Cracker Barrel Old Country Storehas reported a sharp drop in profits during the second quarter of fiscal 2026, with net income falling 94 per cent compared with the same period last year. According to financial results released on 4 March, the restaurant chain earned $1.3 million (about £966,500) for the quarter, down from $22.2 million (about £16.5 million) a year earlier.

Total revenue for the quarter ending 30 January 2026 reached $874.8 million (about £650.4 million), representing a 7.9 per cent decline from the previous year. The company also reported that comparable restaurant sales fell by 7.1 per cent, while retail sales in its gift shops dropped by 9.2 per cent.

The results come during a period of public debate surrounding the company's effort to modernise its restaurants and menu. The initiative, described by the company as atransformation strategy, has drawn criticism from some customers online who described the changes as a'woke rebrand'.

Thelatest quarterly reportshows that the drop in profits was accompanied by weaker customer traffic across many locations. Comparable sales, which measure performance at existing restaurants, declined as both dining and retail purchases slowed.

Cracker Barrel said the company is continuing to focus on controlling costs and improving restaurant operations while adjusting to changes in customer behaviour.

Chief Executive Officer Julie Masinosaid the company has been concentrating onoperational improvementsand guest experience metrics as part of its turnaround efforts. The company also narrowed its full-year revenue forecast to between $3.24 billion and $3.27 billion (around £2.41 bn to 2.43 bn).

Cracker Barrel's transformation strategy has included updates to restaurant interiors, new menu items and adjustments to retail merchandise sold inside its stores. Some of the changes havesparked debate on social media, wherecritics arguedthat the brand was moving away from the traditional country-style image that defined the chain since its founding in 1969.

NEW: Cracker Barrel reveals new logo, CEO Julie Felss Masino says people love their new rebrand."Honestly, the feedback's been overwhelmingly positive that people like what we're doing," Masino told GMA while discussing the overall rebrand.This logo is depressing.pic.twitter.com/EZVpWLv4Bg

Did you know?The CEO of Cracker Barrel, Julie Felss Masino, announced her plans last year to rebrand the company because she said “it’s not relevant anymore.” She also believes people in middle class neighborhoods should have higher menu prices than people in low income…pic.twitter.com/OBApVhpXa1

The company has said the updates are intended to modernise the brand while maintaining the core menu and atmosphere that long-time customers expect.

Source: International Business Times UK