Shares of Cracker Barrel Old Country Store (CBRL) are set for a steep decline, plummeting 9.60% in pre-market trading on Thursday. The sell-off comes in the wake of the company's disappointing fourth-quarter earnings report and weak fiscal 2026 guidance, compounded by ongoing challenges from a recent rebranding effort that backfired.

The restaurant chain, known for its Southern-style cuisine and country store retail offerings, reported adjusted earnings of $0.74 per share for its fiscal fourth quarter, falling short of analyst expectations of $0.80. While quarterly revenue of $868 million slightly exceeded estimates, it was the company's outlook that rattled investors. Cracker Barrel projects revenue between $3.35 billion and $3.45 billion for fiscal 2026, significantly below the $3.52 billion analysts were anticipating.

Adding to the company's woes, Cracker Barrel expects comparable store traffic to decline by 4% to 7% in fiscal 2026. This projection comes in the wake of a recent rebranding controversy that saw customer traffic drop by approximately 8% since August 19, when the company initially changed its logo. The backlash from customers and conservatives forced Cracker Barrel to revert to its original logo and suspend plans to modernize its restaurant interiors. CEO Julie Masino acknowledged the misstep, stating, "What cannot be captured in data is how much our guests see themselves and their own story in the Cracker Barrel experience, which is what's led to such a strong response to these changes." The company is now focusing on a new marketing campaign emphasizing "nostalgia around the brand" in an attempt to win back customers and reverse the declining traffic trend.