Cracker Barrel said Wednesday it expects lower sales and weaker customer traffic in the coming year as the controversy over its planned logo change continues to play out.

In a conference call with investors, Cracker Barrel said traffic at its restaurants was down 1% in early August, before it announced it was adopting a more simplified logo. The new logo dropped the image of an older man in overalls leaning on a barrel and removed the words "Old Country Store."

But after the announcement on Aug. 18 and the outcry that followed from many longtime fans, restaurant traffic dropped 8%. Cracker Barrel said Wednesday that traffic will likely be down between 7% and 8% in the first quarter and could decline 4% to 7% for the full 2026 fiscal year.

Cracker Barrel's shares dropped 9% in after-hours trading Wednesday.

Cracker Barrel CEO Julie Felss Masino said the company conducted extensive research before releasing the new logo and launching a plan to remodel its 660 U.S. restaurants. The company has since scrapped the new logo and paused the remodeling.

Masino said the four restaurants that have been remodeled -- with new paint, new lighting, more comfortable seating and other changes -- will be transitioned back to their former decor. Remodels that had begun at 58 other restaurants will also be halted, she said.

"What can not be captured in data is how much our guests see themselves and their own story in the Cracker Barrel experience, which is what's led to such a strong response to these changes," Masino said during a conference call with investors Wednesday.

Masino said Cracker Barrel will continue other aspects of its plan to boost sales and attract new customers, including menu innovation and kitchen upgrades. She said marketing will lean into nostalgia and fans' love for Uncle Herschel, the character pictured on the brand's logo.

The company is also continuing to grow its loyalty program. Masino said the 2-year-old program now has 9 million members and gained 300,000 new members in just the last four weeks. Masino said one new loyalty perk will be the ability to give the company feedback after every restaurant visit.

"We're moving ahead with a strong plan to regain traffic and the momentum we had a month ago," Masino said. "There is a lot to be optimistic about."

The Lebanon, Tennessee-based company said it expects total revenue of $3.35 billion to $3.45 billion in its 2026 fiscal year, which began Aug. 2. That is lower than the $3.48 billion Cracker Barrel reported in its 2025 fiscal year.

It expects a $25 million hit due to U.S. tariffs on imported goods in the 2026 fiscal year. The company said it's adjusting some of the products sold in its stores to mitigate that.