Cracker Barrel’s turnaround strategy seems to be workingCracker Barrel’s turnaround strategy seems to be working

Joanna Fantozzi

Just seven months after Cracker Barrel CEO Julie Masino unveiled a five-pillar transformation strategy for the aging family-dining brand, Cracker Barrel seems to be making a comeback. The Lebanon, Tenn.-based, 727-unit company reported 2.9% same-store sales growth for the first quarter of 2025, which makes two quarters in a row of positive comps.

The sales growth can be attributed to improved traffic and strong average check growth, particularly in the dinner daypart, Masino said during Cracker Barrel’s Q1 earnings call on Wednesday. Masino noted several key elements of Cracker Barrel’s improved traffic, including new menu items, the barbell pricing initiative, improved hourly turnover rates, and the store’s remodeling program, which has rolled out to just four restaurants so far.

Currently, Cracker Barrel is particularly focused on improving its menu and enhancing store and guest experiences. Popular new menu items Cracker Barrel released this quarter include a Hash Brown Casserole Shepherd's Pie, Fried Apple French Toast Bake, and the Cinnamon Swirl French Toast.

“We augmented our daily dish menu by adding several new daily specials, such as our sweet and tangy Southern Barbecue Ribs, Creamy and Savory Chicken and Rice, and our delicious Slow Braised Pot Roast,” Masino said. “The pot roast has been particularly successful, so we listened to our guests and have now made it available every day… We've been pleased with the performance of our new menu items. In fact, in some cases, such as the shepherd's pie and pot roast, they've been so popular with guests, we've had to source additional product to meet the high demand.”

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Masino said that the company’s continued menu innovation led to a 600-basis point improvement for the dinner daypart compared to last year.

One crucial component of Cracker Barrel’s multi-year brand makeover is the store remodel program, which launched a pilot program in Indianapolis this year, and the company is “encouraged” by the results so far. According to Masino, 2025 will be a “test and learn” year for remodels, in which different types of store prototypes will be tested and Cracker Barrel will learn which resonates most with guests. So far, this quarter, the company has remodeled a further 19 stores and completed 12 refreshes.

Cracker Barrel’s new loyalty program also continues to be an area of focus for the company, with six million members and counting.

“Our loyalty guests are coming more often, they're spending more with us, and they have a higher check average,” Masino said. “We will continue to test and learn with this group and think about how we use them to power the business going forward.”

Related:Cracker Barrel reports positive same-store sales for second quarter in a row

For the first quarter ended Nov. 1, Cracker Barrel reported $845.1 million in revenue, an increase of 2.6% from the same quarter the year prior. The company reported a loss of $4.8 million or $0.22 per share, down from $5.5 million or $0.25 per share the same quarter the year prior. The company closed three Cracker Barrel stores and opened nine Maple Steet Biscuit Company units over the past year, for a total of 727 restaurants portfolio-wide.

Contact Joanna at [email protected]