Cracker Barrel to Upgrade Chicken, Burger, Steak Dinners
Cracker Barrel Old Country Store plans to upgrade three of its most popular dinner offerings — chicken, hamburger and steak — while completing a real estate transaction involving 26 company-owned restaurants, the Lebanon, Tennessee-based chain announced during its fiscal 2026 fourth-quarter earnings call on September 23, 2026.
The dual moves, disclosed alongside the company’s fiscal fourth-quarter results (quarter ended July 31, 2026) and its fiscal 2027 outlook, reflect the priorities of new President and CEO David Deno, who has staked the chain’s turnaround on a strategy he summarizes as “food, experience and people.”
A Menu Bet on Dinner
According to Fox Business, Cracker Barrel called dinner its “biggest opportunity” for improving guest satisfaction and said it plans to improve the quality of its chicken, hamburger and steak offerings.
“We are making investments to improve food quality. Dinner is our biggest opportunity, and we plan to upgrade our chicken, hamburger, and steak offerings,” Deno said on the call. He added that the company wants to ensure its food consistently meets guests’ expectations for “taste, temperature, and quality on every visit.”
Management emphasized that the changes are “all about increasing guest satisfaction and not about taking out costs,” and that the associated investments are embedded in fiscal 2027 guidance. Breakfast remains Cracker Barrel’s strongest daypart in both food scores and traffic, and menu work and marketing will continue to capitalize on that strength even as dinner is overhauled.
The menu push is one of several levers Deno outlined. He said his management philosophy centers on “doing fewer things better,” adding that “you must offer great food, provide a great guest experience, and hire and retain excellent employees who deliver both.”
The 26-Store Sale-Leaseback
Alongside the menu upgrades, Cracker Barrel completed a sale-leaseback transaction involving 26 company-owned Cracker Barrel store locations, generating approximately $77 million in net proceeds. Per the company’s fiscal fourth-quarter earnings release, those proceeds were deployed toward debt reduction and partially offset the $150 million of debt tied to the company’s 0.625% convertible senior notes that matured and were repaid in June 2026.
“The quarter ended with total debt of $337.2 million, which was $147.4 million below the prior year,” Chief Financial Officer Craig Pommells said. The transaction was described as tax-efficient, enabling the company to use capital loss carryforwards that otherwise would have expired, and it produced a $47.4 million net gain on the sale of assets that is excluded from adjusted EBITDA.
Total debt at fiscal year-end stood at $337.2 million, down from $484.6 million at the end of fiscal 2025, and is now composed entirely of the 1.75% convertible senior notes due 2030, with no outstanding revolver borrowings. The company ended the quarter with $541.3 million in available liquidity and a consolidated total leverage ratio of 1.7x.
Q4 Results: Traffic Down, Profit Up
Cracker Barrel’s fourth-quarter results showed a company managing declining foot traffic while squeezing more profit from each remaining guest. Total revenue was $849.3 million, down 2.2% year over year, with restaurant revenue of $698.5 million. Comparable store restaurant sales fell 2.1%, reflecting a 6.1% decline in guest traffic, partly offset by a 4.2% increase in average check, including menu pricing of 4.4%.
Retail revenue was $150.8 million, with comparable store retail sales up 0.7% — the strongest retail comparable since the second quarter of fiscal 2023. Adjusted EBITDA rose 11.4% to $62.1 million, including a net tariff refund benefit of approximately $9.1 million. GAAP net income was $12.2 million, or $0.54 per diluted share, while adjusted diluted earnings per share were $0.99, up from $0.74 a year earlier.
The earnings results, detailed in the earnings call transcript, beat Wall Street expectations and sent the stock higher. Off-premise sales reached 19% of restaurant sales, up about 100 basis points, driven by third-party delivery growth.
Divestiture and Impairments
The quarter also reflected significant portfolio reshaping. Cracker Barrel completed the sale of its Maple Street Biscuit Company business assets on July 20, 2026, resulting in a $27 million noncash loss on the sale and an $8.5 million noncash impairment charge. The company separately recorded a $13 million noncash impairment charge tied to low-performing Cracker Barrel stores, three of which closed during the quarter.
The divestiture and sale-leaseback are part of a broader effort to repair the balance sheet and refocus the brand on its core full-service restaurant and retail model.
A Leadership Reset After the Rebrand Backlash
Deno took over as CEO on August 10, 2026, succeeding Julie Felss Masino, whose tenure included a modernization effort that drew intense criticism. As The Guardian reported, critics denounced the chain as “woke” and “sterile and soulless” after it unveiled an updated logo that removed Uncle Herschel, the overall-clad figure in the original mark. The company reverted to its old logo after the backlash, and the episode drew commentary from President Donald Trump, who demanded the company “admit a mistake.”
Masino, who had led the chain since 2023, told commentator Glenn Beck in December that she felt “fired by America” following the controversy. She stepped down as president, CEO and director and remained in an advisory role until October 2026. Deno, formerly CEO of Bloomin’ Brands, brings several decades of restaurant industry experience to the role.
Deno framed the reset in forward-looking terms. “I’m honored to lead such a differentiated and iconic brand,” he said in the earnings release. “The Company is focused on the right areas and has a strong plan, as demonstrated by the continued improvements in the underlying traffic trend, key guest metrics, and EBITDA results.”
Operating Momentum and Fiscal 2027 Outlook
Despite the traffic decline, several operating metrics improved. The Cracker Barrel Rewards loyalty program has over 12.5 million members, accounting for more than 40% of tracked sales. Food taste and service scores rose nearly 400 basis points, food temperature scores improved 500 basis points versus the prior-year quarter, and the company’s Google star rating increased 2% year over year, remaining near an all-time high. Hourly turnover improved 450 basis points and manager turnover improved 85 basis points.
For fiscal 2027, Cracker Barrel guided to total revenue of $3.325 billion to $3.4 billion, assuming comparable store restaurant sales growth of approximately 3% to 5%, with no new stores planned. It projected pricing of about 3%, commodity inflation of roughly 3% driven by beef, produce and seafood, and hourly wage inflation of 2.5% to 3%. Adjusted EBITDA is expected to land between $180 million and $200 million — a $30 million to $50 million step-up over fiscal 2026’s $147.7 million — with capital expenditures of $110 million to $125 million, about 65% for maintenance.
The board also declared a quarterly dividend of $0.25 per share, payable November 12, 2026 to shareholders of record as of October 16, 2026.
What to Watch
The coming quarters will test whether Deno’s “fewer things better” approach can reverse the traffic decline that has weighed on the chain. Deno acknowledged continued pressure among lower-income guests, though he said trends have improved, and Pommells noted the average guest check of about $16 keeps the brand an accessible option for strained diners.
The dinner upgrades, the loyalty program and retail merchandising improvements — including plans to simplify product layouts and widen aisles — are the visible levers. The larger question is whether a refocused menu and repaired balance sheet can restore the brand’s relevance without reigniting the cultural flashpoints of the past two years.