By Christopher Kuo

Cracker Barrel Old Country Store reported lower profits and revenue in its latest quarter, as its struggles persist after last year's failed logo change.

However, Chief Executive Julie Felss Masino said Wednesday that efforts to turn around the chain are taking shape. The company also adjusted its full-year guidance on earnings, revenue and other financial measures, helping send shares up nearly 8% in after-hours trading.

Masino said steps are underway to boost the company's financial performance and several guest metrics are showing improvement.

The Tennessee-based restaurant chain posted a profit of $1.3 million, or 6 cents a share, in the quarter-ended Jan. 30. A year earlier its profit was $22.2 million, or 99 cents a share.

Stripping out certain one-time items, adjusted earnings were 25 cents per share. Analysts had expected the company to post a loss of 30 cents a share.

Revenue fell 7.9% to $874.8 million, but that came in higher than the $864 million expected by analysts polled by FactSet.

Cracker Barrel's challenges reflect a broader malaise among casual-dining chains across America. Some chains have had to restructure their operations and work to recover from declining sales as low- and middle-income consumers cut back on spending.

It's also trying to recover from controversial efforts to change its branding, and the fallout after returning to its old logo featuring a man in overalls leaning against a barrel.

The company had also tried to revamp some of its stores, including decluttering and replacing much of the homespun decor with white exteriors and interiors. In the wake of the logo controversy, the company suspended those remodeling plans after pushback from customers.

The saga upended Masino's plans for a three-year brand transformation.

More recently, some customers have also complained about Cracker Barrel's menu changes and food quality. The chain recently shifted to making its signature biscuits in batches and chilling them, rather than rolling out the dough on demand.

Write to Christopher Kuo at chris.kuo@wsj.com

(END) Dow Jones Newswires

March 04, 2026 16:45 ET (21:45 GMT)

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