You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. Cracker Barrel Old Country Store Inc. has ended its relationship with the consultancy that oversaw its logo and brand refresh initiatives, the company said Thursday. The Lebanon, Tenn.-based family dining brand, which encountered a backlash for its efforts to update its logo and refresh its locations, said in a statement that the company “confirmed that it is ending its engagement with Prophet, the global strategic and c ...

Accessibility StatementSkip Navigation LEBANON, Tenn., Oct. 2, 2025 /PRNewswire/ --Â Cracker Barrel Old Country Store, Inc. ("Cracker Barrel") today announced leadership and organizational structure enhancements as the Company reinforces its focus on delivering outstanding food and experiences guests love."These changes to our organizational structure, along with new leadership appointments and promotions, mark a strategic step forward as we sharpen our focus on consistently craveable food and warm country ...

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][12] - Comparable store restaurant sales grew by 5.4%, marking the fifth consecutive quarter of positive growth, while comparable store retail sales decreased by 0.8% [11][12] - 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 in the prior year [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][13] - Retail cost of goods sold increased to 51% of retail sales from 50.1% in the prior year, primarily due to additional tariff expenses [13] 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 [16][17] - The company anticipates a Q1 traffic decline of approximately 7%-8% and expects total revenue for fiscal 2026 to be between $3.35 billion and $3.45 billion, reflecting annual traffic of -4% to -7% [17][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 while reverting to traditional branding elements [7][8][21] - A renewed emphasis on marketing and advertising initiatives is planned to drive traffic recovery, particularly in light of recent challenges [36][47] - The company will not proceed with modern store designs and will revert to traditional interiors, reflecting a commitment to guest preferences [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about regaining traffic and momentum, citing strong guest connections and a commitment to improving food quality and service [9][21] - The company is navigating short-term headwinds but remains confident in its ability to execute its plans and maintain a strong balance sheet [16][19] Other Important Information - The Board authorized a new $100 million share repurchase program and declared a quarterly dividend of $0.25 per share [16] - The company plans to invest approximately $135 million-$150 million in capital expenditures for the upcoming fiscal year, focusing on maintenance and technology [31] Q&A Session Summary Question: Marketing plan adjustments following logo change - Management expects marketing spending as a percentage of sales to be higher in 2026, particularly in Q1, to drive traffic recovery [36][37] Question: Food quality improvement plans - Food quality has always been a priority, and management is focused on process simplification and kitchen initiatives to enhance food quality [38][39] Question: Traffic trends and regional performance - Traffic declines are broad-based, with larger declines in the Southeast, but management expects sequential improvement throughout the year [46][47] Question: Loyalty program performance amidst traffic decline - The loyalty program has seen an increase in signups, exceeding expectations, despite the overall traffic decline [83] Question: Competitive pricing strategy - The company maintains a strong value proposition and plans to implement menu pricing increases of 4%-5% in 2026, which is expected to be accepted by consumers [67][70]

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]