Shares of Cracker Barrel Old Country Store (NASDAQ: CBRL) plummeted 9.50% in after-hours trading on Wednesday following the release of disappointing fourth-quarter results and weak fiscal 2026 guidance. The restaurant chain, known for its Southern-style cuisine and country store retail offerings, is grappling with the aftermath of a controversial rebranding effort and declining customer traffic.

Cracker Barrel reported fourth-quarter adjusted earnings of $0.74 per share, missing analyst expectations of $0.80 and marking a significant decrease from $0.98 per share in the same period last year. While quarterly revenue of $868 million slightly exceeded analyst estimates, the company's outlook for fiscal 2026 raised concerns among investors. Cracker Barrel projects revenue between $3.35 billion and $3.45 billion for the upcoming fiscal year, falling short of the $3.52 billion analysts were expecting.

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.