Cracker Barrel sees traffic improvement as strategy is ‘on the right track’

Cracker Barrel sees traffic improvement as strategy is ‘on the right track’

Alicia Kelso

Wed, September 23, 2026 at 6:36 PM GMT+3 4 min read

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Cracker Barrel's fourth quarter results, reported Wednesday morning, exceeded Wall Street's expectations and sent the company's stock up over 3% following the market's opening. CEO David Deno, who took the reins just six weeks ago, said the company's improvements over the last several quarters have come from the company's focus on the "right areas and strong plan."

"The team made hard calls, listened to guests, and got the business back on track," he said.

Such commentary is a nod to his predecessor Julie Felss Masino, who exited the chain in late July after three years that included a rebranding campaign and quick reversal following an outcry from longtime guests (though much of the controversy on social media was driven by bots). Following the fallout, Masino shifted gears back to the traditional branding and prioritized food, operations, and customer service upgrades. The comeback was gaining a significant amount of traction and, during its last quarter — nearly a year after the backlash tanked its sales — Masino said the family-dining chain was on track to either meet or exceed the high end of its revenue and earnings guidance for the fiscal year.

Deno said the turnaround plan will continue under his leadership, and with an even stronger focus on food and guests.

"A big part of my management philosophy is doing fewer things better and concentrating on opportunities that can have the greatest impact," he said during Wednesday morning's earnings call. "For restaurants, the formula is straightforward — offer great food, provide a great guest experience, and hire and retain excellent employees who deliver both."

On Deno's watch, Cracker Barrel will continue to invest in food quality improvements, with dinner as the biggest opportunity. Upgrades will be made to its chicken, hamburger, and steak offerings. Simultaneously, the company will ramp up its breakfast menu and marketing as it remains the strongest daypart for the brand.

There will also be a continued focus on operations. In the fourth quarter, Cracker Barrel's Google Star rating increased 2% year-over-year and is now near an all-time high, while food taste and service scores increased nearly 400 basis points.

Deno also plans to "make the retail experience even better" from a product and merchandising standpoint, as it is a differentiator and "real competitive advantage" in the full-service space.

Cracker Barrel's loyalty program, introduced in 2023, has reached over 12.5 million members that account for over 40% of sales.

"This is a differentiator that we will continue to leverage," Deno said. "The team is continuing to improve our personalization capabilities."

Cracker Barrel also just launched a new website to make the experience easier for guests.

Finally, the company is enhancing its training and development programs and tools to improve engagement and retention. In the fourth quarter, hourly turnover improved by 450 basis points, while manager turnover improved by 85 basis points compared to the prior year.

CFO Craig Pommells said the company experienced "continued gradual improvement" in traffic, which was down 6.1%, and topline results, including total revenue of $849.3 million (-2.2% versus the prior year) and same-store sales (-2.1%) exceeded expectations. Average check increased 4.2%, inclusive of 4.4% pricing. Off-premises sales were 19% of total restaurant sales, marking a 100-basis-point increase versus last year.

Meanwhile, profitability also exceeded expectations, with adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) up 11.4% to $62.1 million. These results include a tariff refund benefit, $5.9 million of which was reinvested in the business for a net tariff benefit of $9.1 million.

For the fiscal year 2027 outlook, Pommells expects total revenue of $3.325 billion to $3.4 billion, which assumes same-store sales growth of approximately 3% to 5% and no new stores.

"As a result of the strong execution of (our) priorities, we will meaningfully improve profitability and cash flow in fiscal '27 and set the business up for long-term success," Deno said.

Contact Alicia Kelso at Alicia.Kelso@informa.com

Follow her on TikTok: @aliciakelso