Cracker Barrel Old Country Store is still fighting to regain its footing after a rebranding effort involving a new logo and redesigned dining rooms sparked widespread backlash last year.
In its second-quarter earnings call Wednesday for the 2026 fiscal year, the company reported revenue of $874.8 million, a 7.9% decrease from the same period last year. Comparable store restaurant sales fell 7.1%, while retail sales dipped.
Despite the sliding revenue, management executives noted that operational execution and guest metrics are improving. CEO Julie Masino highlighted that Google ratings hit 4.28, the company’s highest since 2020. Scores for food, service and value also rose between 4% and 5%.
Traffic increase and value focus
The chain continues to struggle with foot traffic, which declined 10.1% year over year for the quarter that ended Jan. 30.
“It was negative 10%-11% in November and December but down 9% in January,” chief financial officer Craig Pommels said. He also noted that January’s figures included a 0.5-point impact from bad weather.
This becomes the second straight quarter of major traffic declines at Cracker Barrel following backlash to a new logo and restaurant dining design that resulted in customers stepping away from the chain, according to Restaurant Business.
To combat the slump, Cracker Barrel is “leaning into value.” Masino attributed the slight improvement in January to the company’s loyalty program.
“We’re seeing movement there and that feels good to us because obviously an increasing frequency with people that know us and are already in our ecosystem is really important to us,” Masino said.
The chain’s loyalty program has 11 million members and has driven more than 40% of sales, Masino shared.
Cracker Barrel goes back to the basics
The company is finding success in customer returns by bringing back fan-favorite menu items and bundling value menu items.
Masino said the company made menu and bundling changes in January to improve margin, allowing guests to upgrade to three sides for a modest up-charge and add soup and salad for $5. Cracker Barrel also offered shareable and group value meals, like a $19.99 meals for two deal and a holiday kids meal that included a free toy up to $5. Masino shared early results were encouraging.
In addition to an improved value menu, customers saw the return of fan-favorite menu items like the country fried turkey, which sold out; the hamburger steak and eggs in the basket; and the sugar cured ham and country ham dinners. The chain’s spring menu launched in mid-February and includes carrot cake as a limited-time offering.
Financial outlook and cost-cutting
Cracker Barrel stock spiked around 7% in after-hours trading on Wednesday, according to Restaurant Business.
Executives at the Southern chain said they are seeing “green shoots” in traffic and guest experience results as the company continues to focus on improving day-to-day operations and reconnecting with its customer base, according to MarketBeat.
Cracker Barrel is also implementing several cost-cutting measures. According to Restaurant Business, the company initiated corporate layoffs expected to save the chain $20 million to $25 million annually. The company is also planning to reduce its advertising budget by up to $17 million for the remainder of the year.