Cracker Barrel's Comeback After Disappointing Fans Is Finally Working
Cracker Barrel has been dwindling in popularity and seeing notable declines in customer visits over the past couple of years. But after kicking off a major transformation plan earlier in 2024, the country dining chain is finally starting to make a comeback.
Cracker Barrel released its earnings results for the first fiscal quarter of 2025 on Dec. 4, reporting a 2.6% increase in total revenue and a 2.9% boost in same-store sales. This was the chain's second straight quarter of positive same-store sales following a 1.5% decrease in the important financial figure this past spring.
During an earnings call with investors this week, executives revealed that customer traffic has also started to improve. They didn't share any exact figures, but any progress on that front is notable after several consecutive quarters of declines in customer visits.
CEO Julie Masino attributed last quarter's improvements to a sweeping "strategic transformation plan" that Cracker Barrel kicked off this past spring to revive the business. The initiative includes menu enhancements, restaurant remodels, upgraded employee training programs, and refinements to the overall Cracker Barrel brand.
"Our fiscal year is off to a very good start," Masino said. "Our initiatives are gaining traction and we're focused on sustaining this momentum."
The restaurant remodel efforts have proven to be particularly popular change. Per Masino, they've been testing new designs at select restaurants and seeing boosts in both sales and traffic at those locations. A couple dozen have been remodeled so far, and Cracker Barrel plans to remodel 25 to 30 locations total during the 2025 fiscal year.
Cracker Barrel's menu enhancements are also garnering positive responses from customers. The chain has rolled out a series of new and returning food and beverage options throughout the year, and Masino said the company is "pleased with the performance" of those items. A slow-braised pot roast introduced as a Sunday special earlier in 2024 was so popular, in fact, that Cracker Barrel decided to add it to its everyday menu.
"This menu innovation has contributed to the improvement in our traffic trends, particularly at the dinner daypart," Masino said.
She noted during the call that Cracker Barrel is still in the early days of its turnaround plan, but the company is "excited about the quarters and years ahead" and intensely focused on improving its performance.
"We were very pleased with our Q1 results, which underscore the fact that our entire organization is aligned and executing against our three imperatives: driving market share, delivering food and experiences guests love, and growing profitability."
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