Trump Tariffs Force Cracker Barrel To Cut Products, Squeeze Suppliers Amid $25 Million Hit And Rebrand Fiasco
News Summary
Cracker Barrel Old Country Store Inc. anticipates a $25 million financial impact in the upcoming fiscal year due to the Donald Trump administration's tariffs. In response to rising costs, the company plans to reduce the number of retail items (SKUs) in its gift shops by approximately 10% in fiscal 2026, and is aggressively renegotiating terms with suppliers to share the financial burden, alongside adjusting pricing and shifting product origins. These cost-saving measures come as the company's core restaurant business navigates a turbulent period, marked by an 8% plunge in customer traffic since mid-August following a recent, unsuccessful brand modernization attempt that management has since admitted was a misstep and is now reversing. Cracker Barrel reported fourth-quarter revenue of $868.09 million, beating analyst estimates of $855.30 million, but adjusted earnings per share of 74 cents, missing the 80-cent estimate. The company projects fiscal 2026 revenue between $3.35 billion and $3.45 billion, below the $3.47 billion estimate, and expects adjusted EBITDA between $150 million and $190 million.
Background
Since Donald J. Trump's re-election as US President in November 2024, his administration has continued to pursue
In-Depth AI Insights
Are tariff impacts serving as a smokescreen for corporate strategic missteps? - While Cracker Barrel attributes a $25 million financial hit to tariffs, a significant external factor, it's crucial to note the company is simultaneously grappling with a substantial decline in customer traffic due to a failed