Cracker Barrel Q2 Earnings Beat Estimates, Revenues Down Y/Y

Cracker Barrel Old Country Store CBRL reported second-quarter fiscal 2026 results, wherein the bottom line surpassed the Zacks Consensus Estimate, but revenues missed the same. Both metrics declined on a year-over-year basis. However, shares of CBRL gained 4% in the after-hours yesterday.

Cracker Barrel's second-quarter fiscal 2026 results were pressured by a decline in total revenues, primarily due to lower comparable restaurant and retail sales. Profitability was further affected by higher labor and store operating expenses as a percentage of revenues, which weighed on overall margins.

Management noted that the company is currently focused on operational excellence to drive improvements in key guest metrics and traffic indicators. To bolster financial performance and regain prior momentum, the company is taking additional strategic actions and executing a corporate restructuring initiative. Despite these ongoing headwinds, management remains confident that the brand is well-positioned for recovery.

Q2 Earnings & Revenues of Cracker Barrel

For second-quarter fiscal 2026, the company reported adjusted earnings per share (EPS) of 25 cents, surpassing the Zacks Consensus Estimate of a loss of 10 cents. In the year-ago quarter, the company reported an adjusted EPS of $1.38.

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 $874.8 million missed the consensus mark of $896 million. The top line decreased 7.9% year over year.

CBRL's Comps Details

Comparable-store restaurant sales decreased 7.1% in the reported quarter compared with the same period in fiscal 2025. Comparable-store retail sales decreased 9.2% year over year.

Q2 Operating Highlights of CBRL

In the fiscal second quarter, the cost of goods sold (excluding depreciation and rent) was $292.7 million, which was down 6% year over year. As a percentage of total revenues, the cost of goods sold (excluding depreciation and rent) increased 90 basis points year over year to 33.5%. Per our model, the metric was pegged at 32.7%.

General and administrative expenses totaled $48 million, down 22% year over year. Our prediction for the metric was $53.8 million.

Adjusted net income in the fiscal second quarter amounted to $5.6 million against $30.9 million reported in the year-ago quarter. Our prediction for the metric was $0.5 million.

Balance Sheet of CBRL

As of Jan. 30, 2026, cash and cash equivalents were $8.6 million compared with $10.3 million as of Jan. 31, 2025.

Inventory at the fiscal second-quarter end reached $180.3 million, up 4.3% year over year.

Long-term debt as of Jan. 30, 2026, was $381.8 million compared with $471.5 million as of Jan. 31, 2025.

Cracker Barrel declared a cash dividend of 25 cents per share. The dividend will be paid out on May 13, 2026, to its shareholders on record as of April 10.

CBRL’s FY26 Revised Guidance

For fiscal 2026, the company expects revenues in the range of $3.24-$3.27 billion compared with the prior estimate of $3.2-$3.3 billion. Adjusted EBITDA is projected to be $85 million to $100 million, versus the earlier guidance range of $70 million to $110 million.

Management now anticipates commodity inflation of 2-2.5%, down from the previous expectation of 2.5-3.5%. Hourly wage inflation is also expected to moderate to 2.5-3%, compared with the prior estimate of 3-4%.

Capital expenditures are envisioned in the range of $105-$115 million, down from the earlier projection of $110 million to $125 million.

CBRL’s Zacks Rank & Key Picks

Cracker Barrel currently has a Zacks Rank #4 (Sell).

Here are some better-ranked stocks from the Zacks Retail-Wholesale sector:

Expedia Group, Inc. EXPE flaunts a Zacks Rank of 1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 3%, on average. EXPE stock has gained 2.1% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Expedia Group’s 2026 sales and EPS indicates growth of 7.3% and 20.7%, respectively, from the prior-year levels.

Brinker International EAT presently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 8.2%, on average. EAT stock has declined 11.9% in the past six months.

The Zacks Consensus Estimate for Brinker’s fiscal 2026 sales and EPS indicates growth of 7.9% and 20%, respectively, from the year-ago period’s levels.

Yum China Holdings, Inc. YUMC carries a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 3.7%, on average. YUMC stock has climbed 17.8% in the past six months.

The Zacks Consensus Estimate for Yum China's 2026 sales and EPS indicates growth of 7.7% and 15.9%, respectively, from the year-ago period’s levels.
 

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

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