Cracker Barrel stock sinks as company cuts outlook after walking back logo update, store remodels

6

Cracker Barrel (CBRL) stock fell sharply late Wednesday as investors were disappointed by the company’s full-year outlook, which projected a drop in traffic and lower sales in the coming year.

The disappointing forecast comes after the company rolled back its logo revamp and plans to remake stores after a public outcry that eventually drew the attention of President Trump last month.

Cracker Barrel said total revenue for its fiscal year 2026, which began on Aug. 2, will fall between $3.35 billion-$3.45 billion with traffic expected to fall 4%-7% from the previous year. Wall Street expected revenue to come in closer to $3.52 billion for the year.

The company also pulled its outlook for its fiscal year 2027, for which it previously targeted revenue of $3.8 billion-$3.9 billion. Its stock fell as much as 10% late Wednesday.

In its fourth quarter, Cracker Barrel reported adjusted earnings per share of $0.74, a bit shy of the $0.76 that was expected, on revenue of $868 million, which came in above forecasts. Same-store restaurant sales rose 5.4%, ahead of the 3.5% expected by analysts. For its just-completed fiscal year, the company reported revenue of $3.48 billion, up less than 1% from a year ago.

“We thank our guests for sharing their voices and their passion for Cracker Barrel in recent weeks, and we’ve listened, switching back to our ‘Old Timer’ logo, hitting pause on remodels, and placing an even bigger emphasis in the kitchen and other areas that enhance the guest experience,” CEO Julie Masino said in a release.

“Looking ahead, there is much to be optimistic about, and our teams are focused on getting back to the momentum we created last fiscal year.”

In its upcoming fiscal year, Cracker Barrel expects capital expenditures will drop to a range of $135 million-$150 million, as the company is now forecasting no spending on remodeling stores. It plans to open 2 new Cracker Barrel stores in the year ahead.

Ahead of the results, the stock was down roughly 6% year-to-date compared to the S&P 500’s (^GSPC) 12% gain.

The company is also expecting adjusted EBITDA to take a hit in 2026, forecasting a range of $150 million-$190 million after reporting adjusted EBITDA of $224.3 million for its fiscal 2025.

Commodity inflation is expected to come in between 2.5%-3.5% in the year ahead, with hourly wage inflation of 3%-4% also weighing. Investors will be eager to hear more from the company around how its plans to proceed after last month’s failed rebranding exercise.

Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

Click here for all of the latest retail stock news and events to better inform your investing strategy