Core Viewpoint - Cracker Barrel's fourth quarter earnings report highlighted a significant revenue decline and a swift reversal of its controversial logo redesign, which had negatively impacted customer traffic and stock performance [1][10]. Financial Performance - The company reported total revenue of $868 million, a decrease of 2.9% compared to the same quarter last year [1]. - Customer traffic fell by 8% following the introduction of the new logo in August [1]. - Shares dropped nearly 10% in after-hours trading following the earnings announcement [1]. Brand Strategy and Customer Connection - CEO Julie Masino acknowledged the company's miscalculation regarding the emotional connection customers have with the brand's nostalgic imagery [2][11]. - The decision to revert to the original logo was made quickly in response to customer feedback, with plans to enhance marketing initiatives centered around nostalgia [3][5]. - The company has begun converting its four modernized test stores back to traditional interiors, reflecting a commitment to its heritage [3][4]. Customer Feedback and Future Plans - Masino emphasized the importance of customer feedback, stating that it has shown how much people care about Cracker Barrel [5][7]. - The company plans to focus on improving food quality and overall guest experience as part of a multi-year plan [9]. - Positive developments include the return of "Uncle Herschel's Breakfast," the introduction of a new service model called "The Herschel Way," and growth in the loyalty program, which added 300,000 members in four weeks [9].

Core Insights - Cracker Barrel reported a 5.4% same-store sales growth despite a 2.9% revenue decline for its fourth quarter, reflecting performance before facing public scrutiny due to a logo change controversy [1] - The company has reverted to its "Old Timer" logo and halted plans for minimalist store designs in response to customer feedback [2] - Traffic has declined approximately 8% over the past month, with potential annual traffic declines estimated at 4 to 7% if the trend continues [3] Company Response - CEO Julie Masino emphasized the importance of customer feedback and the brand's identity as "the front porch of America," acknowledging the deep care customers have for Cracker Barrel [3] - The company plans to return its four renovated stores to their original designs and will leverage insights from test locations for future improvements [4] - Marketing campaigns will focus on nostalgia, featuring "Uncle Herschel," to reconnect with customers [4] Future Outlook - The company is optimistic about regaining traffic and momentum, leveraging elements of its multi-year plan while deepening connections with guests [5] - Loyalty program signups have exceeded expectations, with an increase of three million members over the past year [3]

Core Insights - Cracker Barrel reported total revenue of $868 million for the fourth quarter, a decrease of 2.9% year-over-year, with an 8% decline in customer traffic since the introduction of a new logo [1][8] - The company has reversed its controversial logo redesign and is returning to its traditional branding due to customer backlash and emotional connections to its nostalgic imagery [2][3][12] Financial Performance - Total revenue for the fourth quarter was $868 million, down 2.9% from the same quarter last year [1] - The company experienced an 8% drop in customer traffic following the logo change [1] Brand Strategy - The CEO acknowledged the miscalculation regarding customer attachment to the brand's nostalgic elements and emphasized the importance of tradition [2][9] - Cracker Barrel is reverting to its old logo and enhancing marketing efforts focused on nostalgia, particularly around "Uncle Herschel" [3][6] Store Remodeling - The company has halted its modernized store remodels, with only four out of 660 locations undergoing changes, and is converting those back to traditional interiors [5][6] - The updated design was criticized for moving away from the brand's signature Americana décor [5] Customer Engagement - The company received significant feedback from customers regarding its brand refresh, indicating a strong emotional connection to its traditional branding [6][9] - Cracker Barrel's loyalty program saw an addition of 300,000 members in the past four weeks, indicating positive engagement [11] Future Outlook - The CEO expressed optimism about the company's direction, highlighting the return of popular menu items and new service models as part of a multi-year improvement plan [11]

Core Insights - Cracker Barrel Old Country Store (CBRL) reported revenue of $868.01 million for the quarter ended July 2025, reflecting a 3% decline year-over-year, with EPS at $0.74 compared to $0.98 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $856.58 million by 1.33%, while the EPS fell short of the consensus estimate of $0.78 by 5.13% [1] Financial Performance Metrics - Comparable-store sales for the restaurant segment increased by 5.4%, surpassing the average estimate of 3.8% [4] - Comparable-store sales for the retail segment decreased by 0.8%, compared to the average estimate of -0.1% [4] - Company-owned units totaled 657, slightly below the average estimate of 658 [4] - Total number of stores at the end of the period was 725, compared to the estimated 728 [4] - Retail revenues were reported at $149.74 million, below the average estimate of $150.97 million, marking an 8% year-over-year decline [4] - Restaurant revenues were $699.99 million, exceeding the average estimate of $692.59 million, but reflecting a 1.8% year-over-year decline [4] Stock Performance - Cracker Barrel's shares have returned -13.9% over the past month, contrasting with the Zacks S&P 500 composite's increase of 2.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

We'll turn now to Cracker Barrel. Company reporting its fourth quarter results and Yahoo Financ's Brooke Depal joins me here to break it all down. Investors don't look so happy with this one.Brooke, investors not too pleased and that's largely because of the outlook that the company provided. The company did say that they now expect total revenue for the fiscal year between 3.35% billion to 3.45% billion. that they said assumes a comparable sales or rather a comparable store traffic decline of between 4 to ...

