Cracker Barrel expects weaker sales as logo controversy lingers

Cracker Barrel on Wednesday told investors it expects lower sales and weaker restaurant traffic in the coming year as backlash to its planned logo change continues to unfold. In a conference call, the Lebanon, Tennessee-based chain said traffic was down about 1% in early August, before the company announced a more simplified logo. After the Aug. 18 reveal, which removed the image of an older man in overalls leaning on a barrel and the words Old Country Store, restaurant foot traffic slid 8%. Cracker Barrel projects traffic to fall between 7% and 8% in the first quarter and to decline about 4% to 7% for the full 2026 fiscal year, which began Aug. 2. The company’s shares fell about 9% in after-hours trading.

Cracker Barrel Chief Executive Julie Felss Masino said the company conducted extensive research before releasing the new logo and initiating a plan to remodel its roughly 660 U.S. restaurants. The company has since scrapped the new logo and paused the remodeling initiative. Four restaurants that had been remodeled will be transitioned back to their former decor, and remodels underway at 58 other locations will be halted. Masino emphasized that the decision reflects the company’s desire to align the brand with guests’ experiences and expectations, noting that the impression customers form about Cracker Barrel is not fully captured in data.

What cannot be measured by data, Masino added, is how much guests see themselves and their own stories in the Cracker Barrel experience, which has driven strong reactions to the changes. Cracker Barrel said it will continue pursuing other elements of its growth plan to boost sales and attract new customers, including menu innovations and kitchen upgrades. Marketing efforts will lean into nostalgia and the affection fans have for Uncle Herschel, the character historically pictured on the brand’s logo. The company also plans to grow its loyalty program, which now counts about 9 million members after adding roughly 300,000 in the last four weeks. Masino noted that one of the perks will allow guests to provide feedback after each restaurant visit.

The company reiterated a commitment to moving forward with programs designed to regain traffic and momentum, while acknowledging near-term headwinds from the logo controversy and the paused remodeling. Cracker Barrel said its revenue guidance for the 2026 fiscal year is in a range of $3.35 billion to $3.45 billion, which is below the $3.48 billion reported for the 2025 fiscal year. The company also expects a $25 million hit from U.S. tariffs on imported goods in 2026 and said it is adjusting certain products in its stores to mitigate the impact.

Cracker Barrel, which operates 660 restaurants in the United States, has not indicated plans to dispose of the current brand identity entirely but is recalibrating its approach to branding and customer engagement in light of the backlash. The latest forecast underscores how sensitive consumer sentiment can be to brand and experiential elements, even as the company pursues long-term strategies aimed at improving sales through menu innovation, improved kitchen efficiency, and a deeper connection with its loyal customer base.

Investors have watched closely for how Cracker Barrel will balance nostalgia-driven marketing with the need to modernize the brand. The company has emphasized continuity in areas beyond the logo, including menu offerings and guest experience improvements, to help stabilize traffic and revenue during the transition. Analysts will be assessing how the pause in remodeling and the shift in branding strategy influence traffic trends in the coming quarters, as the industry continues to contend with changing consumer dynamics and restaurant competition.