1. Cracker Barrel's revenue fell 5.7% to $797.2 million in Q1. 2. Comparable restaurant sales dropped 4.7%, retail sales fell 8.5%. 3. GAAP EPS was ($1.10), a significant decline from prior year. 4. Future guidance lowered for revenue and adjusted EBITDA. 5. Quarterly dividend of $0.25 declared, payable February 2026.
FAQ
Why Bearish?
Declining revenues and earnings indicate ongoing operational challenges, similar to previous downturns.
How important is it?
The article outlines alarming declines in both sales and earnings, crucial metrics for investor sentiment.
Why Short Term?
Immediate investor sentiment influenced by poor quarterly results and revised guidance for the year.
Cracker Barrel Reports First Quarter Fiscal 2026 Results
Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) has announced its financial results for the first quarter of fiscal 2026, ending October 31, 2025. The results show a decline in revenue and earnings, primarily attributed to ongoing operational headwinds. President and CEO Julie Masino expressed the company's commitment to enhancing operational initiatives and marketing strategies to improve financial performance moving forward.
First Quarter Fiscal 2026 Highlights
- Total revenue: $797.2 million, a decrease of 5.7% compared to the same quarter last year.
- Comparable store restaurant sales: Decreased 4.7% year over year.
- Comparable store retail sales: Decreased 8.5% year over year.
- GAAP net income (loss): $(24.6) million, down from $4.8 million in the prior year.
- GAAP earnings per diluted share: $(1.10).
- Adjusted earnings per diluted share: $(0.74).
- Adjusted EBITDA: $7.2 million, a decline from $45.8 million in the previous year.
Financial Overview
During the first quarter, Cracker Barrel's total debt was reported at $550.3 million, which includes $149.4 million of short-term debt linked to convertible senior notes due in June 2026 and $335.9 million long-term debt related to notes maturing in 2030. The company maintains a consolidated total leverage ratio of 2.8x and available liquidity of $485 million.
The Board of Directors has declared a quarterly dividend of $0.25 per share, payable on February 11, 2026, to shareholders on record as of January 16, 2026.
Fiscal 2026 Outlook
Cracker Barrel has revised its fiscal 2026 outlook, now projecting:
- Total revenue: $3.2 billion to $3.3 billion (revised from $3.35 billion to $3.45 billion).
- Adjusted EBITDA: $70 million to $110 million (revised from $150 million to $190 million).
- Commodity inflation: Estimated at 2.5% to 3.5%.
- Hourly wage inflation: Expected at 3.0% to 4.0%.
- Capital expenditures: Projected between $110 million to $125 million (previously $135 million to $150 million).
- Store expansion: Two new Cracker Barrel locations.
This outlook reflects anticipated annualized savings in administrative expenses and a reduction in advertising costs.
Upcoming Conference Call
Cracker Barrel will host a live quarterly conference call, available online at investor.crackerbarrel.com, starting at 5:00 p.m. ET today. An online replay will be accessible through December 23, 2025.
About Cracker Barrel
Founded in 1969, Cracker Barrel Old Country Store, Inc. aims to offer a unique blend of country hospitality and delicious homestyle food across its approximately 660 locations in 43 states. The company, which also owns the fast-casual Maple Street Biscuit Company, prides itself on delivering wholesome dining experiences.