Cracker Barrel Old Country Store Inc. (NASDAQ:CBRL) is pausing its long-term capital investment strategy following guest backlash over recent store remodels and a rebranding effort that led to an 8% decline in foot traffic.
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CEO Hits Pause On $700 Million Capex Plan
During its fourth quarter earnings call on Wednesday, Cracker Barrel’s CEO Julie Masino confirmed the company would halt its previously outlined $600 million to $700 million capital plan and revert remodeled stores to their traditional look.
“We will not proceed with these modern stores,” Masino stated. “I have also begun reverting to our old-timer signage and bringing back more traditional Cracker Barrel interiors to these locations.”
See Also: Top Wall Street Forecasters Revamp Cracker Barrel Expectations Ahead Of Q4 Earnings
In addition to reversing the modern design elements, Masino said the company would stop all further remodels and refreshes systemwide. “We have hit pause on these as well and will not roll out any further remodels or refreshes while we continue to gather and evaluate data on the existing stores,” she said.
The company now expects to invest approximately $135 million to $150 million in capital expenditures in fiscal 2026, with a primary focus on maintenance and technology. “It is too early to set a specific CapEx range for fiscal 2027,” Masino noted, “but we will be well below the prior three-year figure of $600 to $700 million.”
Stock Plunges Amid Weak Forecast, Tariff Headwinds
In addition to the decline in footfalls, the company faced significant headwinds from tariffs, and expects a $25 million hit the coming fiscal year. Cracker Barrel says that it’s being forced to reduce the number of products in its gift shops, and renegotiate deals with suppliers owing to the same.
The company released its fourth quarter results on Wednesday, reporting $868.09 million in revenue, down 2.95% year-over-year, but ahead of consensus estimates at $855.30 million. It posted a profit of $0.74 per share, falling short of estimates at $0.80.
Cracker Barrel expects 2026 revenue in the range of $3.35 billion and $3.45 billion, falling short of analyst estimates at $3.47 billion.
The stock was down 3.16% on Wednesday, closing at $49.59, before declining by another 9.96% in after-hours trading. According to Benzinga’s Edge Stock Rankings, the stock scores well on Momentum and Value, but has an unfavorable price trend in the short, medium and long terms. Click here for deeper insights into the stock, its peers and competitors.
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