Restaurant chain Cracker Barrel’s (CBRL) shares have continued to take a beating, falling about 3% on Thursday morning. This is even though the company’s latest earnings result shows that comparable store restaurant sales climbed from the prior-year quarters for the fifth consecutive time.
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This indicates that investors are still cautious about committing their money to the stock following the social media backlash triggered by its now-jettisoned plan to change its ‘Old Timer’ logo for a more modern feel. However, the results from its Q4 2025 performance also likely add to the pressure.
A day earlier, Cracker Barrel released data on its latest financial performance, reporting that its quarterly revenue dropped by 2.9% to $868 million when compared to the same period last year (which had an extra week). For the full fiscal year, it shrank slightly by 0.29% year-over-year to $3.48 billion (also minus a week).
However, the company’s profit climbed by 13.5% to $46.6 million when compared to its last fiscal year, minus that year’s 53rd week. Meanwhile, the company generated 74 cents per share in the last quarter, below Wall Street’s expectation of an earnings per share of $0.77. The EPS fell 24% compared to the same quarter last year.
Controversial Logo Backlash Rears Its Head
In August, Cracker Barrel attempted to replace its old logo, which shows a man, ‘Uncle Herschel’, sitting next to a barrel of crackers. It came as part of a larger remodelling effort led by CEO Julie Masino to replace the company’s restaurants’ retro-rustic atmosphere with a more modern farmhouse look.
However, the move attracted wide criticism from customers as well as conservatives, including President Donald Trump. Sales subsequently fell, and the company was forced to retrace its steps a week later.
Is CBRL stock a good investment?
Turning to Wall Street, Cracker Barrel’s shares have a Hold consensus recommendation on TipRanks based on the assessments of four Wall Street analysts. This is based on one Buy, one Hold, and two Sells ratings assigned over the last three months.
However, the average CBRL price target of $56.50 points to a possible 15% increase from its current level.
