Cracker Barrel announced on Wednesday that it anticipates a decline in both sales and customer traffic in the upcoming year, as backlash continues over its recent logo change. During a conference call with investors, the company disclosed a 1% drop in restaurant traffic in early August, prior to unveiling a more streamlined logo. This new logo omits the iconic image of an older man in overalls leaning against a barrel, as well as the phrase “Old Country Store.” Following the announcement on August 18, customer traffic plummeted by 8%, prompting the company to project that traffic could decrease by 7% to 8% in the first quarter and between 4% to 7% for the entire fiscal year of 2026.
The immediate fallout was reflected in Cracker Barrel’s shares, which fell by 9% in after-hours trading on the same day. CEO Julie Felss Masino emphasized that the decision to alter the logo and embark on a remodeling initiative for its 660 U.S. locations was based on extensive market research. However, in light of the overwhelming negative response, the new logo has now been scrapped, and plans for remodels at 58 other locations have been placed on hold. The four restaurants that had already undergone remodeling—with updates such as new paint, lighting, and seating—will revert to their previous decor.
Masino acknowledged the emotional connection that customers have with the Cracker Barrel brand, stating, “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.” Despite the setbacks, she reassured investors that the company would pursue other strategies to improve sales and engage new customers. These include menu enhancements and kitchen upgrades, while marketing efforts will focus on nostalgia and the beloved character, Uncle Herschel, featured in the brand’s previous logo.
Additionally, Cracker Barrel is focused on expanding its loyalty program, which has seen significant growth over the past two years, now boasting 9 million members. In just the last month, the program added 300,000 new members, and upcoming perks will allow customers to provide feedback after each visit.
“We’re moving ahead with a strong plan to regain traffic and the momentum we had a month ago,” Masino said, expressing optimism about the company’s future. Cracker Barrel forecasts total revenues ranging from $3.35 billion to $3.45 billion for the 2026 fiscal year, which began on August 2, down from the $3.48 billion reported in 2025. The company also expects a $25 million impact from U.S. tariffs on imported goods and is adjusting its product offerings to mitigate this financial burden.
