Cracker Barrel is bracing for a challenging year ahead, anticipating lower sales and decreased customer traffic amid ongoing backlash over its recently announced logo change. During an investor conference call, the company revealed that restaurant traffic was already down 1% in early August, ahead of the logo’s debut. The new design, which eliminated the depiction of an elderly man in overalls and the phrase “Old Country Store,” was met with criticism from loyal patrons following its announcement on August 18, resulting in an 8% drop in traffic afterward.
The company now projects that customer traffic will likely decrease by 7% to 8% in the first quarter and could see a decline of 4% to 7% over the full 2026 fiscal year. In response to this downturn, Cracker Barrel’s shares fell by 9% in after-hours trading.
CEO Julie Felss Masino explained that the company conducted thorough research before implementing the new logo and embarking on a remodel of its 660 U.S. restaurants. However, due to the backlash, Cracker Barrel has decided to revert to its original logo and halt all remodeling efforts. The four restaurants that had already undergone renovations will be transitioned back to their previous decor, and further remodels planned for 58 additional locations will be paused.
Masino acknowledged the importance of the Cracker Barrel experience for its guests, emphasizing how deeply connected customers feel to the brand. “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,” she stated.
Despite the setback with the logo and remodels, Cracker Barrel is determined to revitalize its sales strategy. The company plans to focus on menu innovation and culinary upgrades while enhancing marketing efforts that celebrate nostalgia. Masino mentioned that the brand’s character, Uncle Herschel, would play a significant role in these efforts.
In addition, Cracker Barrel’s loyalty program is experiencing growth, boasting 9 million members, with 300,000 having joined in the past month alone. A new feature will allow loyalty members to provide feedback after dining experiences.
Masino expressed optimism for the future, stating, “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.” The Lebanon, Tennessee-based company anticipates total revenue between $3.35 billion and $3.45 billion for fiscal year 2026, a decrease from the $3.48 billion reported for fiscal year 2025. Additionally, Cracker Barrel expects to incur a $25 million impact from U.S. tariffs on imported goods during the upcoming fiscal year and is adjusting its product offerings to offset this financial hit.
