Story Stocks^®

Cracker Barrel (CBRL) announced a series of leadership and organizational changes last night as it works to recover from a troubled rebrand in late August that weighed heavily on the stock, and restaurant traffic.

• Doug Hisel was promoted to SVP, Store Operations, while Heather Hager (Retail & Design) and Heather Gammon (Demand Planning) have expanded responsibilities under the new structure.
• Thomas Yun is rejoining as VP, Menu Strategy & Innovation, a particularly important role for CBRL given his past success with items like Chicken & Rice and Pot Roast.
• The company said it will no longer work with the consultancy that advised on its prior brand refresh.
• In its Q4 (Jul) report, management noted that before the logo change, traffic was down just 1%, but afterward it dropped 8%. Q1 (Oct) traffic is projected to decline another 7-8%, reflecting continued brand fallout.
• The restructuring reduces layers in the organization and narrows the focus on food and guest experience in an effort to restore traffic.

Briefing.com Analyst Insight

These moves represent a step in the right direction for CBRL. That said, the company had warned that near-term conditions would remain difficult following its failed rebrand, and traffic trends confirm those headwinds. With the stock still well below prior highs, investors will want to see tangible improvement before sentiment turns, but the sharper focus on menu and guest experience is an encouraging sign.