CRACKER BARREL REPORTS THIRD QUARTER FISCAL 2025 RESULTS AND UPDATES OUTLOOK

Company increases expectation for fiscal 2025 adjusted EBITDA1 to between $215 million and $225 million2 , /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today reported its financial results for the third quarter of fiscal 2025 ended May 2, 2025. Third Quarter Fiscal 2025 Highlights Third quarter total revenue was $821.1 million. Compared to the prior year third quarter, total revenue increased 0.5%. Comparable store restaurant sales increased 1.0% over the prior year quarter, and comparable store retail sales decreased 3.8%. GAAP earnings per diluted share were $0.56, and adjusted1 earnings per diluted share were $0.58. GAAP net income for the third quarter was $12.6 million compared to the prior year quarter GAAP net income (loss) of ($9.2) million. Adjusted EBITDA1 was $48.1 million, a 0.4% increase compared to the prior year quarter adjusted EBITDA1 of $47.9 million. Commenting on the third quarter results, Cracker Barrel President and Chief Executive Officer Julie Masino said, "Our third quarter performance exceeded our expectations and represents the fourth consecutive quarter of positive comparable store restaurant sales growth. We remain focused on executing our transformation plan and believe we are well-positioned to deliver a strong finish to the fiscal year." Third Quarter Fiscal 2025 ResultsRevenue The Company reported total revenue of $821.1 million for the third quarter of fiscal 2025, representing an increase of 0.5% compared to the third quarter of fiscal 2024. Cracker Barrel comparable store restaurant sales increased 1.0%, including total menu pricing increases of 4.9%. Comparable store retail sales decreased 3.8% from the prior year quarter. Net Income, EBITDA, and Earnings per Diluted ShareGAAP net income for the third quarter was $12.6 million, or 1.5% of total revenue, compared to prior year quarter GAAP net income (loss) of ($9.2) million, or (1.1%) of total revenue. Adjusted EBITDA1 was $48.1 million, or 5.9% of total revenue, a 0.4% increase compared to the prior year quarter adjusted EBITDA1 of $47.9 million, or 5.9% of total revenue. GAAP earnings per diluted share for the third quarter were $0.56 compared to the prior year quarter GAAP earnings (loss) per diluted share of ($0.41). Adjusted1 earnings per diluted share were $0.58 compared to the prior year quarter adjusted1 earnings per diluted share of $0.88. Quarterly Dividend DeclarationThe Company announced that its Board of Directors declared a quarterly dividend of $0.25 per share of the Company's common stock. The quarterly dividend is payable on August 13, 2025 to shareholders of record as of July 18, 2025. Fiscal 2025 OutlookThe Company updated its outlook and expects the following for fiscal 2025: Total revenue of $3.45 billion to $3.50 billion (no change vs. previous outlook) Adjusted EBITDA1 of $215 million to $225 million2 (vs. previous outlook of $210 million to $220 million2) Commodity inflation in the mid 2% range compared to the prior year (vs. previous outlook of 2% to 3%) Hourly wage inflation in the mid 2% range compared to the prior year (vs. previous outlook of approximately 3%) Capital expenditures of $160 million to $170 million (vs. previous outlook of $160 million to $180 million) 1 new Cracker Barrel store, which has already opened (vs. previous outlook of 1 to 2) 4 new Maple Street Biscuit Company units, which have already opened (no change vs. previous outlook) 1 Adjusted net income, adjusted EBITDA, and adjusted earnings per diluted share are non-GAAP financial measures. For definitions of these non-GAAP measures and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures, please refer to the Reconciliation of GAAP-Basis Operating Results to Non-GAAP Operating Results section of this release. 2 The Company has determined to provide guidance focused on adjusted EBITDA because the Company believes it will be more useful to investors to evaluate the Company's performance prior to the impact of depreciation (given the expected increase in investments and the resulting higher expected depreciation expense), taxes, impairment charges, and other items that management believes are not reflective of the Company's current operations. The Company is not able to reconcile the forward-looking estimate of adjusted EBITDA set forth above to a forward-looking estimate of net income, the most directly comparable estimated measure calculated in accordance with GAAP, without unreasonable efforts because the Company is unable to predict, forecast or determine