive trajectory,” Masino said.
Cracker Barrel had plans to remodel its restaurant with a simpler layout, getting rid of some of the clutter, antiques and knickknacks the chain was known for. Cracker Barrel said it had only completed four remodels out of its 660 total locations by the time it paused the effort.
“You’ve shared your voices in recent weeks not just on our logo, but also on our restaurants,” the chain said on X earlier in September. “If your restaurant hasn’t been remodeled, you don’t need to worry, it won’t be.”
Cracker Barrel had wanted to attract new, younger customers to avoid the fate of bankrupt peers Red Lobster, Hooters and TGI Fridays. Its older customer base was visiting Cracker Barrel less often since the pandemic.
Its three-year, $700 million transformation plan through 2027 showed signs of working. The plan included making basic maintenance and repairs to restaurants and improving technology — as well as 25 to 30 remodels a year. It also included updated menus and improvements to kitchen operations.
Before the controversy, Cracker Barrel posted four straight quarters of comparable sales growth.
“Our transformation plan is working,” Masino said in June, adding later that month that people would perhaps grow to like the restaurant renovations. “People’s immediate reaction to things is like, ‘Oh, this isn’t the way it was,’ but they tend to come around,” she said.
CNN’s Nathaniel Meyersohn and Jordan Valinsky contributed reporting
