Cracker Barrel CEO Julie Masino is having a good month.
Two weeks after disgruntled shareholder Sardar Biglari was stopped from trashing the family chain’s comeback strategy, Masino was able to prove Wednesday that her transformation plan is working.
The company revealed that food and beverage sales at units open for at least 12 months had risen year over year by an average of 2.9% during the first quarter ended Nov. 1. The results marked the second consecutive quarter of positive same-store sales for the brand.
Executives reported that traffic had also improved, but did not divulge by how much. They did reveal that menu prices were running 4.7% on average above where they were a year ago, suggesting guest counts decreased during the quarter but at a slowing rate.
Coming out of the quarter, “we continue to see improved traffic trends in the important dinner daypart,” Masino told financial analysts. “Dinner will be a key driver of our overall success.”
The officials noted that the Cracker Barrel brand still faces significant challenges. Sales from the gift shops of mature units decreased by an average of 1.9% during the quarter, pulling down overall retail revenues by about 1%.
They attributed gains during the most recent period to an ongoing effort to update and simplify Cracker Barrel’s menu. Masino said a new shepherd’s pie proved particularly popular, and that sales of a limited-time pot roast were so strong that the dish has been added permanently to the menu.
The decision was made after unit servers asked that the item be elevated from its limited-time status. “We were selling out of it,” Masino said.
She indicated that menu innovation will continue to figure prominently in the chain’s turnaround effort, but did not preview any additions that may be in the works.
Masino also commented that “2025 is the testing year for remodels.” Nineteen stores were given full-fledged renovations during the first quarter, while seven others underwent what the company calls a “refresh,” or a simple cosmetic update like a new paint job.
Cracker Barrel is continuing its test of four new building prototypes in Indianapolis, according to Masino.
Virtually nothing was said during the analysts’ call about Maple Street Biscuit Co., a breakfast-and-lunch-only brand that was acquired by Cracker Barrel in 2019 as a growth vehicle. The company has acknowledged that management is currently focused on the rejuvenation of the 658-unit Cracker Barrel chain, the source of all but 2% of revenues.
Nor was Biglari mentioned during the call. The activist investor had campaigned hard to put himself and an ally on Cracker Barrel’s boardbut failed to woo a majority of fellow shareholders. Biglari holds a 9.3% stake in the company.
The effort was Biglari’s seventh attempt over 14 years to get his hand on the helm. In the lead-up to Cracker Barrel’s Nov. 21 shareholder meeting, Biglari slammed Massino’s turnaround strategy, which she spent months drafting. He suggested that the millions of dollars that are likely to be spent on the plan be redirected to shareholders.
Biglari also called for halting Cracker Barrel’s expansion and spinning off Maple Street.
Masino aired her thanks during the analysts’ call for the support of shareholders, without referencing the proxy fight.
Overall, Cracker Barrel reported a net income for the first quarter of $4.8 million, an 11% decrease from the year-ago tally, on revenues of $845.1 million, up 2.6%.
CFO Craig Pommels revealed that Hurricanes Helene and Milton cost the company $1 million in damages, and that another $1 million was spent to settle an undisclosed number of wage and hour lawsuits filed by employees.
Correction: A misspelling of Masino's name has been fixed.
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