Core Insights - Cracker Barrel is focused on rebuilding customer trust following a logo controversy that contributed to a decline in sales over the past quarter [1][4] Financial Performance - For the financial quarter from August 1 to October 31, Cracker Barrel reported a revenue decrease of 5.7% compared to the same quarter the previous year [2] Brand Reputation Issues - The company is currently facing a brand reputation issue, which CEO Julie Felss Masino described as requiring a process of rebuilding trust with customers [4] - The backlash stemmed from a rebranding effort that included a new logo, which was later reversed after customer complaints [3][8] Menu and Staff Initiatives - Cracker Barrel is returning to its roots by reintroducing popular menu items such as Campfire Meals and Uncle Herschel's breakfast, and retraining staff on classic recipes [5] - The company sees this as an opportunity for both brand rebuilding and sales growth [6]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $797.2 million, down 5.7% from the prior year quarter [23] - Adjusted EBITDA was $7.2 million, or 0.9% of total revenue, compared to $45.8 million, or 5.4% of total revenue in the prior year [27] - GAAP earnings per diluted share were -$1.10, and adjusted earnings per diluted share were -$0.74 [27] Business Line Data and Key Metrics Changes - Restaurant revenue decreased 4.8% to $650.6 million, with comparable store restaurant sales down 4.7% [23] - Total retail revenue decreased 9.4% to $146.6 million, with comparable store retail sales down 8.5% [23] - Off-premise sales accounted for 18.1% of restaurant sales [23] Market Data and Key Metrics Changes - Traffic declined approximately 11% in the quarter, with a consistent trend between -10% and -11% over the last couple of months [28][62] - The company noted a decline in consumer sentiment and overall industry traffic compared to the summer [52] Company Strategy and Development Direction - The company is focusing on improving food quality and guest experience, with a multi-pronged plan to connect with guests through menu, messaging, and loyalty programs [11][12] - A restructuring of the corporate support center is underway to streamline operations and reduce costs, aiming for annualized G&A savings of approximately $20 million-$25 million [30] - The company is committed to maintaining food quality while pursuing cost savings and operational efficiency [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a difficult macro and industry backdrop, with plans to regain trust and confidence from guests [5][6] - The outlook for fiscal 2026 anticipates total revenue of $3.2 billion to $3.3 billion, reflecting a slower recovery than previously expected [29] - Management emphasized the importance of delivering consistent quality and hospitality to drive traffic recovery [34][68] Other Important Information - The company has launched several promotional initiatives, including a military discount and a toy promotion for kids' meals, to drive traffic [15][17] - The Cracker Barrel Rewards Loyalty Program has grown to over 10 million members, accounting for 40% of tracked sales [18] Q&A Session Summary Question: Advertising Spend Reduction - Management explained that the reduction in advertising spend is to align with current traffic levels and reduce non-guest-facing costs, with a planned decrease of $12 million-$16 million in advertising expenses for Q2 to Q4 [37][38] Question: Holiday Season Plans - Management confirmed that they are actively working to drive traffic during the holiday season with promotions and menu items that resonate with guests [41][45] Question: Updated Traffic Guidance - Management indicated that the updated traffic guidance for the year includes expectations of a decline of 8% to 10%, with potential recovery in the back half of the year [50][51] Question: Macro Pressures Impact - Management noted that consumer sentiment has softened and overall industry traffic has decreased, but performance across income cohorts has remained relatively stable [52][53] Question: Challenges with Operations Initiative - Management acknowledged challenges with the rollout of the operations initiative, which impacted food consistency and guest experience, leading to a rollback of certain changes [54][55] Question: Menu Innovation and Future Offerings - Management expressed confidence in upcoming menu innovations and the return of popular items, emphasizing a focus on guest feedback and maintaining quality [66][75]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $797.2 million, down 5.7% from the prior year quarter [23] - Adjusted EBITDA was $7.2 million, or 0.9% of total revenue, compared to $45.8 million, or 5.4% of total revenue in the prior year [27] - GAAP earnings per diluted share were negative $1.10, and adjusted earnings per diluted share were negative $0.74 [27] Business Line Data and Key Metrics Changes - Restaurant revenue decreased 4.8% to $650.6 million, with comparable store restaurant sales down 4.7% [23] - Total retail revenue decreased 9.4% to $146.6 million, with comparable store retail sales down 8.5% [23] - Off-premise sales accounted for 18.1% of restaurant sales [23] Market Data and Key Metrics Changes - Traffic declined approximately 11% in Q2, with a consistent trend of negative 10% to negative 11% over the last couple of months [28][62] - The company noted a