By Heather Haddon

If Cracker Barrel Old Country Store starts selling Halloween and Christmas tchotchkes a bit later than usual this year, executives say rising tariffs may be to blame.

The family-dining chain does hundreds of millions of dollars in sales of rocking chairs, quilts and other retail goods in the stores attached to its restaurants. About a third of those items come directly from China, while other merchandise is sourced from domestic vendors that use imported materials.

"The teams have been thinking about tariffs for months," Cracker Barrel CEO Julie Felss Masino said during an investor call Thursday.

Cracker Barrel intends to weed out lower-selling retail items, and review how early it starts selling seasonal items to try and reduce costs. It is also negotiating with its vendors, and hopes to hold off on big price hikes to its retail goods.

The company intended to prune its retail selection as part of a turnaround strategy to modernize its brand, executives said, and accelerated that work when Trump campaigned on tariffs.

Cracker Barrel reported higher third-quarter sales compared with last year, with increases in menu prices contributing to the growth. Adjusted earnings per share beat expectations. The chain's shares fell 3%.

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June 05, 2025 12:31 ET (16:31 GMT)

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