NextFin news, Cracker Barrel Old Country Store Inc. (NASDAQ: CBRL) revealed on Thursday, September 18, 2025, that it expects to incur a $25 million financial hit in the upcoming fiscal year due to tariffs enacted under the Donald Trump administration. The company is responding by cutting approximately 10% of the products sold in its Old Country Store gift shops and aggressively renegotiating terms with its suppliers.
During its fourth-quarter earnings call held on Wednesday, Cracker Barrel executives detailed the strategy to combat escalating costs from tariffs. Senior Vice President and CFO Craig Pommells stated that the company is eliminating unprofitable merchandise from its shelves, emphasizing, "If we can’t make a reasonable profit on it, then we don’t need to sell it."
In addition to reducing product variety, Cracker Barrel is pressuring suppliers to absorb part of the tariff-related costs. Pommells highlighted that vendor negotiations have been a key mitigation tactic, with the company achieving significant success in securing better terms. Other measures include adjusting pricing and shifting the country of origin for some products.
The tariff challenges come amid a turbulent period for Cracker Barrel, which recently faced an 8% decline in customer traffic following a controversial rebranding effort that the company has since reversed. CEO Julie Masino acknowledged the misstep and the company’s efforts to restore customer confidence.
Financially, Cracker Barrel reported fourth-quarter revenue of $868.09 million, surpassing analyst estimates of $855.30 million, but posted adjusted earnings per share of 74 cents, missing the expected 80 cents. For fiscal 2026, the company projects revenue between $3.35 billion and $3.45 billion, slightly below analyst forecasts, and anticipates adjusted EBITDA of $150 million to $190 million. The company also plans to open two new stores in the coming fiscal year.
Following the earnings announcement, Cracker Barrel’s stock fell 3.16% during regular trading and declined an additional 9.28% in after-hours trading on Wednesday. Year-to-date, the stock is down 9.71% but remains 19.32% higher over the past year.
These developments underscore the ongoing impact of trade policies on U.S. retailers and the operational adjustments companies like Cracker Barrel must undertake to maintain profitability.
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