decline in consumer sentiment and softer labor numbers compared to previous months [52] Company Strategy and Development Direction - The company is focusing on improving food quality and guest experience, with operational changes and menu adjustments [5][8] - A restructuring of the corporate support center is underway to streamline operations and reduce costs [20] - The company is implementing cost-saving measures while ensuring food quality and guest experience are not compromised [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a difficult macro and industry backdrop affecting performance, with plans to regain trust and confidence from guests [5][21] - The outlook for fiscal 2026 anticipates total revenue of $3.2-$3.3 billion, reflecting a slower recovery than previously expected [29] - Adjusted EBITDA for the full year is projected to be approximately $70 million-$110 million, depending on traffic recovery [31] Other Important Information - The company has launched several promotional initiatives to drive traffic, including a military discount and holiday promotions [15][16] - The Cracker Barrel Rewards Loyalty Program has grown to over 10 million members, accounting for 40% of tracked sales [18] Q&A Session Summary Question: Advertising spend reduction rationale - Management explained that the reduction in advertising spend is to align with current traffic levels and reduce non-guest-facing costs, with a planned decrease of $12-$16 million in advertising expenses for Q2 to Q4 [37][38] Question: Incremental plans for the holiday season - Management emphasized a commitment to driving traffic through great in-store experiences and promotions, including a toy promotion that integrates restaurant and retail [41][45] Question: Updated traffic guidance for the year - Management confirmed that the updated traffic guidance reflects a decline of approximately 8%-10%, with the potential for recovery in the second half of the year [50][51] Question: Impact of operational initiative challenges - Management acknowledged that challenges in rolling out operational initiatives did impact same-store sales and traffic, leading to a decision to revert to prior processes [54][55] Question: Disaggregating macro pressures on sales - Management indicated that while macro pressures are evident, the brand's recovery efforts and promotional initiatives are also influencing traffic trends [62][63]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $797.2 million, down 5.7% from the prior year quarter [23] - Adjusted EBITDA was $7.2 million, or 0.9% of total revenue, compared to $45.8 million, or 5.4% of total revenue in the prior year [27] - GAAP earnings per diluted share were negative $1.10, and adjusted earnings per diluted share were negative $0.74 [27] Business Line Data and Key Metrics Changes - Restaurant revenue decreased 4.8% to $650.6 million, with comparable store restaurant sales down 4.7% [23] - Total retail revenue decreased 9.4% to $146.6 million, with comparable store retail sales down 8.5% [23] - Off-premise sales accounted for 18.1% of restaurant sales [23] Market Data and Key Metrics Changes - Traffic was down approximately 11% in Q2, with a decline of 7.3% in comparable store traffic for Q1 [28][23] - The company noted a decline in consumer sentiment and overall industry traffic compared to the summer months [46] Company Strategy and Development Direction - The company is focusing on improving food quality and guest experience through operational changes and menu adjustments [5][10] - A restructuring of the corporate support center is underway to streamline operations and reduce costs [20][31] - The company plans to leverage its loyalty program, which has over 10 million members, to drive traffic and enhance guest engagement [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macro and industry backdrop, impacting traffic and sales [5][46] - The company anticipates total revenue for fiscal 2026 to be between $3.2 billion and $3.3 billion, reflecting a slower recovery than previously expected [30] - Management expressed confidence in returning to growth over time and creating long-term value for stakeholders [34] Other Important Information - The company has implemented a military discount program and various promotional offers to drive traffic [16][18] - The company is focusing on cost savings while ensuring food quality and guest experience are not compromised [20][31] Q&A Session Summary Question: About the cut in advertising spend - Management explained that the reduction in advertising spend is to align with current traffic levels and reduce non-guest-facing costs, with a planned decrease of $12-$16 million in advertising expenses for Q2 to Q4 [36][38] Question: Plans for the December holiday window - Management emphasized a commitment to regaining traffic momentum and highlighted ongoing efforts to enhance guest experiences and brand trust [39][40] Question: Updated guidance for traffic for the year - Management confirmed that the updated traffic guidance reflects a decline of 8% to 10%, with the potential for recovery in the latter half of the year [45] Question: Macro pressures on sales versus rebranding effects - Management noted that while macro pressures are impacting sales, some initiatives have provided short-term traffic boosts, but sustainability remains a concern [50][51] Question: Menu innovation and upcoming offerings - Management expressed confidence in upcoming menu innovations and the return of popular items, aiming to enhance guest experiences and drive traffic [56][60]