Core Viewpoint - Cracker Barrel's fourth quarter results have disappointed investors, primarily due to a negative outlook for the upcoming fiscal year, which includes expected revenue between $3.35 billion to $3.45 billion and a projected decline in comparable store traffic of 4% to 7% [2][6] Financial Performance - The company reported a top line revenue of $868 million, which exceeded expectations, but earnings came in at 74 cents, missing projections by 2 cents [4][5] - Restaurant comparable sales increased by 5.4%, outperforming the expected growth of 3.43%, while retail same store sales experienced a slight decline [5] Market Reaction - Cracker Barrel's stock has dropped approximately 20% over the past month, largely attributed to backlash from a recent logo rebranding, which has since been reverted [3][4] - Following the negative reception, the company has paused its redesign efforts, raising questions about the future of its $700 million investment plan [8][9] Future Outlook - Investors are seeking clarity on the future direction of the $700 million investment, particularly regarding restaurant redesigns and marketing strategies, after the recent backlash [8][9] - The company’s outlook suggests a challenging environment ahead, with expectations of declining store traffic, which is not favorable for investor sentiment [6][7]

Company Performance - Cracker Barrel reported quarterly earnings of $0.74 per share, missing the Zacks Consensus Estimate of $0.78 per share, and down from $0.98 per share a year ago, representing an earnings surprise of -5.13% [1] - The company posted revenues of $868.01 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 1.33%, but down from $894.39 million year-over-year [2] - Over the last four quarters, Cracker Barrel has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Cracker Barrel shares have lost about 3.1% since the beginning of the year, while the S&P 500 has gained 12.3% [3] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.33 on revenues of $854.32 million, and for the current fiscal year, it is $3.38 on revenues of $3.51 billion [7] - The outlook for the industry, particularly the Retail - Restaurants sector, is currently in the bottom 26% of Zacks industries, which may impact stock performance [8]

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 when 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 pricing for the quarter was 5.4% [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 - Off-premise sales accounted for 18.1% of restaurant sales, an increase of approximately 100 basis points year-over-year [12] - Comparable store retail sales decreased by 0.8% [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 [16][17] - The company anticipates a Q1 traffic decline of approximately 7% to 8% [17] Company Strategy and Development Direction - The company is focused on a multi-year plan to return to growth, emphasizing food quality and guest experience [7][21] - A renewed focus on marketing and advertising initiatives is underway, particularly in light of recent challenges [8][36] - The company has paused remodels and reverted to traditional designs in four locations, reflecting a commitment to its heritage [8][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about regaining traffic and momentum, citing strong guest feedback and loyalty program growth [9][20] - The company plans to invest in marketing to drive traffic recovery, with expectations for a higher marketing spend as a percentage of sales in 2026 [36] - Management acknowledged the competitive landscape and the need to adapt to changing consumer expectations [62] Other Important Information - The company authorized a new $100 million share repurchase program and declared a quarterly dividend of $0.25 per share [16] - Capital expenditures for the upcoming fiscal year are expected to be between $135 million and $150 million, primarily focused on maintenance and technology [31] 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, continuing to invest in marketing to drive traffic [36] Question: Can you elaborate on food quality improvements? - Food quality has always been a priority, with ongoing evaluations and adjustments based on guest feedback [38] Question: How have traffic trends been affected recently? - Traffic has seen broad-based declines, particularly in the Southeast, but management is optimistic about recovery plans [45][46] Question: What is the approach to capital allocation and returning cash to shareholders? - The board aims for a balanced approach, focusing on value-creating investments while maintaining a conservative balance sheet [58] Question: How does the competitive landscape affect pricing strategy? - The company believes it offers great value and has a thoughtful pricing strategy that continues to resonate with guests [62]

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 pricing for the quarter was 5.4% [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][18] 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] - Comparable store retail sales decreased by 0.8% [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 [16][17] - The company anticipates a Q1 traffic decline of approximately 7% to 8% based on current trends [17] Company Strategy and Development Direction - The company is focused on a multi-year plan to return to growth, emphasizing food quality and guest experience [7][21] - A renewed emphasis on traditional branding and nostalgia is being implemented, including reverting to the old-timer logo and traditional interiors [8][30] - The company plans to invest approximately $135 million to $150 million in capital expenditures for fiscal 2026, primarily for maintenance and technology [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about regaining traffic and momentum, citing strong guest connections and positive feedback on recent changes [9][21] - The company is navigating short-term headwinds while maintaining a conservative balance sheet and focusing on capital allocation [16][59] Other Important Information - A new $100 million share repurchase program was authorized, and a quarterly dividend of $0.25 per share was declared [16] - The company has seen strong growth in its loyalty program, with membership increasing by 3 million people over the past year [25] Q&A Session Summary Question: Marketing plan adjustments in light of traffic performance - Management expects marketing as a percentage of sales to be higher in 2026, particularly in Q1, to drive traffic recovery [37] Question: Food quality improvement plans - Food quality has always been a priority, with ongoing evaluations and adjustments based on guest feedback [39] Question: Traffic trends and regional performance - Traffic declines are broad-based, with larger declines in the Southeast, excluding Florida [46] Question: Loyalty program performance amidst traffic decline - The loyalty program has seen an increase in signups, exceeding expectations despite the traffic decline [83] Question: Competitive pricing strategies - The company maintains a strong value proposition and is confident in its pricing strategy, which includes a planned 4% to 5% menu pricing increase [68][70]