Cracker Barrel posted lower-than-expected sales in its fiscal first quarter and trimmed its revenue forecast for the year as it continued to feel the fallout from a botched plan to revamp its logo and restaurants.
The Lebanon, Tennessee-based restaurant chain said Tuesday its revenue fell 5.7 per cent to US$797.2 million in the three months ending Oct. 31. That was lower than the US$800 million Wall Street anticipated, according to analysts polled by FactSet.
Cracker Barrel said its same-store restaurant sales dropped 4.7 per cent while sales in its retail shops dropped 8.5 per cent. Those declines were also slightly higher than analysts forecast.
Cracker Barrel said it now expects total revenue of US$3.2 billion to US$3.3 billion in its 2026 fiscal year. That’s down from US$3.35 billion to US$3.45 billion previously.
Cracker Barrel shares fell more than 10 per cent in after-hours trading Tuesday.
Cracker Barrel announced in August that it was simplifying the chain’s logo as part of a larger plan to modernize the chain’s dark, antique-filled restaurants.
But the move had disastrous consequences. Fans didn’t like that the new logo didn’t include Cracker Barrel’s longtime mascot, an overall-clad man leaning on a barrel, or the words “Old Country Store.” They also rebelled against the store redesigns.
Cracker Barrel backtracked a week later, saying it would keep the logo. In September, the company also suspended its plans to remodel stores. The chain operates around 650 restaurants nationwide, with many in Texas, Florida and Tennessee.
Dee-ann Durbin, The Associated Press
