At a Glance

  • Cracker Barrel's investments in its restaurants, team, and operations drove a third consecutive quarter of improving traffic metrics, including a 4% year-over-year increase in Google star ratings, President and CEO Julie Felss Masino said on the Q3 FY2026 earnings call Tuesday.
  • The loyalty program is a company highlight. According to Masino, Cracker Barrel Rewards membership has grown to 12 million. Loyalty member visits increased year-over-year, and tracked member sales account for more than 40% of total sales.
  • "We are encouraged by our progress and believe that our continued focus on serving delicious food and providing an exceptional guest experience will sustain this momentum," Masino said on the call.

Deeper Dive

Cracker Barrel has been improving the guest experience, from people to technology, to recover from last year's brand missteps. But the company still has a long way to go.

While Cracker Barrel has halted its restaurant visual modernization efforts, it continues to make smaller-scale adjustments, said Senior Vice President and CFO Craig Pommells. For example, the company has been updating restrooms and adjusting how merchandise is displayed in retail areas.

"Our investments in our stores are not traditional remodels, but rather making the guest experience truly easier and more efficient while preserving the core of the brand," Pommells said.

Hourly employee retention at restaurants has improved, including a 6% decrease in management turnover, Masino said. "We are pleased with the positive trends in these metrics, which are important leading indicators, and believe these results will translate into traffic growth over time."

Masino said Cracker Barrel is investing in upskilling its employees and using AI to improve efficiency. AI applications include more precise labor forecasting and helping automated customer service resolve tickets faster or escalate them to human support.

The company has also developed an AI agent that mines guest feedback and provides actionable insights, Masino said.

These improvements helped Cracker Barrel slow its sales decline compared to the previous quarter, but were not enough to return to growth.

According to the earnings report, comparable restaurant sales decreased 2.6% year-over-year in Q3 FY2026, and comparable retail store sales decreased 1.8%. Total revenue fell 2.9% to $797.4 million.

In the coming weeks, Cracker Barrel will upgrade its website to reduce friction and make navigation more intuitive, Masino said. The updated platform will better support online ordering, rewards, and targeted content.

"Importantly, this also sets the stage for future personalization across more channels, enabling us to deliver more effective messages and reasons to visit wherever guests interact with Cracker Barrel," Masino said.