Shares of casual dining restaurant chain Cracker Barrel Old Country Store (NASDAQ: CBRL) plunged 16.2% during May, according to data provided by S&P Global Market Intelligence. The company rocked investors on May 16 when it cut its $1.30-per-share quarterly dividend by 80% to just $0.25 per share. At that time, management also gave its thoughts for turning around the business.

Cracker Barrel is a business that needs a turnaround. On May 30, investors were reminded of the situation when the company reported financial results for its fiscal third quarter of 2024. In short, sales are down and the business is losing money.

That said, sales are only marginally off of their all-time highs for Cracker Barrel -- this isn't the biggest issue. The bigger issue is that profits have tumbled, which was partly the motivation for cutting its quarterly dividend payments so dramatically. And looking at the financials, some of the biggest culprits are labor expenses and corporate spending.

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Source Fool.com