TLDR
- Cracker Barrel reports Q4 2025 earnings Wednesday with expected revenue drop of 4.4% to $845.8M
- August logo controversy caused 15% stock plunge before company reversed decision
- Restaurant sales projected up 3.6% while retail sales expected down 2%
- Stock down 3% year-to-date, trading around $51-52 per share
- Wall Street maintains Hold rating with $55 average price target
Cracker Barrel Old Country Store faces a critical earnings test Wednesday following months of turbulence over a failed logo redesign. The restaurant chain expects to report quarterly revenue of $845.8 million, marking a 4.4% decline from last year.
Earnings per share are projected at 77 cents, down from 98 cents in the prior year period. The results come after a summer rebranding disaster that sent shares tumbling and forced management into damage control mode.
In August, Cracker Barrel unveiled a streamlined logo as part of CEO Julie Felss Masino’s strategy to attract new customers. She had said the goal was to “open the aperture” while maintaining what people love about the brand.
Customer reaction was swift and harsh. Social media exploded with complaints from longtime patrons who felt betrayed by the modernization attempt.
Stock Plunges on Logo Backlash
The controversy hammered share prices on August 21, when the stock dropped as much as 15% during intraday trading. Investor concerns centered on potential damage to the chain’s loyal customer base.
President Trump added fuel to the fire by calling the logo change a mistake. His comments intensified the customer backlash and media attention.
Facing mounting pressure, Cracker Barrel quickly reversed course within days. The company scrapped the new logo and halted planned store renovations featuring a modern farmhouse design.
Mixed Business Performance Expected
Despite the turmoil, restaurant operations show promise. Analysts expect comparable restaurant sales to climb 3.6% for the quarter, indicating the dining business remains resilient.
However, retail sales are projected to fall 2% during the same period. This decline could offset restaurant gains and pressure overall performance.
Cracker Barrel stock has struggled in 2025, falling 3% year-to-date. Shares closed Tuesday at $51.21, down 2.25% for the session.
Wall Street maintains cautious optimism with an average price target of $55.00. Seven analysts provided forecasts ranging from $47.00 to $69.00 per share.
The consensus recommendation from 10 brokerage firms rates CBRL as a Hold. This reflects uncertainty about management’s ability to execute turnaround plans effectively.
Cracker Barrel operates over 600 locations nationwide, built around traditional Southern comfort food and country store merchandise. The chain faces broader casual dining industry challenges including changing consumer preferences and increased fast-casual competition.
The logo reversal suggests future modernization efforts must balance innovation with customer sentiment. Management will need more subtle approaches to attract younger demographics without alienating core patrons.
Wednesday’s earnings release after market close will provide insight into the controversy’s financial impact. Investors will watch for management commentary on strategic direction following the rebranding failure.
