"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% to $797.2 million in the three months ending Oct. 31. That was lower than the $800 million Wall Street anticipated, according to analysts polled by FactSet."
"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."
Revenue fell 5.7% to $797.2 million in the three months ending Oct. 31, missing the $800 million analysts anticipated. Same-store restaurant sales dropped 4.7% while retail shop sales declined 8.5%. Full-year fiscal 2026 revenue guidance was lowered to $3.2 billion to $3.3 billion from $3.35 billion to $3.45 billion, and adjusted pre-tax earnings guidance was cut to $70 million to $110 million from $150 million to $190 million. Shares fell more than 10% in after-hours trading. A proposed logo and store redesign that removed the mascot and “Old Country Store” drew heavy backlash, prompting a reversal and suspension of remodel plans. The chain operates about 650 restaurants nationwide.
Read at Fast Company
Unable to calculate read time
Collection
[
|
...
]