Cracker Barrel Old Country Store (NASDAQ:CBRL) shares moved lower as the restaurant chain warned of lower traffic and reduced revenue for fiscal 2026 following backlash over its abandoned logo rebranding.
The company is reverting to its original logo and more traditional interiors at four restaurants where it had rolled out a more modern layout after facing criticism, including from US President Donald Trump.
Management said traffic is down 8% since the new logo’s launch, and is expected to decline between 7% and 8% for the current quarter.
Full-year revenue is expected to be between US$3.35 billion and US$3.345 billion, which assumes a decline in comparable store traffic of 4% to 7%, below Wall Street estimates of $3.48 billion.
For Q4, revenue of $868 million was in line with estimates, but earnings per share of $0.74 missed the consensus of $0.74.
Same-store sales were up 5.4% over the year-ago quarter.
"We thank our guests for sharing their voices and their passion for Cracker Barrel in recent weeks, and we've listened, switching back to our 'Old Timer' logo, hitting pause on remodels, and placing an even bigger emphasis in the kitchen and other areas that enhance the guest experience,” Cracker Barrel CEO Julie Masino said in a statement.
“Many elements of our plan are working well and delivering results, as evidenced by five consecutive quarters of comparable store restaurant sales increases and 9% adjusted EBITDA growth in fiscal 2025. Looking ahead, there is much to be optimistic about, and our teams are focused on getting back to the momentum we created last fiscal year."
Shares of Cracker Barrel were down 1.8% at about $49, down about 20% in the last month amid the rebranding backlash.