CRACKER BARREL OLD COUNTRY STORE, INC (CBRL): Results of Operations and Financial Condition
CRACKER BARREL OLD COUNTRY STORE, INC (CBRL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Investor Contact: Adam Hanan (615) 443-9887 Media Contact: Heidi Pearce (615) 235-4135 CRACKER BARREL REPORTS FOURTH QUARTER AND FULL YEAR FISCAL 2026 RESULTS AND PROVIDES FISCAL 2027 OUTLOOK Performance Underscores Continued Improvement in Key Operating & Financial
How this was made
The 30-second read
Why it matters
The earnings beat and forward guidance provide fresh data for traders to reassess valuation and positioning.
Market read
The earnings release offers new material for equity traders focused on consumer discretionary and restaurant stocks.
What to watch
Potential headwinds from commodity price inflation and wage pressures could compress margins despite revenue growth.
Cracker Barrel reported fourth quarter fiscal 2026 revenue of $849.3 million, GAAP diluted EPS of $0.54, adjusted diluted EPS of $0.99, and fiscal 2027 adjusted EBITDA guidance of $180 million to $200 million.
Fourth quarter adjusted EBITDA increased to $62.1 million from $55.7 million and GAAP net income increased to $12.2 million from $6.8 million, but total revenue declined 2.2%, comparable restaurant sales declined 2.1%, and full-year adjusted EBITDA declined to $147.7 million from $224.3 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, fourth quarterGAAP | $ 849,342 | – | (2% ) |
| Total revenue, twelve monthsGAAP | $ 3,318,714 | – | (5% ) |
| Cost of goods sold (exclusive of depreciation & rent), fourth quarterGAAP | 244,212 | – | (8 ) |
| Cost of goods sold (exclusive of depreciation & rent), twelve monthsGAAP | 1,026,250 | – | (5 ) |
| Labor and other related expenses, fourth quarterGAAP | 318,204 | – | 1 |
| Labor and other related expenses, twelve monthsGAAP | 1,237,314 | – | (1 ) |
| Other store operating expenses, fourth quarterGAAP | 201,643 | – | (7 ) |
| Other store operating expenses, twelve monthsGAAP | 846,189 | – | (1 ) |
| General and administrative expenses, fourth quarterGAAP | 65,178 | – | 30 |
| General and administrative expenses, twelve monthsGAAP | 210,579 | – | (3 ) |
| Gain on sale and leaseback transaction, net, fourth quarterGAAP | (47,421 ) | – | – |
| Gain on sale and leaseback transaction, net, twelve monthsGAAP | (47,421 ) | – | – |
| Impairment and store closing costs, fourth quarterGAAP | 27,343 | – | 69 |
| Impairment and store closing costs, twelve monthsGAAP | 31,234 | – | 56 |
| Loss on sale of business assets, fourth quarterGAAP | 27,039 | – | – |
| Loss on sale of business assets, twelve monthsGAAP | 27,039 | – | – |
| Operating income (loss), fourth quarterGAAP | 13,144 | – | 230 |
| Operating income (loss), twelve monthsGAAP | (12,470 ) | – | (123 ) |
| Interest expense, fourth quarterGAAP | 2,954 | – | (37 ) |
| Interest expense, twelve monthsGAAP | 14,379 | – | (30 ) |
| Income before income taxes, fourth quarterGAAP | 10,190 | – | 314 |
| Income before income taxes, twelve monthsGAAP | 20,573 | – | (45 ) |
| Income tax benefit, fourth quarterGAAP | (2,014 ) | – | 53 |
| Income tax benefit, twelve monthsGAAP | (11,102 ) | – | (28 ) |
| Net income, fourth quarterGAAP | $ 12,204 | – | 81 |
| Net income, twelve monthsGAAP | $ 31,675 | – | (32 ) |
| Diluted earnings per share, fourth quarterGAAP | $ 0.54 | – | 80 |
| Diluted earnings per share, twelve monthsGAAP | $ 1.40 | – | (32 ) |
| Adjusted net income, fourth quarternon-GAAP | $ 22,359 | – | – |
| Adjusted net income, twelve monthsnon-GAAP | $ 18,043 | – | – |
| Adjusted earnings per share - diluted, fourth quarternon-GAAP | $ 0.99 | – | – |
| Adjusted earnings per share - diluted, twelve monthsnon-GAAP | $ 0.80 | – | – |
| EBITDA, fourth quarternon-GAAP | $ 44,489 | – | – |
| EBITDA, twelve monthsnon-GAAP | $ 158,057 | – | – |
| Adjusted EBITDA, fourth quarternon-GAAP | $ 62,054 | – | – |
