TLDR
- Cracker Barrel (CBRL) reports Q4 earnings Wednesday with analysts expecting revenue of $845.8M, down 4.4% year-over-year
- Logo controversy in August caused stock to drop 15% in one day before company reversed the decision
- Restaurant comparable sales expected to rise 3.6% while retail sales projected to fall 2%
- Stock down 3% year-to-date, currently trading around $51-52 per share
- CEO had positioned logo change as part of broader strategy to attract new customers
Cracker Barrel Old Country Store prepares to face investors Wednesday when it releases quarterly earnings. The restaurant chain has had a turbulent few months following a controversial logo change that sparked customer backlash.
The company expects to report revenue of $845.8 million for the quarter. This represents a 4.4% decline from the same period last year. Earnings are projected at 77 cents per share, down from 98 cents in the prior year period.
The financial results come after a summer filled with drama over the company’s attempt to modernize its image. In August, Cracker Barrel unveiled a streamlined logo as part of what CEO Julie Felss Masino called an effort to “open the aperture” for new customers.
The change didn’t go as planned. Customer pushback was swift and harsh. Social media lit up with complaints from longtime patrons who felt the company was abandoning its traditional roots.
Stock Takes a Hit
The controversy hit the stock price hard. On August 21, shares plummeted as much as 15% during intraday trading. The sell-off reflected investor concerns about alienating the chain’s core customer base.
President Donald Trump weighed in on the controversy, calling the logo change a mistake. His comments added fuel to the fire of customer discontent.
Faced with mounting pressure, Cracker Barrel quickly reversed course. The company scrapped the new logo within days of the backlash. Management also put the brakes on planned store renovations that would have given locations a modern farmhouse look.
The restaurant segment shows some promise despite the turmoil. Analysts expect comparable restaurant sales to increase 3.6% for the quarter. This would mark a positive trend for the dining business.
However, the retail side of the business faces headwinds. Retail sales are expected to decline 2% during the period. This decline could offset some of the gains from restaurant operations.
Financial Performance Under Pressure
Cracker Barrel’s stock performance has been lackluster in 2025. Shares have fallen 3% year-to-date through Tuesday’s close. The stock closed at $51.21 on Tuesday, down 2.25% for the day.
Wall Street analysts maintain a cautious outlook on the shares. The average price target stands at $55.00, suggesting modest upside potential from current levels. Seven analysts provided targets ranging from a low of $47.00 to a high of $69.00.
The consensus recommendation from 10 brokerage firms rates the stock as a “Hold.” This rating reflects uncertainty about the company’s ability to execute its turnaround strategy effectively.
Cracker Barrel operates more than 600 locations across the United States. The chain has built its brand around traditional Southern comfort food and country store merchandise.
The company’s struggles reflect broader challenges in the casual dining sector. Many chains face pressure from changing consumer preferences and increased competition from fast-casual restaurants.
Management had positioned the logo change as part of a comprehensive strategy to attract younger customers. The goal was to maintain the brand’s core appeal while expanding its reach to new demographics.
The quick reversal on the logo suggests management may need to find more subtle ways to modernize the brand. Any future changes will likely require more careful consideration of customer sentiment.
Earnings are scheduled for release after Wednesday’s market close. Investors will be watching for commentary on the company’s path forward following the logo controversy.
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