Sometimes a logo change is just a logo change. And sometimes it's a cautionary tale about what happens when you mess with a brand that people have strong feelings about. Cracker Barrel Old Country Store Inc. (CBRL) just delivered earnings that suggest it learned this lesson the hard way.

The restaurant chain reported first-quarter fiscal 2026 results Tuesday after the close, and they weren't pretty. Revenue came in at $797.19 million, missing analyst estimates of $802.22 million. The company posted an adjusted loss of 74 cents per share, worse than the expected 68-cent loss.

Total revenue dropped 5.7% year-over-year, driven by a 4.7% decline in comparable store restaurant sales and an 8.5% drop in comparable store retail sales. That's a rough quarter by any measure.

The Rebranding That Wasn't

"First quarter results were below our expectations amid unique and ongoing headwinds," said Julie Masino, president and CEO of Cracker Barrel. "We have adjusted our operational initiatives, menu, and marketing to ensure we are consistently delivering delicious food and exceptional experiences."

Those "unique headwinds" include backlash from a rebranding campaign launched in August that featured a simplified logo. Customers weren't having it, and the company ultimately abandoned the effort. But the damage was already done, and it shows up clearly in this quarter's numbers.

"Additionally, we are executing a variety of cost savings initiatives to bolster our financial performance. Although our recovery will take time, our teams are more committed than ever, and we are confident that we will regain momentum," Masino added.

Guidance Gets Chopped

The company slashed its fiscal 2026 revenue outlook from a range of $3.35 billion to $3.45 billion down to $3.2 billion to $3.3 billion. Analysts had been expecting approximately $3.38 billion. Cracker Barrel does plan to open two new stores next year, suggesting at least some forward momentum.

The board declared a quarterly dividend of 25 cents per share, payable on February 11, 2026, to shareholders of record as of January 16, 2026.

Market Reaction

Investors didn't take the news well. Cracker Barrel shares tumbled 11.22% in after-hours trading to $23.97. More alarmingly, the stock has now lost more than half its value since the company announced its logo plans back in August. That's an expensive branding lesson.

Cracker Barrel executives were scheduled to discuss the results on an earnings call at 5 p.m. ET Tuesday.