Cracker Barrel shares dropped 8.7% in premarket trading following the release of the company’s fourth quarter and full-year fiscal 2025 results.
The restaurant chain issued sales guidance below Wall Street expectations, underscoring continued fallout from its recent rebranding misstep.
The downturn follows a backlash to the company’s August decision to replace its iconic “Uncle Herschel” logo with a streamlined version.
Cracker Barrel President and Chief Executive Officer Julie Masino said, “We thank our guests for sharing their voices and their passion for Cracker Barrel in recent weeks, and we’ve listened, switching back to our ‘Old Timer’ logo, hitting pause on remodels, and placing an even bigger emphasis in the kitchen and other areas that enhance the guest experience. Many elements of our plan are working well and delivering results, as evidenced by five consecutive quarters of comparable store restaurant sales increases and 9% adjusted EBITDA growth in fiscal 2025.”
Looking ahead, Masino stated, “there is much to be optimistic about, and our teams are focused on getting back to the momentum we created last fiscal year.”
In the earnings release, the company forecasts fiscal 2026 revenue of $3.35 billion to $3.45 billion, short of analysts’ $3.52 billion estimate.
Craig Pommells, the company’s CFO, confirmed that the controversy has decreased traffic since the logo change.
In 2026 foot traffic is expected to decline 4% to 7% over the next year, with declines in the first quarter potentially reaching 8%.
By CEO NA Editorial Staff
