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Cracker Barrel is facing tough days after a major backlash over its attempt to update its brand. The restaurant chain reported weaker sales for the first quarter and sharply lowered its revenue outlook for the rest of the year.

The news sent its stock falling more than 10% in after-hours trading on Tuesday.

The company said its revenue dropped 5.7% to $797.2 million for the quarter ending Oct. 31. That number came in below Wall Street's $800 million expectation.

Same-store restaurant sales fell 4.7%, and sales inside its retail shops fell even more, dropping 8.5%. These declines were slightly worse than analysts predicted.

Because of the slowdown, Cracker Barrel now expects to make between $3.2 billion and $3.3 billion in total revenue for its 2026 fiscal year. That is a clear cut from its earlier forecast of $3.35 billion to $3.45 billion.

The company also lowered its adjusted pre-tax earnings guidance from a high of $190 million down to a range of $70 million to $110 million, BNN Bloomberg reported.

For many longtime fans and investors, the sharp drop felt like a sign of how deeply the branding issue impacted the company.

The trouble began in August, when Cracker Barrel announced what it thought would be a simple modernization of its logo and store design.

The chain hoped to move away from its darker, antique-heavy look and appeal to younger diners. But the reaction turned out to be far more intense than expected.

Cracker Barrel Faces Branding Uproar

The updated logo removed the classic mascot — the man in overalls leaning on a barrel — and also removed the words "Old Country Store."

Many customers were upset, saying the changes removed the heart of what made Cracker Barrel feel familiar.

The backlash spread quickly. Within a week, the company reversed its decision, promising to keep the old logo.

In September, Cracker Barrel paused its plans to remodel restaurants altogether. According to AP News, the chain has about 650 locations across the United States, including many in Texas, Florida, and Tennessee.

Several loyal customers said the brand should focus on good food and friendly service, not big changes to its identity.

Shareholders voted to keep CEO Julie Felss Masino in her role, even though the logo rollout happened during her watch.

However, board member Gilbert Davila resigned after early voting showed that shareholders did not support his reelection.

Davila had helped oversee Cracker Barrel's advertising strategy and had served on the board since 2020.