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Cracker Barrel continues to struggle as both revenue and sales are down

Cracker Barrel’s stock fell as the company reported retail same-store sales decline of more than 8% and restaurant sales downturn of 0.5%

Joanna Fantozzi, Senior Editor

November 30, 2023

2 Min Read
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Joanna Fantozzi

Cracker Barrel Old Country Store, Inc. continues to struggle as the company undergoes a leadership transition from former CEO Sandra Cochran to new CEO Julie Felss Masino, who started her role on Nov. 1. Cracker Barrel reported retail same-store sales declines of 8.1% and restaurant same-store sales declines of 0.5% for the first quarter of 2024 ended Oct. 27. Although same-store sales improved for the retail sector since last quarter, restaurant sales were positive last quarter as compared with this quarter’s current downturn.

Despite same-store sales declines as well as revenue declines of 1.9% to $823.8 million, compared with $839.5 million the same quarter the year prior, Masino said that is she is feeling optimistic about the Lebanon, Tenn.-based casual-dining brand’s traffic improvements.

"We were pleased that we delivered sequential monthly improvements in our comparable store traffic performance during the first quarter,” she said in a statement. “This improved trend was largely driven by the actions we took to improve the effectiveness of our marketing and our emphasis on the guest experience. We will continue to focus on these initiatives along with operational excellence, and we believe these efforts will resonate with guests and will support improved performance in the remainder of the fiscal year and beyond.”

Related:Cracker Barrel teams with Dolly Parton to celebrate new rewards program

Masino also added that last quarter Cracker Barrel launched its brand-new rewards program, which guests have “embraced,” and that the levels of enrollment have exceeded expectations, though did not go into details on specific numbers. The loyalty program is based on Cracker Barrel’s popular peg game, and participants will earn “pegs” for every dollar they spend in both the restaurants and the attached retail shops.

“We remain excited about this program and are confident it will be a meaningful differentiator and traffic driver over the long term,” Masino said.

There are plans to heavily push and market this new loyalty program as a means of encouraging return guests and increasing consumer excitement about the Cracker Barrel brand. The company also expects a Q2 marketing and traffic push around the holiday season, which is traditionally a popular time of year for the homestyle-cooking brand.

For the first quarter ended Oct. 27, Cracker Barrel’s net income was $5.5 million or $0.25 per share, down 68% from $17.1 million or $0.77 per share the same quarter the year prior. The company opened one new Cracker Barrel unit and one new Maple Steet Biscuit Company unit in the first quarter for a total of 721 restaurants portfolio-wide.

Related:Cracker Barrel to debut first loyalty program as tool to boost traffic

Contact Joanna Fantozzi at joanna.fantozzi@informa.com

About the Author

Joanna Fantozzi

Senior Editor

Joanna Fantozzi is a Senior Editor for Nation’s Restaurant News and Restaurant Hospitality. She has more than seven years of experience writing about the restaurant and hospitality industry. Her editorial coverage ranges from profiles of independent restaurants around the country to breaking news and insights into some of the biggest brands in food and beverage, including Starbucks, Domino’s, and Papa John’s.  

Joanna holds a bachelor’s degree in English literature and creative writing from The College of New Jersey and a master’s degree in arts and culture journalism from the Craig Newmark Graduate School of Journalism at CUNY. Prior to joining Informa’s Restaurants and Food Group in 2018, she was a freelance food, culture, and lifestyle writer, and has previously held editorial positions at Insider (formerly known as Business Insider) and The Daily Meal. Joanna’s work can also be found in The New York Times, Forbes, Vice, The New York Daily News, and Parents Magazine. 

Her areas of expertise include restaurant industry news, restaurant operator solutions and innovations, and political/cultural issues.

Joanna Fantozzi has been a moderator and event facilitator at both Informa’s MUFSO and Restaurants Rise industry events. 

Joanna Fantozzi’s experience:

Senior Editor, Informa Restaurant & Food Group (August 2021-present)

Associate Editor, Informa Restaurant & Food Group (July 2019-August 2021)

Assistant Editor, Informa Restaurant & Food Group (Oct. 2018-July 2019)

Freelance Food & Lifestyle Reporter (Feb. 2018-Oct. 2018)

Food & Lifestyle Reporter, Insider (June 2017-Feb. 2018)

News Editor, The Daily Meal (Jan. 2014- June 2017)

Staff Reporter, Straus News (Jan. 2013-Dec. 2013)

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