Cracker Barrel has revealed how the recent controversy surrounding its logo has affected sales.
Newsweek has reached out to Cracker Barrel outside of regular working hours via email for comment.
Why It Matters
In August, Cracker Barrel changed its logo for the first time in 48 years, a move that prompted backlash online. The move was part of an “All the More” brand campaign, designed to enhance aesthetics. Remodels to restaurants were also planned.
The backlash snowballed and ultimately got so enormous that it prompted a response from President Donald Trump. In the wake of the intense negative reaction, Cracker Barrel ultimately decided to retain its old logo and canceled the restaurant remodel.
What To Know
In the first earnings call since the fallout over the logo, Cracker Barrel reported a 5.4 percent same-store sales growth.
Revenue has declined by 2.9 percent. These results cover the period that ended on August 1 and reflect the performance prior to the fallout over the rebrand.
The company’s CFO, Craig Pommells, has shared how the fallout has impacted the brand, revealing that over the past month, traffic has declined by 8 percent. If this trend is to continue, the company is estimating that traffic will likely see a decline of between 4 and 7 percent for the 2026 fiscal year.
In after hours trading on Wednesday, following the earnings call, shares in the company dropped by 9 percent.
The company’s loyalty program, though, is growing, having gained 300,000 new members in the last four weeks.
Julie Felss Masino, the company’s CEO, said during a conference call with investors that there is “a lot to be optimistic about.”
What People Are Saying
Julie Felss Masino, the CEO of Cracker Barrel, speaking during a conference call with investors on Wednesday: “What cannot 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.”
Cracker Barrel, in a statement responding to the backlash in September: “You’ve shared your voices in recent weeks not just on our logo, but also on our restaurants. We’re continuing to listen. Today, we’re suspending our remodels. If your restaurant hasn’t been remodeled, you don’t need to worry, it won’t be. With our recent announcement that our ‘Old Timer’ logo will remain, along with our bigger focus in the kitchen and on your plate, we hope that today’s step reinforces that we hear you.”
What’s Next
In a September statement, Cracker Barrel said that it plans to prioritize menu updates and kitchen efficiency as part of its transformation plan.
In the wake of the controversy surrounding the rebrand, there were calls for Masino to resign, but Cracker Barrel has given no indication that she will be leaving the company.
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