the probable significance of certain items impacting these estimates, including interest expense, taxes, impairment charges and share-based compensation, with a reasonable degree of accuracy. Accordingly, the most directly comparable forward-looking GAAP estimate is not provided. Fiscal 2025 Third Quarter Conference CallAs previously announced, the live broadcast of Cracker Barrel's quarterly conference call will be available to the public online at investor.crackerbarrel.com today beginning at 11:00 a.m. (ET). The online replay will be available at 2:00 p.m. (ET) and continue through June 19, 2025. About Cracker Barrel Old Country Store®Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) is on a mission to bring craveable, delicious homestyle food and unique retail products to all guests while serving up memorable, distinctive experiences that make everyone feel welcome. Established in 1969 in Lebanon, Tenn., Cracker Barrel and its affiliates operate approximately 660 company-owned Cracker Barrel Old Country Store® locations in 43 states and own the fast-casual Maple Street Biscuit Company. For more information about the company, visit www.crackerbarrel.com. CBRL-F Except for specific historical information, certain of the matters discussed in this press release may express or imply projections of items such as revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These and similar statements regarding events or results that the Company expects will or may occur in the future are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual results and performance of the Company to differ materially from those expressed or implied by such forward-looking statements. All forward-looking information is provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these risks, uncertainties and other factors. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "trends," "assumptions," "target," "guidance," "outlook," "opportunity," "future," "plans," "goals," "objectives," "expectations," "near-term," "long-term," "projection," "may," "will," "would," "could," "expect," "intend," "estimate," "anticipate," "believe," "potential," "regular," "should," "projects," "forecasts," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. The Company believes that the assumptions underlying any forward-looking statements are reasonable; however, any of the assumptions could be inaccurate, and therefore, actual results may differ materially from those projected in or implied by the forward-looking statements. In addition to the risks of ordinary business operations, factors and risks that may result in actual results differing from this forward-looking information include, but are not limited to risks and uncertainties associated with inflationary conditions with respect to the price of commodities, ingredients, transportation, distribution and labor; disruptions to the Company's restaurant or retail supply chain; effects of changes in international, national, regional and local economic and market conditions (such as the imposition of trade barriers or other changes in trade policy) on our business; the Company's ability to manage retail inventory and merchandise mix; the Company's ability to sustain or the effects of plans intended to improve operational or marketing execution and performance, including the Company's strategic transformation plan; the effects of increased competition at the Company's locations on sales and on labor recruiting, cost, and retention; consumer behavior based on negative publicity or changes in consumer health or dietary trends or safety aspects of the Company's food or products or those of the restaurant industry in general, including concerns about outbreaks of infectious disease as well as the possible effects of such events on the price or availability of ingredients used in our restaurants; the effects of the Company's indebtedness and associated restrictions on the Company's financial and operating flexibility and ability to execute or pursue its operating plans and objectives; changes in interest rates, increases in borrowed capital or capital market conditions affecting the Company's financing costs and ability to refinance its indebtedness, in whole or in part; the Company's reliance on a single distribution facility and certain significant vendors, particularly for foreign-sourced retail products; information technology disruptions and data privacy and information security breaches, whether as a result of infrastructure failures, employee or vendor errors or actions of third parties; the Company's