MW Cracker Barrel's recovery may be 'protracted,' as younger diners stay away, analysts say

By Bill Peters

'We see risk that efforts to evolve the brand have been stymied, at least temporarily,' BofA says, as restaurant chain deals with rebranding fallout

Shares of Cracker Barrel are down 13.4% so far this year.

After facing anger from customers, Cracker Barrel Old Country Store Inc. has walked back a new logo and new restaurant designs in an effort to keep its customers. But those efforts have so far come up short, and some analysts say the Americana-heavy restaurant chain's recovery could happen later rather than sooner.

That assessment arrived after Cracker Barrel $(CBRL)$ on Wednesday forecast fewer diners over the fiscal year ahead, even as it tries to take steps to encourage more customer feedback and lean into nostalgia-driven marketing.

Chief Financial Officer Craig Pommells, during Cracker Barrel's earnings call on Wednesday, said that customer traffic has fallen around 8% since Aug. 19, when the company initially changed its old logo to remove a man sitting next to a barrel to the left of Cracker Barrel's name. BofA analyst Sara Senatore, in a note on Thursday, said the traffic decline "suggests that recovery may be protracted."

Cracker Barrel restored the old logo days after the change, following outrage from diners, conservatives who claimed the change was "woke," and even President Donald Trump, who said the company should go back to its old signage. This month, the company also halted remodels, after resistance from customers.

Pommells, during Wednesday's earnings call, said that while the consumer retreat from its restaurants had been broad-based, they had seen "a little bit less decline" among diners over the age of 65. But to Senatore, that was still bad news.

"With younger consumers reacting more strongly than older consumers (65+), we see risk that efforts to evolve the brand have been stymied, at least temporarily," she said.

Elsewhere, Truist analyst Jake Bartlett said in a note on Wednesday that the fallout from the rebranding efforts has been "severe with no sign of let-up." But he said there were ways the chain could still make a comeback.

He said more marketing around its fall menu and the college football season, as well as what the company described as "big news coming next week" might help build attention. Executives, during the call on Wednesday, also said they had brought back once-popular menu items, while introducing newer ones and taking steps to make sure its biscuits taste better.

Cracker Barrel faces competition from other sit-down chains that have gotten more aggressive on discounting, and has been trying to improve food quality and service. But Bartlett said he still liked the stock.

"We would be buyers on post-earnings weakness," Bartlett said, "given our view that the core drivers of CBRL's brand turnaround are intact (improved menu innovation and service) and that sales may start to recover from the rebranding backlash soon with the resumption of the fall menu marketing."

Shares of Cracker Barrel finished 7.6% lower on Thursday. The stock is down 13.4% so far this year.

-Bill Peters

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September 18, 2025 16:46 ET (20:46 GMT)

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