Country fares like biscuits and gravy served in a charming and homey atmosphere have made Cracker Barrel famous for quite some time.
However, the new CEO has said that the previous strategy is ineffective and that she intends to implement significant reforms.
Cracker Barrel CEO Julie Felss Masino, a former Taco Bell executive, said in August that the chain has lost some of its shine and needs a transformation to entice new customers and keep the ones it already has.
Following the CEO’s comments on Cracker Barrel’s relevance in the present market, the business’s stock has taken a nosedive in the last week.
The stock price has dropped 40% thus far in 2024. Cracker Barrel’s sales and revenue for the most recent quarter flatlined, remaining steady at $935.4 compared to the same period last year.
In the last few days, the business’s stock has fallen by about 20%, reaching a 52-week low and the lowest level it has been in more than a decade. Further adding gasoline to the fire of investor concern, Cracker Barrel reduced its annual dividend from $1.30 to 25 cents per share.
The chain’s client base has been steadily shrinking for a decade, and the loss of elderly consumers during the epidemic has only made matters worse. Many of these customers have yet to make a full recovery.
Cracker Barrel has responded by announcing plans to spend as much as $700 million over the next three years to reinvigorate its eateries and get back in the game.
Menu revamps, in-store improvements, and an enhanced customer experience are all part of Cracker Barrel’s goals.
According to Masino, the restaurant has been trying out new menu items in an effort to become more relevant to guests.
She said that more than ten Cracker Barrel stores had tried out twenty new things, such as banana pudding and green chili cornbread.
This autumn, Cracker Barrel will introduce several new meals to all of its locations based on customer suggestions.
