Cracker Barrel announced plans to raise its menu prices – even as it reported a decline in revenue at its restaurants in the third quarter – after the CEO of the southern-themed restaurant chain admitted last week that it “just wasn’t as relevant” as before. .
Cracker Barrel is the latest company to struggle to turn a profit in an era of stubborn inflation.
He hopes a 5% price increase by the end of this year will help turn around his fortunes.
The Tennessee-based company said its total third-quarter revenue was $817.1 million, down 1.9% from the same period last year.
Cracker Barrel also reported that its same-store restaurant sales declined 1.5%, while same-store retail shares declined 3.8%.
Last year, Cracker Barrel reported a 7.4% year-over-year increase in same-store sales.
“As we indicated during our recent business update call, our third quarter results were lower than expected due to lower traffic than initially anticipated, highlighting the importance of execute our strategic transformation,” Julie Masino, president and CEO of Cracker Barrel, told investors. call for results.
“Our teams are fully committed to bringing these projects to life while continuing to deliver an exceptional customer experience and managing our business every shift, every day. »
Despite the report, Cracker Barrel stock was trading up 3% on Thursday, with its earnings per share of $0.88 beating analysts’ estimates.
Cracker Barrel also lowered its full-year revenue forecast to $3.49 billion from $3.55 billion, a decline of 1.7%.
The company, which operates more than 700 locations nationwide, announced last week that it plans to spend up to $700 million over the next three years to revamp its restaurants.
Cracker Barrel plans to update its menu and rethink its marketing strategies. He will also paint its interior and exterior with a different color palette.
The company also wants to make the lighting in its restaurants brighter while replacing wooden chairs with booths and booths.
Cracker Barrel also curated its 20-item menu while introducing new dishes such as premium savory chicken and rice, slow pot roast and hash brown casserole shepherd’s pie.
Since the start of the year, Cracker Barrel stock has fallen nearly 40%. In July 2019, the stock was trading at an all-time high of nearly $180.
Since then, the stock has fallen more than 73%.
Cracker Barrel is struggling to attract a younger crowd while retaining its traditional following of older customers.
Last year, the chain introduced rainbow-colored rocking chairs during Pride month, sparking a backlash and accusations of “rainbow washing.”
New York Post
