Cracker Barrel reported a drop in quarterly revenue and profit as the company continues to recover from last summer’s rebranding controversy, though CEO Julie Masino says early signs of a turnaround are beginning to emerge.
Speaking during the Tennessee-based restaurant and retail chain’s fiscal second-quarter 2026 earnings call on Wednesday, Masino said that the company is focused on strengthening operations, refining its menu and marketing strategy to better connect with customers, and reducing costs to improve profitability.
“We’re gaining traction and are encouraged by some important guest metrics and green shoots around traffic, and we’re energized in terms of driving improved performance,” Masino said.
Cracker Barrel posted second-quarter revenue of $874.8 million, down 7.9% from a year earlier.
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Comparable restaurant sales fell 7.1%, largely driven by a 10.1% drop in traffic, while comparable retail sales slid 9.2%, according to chief financial officer Craig Pommells.
Net income totaled $1.3 million, a sharp decrease from $22.2 million in the same quarter last year.
Despite the declines, results topped Wall Street expectations.
Masino highlighted improving employee turnover rates and a higher Google star rating as evidence that the company’s turnaround efforts are gaining traction.
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“We view all of these metrics as important leading indicators and are confident that these gains will translate into improved traffic over time,” she said.
As part of its strategy to win back customers, Cracker Barrel has also reintroduced popular limited-time offerings, including Country Fried Turkey, and added new menu items such as a breakfast burger and Garden and Farmhouse Scrambles.
The company’s loyalty program now has more than 11 million members and accounts for over 40% of tracked sales. Masino said loyalty member traffic has held up better than nonmembers since August.
“We’re committed to operating with excellence, and we’re implementing actions to improve profitability, all to strengthen the business and to return to positive momentum,” Masino said.
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The revenue slump follows backlash last summer after Cracker Barrel announced changes to its logo and store interiors, including removing the “old timer” from its branding.
The company reversed course less than a week later after complaints from customers.
Masino has previously cautioned that the company’s recovery will take time.
Cracker Barrel did not immediately respond to FOX Business’ request for comment.
FOX Business’ Eric Revell contributed to this report.
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