Search Here

Cracker Barrel reported lower revenue and profits in its latest quarterly results, but company leaders say there are early signs the restaurant chain could be starting to recover after a difficult year.

During the company's fiscal second-quarter 2026 earnings call, CEO Julie Masino said the business is beginning to see small improvements in customer trends and internal performance, even as sales remain under pressure.

"We're gaining traction and are encouraged by some important guest metrics and green shoots around traffic, and we're energized in terms of driving improved performance," Masino said.

The Tennessee-based restaurant and retail chain reported revenue of $874.8 million for the quarter, a 7.9% drop compared with the same period last year.

Profit also declined sharply, with net income falling to $1.3 million from $22.2 million a year earlier, FoxBusiness reported.

According to chief financial officer Craig Pommells, restaurant sales at comparable locations decreased 7.1%.

The drop was mostly caused by fewer people visiting stores, as customer traffic fell 10.1%. Retail sales inside the restaurants also declined, slipping 9.2%.

Even with those declines, the company's results were slightly better than what Wall Street analysts had expected.

Cracker Barrel Updates Menu and Marketing

Company leaders say they are working to turn things around by improving daily operations, updating the menu, strengthening marketing, and lowering expenses. Masino pointed to a few early indicators that suggest progress is starting.

She said employee turnover is improving and customer ratings online have increased. Higher review scores on Google are one sign that guest satisfaction may be rising again.

"We view all of these metrics as important leading indicators and are confident that these gains will translate into improved traffic over time," Masino explained.

To attract more diners, the company has brought back some limited-time food items and added new dishes to its menu.

Returning offerings include Country Fried Turkey, while new items feature options such as a breakfast burger and Garden and Farmhouse Scrambles.

Cracker Barrel is also leaning on its loyalty program to help rebuild customer visits. According to LGMCorp, the program now includes more than 11 million members and represents over 40% of tracked sales.

Masino noted that loyalty members have continued visiting stores more often than nonmembers since last summer.

"We're committed to operating with excellence, and we're implementing actions to improve profitability, all to strengthen the business and to return to positive momentum," she said.

Tags

Sales