Cracker Barrel Focuses on Core Brand Amid Turnaround Efforts

Cracker Barrel Old Country Store is returning to its roots, divesting secondary business units and reducing debt as it works to strengthen its core brand. These strategic moves come as the company raises its profitability outlook for fiscal year 2026, signaling momentum in its turnaround efforts following a period of backlash from loyal customers.

Last week, the Tennessee-based company announced it had completed a sale-leaseback transaction for 26 company-owned restaurant locations, generating approximately $77 million. These proceeds are earmarked for debt reduction. Additionally, Cracker Barrel sold the majority of its Maple Street Biscuit Company business to Biscuit Belly and will close the remaining 16 Maple Street locations, allowing for a more concentrated focus on the Cracker Barrel brand.

"Divesting Maple Street sharpens our focus on the core Cracker Barrel brand and is expected to improve profitability," said President and CEO Julie Masino in a statement. The sale-leaseback transaction is intended to "opportunistically reduce debt while monetizing a portion of our owned real estate at an attractive valuation."

The company faced significant customer criticism last summer over changes to its logo and restaurant interiors, which many longtime patrons felt strayed from the brand's established nostalgic aesthetic. In response to this backlash and weaker sales, Cracker Barrel reinstated its signature "Old Timer" logo and adjusted its interior designs.

Rachel Love, a 38-year-old customer who had previously voiced disappointment with the changes, described her recent visit to a restored Cracker Barrel location as feeling "like coming home." She noted that the return to a familiar exterior and interior, along with her preferred menu items, indicated the company had listened to its established customer base.

"What has impressed me the most is that this turnaround feels like more than just cosmetic changes," Love told Fox News Digital. "It feels like Cracker Barrel listened to the people who have supported the brand for generations."

Industry publication Nation's Restaurant News reported that Cracker Barrel's recovery is "gaining steam." The company now anticipates meeting or exceeding the upper end of its previously issued revenue guidance and surpassing its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast for the fiscal year, despite overall restaurant sales remaining slightly below the previous year's levels. The company declined to comment when reached by Fox News Digital.