Cracker Barrel reported significant losses in its second quarter fiscal report for 2026, with total revenue falling 7.9% year-over-year and restaurant sales down 7.5%, reflecting a more than 10% decline in customer traffic. The downturn follows the company’s 2025 rebranding, widely criticized as a marketing misstep that led to the resignation of a board member.

During the quarterly earnings call, CEO Julie Masino highlighted one of the few bright spots: the company’s Google star rating, which reached 4.28 in Q2, the highest quarterly score since 2020. Masino noted the rating is “strongly correlated with traffic” and called it a key metric for tracking improvement, though she admitted there is no exact formula connecting ratings to customer visits.

Masino also pointed to increased guest satisfaction scores, lower manager turnover, and repeat visits from customers who had not come in previous quarters. Thanksgiving week 2025 was described as a strong period, with $110 million in sales accounting for roughly 12–13% of total quarterly revenue, though she said traffic was consistent with the rest of the month.

“Our disciplined focus on operational excellence is driving significant improvements in several key guest metrics, many of which serve as important leading traffic indicators,” Masino said, adding that the company is confident it can regain prior momentum.

The board approved a quarterly dividend of $0.25 per share, and Cracker Barrel continues limited expansion with the opening of two new stores. Despite the ongoing revenue challenges, management emphasized that improving guest experience and operational metrics will remain central to the company’s recovery strategy.