MW Cracker Barrel is halting remodels. An analyst now sees even 'less visibility' on the path forward.

By Bill Peters

'This ultimately adds less visibility into an already challenged story, in our view,' Citi analyst says

Shares of Cracker Barrel are down around 5% so far this year.

After abandoning a refreshed logo last month in response to anger from conservatives, Cracker Barrel Old Country Store Inc. on Tuesday said it was suspending its remodels, a move one analyst said clouded the path forward for the restaurant chain.

In a statement on Tuesday, Cracker Barrel $(CBRL)$ - which serves up dishes like meatloaf and pancake breakfasts in restaurants that feature fireplaces, rocking chairs and games - said the decision to halt the remodels was in response to customer feedback.

"We heard clearly that the modern remodel design does not reflect what you love about Cracker Barrel," the company said. "We had tested this design in only four out of 660 locations, and we won't continue with it."

That statement added: "The vintage Americana you love will always be here."

Following the announcement, Citi analyst Jon Tower noted that the chain's remodels were a multiyear effort. He said that he expects Cracker Barrel to continue to take steps to improve service times and product quality. But he said that the halt to remodels called into question the company's spending plans in the years ahead and its longer-term forecasts for around $3.8 billion to $3.9 billion in sales in fiscal 2027.

"This ultimately adds less visibility into an already challenged story, in our view," Tower said in a note on Tuesday.

Shares of Cracker Barrel were down 1.4% on Tuesday. The stock is down around 5% so far this year but up around 38% over the past 12 months.

Last month, Cracker Barrel unveiled a more minimalist logo that removed an illustration of a seated man in overalls leaning against a barrel. The change was met with outrage and shares took a hit. Shortly after, the chain - which opened in 1969 and whose old logo was created in 1977 - reversed itself.

President Donald Trump, in a post on Truth Social, said Cracker Barrel should restore the old logo. The White House, in commenting on Cracker Barrel's changes, said "Go woke, go broke," a common refrain from conservatives who have criticized brands' efforts, whether sincere or performative, to show their commitment to social justice.

Over recent years, other brands - from American Eagle Outfitters Inc. $(AEO)$ to Bud Light $(BUD)$ to Target Corp. (TGT) - have found themselves caught up in political discourse over advertising and merchandising decisions, as well as decisions about workplace diversity issues that have become a target for conservatives.

Julie Felss Masino, who became Cracker Barrel's chief executive in 2023, has said on quarterly earnings calls that customers found the company's remodeled or upgraded stores brighter and more open and welcoming. Other restaurant chains are also trying to compete more on atmosphere to win back inflation-weary consumers.

During one call last year, Masino said that amid falling traffic, the company was weighing things like the comfort of tables, painting and lighting as it tried to make dinner more "relevant" to its consumers.

In June of this year, she said that 2025 has been "a year of testing and learning" on remodels, and that she wanted to share more in September.

She added that the company debuted a new version of the remodel in April and that it was "very pleased" with the early results.

"That's really why we want to wait and have the conversation in September," she said. "We'll talk about how it's informing our 2026 and beyond plan and really what we've learned to date as we continue to learn on this topic."

-Bill Peters

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September 09, 2025 15:26 ET (19:26 GMT)

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