Cracker Barrel Stock Slips After Earnings. Its Logo Fiasco Lingers.

Cracker Barrel restored the “Old Timer” character to its logo after an outcry from customers and political conservatives. (Joe Raedle/Getty Images)

Key Points

• Cracker Barrel’s stock fell 8% in premarket trading after reporting lower-than-expected quarterly revenue of $797.2 million.
• Quarterly sales decreased 5.7% from the prior year, and the net loss was $24.6 million, down 608% from a $4.8 million profit.
• The company lowered its fiscal year 2026 revenue outlook to between $3.2 billion and $3.3 billion, from $3.35 billion to $3.45 billion.

Cracker Barrel Old Country Store stock recovered most of its early losses Wednesday after the company reported earnings that beat expectations, but lower-than-expected revenue.

Cracker Barrel stock was down 0.1% at 10:30 a.m. on Wednesday, after being down 8% in premarket trading. The stock was down 49% this year as of Tuesday’s close.

The $797.2 million in quarterly sales were down 5.7% from the year-ago first quarter, and its net loss of $24.6 million was down 608% from the profit of $4.8 million in the year-ago quarter.

For the first quarter of its 2026 fiscal year ended Oct. 31, analysts polled by FactSet expected the restaurant operator to report a loss of 79 cents a share on revenue of $800 million, rather than a the actual loss of 74 cents. In its previous first quarter, Cracker Barrel reported earnings of 45 cents a share on $845 million in revenue. Same-store sales rose 2.1%.

The Tennessee-based chain said same-store sales fell 4.7% in its restaurants, and fell 8.5% in its retail stores. Analysts polled by FactSet had expected a 3.9% drop in restaurants, and a 7.4% drop in stores.

Its average revenue per location during the quarter, excluding its Maple Street Biscuit Company locations, fell to $966,500, from $1.01 million in the previous first quarter. And its average retail sales in its stores fell to $233,100 per location, from $245,600. Its store count declined to 710, from 727 in the year-ago-quarter, mostly because of Maple Street Biscuit Company closures.

Cracker Barrel also lowered its full-year revenue outlook for fiscal 2026, to between 3.2 billion and $3.3 billion, down from its previous forecast of $3.35 billion to $3.45 billion.

It projects adjusted full-year earnings before interest, taxes, depreciation, and amortization of $70 million to $110 million, down from a previous range of $150 million to $190 million.

“First quarter results were below our expectations amid unique and ongoing headwinds,” President and CEO Julie Masino said. “We have adjusted our operational initiatives, menu, and marketing to ensure we are consistently delivering delicious food and exceptional experiences. Additionally, we are executing a variety of cost savings initiatives to bolster our financial performance. Although our recovery will take time, our teams are more committed than ever, and we are confident that we will regain momentum.”

The earnings were expected show how the homestyle restaurant chain is recovering from a backlash related to its controversial logo redesign.

Measures introduced under Masino to streamline operations, improve profitability, and bring in more customers have caused grumbling among some longtime customers, who complain that the food isn’t as good as they remember.

Among other changes, Cracker Barrel now makes its signature biscuits in big batches and chills them, rather than rolling out the dough on demand. Green beans and other sides are prepared in ovens instead of in traditional stovetop kettles, and dishes are reheated when needed.

Some customers and critics accused the company of becoming “woke” because it added plant-based Impossible Sausage to its menu, even though diners could still order regular meat sausage.

Cracker Barrel shareholders last month voted to keep Masino, but not board member Gilbert Dávila, a marketing and diversity specialist and compensation committee chair, after the since-canceled logo change and rebranding campaign.

The company took the “Old Timer” character off its logo in August, a simplification to the company’s brand meant to attract a wider customer base. It restored the Old Timer to the logo after an outcry from customers and political conservatives, who railed against “woke” culture, including President Donald Trump.

Activist shareholder Sardar Biglari, who also owns and runs restaurant chain Steak ’n Shake, had urged shareholders to oust both Masino and Dávila, saying they had destroyed Cracker Barrel’s value and heritage, alienated customers, and wasted millions on failed initiatives including the rebranding campaign.

Both Institutional Shareholder Services and Glass Lewis had recommended that investors vote against Dávila, but not Masino.

Cracker Barrel ended its contract with Prophet, the marketing firm that had developed the new logo and modernized a few of its restaurants, and converted those locations back to its previous format.

For the full fiscal year that started Aug. 2 and ends in July 2026, analysts project adjusted earnings of 70 cents a share on sales of $3.38 billion. They expect same-store sales to drop 3.3%.

Write to Janet H. Cho at janet.cho@dowjones.com