Founding father of XX-XY Athletics Jennifer Sey analyzes why prospects rejected the pitch to vary the restaurant chain’s brand on ‘The Night Edit.’
Cracker Barrel on Wednesday launched its fourth quarter earnings outcomes, however a lot of the eye centered on the restaurant chain’s swift reversal of its controversial brand redesign that went viral on-line.
The corporate — primarily based out of Lebanon, Tennessee — reported complete income of $868 million, down 2.9% from the identical quarter final yr. The corporate additionally stated that visitors has fallen 8% for the reason that August rollout of its simplified, text-only brand. Shares tumbled practically 10% in after-hours buying and selling on Wednesday.
On the earnings name, President and CEO Julie Masino acknowledged that Cracker Barrel had underestimated the deep connection prospects really feel towards the corporate’s nostalgic imagery.
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“We would like longtime followers and new friends to expertise the total story of the individuals, locations, and meals that make Cracker Barrel so particular,” Masino advised buyers. “That is why our workforce pivoted shortly to modify again to our old-timer brand and has already begun executing new advertising and marketing, promoting and social media initiatives leaning into Uncle Herschel and the nostalgia across the model.”
A Cracker Barrel restaurant in Sterling, Virginia, on Aug. 26, 2025. (Al Drago/Bloomberg through Getty Pictures / Getty Pictures)
Along with the emblem reversal, Masino famous that Cracker Barrel has begun changing its 4 modernized check shops again to conventional interiors. Cracker Barrel revealed earlier this month that solely 4 of its 660 eating places have undergone remodels and confirmed that the challenge is not going to transfer ahead. The up to date design changed the model’s signature Americana décor with a glossy, minimalist look.
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“The suggestions we acquired from our friends in current weeks on our model refresh and retailer remodels has proven us simply how deeply individuals care about Cracker Barrel,” Masino stated, including that new advertising and marketing will lean in to Uncle Herschel and the model’s nostalgia. “We thank our friends for sharing their voices and love for the model and telling us after we’ve misstepped.”
Cracker Barrel CEO Julie Felss Masino walks out of an workplace constructing in Brentwood, Tenn., Thursday, Aug. 28, 2025. (Zak Bennett for Fox Information Digital / Fox Information)
Nonetheless, Masino argued that the chain, which has 70,000 workers, has not saved tempo as client habits — relating to meals, journey and know-how — have modified dramatically up to now decade.
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“We deeply worth the sturdy emotional connection our friends have, not simply to the old-timer brand or classic Americana decor, however to the sense of custom and nostalgia these characterize,” she stated. “That connection is highly effective, and we acknowledge there are different areas the place we should proceed enhancing, particularly in our meals and general visitor expertise. Luckily, these had been already a part of our multi-year plan, and we’re transferring ahead with a renewed give attention to each.”
Common view of a Cracker Barrel Nation Retailer in Nashville, Tennessee, Wednesday, August 27, 2025. (Zak Bennett for Fox Information Digital / Fox Information)
Masino additionally highlighted a number of vivid spots within the quarter, together with the return of “Uncle Herschel’s Breakfast,” the rollout of a brand new service mannequin often called “The Herschel Approach,” and continued momentum in its loyalty program, which added 300,000 members up to now 4 weeks.
“There’s a lot to be optimistic about, and our groups are targeted on getting again to a optimistic trajectory,” she stated.
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In August, Cracker Barrel launched a redesigned brand that eliminated the picture of an old-timer leaning towards a wood barrel — a logo of the chain’s Southern attraction and hospitality for greater than 5 many years. The transfer was seen by some as a nod to fashionable “woke” tradition. The rollout triggered a swift backlash, erasing greater than $140 million in market worth on the peak of the controversy.