Cracker Barrel sees slow improvement despite continued traffic slump in Q2

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Subscribe to our free daily Nrn newsletters.Is Cracker Barrel starting to see the light at the end of the tunnel? After a challenging fiscal year — punctuated by the family-dining company’s controversial logo change and walk-back last summer — Cracker Barrel started its turnaround plan mostly from scratch. As outlined in its first quarter earnings report several months ago, Cracker Barrel has scrapped most of its brand modernization plans and pivoted to focus instead on heritage, as well as food and value perception improvements. While challenges persist in Q2 — the company reported 7.1% same-store sales declines for the quarter ended Jan. 30, executives are encouraged by the stronger traffic and guest experience scores in January and at the start of Q3.“We do believe the underlying trend is gradually improving,” Craig Pommells, Cracker Barrel CFO, said during Wednesday’s earnings call. “January did better than November and December, and that included some weather headwinds at the end of the month, and we're encouraged by an even better start to February.”Cracker Barrel CEO Julie Masino said that the company saw operational improvements after announcing leadership shakeups and promotions last October, noting Q2 as the brand’s highest Google star rating (4.28 stars) since 2020. Cracker Barrel also saw a 10% management turnover rate improvement last quarter, which Masino predicts will translate into long-term traffic gains.Two of the company’s most aggressive turnaround strategies include menu and value improvements.  Like last quarter, Masino emphasized bringing back and reintroducing menu favorites based on guest feedback, including items like country fried turkey, hamburger steak, and eggs in a basket. Guest feedback also prompted Cracker Barrel to add more breakfast options to the menu like a breakfast burger, scrambles, and omelets. One strategy that remains unchanged from the company’s original pre-controversy turnaround plan is the barbell pricing strategy, designed to improve value perception and options among price-conscious consumers.“We already have a strong everyday value foundation, which we've strengthened with our barbell pricing strategy, and we've been layering in new constructs and targeted promotional offers,” Masino said. “This has allowed us to evolve the way that we talk about value by amplifying our communications around compelling price points to drive traffic while reinforcing affordability as a hallmark of the brand.”Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,740.02 -90.69 (-1.33%)Dow 3047,501.55 -453.19 (-0.95%)Nasdaq22,387.68 -361.31 (-1.59%)Russell 20002,525.30 -60.27 (-2.33%)VIX29.49 +5.74 (+24.17%)Gold5,181.30 +102.60 (+2.02%)Trending tickersBTC-USD Bitcoin USD 68,320.34 -2,937.09 (-4.12%)VRT Vertiv Holdings Co 241.78 -7.97 (-3.19%)LITE Lumentum Holdings Inc. 558.44 -92.38 (-14.19%)BE Bloom Energy Corporation 135.19 -24.80 (-15.50%)PRSO Peraso Inc. 2.0400 +1.2290 (+151.54%)PortfolioSign in to access your portfolioSign inTop gainersDAWN Day One Biopharmaceuticals, Inc. 21.20 +8.42 (+65.88%)IOT Samsara Inc. 35.36 +5.78 (+19.54%)MRVL Marvell Technology, Inc. 89.57 +13.89 (+18.35%)EMAT Evolution Metals & Technologies Corp. 9.76 +1.25 (+14.69%)IOVA Iovance Biotherapeutics, Inc. 5.13 +0.55 (+12.01%)Top losersINGM Ingram Micro Holding Corporation 22.06 -4.30 (-16.31%)BE Bloom Energy Corporation 135.19 -24.80 (-15.50%)GAP The Gap, Inc. 23.28 -3.92 (-14.41%)LITE Lumentum Holdings Inc. 558.44 -92.38 (-14.19%)JEF Jefferies Financial Group Inc. 38.29 -5.99 (-13.53%)Most activeNVDA NVIDIA Corporation 177.82 -5.52 (-3.01%)ONDS Ondas Inc. 9.83 -0.63 (-6.05%)AAL American Airlines Group Inc. 11.18 -0.61 (-5.17%)MRVL Marvell Technology, Inc. 89.57 +13.89 (+18.35%)BBD Banco Bradesco S.A. 3.6800 -0.0600 (-1.60%)Top economic eventsEarnings eventsMy earnings eventsEarnings events