Cracker Barrel Old Country Store, Inc. CBRL reported mixed fourth-quarter fiscal 2025 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. Meanwhile, both the top and bottom lines fell from the prior-year quarter’s reported figure.
Following the results, CBRL’s shares declined 9.9% yesterday after trading hours. The company highlighted worries about macroeconomic uncertainties and lower traffic trends, which led to negative market sentiment.
Cracker Barrel is still dealing with issues, including dismal traffic after changing its logo and pressure from commodity inflation and tariffs. But focused efforts are paying off, with improvements to the back-of-the-house, new service principles under "The Herschel Way," and improved menu items, including Uncle Herschel's breakfast and chicken selections. Along with disciplined resource allocation, a heightened focus on dining and guest experience, and loyalty membership that has surpassed 9 million and continues to expand, management remains cautiously optimistic that these efforts will help stabilize traffic and provide long-term shareholder value.
Q4 Earnings & Revenues of CBRL
For fourth-quarter fiscal 2025, the company reported adjusted earnings per share (EPS) of 74 cents, missing the Zacks Consensus Estimate of 78 cents. The company’s earnings declined 24.5% year over year.
Quarterly revenues of $868 million beat the consensus mark of $857 million. The top line decreased 2.9% year over year.
CBRL’s Comps Details
Comparable-store restaurant sales increased 5.4% year over year in the reported quarter compared with the same period in fiscal 2024, representing the fifth consecutive quarter of positive comparable-store restaurant sales growth. Comparable-store retail sales decreased 0.8% year over year. Our model predicted a comparable-store restaurant sales decline of 2.8%.
Operating Highlights of CBRL
In the fiscal fourth quarter, the cost of goods sold (excluding depreciation and rent) was $265 million, which was down 3% year over year. As a percentage of total revenues, the cost of goods sold (excluding depreciation and rent) increased 10 basis points year over year to 30.5%. Per our model, the metric was anticipated at 31.1%.
General and administrative expenses totaled $50.2 million, down 2% year over year. Our prediction for the metric was $53.1 million.
Adjusted net income in the fiscal fourth quarter amounted to $16.7 million compared with $22 million reported in the year-ago quarter. Our prediction for the metric was $16.1 million.
Balance Sheet of CBRL
As of Aug. 1, 2025, cash and cash equivalents were $39.6 million compared with $12 million as of Aug. 2, 2024.
Inventory at the fiscal fourth-quarter end reached $180.6 million, down 0.2% year over year.
Long-term debt as of Aug. 1, 2025, was $335.5 million compared with $476.6 million as of Aug. 2, 2024.
CBRL declared a cash dividend of 25 cents per share. The dividend will be paid out on Nov. 12, 2025, to its shareholders on record as of Oct. 17.
CBRL’s Revised FY26 Guidance
For fiscal 2026, the company expects revenues in the range of $3.35-$3.45 billion, based on an anticipated decline in customer traffic of 4% to 7% year over year. Adjusted EBITDA is anticipated to be between $150 million and $190 million.
Management expects commodity inflation to be in the 2.5-3.5% range. Hourly wage inflation is anticipated to be in the 3% to 4% range.
Capital expenditures are envisioned in the range of $135-$150 million.
CBRL’s Zacks Rank & Key Picks
Cracker Barrel currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector are BJ's Restaurants, Inc. BJRI, Groupon, Inc. GRPN and Red Robin Gourmet Burgers Inc. RRGB.
BJ's Restaurants currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
The company delivered a trailing four-quarter negative earnings surprise of 102.7%, on average. BJ's Restaurants' stock has declined 14.7% in the year-to-date period. The Zacks Consensus Estimate for BJ's Restaurants' 2025 sales and EPS indicates growth of 3.3% and 43.5%, respectively, from the year-ago period’s levels.
Groupon sports a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 230.5%, on average. Groupon's stock has surged 81.1% year to date.
The Zacks Consensus Estimate for Groupon’s 2025 sales and EPS indicates growth of 2.4% and 153%, respectively, from the prior-year levels.
Red Robin Gourmet Burgers presently carries a Zacks Rank #2 (Buy). The stock has inched up 25.1% in the year-to-date period. Red Robin Gourmet Burgers delivered a trailing four-quarter earnings surprise of 58.3%, on average.
The Zacks Consensus Estimate for Red Robin Gourmet Burgers’ 2025 sales implies a decline of 3%, and EPS indicates growth of 77.5% from the year-ago levels.
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Cracker Barrel Old Country Store, Inc. (CBRL): Free Stock Analysis Report BJ's Restaurants, Inc. (BJRI): Free Stock Analysis Report Red Robin Gourmet Burgers, Inc. (RRGB): Free Stock Analysis Report Groupon, Inc. (GRPN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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