Cracker Barrel Streamlines Structure to Drive Long-Term Growth

Cracker Barrel Old Country Store, Inc. CBRL is reshaping its leadership and organizational structure to streamline decision-making, strengthen operations and enhance the guest experience. The company’s latest announcements reflect a strategic realignment aimed at sharpening its competitive edge in the casual dining and retail space.

The New Initiatives to Regain Momentum

The initial transformation involved a new logo and store redesigns aimed at giving the brand a more modern appeal. While the move aligned with the market trends, it ultimately had the opposite effect, as customers strongly preferred the brand’s traditional and nostalgic charm.

The rebranding initiative was carried out in collaboration with Prophet, a global strategic consultancy. Now, Cracker Barrel has announced the termination of its partnership with Prophet, which had supported the company’s brand refresh efforts. Ending its engagement with consultancy Prophet signals a shift toward internally driven brand evolution rather than external refresh initiatives.

Alongside this update, president and chief executive officer Julie Masino also unveiled several leadership changes, primarily at the senior level, including roles such as Senior Vice President of Store Operations, Vice President of Menu Strategy & Innovation and Vice President of Retail & Design.

Management is now focused on bringing back Cracker Barrel’s original authenticity and nostalgic appeal. Masino further underlined the business' dedication to ongoing development while preserving the heritage and traditions that customers love.

CBRL's Share Price Performance

Shares of the company have declined 16.4% in the year-to-date period compared to the Zacks Retail - Restaurants industry’s 6.8% fall. Cracker Barrel highlighted worries about macroeconomic uncertainties and lower traffic trends, which led to negative market sentiment.

CBRL, which acquired Maple Street Biscuit Company back in 2019, closed 14 of the breakfast chain’s locations because they weren’t meeting “financial expectations.”

Cracker Barrel is still dealing with issues, including dismal traffic after changing its logo and pressure from commodity inflation and tariffs. But focused efforts are paying off, with improvements to the back-of-the-house, new service principles under "The Herschel Way," and improved menu items, including Uncle Herschel's breakfast and chicken selections. Management remains cautiously optimistic that these efforts will help stabilize traffic and provide long-term shareholder value.

By simplifying leadership layers and prioritizing field execution, Cracker Barrel is positioning itself for improved operational agility and customer satisfaction. Coupled with strengthened menu innovation and retail oversight, the realignment could support revenue growth and margin stability in a competitive industry. The leadership overhaul is a timely step as the company prepares for the key holiday season, potentially boosting performance and investor confidence in CBRL stock.

CBRL’s Zacks Rank & Key Picks

Cracker Barrel currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks from the Zacks Retail-Wholesale sector are Build-A-Bear Workshop, Inc. BBW, Groupon, Inc. GRPN and Levi Strauss & Co. LEVI.

Build-A-Bear Workshop presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 21.3%, on average. BBW stock has jumped 32.6% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BBW’s 2025 sales and earnings per share (EPS) indicates growth of 7.4% and 6.9%, respectively, from the year-ago period’s levels.

Groupon sports a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 230.5%, on average. Groupon's stock has surged 89% year to date.

The Zacks Consensus Estimate for GRPN’s 2025 sales and EPS indicates growth of 2.4% and 153%, respectively, from the prior-year levels.

Levi Strauss carries a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 25.9%, on average. Levi Strauss stock has gained 41.3% year to date.

The Zacks Consensus Estimate for LEVI’s 2025 sales indicates a 3.4% decline, while the estimate for EPS suggests 4% growth from the prior-year levels.

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This article originally published on Zacks Investment Research (zacks.com).

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