Cracker Barrel Old Country Store Inc (NASDAQ:CRBL) stock fell 3.25% (As on September 18, 11:14:20 AM UTC-4, Source: Google Finance) after the company forecast falling traffic in the months ahead, in the wake of a logo change and remodeling plans that turned off consumers. The chain issued the forecast after restoring its old logo, after diners and conservatives reacted angrily to a newer, pared-back one. This month, it has also suspended remodeling plans, intended to make stores brighter and more welcoming, after a backlash response from customers who wanted it to keep its home-spun atmosphere. Since Aug. 19, when Cracker Barrel initially changed its logo, customer traffic has fallen around 8% and the drop in demand was a bit more pronounced in the southeastern U.S., excluding Florida. In Cracker Barrel’s fiscal fourth quarter, same-store restaurant sales rose 5.4% while analysts polled by FactSet expected a same-store sales gain of 4%. The retail sales declined 0.8%.

CRBL in the fourth quarter of FY 25 has reported the adjusted earnings per share of 74 cents, missing the analysts’ estimates for the adjusted earnings per share of 77 cents. The company had reported the adjusted revenue growth of percent to $868 million in the fourth quarter of FY 25, beating the analysts’ estimates for revenue of $854.8 million.  The company’s adjusted EBITDA decreased 2.9% to $55.7 million compared to the prior year quarter. However, when adjusting for the impact of the 53rd week in fiscal 2024, adjusted EBITDA increased 8.0%.

Additionally, the company also announced a quarterly dividend of $0.25 per share and a new $100 million share repurchase program. In fiscal 2025, the Company invested $158.6 million in capital expenditures, composed of approximately $105 million in store maintenance, $20 million related to remodels, $19 million associated with technology and other strategic initiatives, and $15 million for new stores. The Company ended fiscal 2025 with total debt of $484.6 million, comprised of $149.2 million of short-term debt related to its 0.625% Convertible Senior Notes due 2026 and $335.4 million of long-term debt related to its 1.75% Convertible Senior Notes due 2030.

The company expect a same-store traffic to decline in the range of 4% to 7% over its fiscal 2026. Management also forecast total revenue of $3.35 billion to $3.45 billion over that period. Wall Street was expecting revenue of $3.52 billion. Cracker Barrel plans to close 14 Maple Street units while opening just two new Cracker Barrel stores in fiscal 2026.