Cracker Barrel says recovery from logo fallout is ahead of schedule
Traffic is still down, but moving in the right direction, prompting the company to raise its revenue guidance for the fiscal year.
June 10, 2026
Customers are returning to Cracker Barrel faster than the company was expecting after last fall’s new-logo debacle sparked severe traffic declines.
Same-store restaurant sales in the quarter ended May 1 fell 2.6% year over year, a big improvement over the 7.1% decline in the previous quarter. Traffic was down 6.7%, compared to negative 10% in the prior quarter, and the underlying trend is pointing up, executives said.
The family-dining chain was so encouraged by the performance that it upgraded its outlook for its fiscal year, which runs through July. It’s now expecting total revenue of $3.27 billion to $3.3 billion, up from $3.24 billion to $3.27 billion previously.
That’s despite a tough comparison for this current quarter. Same-store sales rose 5.4% at the chain last summer, before consumers lashed out over a modernized logo and remodel plan that have since been scrapped.
“Again, the underlying trend is improving, and at this point we are over a month into the quarter,” CFO Craig Pommells said of the rosier estimate.
The better-than-expected results buoyed Cracker Barrel’s stock, which was up nearly 28% on Wednesday morning.
The company credited better operations and a steady drumbeat of menu additions for helping it to win back existing customers who may have strayed from the brand over the past year.
It has been focused on improving the consistency of its food and experience and said customer scores are reflecting that, including its Google star rating (up 4% year over year), food taste and service (5%) and temperature (7%).
Customers are also responding to Cracker Barrel’s strategy of bringing old favorites back to the menu, such as Sugar Cured and Country Ham dinners in the spring. For summer, popular Campfire Meals are returning, this time with a morning option, the Campfire Breakfast Skillet.
The chain believes it also has an advantage on value at a time when consumers are continuing to feel pressure from inflation. The average Cracker Barrel customer spends $15.85 for their meal, compared to $27 in casual dining and $19 in family dining, said CEO Julie Masino.
It has made some moves to both maintain that value and get customers to spend a little more, adding bundled duos and trios as well as the option to add more sides or breakfast proteins for an additional fee.
Lebanon, Tenn.-based Cracker Barrel did acknowledge that high gas prices could be a potential headwind going into the summer, and noted that it has seen softer demand from lower-income consumers. That helped inform a new marketing campaign, the Fuel Your Summer Road Trip Sweepstakes, which will give loyalty members a chance to win a $500 Cracker Barrel gift card and a $500 gas gift card with the purchase of an entree. Cracker Barrel will pick 25 winners each week from May 19 to July 26, with $250,000 in total prizes awarded.
“I think it really speaks to what people are feeling out there right now in terms of groceries and food are more expensive and gas is more expensive,” Masino said. “In a Cracker Barrel, we want people to still be able to enjoy their summer and know we're an affordable option for them.”
The company has made strides on the bottom line as well. It significantly increased its expectations for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the fiscal year, to $120 million to $125 million, from $80 million to $100 million — a 30% difference.
Executives largely credited efforts to boost check size as well as better operations that have cut down on food waste and labor costs.
“[Employees] are very focused on taking care of the guests, but also making sure that they're doing things properly,” Masino said. “That's improving waste, that's improving the scheduling. All of those things are coming together really, really nicely.”
Cracker Barrel's gift shops are also showing momentum. Retail same-store sales fell 1.8% in the quarter, marking the first time in over four years that Cracker Barrel’s shops outperformed its restaurants on same-store sales. Retail accounted for about 17% of the chain’s revenue in the quarter.
Masino said SKU rationalization, a new markdown strategy, and better merchandising, such as lower sight lines and wider aisles, are helping to bolster the retail business. Collectible salt and pepper shakers are selling well after taking off on social media, and a new selection of fidget and sensory toys have been popular with kids. Patriotic “American Heritage” items tied to America’s 250th birthday are also flying off the shelves.
Cracker Barrel benefited from some tariff relief following the Supreme Court ruling that deemed many of the Trump administration’s tariffs to be illegal. The chain filed a claim for $17 million in tariff refunds and received $5 million this quarter, which it expects to reinvest this fiscal year. It could see further reimbursements but has not factored that into its forecast for the year.
The company finished the quarter with 657 Cracker Barrel locations and 52 Maple Street Biscuit Co. stores.
About the Author
Joe Guszkowski
Senior editor, Restaurant Business
Joe Guszkowski is a senior editor with Restaurant Business covering technology and casual-dining chains.
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