Cracker Barrel Q1 Loss Narrower Than Expected, Revenues Down Y/Y

Cracker Barrel Old Country Store CBRL reported first-quarter fiscal 2026 results, wherein the bottom line surpassed the Zacks Consensus Estimate, but revenues missed the same.

CBRL faced a difficult macro and industry backdrop during the quarter, which contributed to softer traffic patterns and pressured comparable restaurant performance. The company also experienced operational challenges that affected consistency in its food initiatives, prompting adjustments to processes and training. These factors, combined with a more cautious view of near-term demand, led the company to revise its fiscal 2026 outlook to reflect a slower recovery and a more challenging environment than previously expected.

Q1 Earnings & Revenues of Cracker Barrel

For first-quarter fiscal 2026, the company reported adjusted loss per share of 74 cents, which was narrower than the Zacks Consensus Estimate of a loss of 78 cents. In the year-ago quarter, the company reported an adjusted earnings per share (EPS) of 45 cents.

Cracker Barrel Old Country Store, Inc. Price, Consensus and EPS Surprise

Cracker Barrel Old Country Store, Inc. price-consensus-eps-surprise-chart | Cracker Barrel Old Country Store, Inc. Quote

Quarterly revenues of $797.2 million missed the consensus mark of $801 million. The top line decreased 5.7% year over year.

CBRL's Comps Details

Comparable-store restaurant sales decreased 4.7% year over year in the reported quarter compared with the same period in fiscal 2025. Comparable-store retail sales decreased 8.5% year over year. Our model predicted a comparable-store restaurant sales decline of 4.5%.

Operating Highlights of CBRL

In the fiscal first quarter, the cost of goods sold (excluding depreciation and rent) was $248.4 million, which was down 4% year over year. As a percentage of total revenues, the cost of goods sold (excluding depreciation and rent) increased 60 basis points year over year to 31.2%. Per our model, the metric was anticipated at 32.7%.

General and administrative expenses totaled $48 million, down 20% year over year. Our prediction for the metric was $53.1 million.

Adjusted net loss in the fiscal first quarter amounted to $16.4 million against adjusted net income of $10.2 million reported in the year-ago quarter. Our prediction for the metric was $15.8 million.

Balance Sheet of CBRL

As of Oct. 31, 2025, cash and cash equivalents were $8.9 million compared with $11.5 million as of Nov. 1, 2024.

Inventory at the fiscal first-quarter end reached $209.1 million, up 3.6% year over year.

Long-term debt as of Oct. 31, 2025, was $400.9 million compared with $527 million as of Nov. 1, 2024.

Cracker Barrel declared a cash dividend of 25 cents per share. The dividend will be paid out on Feb. 11, 2026, to its shareholders on record as of Jan. 16.

CBRL’s FY26 Guidance Cut

For fiscal 2026, the company expects revenues in the range of $3.2-$3.3 billion compared with the prior estimate of $3.35-$3.45 billion. Adjusted EBITDA is anticipated to be between $70 million and $110 million, down from the earlier projection of $150 million to $190 million.

Management still expects commodity inflation to be in the 2.5-3.5% range. Hourly wage inflation is still anticipated to be in the 3% to 4% range.

Capital expenditures are envisioned in the range of $110-$125 million, down from the earlier projection of $135 million to $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 El Pollo Loco Holdings, Inc. LOCO, Levi Strauss & Co. LEVI and On Holding AG ONON 

El Pollo Loco 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 earnings surprise of 19.6%, on average. El Pollo Loco stock has declined 2% in the year-to-date period. The Zacks Consensus Estimate for El Pollo Loco’s 2026 sales and EPS indicates growth of 1.2% and 4.2%, respectively, from the year-ago period’s levels.

Levi Strauss holds a Zacks Rank of #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 26.7%, on average. Levi Strauss stock has surged 25.8% year to date.

The Zacks Consensus Estimate for Levi Strauss’ fiscal 2026 sales and EPS indicates growth of 5% and 13%, respectively, from the prior-year levels.

On Holding presently flaunts a Zacks Rank #1. The stock has inched down 13.7% in the year-to-date period. On Holding delivered a trailing four-quarter negative earnings surprise of 3.2%, on average.

The Zacks Consensus Estimate for On Holding’s 2026 sales implies growth of 20.6% and 79.3%, respectively, from the prior-year levels.

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This article originally published on Zacks Investment Research (zacks.com).

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