compliance with privacy and data protection laws; changes in or implementation of additional governmental or regulatory rules, regulations and interpretations affecting tax, health and safety, animal welfare, pensions, insurance or other undeterminable areas; the actual results of pending, future or threatened litigation or governmental investigations; or the Company's ability to manage the impact of negative social media attention and the costs and effects of negative publicity; the impact of activist shareholders; the Company's ability to achieve aspirations, goals and projections related to its environmental, social and governance initiatives; the Company's ability to enter successfully into new geographic markets that may be less familiar to it; changes in land, building materials and construction costs; the availability and cost of suitable sites for restaurant development and the Company's ability to identify those sites; the Company's ability to retain key personnel; the ability of and cost to the Company to recruit, train, and retain qualified hourly and management employees; uncertain performance of acquired businesses, strategic investments and other initiatives that the Company may pursue from time to time; the effects of business trends on the outlook for individual restaurant locations and the effect on the carrying value of those locations; general or regional economic weakness, business and societal conditions and the weather impact on sales and customer travel; discretionary income or personal expenditure activity of the Company's customers; implementation of new or changes in interpretation of existing accounting principles generally accepted in the United States of America ("GAAP"); and other factors described from time to time in the Company's filings with the Securities and Exchange Commission, press releases, and other communications. Any forward-looking statement made by the Company herein, or elsewhere, speaks only as of the date on which made. The Company expressly disclaims any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. CRACKER BARREL OLD COUNTRY STORE, INC. CONDENSED CONSOLIDATED INCOME STATEMENT (Unaudited) (In thousands, except share and per share amounts, percentages and ratios) Third Quarter Ended Nine Months Ended 5/2/25 4/26/24 PercentageChange 5/2/25 4/26/24 PercentageChange Total revenue $821,147 $817,135 0 % $2,615,675 $2,576,375 2 % Cost of goods sold (exclusive of depreciation & rent) 247,280 245,070 1 816,013 815,480 0 Labor and other related expenses 304,781 308,791 (1) 938,342 936,434 0 Other store operating expenses 207,486 200,390 4 639,059 618,131 3 General and administrative expenses 46,025 54,524 (16) 167,341 155,795 7 Impairment and store closing costs 718 22,942 (97) 3,869 22,942 (83) Goodwill impairment 0 4,690 (100) 0 4,690 (100) Operating income (loss) 14,857 (19,272) 177 51,051 22,903 123 Interest expense 4,984 5,187 (4) 15,784 15,192 4 Income (loss) before income taxes 9,873 (24,459) 140 35,267 7,711 357 Income tax benefit (2,701) (15,260) 82 (4,358) (15,080) 71 Net income (loss) $12,574 ($9,199) 237 $39,625 $22,791 74 Earnings (loss) per share – basic: $0.56 ($0.41) 237 $1.78 $1.03 73 Earnings (loss) per share – diluted: $0.56 ($0.41) 237 $1.77 $1.02 74 Weighted average shares: Basic 22,264,782 22,201,964 0 22,246,936 22,188,191 0 Diluted 22,459,281 22,201,964 1 22,435,317 22,307,646 1 Ratio Analysis Total revenue: Restaurant 82.7 % 82.2 % 80.8 % 80.1 % Retail 17.3 17.8 19.2 19.9 Total revenue 100.0 100.0 100.0 100.0 Cost of goods sold (exclusive of depreciation & rent) 30.1 30.0 31.2 31.7 Labor and other related expenses 37.1 37.8 35.9 36.3 Other store operating expenses 25.3 24.5 24.4 24.0 General and administrative expenses 5.6 6.7 6.4 6.0 Impairment and store closing costs 0.1 2.8 0.1 0.9 Goodwill impairment 0.0 0.6 0.0 0.2 Operating income (loss) 1.8 (2.4) 2.0 0.9 Interest expense 0.6 0.6 0.7 0.6 Income (loss) before income taxes 1.2 (3.0) 1.3 0.3 Income tax benefit (0.3) (1.9) (0.2) (0.6) Net income (loss) 1.5 % (1.1 %) 1.5 % 0.9 % CRACKER BARREL OLD COUNTRY STORE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited and in thousands, except share amounts) 5/2/25 4/26/24 Assets Cash and cash equivalents $9,814 $11,852 Accounts receivable 37,439 34,847 Inventories 168,695 175,278 Prepaid expenses and other current assets 60,877 57,026 Property and equipment, net 971,021 944,859 Operating lease right-of-use assets, net 822,269 860,879 Intangible assets 24,369 24,480 Other assets 44,565 47,872 Total assets $2,139,049 $2,157,093 Liabilities and Shareholders' Equity