Financial Data and Key Metrics Changes - For Q4 2025, total revenue was reported at $868 million, with restaurant revenue at $718.2 million and retail revenue at $149.8 million, reflecting a 4.4% increase excluding the $62.8 million benefit from the 53rd week in the prior year [11] - Comparable store restaurant sales grew by 5.4%, marking the fifth consecutive quarter of positive growth [11] - Adjusted EBITDA for Q4 was $55.7 million, or 6.4% of total revenue, with an 8% increase when excluding the impact from the 53rd week [14] Business Line Data and Key Metrics Changes - Restaurant cost of goods sold was 26.3% of restaurant sales, up from 26% in the prior year, driven by menu mix and commodity inflation [12] - Retail cost of goods sold increased to 51% of retail sales from 50.1% in the prior year, primarily due to additional tariff expenses [12] - Off-premise sales accounted for 18.1% of restaurant sales, an increase of approximately 100 basis points year-over-year [12] Market Data and Key Metrics Changes - Traffic for the first half of August was down approximately 1%, with a decline of about 8% since the logo change on August 19 [17] - The company anticipates a Q1 traffic decline of approximately 7% to 8% based on current trends [18] - For fiscal 2026, total revenue is projected to be between $3.35 billion and $3.45 billion, assuming annual traffic declines of 4% to 7% [18] Company Strategy and Development Direction - The company is focused on a multi-year plan to return to growth, emphasizing food quality and guest experience [6][22] - A renewed marketing strategy is being implemented, including the return of nostalgic branding elements and menu items [7][25] - The company plans to invest approximately $135 million to $150 million in capital expenditures, primarily for maintenance and technology [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced due to recent traffic declines but expressed optimism about regaining momentum through strategic initiatives [18][22] - The company is committed to listening to guest feedback and adjusting its offerings accordingly, particularly in food quality and service [27][68] - Management highlighted the importance of maintaining a conservative balance sheet while returning cash to shareholders through dividends and share repurchase programs [33] Other Important Information - The company has authorized a new $100 million share repurchase program and declared a quarterly dividend of $0.25 per share [17] - A non-GAAP store impairment charge of $16.2 million was recorded, primarily related to low-performing Maple Street stores [14] Q&A Session Summary Question: What is the marketing plan for traffic recovery? - Management expects marketing as a percentage of sales to be higher in 2026 than in 2025, continuing to invest in marketing to drive traffic [36][37] Question: Can you elaborate on food quality improvements? - Food quality has always been a priority, with ongoing initiatives to enhance processes and menu items based on guest feedback [38][39] Question: How are traffic trends and challenges evolving? - Traffic declines have been broad-based, with larger declines in the Southeast, but management is optimistic about sequential improvement [41][44] Question: What is the approach to capital allocation and returning cash to shareholders? - The board is focused on a balanced approach to capital allocation, maintaining a conservative balance sheet while returning cash to shareholders [54] Question: How does competition impact pricing strategy? - The company believes it offers exceptional value and plans to maintain pricing strategies that reflect its value proposition while remaining competitive [57][60]

Core Insights - Cracker Barrel has reintroduced its Campfire Meals, which are designed to evoke the nostalgic experience of campfire cooking while being convenient for guests [1][2] - The Campfire Meals are priced starting at $10.99 and include a variety of options such as Campfire Shrimp Skillet, Campfire Chicken, and Campfire Beef, all featuring a signature blend of Campfire Seasoning [1][6] - The company aims to enhance the dining experience with new dessert skillets, including a S'mores Brownie Skillet and a Cinnamon Roll Skillet, which complement the Campfire Meals [7] Product Offerings - Campfire Shrimp Skillet includes grilled shrimp and andouille sausage in a buttery broth with campfire-seasoned corn and potatoes [6] - Campfire Chicken features a marinated half-chicken slow-cooked with vegetables in a buttery broth [6] - Campfire Beef is slow-braised beef with classic campfire vegetables and spices, sealed in foil for flavor [6] - New dessert options include a S'mores Brownie Skillet with chocolate brownie, roasted marshmallow, and HERSHEY'S Milk Chocolate, and a Cinnamon Roll Skillet with mini cinnamon rolls and cream cheese icing [7] Marketing and Customer Engagement - The Chief Marketing Officer emphasized the importance of customer feedback in bringing back the Campfire Meals, highlighting the emotional connection to summer memories [1] - Cracker Barrel encourages customers to engage with the brand through social media platforms like Instagram and TikTok, as well as their website for online ordering [3]