Cracking barrel faced financial challenges before rename the logo

Craft barrel The attempt to rename the company logo stimulated a virus violent reaction, which prompted the company to decline. This happened because the company’s leaders were trying to address the financial performance of the restaurant chain.

The shares of the company increased in the years before the epidemic, reaching its highest level at $ 185 per share in November 2018. While Cracker Barre shares briefly recovered nearly near those levels in the spring of 2021, it witnessed a significant decrease in the years that have passed in the years since it traded about $ 62 in the session on Wednesday despite its rise from 8 % of the day.

Julie Felss Masino, CEO of Cracker Barre, launched a project to transform a year ago aimed at strengthening sales and stimulating the base of its customer as the brand faced the recession. The brand’s attempt to try the company, reflected by the company on Tuesday, was part of this effort.

The shift batch has resulted in mixed financial results so far. In the third quarter of the fiscal year 2025, Cracker Barre said that sales of similar restaurants increased by 1 % on an annual basis, while Retail sales 3.8 % decreased from that period.

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Although retail sales account for only 17 % of the Cracker Barre revenue, dipping sales affect the profit margins.

The company also faces The opposite winds of definitions On the products that it sells by retail sale from its business, which created the costs of the company and forced it to reassess its supply chain.

“For context, approximately third of our retail products are obtained directly from Sellers in ChinaMasino’s Cracker Barrel said in a third -quarter profit call.

“In addition to this direct exposure, we also have indirect exposure to the products we bought through local sellers that are also obtained from China,” Masseno explained. “Our approach to mitigating the effects of customs tariffs: First, negotiate strongly with the sellers; second, alternative sources; and the third, pricing.”

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Massino said that the Cracker Barrel teams are working to rationalize their products in terms of SKUS and topics, in addition to its timing to improve compatibility with customer demand. For example, I noticed that the company has historically put Halloween and Christmas topics relatively early, although this might change.

Other ways that the company includes definitions Work with sellers And negotiating with them and their suppliers, as well as by other means such as sources of products from different parts of the world.

“Then, as the last lever and the appearance, the pricing is a choice. But we are very thoughtful about pricing because this work is very appreciated. We know from the work we have done about the transformation that the value is important in this work exactly as it is in our work in our restaurant,” said Massino.

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Cracker Barrel indicated that he raised prices forward by 1.5 % of the fiscal year 2024, while raising prices by 3.4 % in the fiscal year 2025, which will eventually leave prices 5 % higher by increases.

Craacker Barrel said he expected $ 5 million Bend Because of the definitions in the fourth quarter.

Massino analyst was asked if this number represents an operating rate that the company expects to see in the fiscal year 2026.

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“We will have more to participate in how to think about the year 26 in the definitions in September because we will provide our annual guidelines,” said Massino, adding that the directions will work deeper into determining this mitigation strategy.