By Heather Haddon

Cracker Barrel Old Country Store's shares slumped Wednesday after it said it expects guest traffic to further fall over the next year.

The outlook became the latest cloud facing the Lebanon, Tenn.-based company since it got caught in a political firestorm over changes to its logo, restaurant design and brand.

For the current fiscal year, the company said it would generate $3.35 billion to $3.45 billion in revenue, which was weaker than analysts polled by FactSet were expecting. Traffic was projected to decline between 4% and 7%.

Shares fell around 8% to $45.47 in aftermarket trading.

Under Chief Executive Julie Felss Masino, the company has been updating the 56-year-old brand, seeking to brighten up its dining rooms and better curate its retail offerings to help attract younger guests. The brand released an updated logo last month, which no longer contained its "Old Timer" man sitting in a country-style chair.

Online commentators and some customers accused the company of sanitizing its image and taking the charm out of its restaurants. President Trump weighed in on social media, saying Cracker Barrel should bring back its traditional logo and capitalize on the attention it has received.

About a week after the logo release, the chain said it would reverse course and keep its "Old Timer" branding. Cracker Barrel last week said it would roll back plans to remodel its restaurants after hearing from customers who didn't like the modern design.

Masino on Wednesday thanked customers for sharing their opinions about the brand in recent weeks and said the company has listened to them. She said the company would place a bigger emphasis on improving kitchen operations and other areas that enhance customer experience.

"Many elements of our plan are working well and delivering results," she said. "There is much to be optimistic about, and our teams are focused on getting back to the momentum we created last fiscal year."

Cracker Barrel's earnings report Wednesday doesn't reflect sales during the logo backlash or the weeks since. The company's sales and foot traffic have fallen since the logo change controversy flared up around Aug. 20, according to Bloomberg Second Measure and Placer.ai analyzed by research firm Gordon Haskett.

Investors have wondered what effect suspending the remodels would have on the company's financial guidance and broader investment plans.

For its fourth quarter ended Aug. 1, same-store sales at restaurants rose by 5.4%. Retail same-store sales, meanwhile, fell 0.8% during the period. Both measures fared better than analysts polled by FactSet had expected.

Still, the family-dining chain's profit fell to $6.8 million, or 30 cents a share, from $18.1 million, or 81 cents a share, a year earlier.

Adjusted earnings were 74 cents a share, below analysts' expectations of 77 cents a share.

Cracker Barrel posted $868 million in revenue. Analysts were expecting revenue of $855 million.

The company said it expects to close 14 of its Maple Street Biscuit restaurants during the year. It also expects to make $135 million to $150 million in capital expenditures in the current fiscal year. The company also announced a new share repurchasing program.

Write to Heather Haddon at heather.haddon@wsj.com

(END) Dow Jones Newswires

September 17, 2025 17:01 ET (21:01 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.