Cracker Barrel Earnings Expected to Reflect $700M Rebrand Loss Amidst Sales Decline

Cracker Barrel's recent $700 million rebranding effort, including a new logo and store remodels aimed at modernizing the brand, faced significant backlash from customers and political figures including President Donald Trump, who urged the company to revert to its traditional image. In response, Cracker Barrel shelved the new logo and remodel plans but is proceeding with menu changes. The company is expected to report a 4.4% decline in quarterly revenue and a 21.4% drop in adjusted earnings per share, reflecting the ongoing challenges following the failed rebrand. Despite these setbacks, restaurant comparable sales are projected to rise by 3.6%, potentially offsetting declines in retail sales. Investor sentiment remains cautious, with shares down year-to-date and short interest near a 17-year high, although some analysts see potential value if the company can stabilize and grow profits. Cracker Barrel's upcoming earnings report is seen as a critical moment to assess whether the brand can recover from the rebrand fallout and return to growth.