Accounts payable $121,117 $137,672 Other current liabilities 301,916 308,535 Long-term debt 489,410 472,216 Long-term operating lease liabilities 653,060 681,272 Other long-term obligations 104,235 130,841 Shareholders' equity, net 469,311 426,557 Total liabilities and shareholders' equity $2,139,049 $2,157,093 Common shares issued and outstanding 22,266,951 22,202,296 CRACKER BARREL OLD COUNTRY STORE, INC. CONDENSED CONSOLIDATED CASH FLOW STATEMENT (Unaudited and in thousands) Nine Months Ended 5/2/25 4/26/24 Cash flows from operating activities: Net income $39,625 $22,791 Depreciation and amortization 90,379 82,765 Amortization of debt issuance costs 1,329 1,312 Loss on disposition of property and equipment 6,249 8,860 Impairment 3,581 17,448 Goodwill impairment 0 4,690 Share-based compensation 8,056 9,189 Noncash lease expense 45,560 45,050 Amortization of asset recognized from gain on sale and leaseback transaction 9,551 9,551 Decrease in inventories 12,263 14,086 Decrease in accounts payable (41,171) (27,812) Net changes in other assets and liabilities (58,745) (88,474) Net cash provided by operating activities 116,677 99,456 Cash flows from investing activities: Purchase of property and equipment, net of insurance recoveries (113,214) (80,081) Proceeds from sale of property and equipment 1,829 131 Net cash used in investing activities (111,385) (79,950) Cash flows from financing activities: Net proceeds from/principal payments on long-term debt 11,425 56,000 Taxes withheld from issuance of share-based compensation awards (1,428) (1,597) Dividends on common stock (17,510) (87,204) Net cash used in financing activities (7,513) (32,801) Net decrease in cash and cash equivalents (2,221) (13,295) Cash and cash equivalents, beginning of period 12,035 25,147 Cash and cash equivalents, end of period $9,814 $11,852 Third Quarter Ended 5/2/25 4/26/24 Net change in company-owned units during quarter: Cracker Barrel 1 (4) Maple Street Biscuit Company 1 0 Company-owned units in operation at end of quarter: Cracker Barrel 658 658 Maple Street Biscuit Company 70 63 Third Quarter Ended Nine Months Ended 5/2/25 4/26/24 5/2/25 4/26/24 Total revenue*: (In thousands) Restaurant $661,945 $654,410 $2,061,681 $2,013,609 Retail 141,695 145,430 502,052 512,981 Total revenue $803,640 $799,840 $2,563,733 $2,526,590 Cost of goods sold* (exclusive of depreciation and rent): (In thousands) Restaurant $173,431 $169,373 $546,757 $540,553 Retail 69,346 71,432 256,015 262,430 Total cost of goods sold $242,777 $240,805 $802,772 $802,983 Average unit volume*: (In thousands) Restaurant $1,006.0 $994.6 $3,134.8 $3,049.4 Retail 215.3 221.0 763.4 776.8 Total $1,221.3 $1,215.6 $3,898.2 $3,826.2 Operating weeks*: 8,554 8,554 25,649 25,753 Note*: This information is for Cracker Barrel stores only and excludes Maple Street Biscuit Company CRACKER BARREL OLD COUNTRY STORE, INC.Reconciliation of GAAP-Basis Operating Results to Non-GAAP Operating Results(Unaudited and in thousands, except per share amounts) Adjusted Net Income and Earnings Per ShareIn the accompanying press release, the Company makes reference to its third quarter fiscal 2024 and fiscal 2025 adjusted net income and earnings per share. The Company defines adjusted net income as net income, calculated in accordance with GAAP, excluding, to the extent the following items occurred during the periods presented: (i) impairment charges, and, for periods prior to the second quarter of fiscal 2025, store closing costs, (ii) expenses related to the proxy contest in connection with the Company's 2024 annual meeting of shareholders, (iii) expenses related to the Company's CEO transition, (iv) expenses associated with the Company's strategic transformation initiative, (v) a corporate restructuring charge, (vi) an employee benefits policy change, (vii) goodwill impairment charges, and (viii) the related tax impacts of the foregoing. The Company believes excluding these items from its financial results provides investors with an enhanced understanding of the Company's financial results and enhances comparability across periods. The Company calculates adjusted net income margin by dividing adjusted net income by consolidated GAAP revenue. This information is not intended to be considered in isolation or as a substitute for net income or earnings per share information prepared in accordance with GAAP. Third Quarter Ended Nine Months Ended 5/2/25 Margin 4/26/24 Margin 5/2/25 Margin 4/26/24 Margin Revenue $821,147 100 % $817,135 100 % $2,615,675 100 % $2,576,375 100 % GAAP net income $12,574 1.5 ($9,199) (1.1) $39,625 