Core Viewpoint - Cracker Barrel is experiencing a decline in restaurant traffic following a controversial logo change, which has led to a revised financial outlook for the upcoming fiscal years [1][5]. Group 1: Traffic and Revenue Impact - Traffic for the first half of August decreased by approximately 1% [1] - Following the logo change on August 19, traffic declined by about 8%, with expectations of a further decline of 7% to 8% if trends continue [2][5] - Total revenue for the quarter was reported at $868 million, reflecting a 4.4% increase [2] Group 2: Logo Change and Public Response - The company reverted to its original 'Old Timer' logo after significant public backlash against the new design [3][4] - The original logo features a southern man in a rocking chair, which was removed in the new design that faced mockery from fans [3] Group 3: Financial Outlook Adjustments - The company is adjusting its financial outlook for fiscal 2026 and has withdrawn guidance for 2027, now projecting total revenue for 2025 to be between $3.35 billion and $3.45 billion [5] - Wall Street had anticipated revenue of around $3.52 billion for fiscal year 2026 [5] Group 4: Future Plans and Investments - Cracker Barrel is planning to invest in public relations and marketing to mitigate the impact of the recent events [6] - The company is set to open two additional stores in 2025, although specific locations have not been disclosed [6] - Leadership expresses optimism about regaining momentum from the previous fiscal year [6] Group 5: Stock Performance - Following the earnings release, the company's stock fell approximately 10% and was down roughly 2% by the next trading day [7]
Cracker Barrel stock drops, chain expects restaurant traffic to fall after logo backlash
Yahoo Financeยท2025-09-18 16:09