"Cracker Barrel said Wednesday it expects lower sales and weaker customer traffic in the coming year as the controversy over its planned logo change continues to play out. In a conference call with investors, Cracker Barrel said traffic at its restaurants was down 1% in early August, before it announced it was adopting a more simplified logo. The new logo dropped the image of an older man in overalls leaning on a barrel and removed the words "Old Country Store.""
"But after the announcement on Aug. 18 and the outcry that followed from many longtime fans, restaurant traffic dropped 8%. Cracker Barrel said Wednesday that traffic will likely be down between 7% and 8% in the first quarter and could decline 4% to 7% for the full 2026 fiscal year. Cracker Barrel's shares dropped 9% in after-hours trading Wednesday and were down 5.3% in midday Thursday trading."
""What can not be captured in data is how much our guests see themselves and their own story in the Cracker Barrel experience, which is what's led to such a strong response to these changes," Masino said during a conference call with investors Wednesday. Masino said Cracker Barrel will continue other aspects of its plan to boost sales and attract new customers, including menu innovation and kitchen upgrades. She said marketing will lean into nostalgia and fans' love for Uncle Herschel, the character pictured on the brand's logo."
Cracker Barrel experienced a sharp decline in restaurant traffic after unveiling a simplified logo that removed the older man image and the words "Old Country Store." Traffic fell 1% in early August before the logo announcement and dropped 8% after the Aug. 18 announcement. The company expects traffic to be down 7%–8% in the first quarter and 4%–7% for fiscal 2026, and its shares declined in response. The company has scrapped the new logo, paused planned remodels, and will revert recently remodeled locations. The company will continue menu innovation, kitchen upgrades, nostalgia-focused marketing, and loyalty program growth.
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