:max_bytes(150000):strip_icc()/GettyImages-1797517951-2a7480f410b946c19a427c91f8e06f97.jpg "Cracker Barrel Is Still Feeling the Effects of Its Rebranding Debacle. Stock Hits Lowest Level Since 2009.")
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Key Takeaways
- Cracker Barrel Old Country Store reported weak sales as the blowback from its unpopular rebranding effort continues.
- The restaurant chain’s revenue and comparable store sales slumped, and the company cut its full-year outlook.
- The company’s shares hit their lowest level since early 2009 on Wednesday morning, and have lost half their value since the start of the year.
The fallout continues over Cracker Barrel Old Country Store’s (CBRL) ill-fated logo change and restaurant revamp.
Shares of the country-themed chain fell as much as 6% in early trading Wednesday, hitting their lowest level since early 2009, after the company posted mixed results and slashed its guidance.
Why This News Is Significant
Cracker Barrel continues to suffer financially after customer backlash to its logo change and restaurant updates earlier this year. The company’s share price has plunged since those changes were initially unveiled, underscoring the impact that big strategic changes can have on a company’s outlook.
Cracker Barrel reported first-quarter fiscal 2026 revenue declined 5.8% to $797.2 million, missing Visible Alpha estimates by about $1.8 million. Restaurant comparable store sales slid 4.7%, and retail comparable store sales sank 8.5%, both missing forecasts as well. The company’s adjusted loss per share of 74 cents was better than anticipated.
The company is facing “unique and ongoing headwinds,” CEO Julie Masino said in a press release. “We have adjusted our operational initiatives, menu, and marketing to ensure we are consistently delivering delicious food and exceptional experiences,” she said, adding that Cracker Barrel is “executing a variety of cost savings initiatives” to boost its financial performance.
The chain was rocked earlier this year when it removed the man and barrel on its logo, and made adjustments in its menu and kitchen to improve efficiency. The negative reaction from customers was immediate, leading Cracker Barrel to restore the old logo and revert to previous meal offerings and cooking methods.
The company now sees full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $70 million to $110 million, down from its earlier outlook of $150 million to $190 million. It predicts revenue of $3.20 billion to $3.30 billion versus its previous projection of $3.35 billion to $3.45 billion.
Cracker Barrel Old Country Store shares have lost more than 60% of their value since hitting their high for the year in late July.
