Dive Brief:
- Cracker Barrel reported comparable sales declines of 7% during fiscal Q2 2026, which included a 10% drop in traffic, Craig Pommels, senior vice president and CFO, said Wednesday during an earnings call.
- During November and December, traffic was down between 10% and 11%, but improved to a decline of 9% in January, Pommels said.
- The traffic declines are the steepest since the chain's rebrand debacle last August. The rebrand, which included modern farmhouse-style remodels and the removal of its iconic Uncle Herschel mascot, led to sharp criticism on social media and a shift in strategy to try and bring guests back.
Dive Insight:
Much of the chain’s strategy has focused on menu innovation, improving quality and offering more value, CEO Julie Masino said during the earnings call. That has meant returning favorites to its core menu and as limited-time offerings, she said.
During the holidays, it offered its Country Fried Turkey that resonated well with guests and sold out, she said. In January, it brought back its hamburger steak and eggs in a basket. For its spring menu launch in mid-February, it added sugar-cured and country ham dinners and carrot cake as an LTO.
“We also continue to innovate and close menu gaps with the introduction of new items,” Masino said.
The chain has also expanded its breakfast offerings. For example, in the fall, the chain added a breakfast burger that is topped with Hashbrown Casserole. During the spring, it added omelets and scrambles, two items that guests have asked for for years, she said.
Cracker Barrel's traffic and same-store sales fiscal Q4 2025 through Q2 2026
“Collectively, these items, both the new offerings and returning favorites have been well received, and we've been particularly pleased with the breakfast burger and carrot cake, both of which have outperformed our expectations on preference,” Masino said.
The chain is also testing improvements to existing menu items that can boost guest satisfaction. It continues to test different improvements to signature items and has additional tests coming in the near term, Masino said.
With regards to value, the chain added Meals for 2 starting at $19.99 for dine-in on weekdays. That offer includes two full-sized entrees and a choice of sharable or dessert, she said. The chain has seen a “meaningful lift in guest preference since launch,” Masino said.
Pommels also said the company has been working on various cost-saving measures, including a corporate restructuring plan that began during fiscal Q1 2026. Those efforts will lead to an annualized general and administrative savings of $20 million to $25 million, he said. Executives did not say how many corporate employees have been impacted by this restructuring.