1.5 $22,791 0.9 CEO transition expenses 0 0.0 3,465 0.4 0 0.0 8,574 0.3 Strategic transformation initiative expenses 0 0.0 6,590 0.8 7,263 0.3 11,546 0.4 Employee benefit adjustment 0 0.0 0 0.0 0 0.0 (5,284) (0.2) Corporate restructuring charge 0 0.0 0 0.0 0 0.0 1,643 0.1 Proxy contest expenses 0 0.0 0 0.0 8,220 0.3 0 0.0 Impairment 718 0.1 17,448 2.1 3,581 0.1 17,448 0.7 Store closing costs 0 0.0 5,494 0.7 0 0.0 5,494 0.2 Goodwill impairment 0 0.0 4,690 0.6 0 0.0 4,690 0.2 Tax impacts of the foregoing (169) (0.0) (8,856) (1.1) (4,480) (0.2) (10,366) (0.4) Adjusted net income $13,123 1.6 % $19,632 2.4 % $54,209 2.1 % $56,536 2.2 % GAAP earnings (loss) per share - basic $0.56 ($0.41) $1.78 $1.03 GAAP earnings (loss) per share - diluted $0.56 ($0.41) $1.77 $1.02 Adjusted earnings per share - basic $0.59 $0.88 $2.44 $2.55 Adjusted earnings per share - diluted $0.58 $0.88 $2.42 $2.53 Weighted average shares - basic 22,264,782 22,201,964 22,246,936 22,188,191 Weighted average shares - diluted 22,459,281 22,201,964 22,435,317 22,307,646 CRACKER BARREL OLD COUNTRY STORE, INC.Reconciliation of GAAP-Basis Operating Results to Non-GAAP Operating Results(Unaudited and in thousands) EBITDA/Adjusted EBITDAIn the accompanying press release and the below reconciliation tables, the Company makes reference to EBITDA and adjusted EBITDA. The Company defines EBITDA as net income, calculated in accordance with GAAP, excluding depreciation and amortization, interest expense and tax expense. The Company further adjusts EBITDA to exclude, to the extent the following items occurred during the periods presented: (i) expenses related to share-based compensation, (ii) impairment charges, and, for periods prior to the second quarter of fiscal 2025, store closing costs, (iii) the proxy contest in connection with the Company's 2024 annual meeting of shareholders, (iv) goodwill impairment charges, (v) expenses related to the Company's CEO transition, (vi) expenses associated with the Company's strategic transformation initiative, (vii) a corporate restructuring charge, and (viii) an employee benefits policy change. The Company calculates EBITDA and adjusted EBITDA margin by dividing EBITDA and adjusted EBITDA by consolidated GAAP revenue. The Company believes that presentation of EBITDA and adjusted EBITDA (together with related margin figures) provides investors with an enhanced understanding of the Company's operating performance and debt leverage metrics and enhances comparability with the Company's historical results, and that the presentation of this non-GAAP financial measure, when combined with the primary presentation of net income, is beneficial to an investor's complete understanding of the Company's operating performance. This information is not intended to be considered in isolation or as a substitute for net income or net income margin prepared in accordance with GAAP. Third Quarter Ended 5/2/25 Margin Nine Months Ended5/2/25 Margin Revenue $821,147 100 % $2,615,675 100 % GAAP Net income 12,574 1.5 39,625 1.5 (+) Depreciation & amortization 30,991 3.8 90,379 3.5 (+) Interest expense 4,984 0.6 15,784 0.6 (+) Tax expense (tax benefit) (2,701) (0.3) (4,358) (0.2) EBITDA $45,848 5.6 % $141,430 5.4 % Adjustments (+) Share-based compensation, net 1,551 0.2 8,056 0.3 (+) Strategic transformation initiative expenses 0 0.0 7,263 0.3 (+) Impairment 718 0.1 3,581 0.1 (+) Proxy contest expenses 0 0.0 8,220 0.3 Adjusted EBITDA $48,117 5.9 % $168,550 6.4 % Third Quarter Ended 4/26/24 Margin Nine Months Ended4/26/24 Margin Revenue $817,135 100 % $2,576,375 100 % GAAP Net income (loss) (9,199) (1.1) 22,791 0.9 (+) Depreciation & amortization 28,337 3.5 82,765 3.2 (+) Interest expense 5,187 0.6 15,192 0.6 (+) Tax expense (tax benefit) (15,260) (1.9) (15,080) (0.6) EBITDA 9,065 1.1 % $105,668 4.1 % Adjustments (+) Share-based compensation, net 1,187 0.1 4,475 0.2 (+) Strategic transformation initiative expenses 6,590 0.8 11,546 0.4 (+) Impairment 17,448 2.1 17,448 2.1 (+) Store closing costs 5,494 0.7 5,494 0.7 (+) Goodwill impairment 4,690 0.6 4,690 0.2 (+) CEO transition expenses 3,465 0.4 8,574 0.3 (+) Corporate restructuring charge 0 0.0 1,643 0.1 (-) Employee benefit adjustment 0 0.0 (5,284) (0.2) Adjusted EBITDA $47,939 5.9 % $154,254 6.0 % Investor Contact: Adam Hanan (615) 443-9887 Media Contact: Heidi Pearce (615) 235-4135 SOURCE Cracker Barrel Old Country Store, Inc. 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CRACKER BARREL REPORTS THIRD QUARTER FISCAL 2025 RESULTS AND UPDATES OUTLOOK

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