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Cracker Barrel’s revenue is falling amid restructuring efforts

Cracker Barrel reported a drop in revenue and profit for the quarter as the company continues to recover from last summer’s restructuring crisis, although CEO Julie Masino says the first signs of change are beginning to emerge.

Speaking during the Tennessee-based company’s second-quarter 2026 earnings call on Wednesday, Masino said the company is focused on strengthening operations, adjusting menu and marketing strategies to better connect with customers, and cutting costs to improve profitability.

“We’re fueled and driven by key visitor metrics and raw images about traffic, and we’re strong in terms of driving performance improvements,” Masino said.

Cracker Barrel posted second-quarter revenue of $874.8 million, down 7.9% from a year ago.

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A Cracker Barrel sign hangs outside the restaurant on Aug. 21, 2025, in Homestead, Florida. (Joe Raedle/Getty Images)

Comparable restaurant sales fell 7.1%, driven by a 10.1% drop in traffic, while comparable store sales fell 9.2%, according to Chief Financial Officer Craig Pommells.

Net income came in at $1.3 million, a significant decrease from $22.2 million in the same quarter last year.

Despite the slowdown, the results exceeded Wall Street’s expectations.

Masino highlighted improved employee turnover rates and a higher Google star rating as evidence that the company’s turnaround efforts are growing.

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Cracker Barrel diners after new logo and rebranding announcement.

A general view of the Cracker Barrel Country Store in Fishkill, NY, on Monday, August 25, 2025. (Richard Beetham of Fox News Digital)

“We view all of these metrics as important leading indicators and are confident that these benefits will translate into better traffic over time,” he said.

As part of its customer acquisition strategy, Cracker Barrel is re-introducing popular limited-time offerings, including Country Fried Turkey, and adding new menu items such as the breakfast burger and Garden and Farmhouse Scrambles.

The company’s loyalty program now has more than 11 million members and accounts for more than 40% of tracked sales. Masino said traffic for loyal members has increased better than non-members since August.

“We are committed to operating at a high level, and we are taking steps to improve profitability, all to strengthen the business and return to good health,” said Masino.

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Cracker Barrel CEO Julie Felss Masino is leaving Starbucks

Cracker Barrel CEO Julie Felss Masino leaves a Starbucks in Nashville, Tennessee, on Aug. 28, 2025. (Zak Bennett for Fox News Digital)

The drop in revenue follows a setback last summer after Cracker Barrel announced changes to its logo and store interior, including removing the “old time” from its branding.

The company canceled the course within a week after customer complaints.

Masino has previously warned that the company’s recovery will take time.

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Cracker Barrel did not immediately respond to FOX Business’ request for comment.

Eric Revell of FOX Business contributed to this report.

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