Cracker Barrel reported a 4.7% decline in comparable restaurant sales for fiscal Q1 2026, along with a 7% drop in customer traffic, company officials said during a recent earnings call. Traffic fell 1% in August and 9% for the remainder of the quarter, which ended Oct. 31, as the restaurant chain continues to face backlash over its rebranding efforts, including the removal of its iconic Uncle Herschel mascot. CEO and President Julie Felss Masino described the decline as part of a broader effort to rebuild brand trust and emphasized that the company is taking “decisive actions” to improve food quality, guest experience, and overall operations.
The company’s traffic decline was slightly smaller than its earlier forecast of an 8% drop. Cracker Barrel also canceled its planned remodel, which had drawn criticism on social media for its modern farmhouse design that deviated from the chain’s traditional aesthetic. The controversy also reignited criticism from activist investor Sardar Biglari, who launched a proxy fight to remove Masino, though she retained her position in recent board elections. Masino acknowledged the challenge, stating that rebuilding trust would take time and require consistent positive experiences for guests.
Operational improvements have been a major focus. The company initially faced challenges with back-of-house changes that affected food consistency, but has since reinstated previous processes and retrained managers, kitchen staff, and grill cooks on classic recipes and new holiday offerings. Doug Hisel, promoted to SVP of store operations, has concentrated on food quality, operations, and accountability, which Masino says has contributed to improved guest metrics.
Cracker Barrel is also working to enhance the guest experience through its menu, marketing, and loyalty program. Fan-favorite dishes like Uncle Herschel’s breakfast and Chicken n’ Rice have returned, and new items such as breakfast burgers have been added. The chain plans to bring back additional classics, including Hamburger Steak and Eggs in a Basket, in the coming months. Masino highlighted that guest feedback will continue to guide quality improvement tests, ensuring the core menu remains appealing and filled with the items customers love.