Cracker Barrel shares tumble over 10% after logo fiasco forces chain to slash forecast

Core Viewpoint - Cracker Barrel reported lower-than-expected sales and reduced its revenue forecast for the fiscal year due to negative customer reactions to a logo and restaurant redesign initiative [1][4]. Financial Performance - Revenue fell 5.7% to $797.2 million for the three months ending October 31, below the anticipated $800 million [1][6]. - The company experienced a net loss of approximately $25 million, a significant decline from a profit of $4.8 million in the same period last year [2]. Sales Metrics - Same-store restaurant sales decreased by 4.7%, while retail shop sales dropped by 8.5%, both figures exceeding analysts' forecasts [3]. Revenue Forecast - The company now expects total revenue for the 2026 fiscal year to be between $3.2 billion and $3.3 billion, down from a previous estimate of $3.35 billion to $3.45 billion [4]. - Adjusted pre-tax earnings are now projected to be between $70 million and $110 million, reduced from an earlier forecast of $150 million to $190 million [4]. Customer Reaction - The new logo and store redesign faced backlash from customers, leading to a decision to revert to the original logo and suspend remodeling plans [5][8]. - The company operates around 650 restaurants across the U.S., with a significant presence in Texas, Florida, and Tennessee [8]. Leadership Changes - Despite the logo controversy, shareholders voted to retain CEO Julie Felss Masino [10]. - A board member, Gilbert Davila, resigned following preliminary results indicating shareholders rejected his reelection [9].