|
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 said its same-store restaurant sales dropped 4.7%
while sales in its retail shops dropped 8.5%. Those declines
were also slightly higher than analysts forecast.
Cracker Barrel said it now expects total revenue of $3.2 billion
to $3.3 billion in its 2026 fiscal year. That's down from $3.35
billion to $3.45 billion previously. The company also said it
expects adjusted pre-tax earnings of $70 million to $110
million, down from $150 million to $190 million previously.
Cracker Barrel shares fell more than 10% in after-hours trading
Tuesday.
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. The chain operates around 650 restaurants
nationwide, with many in Texas, Florida and Tennessee.
Cracker Barrel shareholders voted late last month to keep
company CEO Julie Felss Masino in place despite the logo
debacle.
But one of the company’s directors, Gilbert Davila, resigned
from Cracker Barrel’s board Thursday after preliminary results
indicated that shareholders rejected his reelection. Davila, who
joined Cracker Barrel’s board in 2020, is the president and CEO
of DMI Consulting, a multicultural marketing firm. He reviewed
Cracker Barrel’s advertising as part of his role on the board.
All contents © copyright 2025 Associated Press. All rights reserved
|
|