| Adjusted EBITDA, twelve monthsnon-GAAP | $ 147,714 | – | – |
| Adjusted EBITDA margin, fourth quarternon-GAAP | 7.3% | – | – |
| Adjusted EBITDA margin, twelve monthsnon-GAAP | 4.5% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Restaurant revenue, Cracker Barrel stores only, fourth quarterComparable store restaurant sales decreased 2.1% compared to the prior year quarter. | $ 686,196 | – | – |
| Retail revenue, Cracker Barrel stores only, fourth quarterComparable store retail sales increased 0.7% compared to the prior year quarter. | $ 150,795 | – | – |
| Restaurant revenue, Cracker Barrel stores only, twelve monthsCracker Barrel store information only. | $ 2,645,700 | – | – |
| Retail revenue, Cracker Barrel stores only, twelve monthsCracker Barrel store information only. | $ 616,631 | – | – |
fiscal 2027 outlook
- Revenue$3.325 billion to $3.4 billion
- NoteComparable store restaurant sales growth of 3% to 5%
- NoteNo new store openings
- NoteAdjusted EBITDA of $180 million to $200 million
- NoteCommodity inflation of approximately 3.0%
- NoteHourly wage inflation of 2.5% to 3.0%
- NoteCapital expenditures of $110 million to $125 million
Capital returns
- The Board of Directors declared a quarterly dividend of $0.25 per share of the Company’s common stock.
- The quarterly dividend is payable on November 12, 2026 to shareholders of record as of October 16, 2026.
- During the fourth quarter, the Company repaid $150 million of short-term debt related to its 0.625% Convertible Senior Notes when they matured in June 2026.
- Dividends on common stock were (23,149 ) for the twelve months ended 7/31/26, compared with (23,098 ) for the twelve months ended 8/1/25.
What drove it
- Fourth-quarter adjusted EBITDA included a benefit of approximately $9.1 million related to tariff refunds, net of investments.
- The fourth-quarter sale-leaseback transaction generated a gain on sale and leaseback transaction, net, of (47,421 ).
- The Company divested Maple Street Biscuit Company on July 20, 2026.
- The MSBC divestiture resulted in the sale of 35 locations and the closure of the remaining 16 locations. Prior to the divestiture, the Company closed one MSBC unit.
- David Deno was appointed Chief Executive Officer, effective August 10, 2026.
- Fourth-quarter Cracker Barrel company-owned units opened were 1, while company-owned units closed or divested were (3 ).
Concerns
- Total revenue decreased 2.2% in the fourth quarter and (5% ) for the twelve months ended 7/31/26.
- Comparable store restaurant sales decreased 2.1% in the fourth quarter.
- Full-year operating income (loss) was (12,470 ), compared with operating income of 55,029 in the prior year.
- Full-year adjusted EBITDA was $ 147,714, compared with $ 224,264 in the prior year.
- Fourth-quarter general and administrative expenses were 65,178, compared with 50,169 in the prior year quarter.
- Fourth-quarter impairment and store closing costs were 27,343, and the Company recorded a fourth-quarter loss on sale of business assets of 27,039.
What to watch
- Fiscal 2027 comparable store restaurant sales growth guidance of 3% to 5%.
- Fiscal 2027 adjusted EBITDA guidance of $180 million to $200 million.
- Fiscal 2027 commodity inflation assumption of approximately 3.0% and hourly wage inflation assumption of 2.5% to 3.0%.
- Fiscal 2027 capital expenditures guidance of $110 million to $125 million.
- Execution following the MSBC divestiture and the planned absence of new store openings in fiscal 2027.
- The effect of the approximately $9.1 million fourth-quarter tariff-refund benefit, net of investments, on future adjusted EBITDA comparability.
Balance sheet and cash flow
- Cash and cash equivalents were $ 36,535 at 7/31/26, compared with $ 39,643 at 8/1/25.
- Total debt was $337.2 million at the end of fiscal 2026, compared with total debt of $484.6 million at the end of fiscal 2025.
- Long-term debt was 337,231 at 7/31/26, compared with 335,457 at 8/1/25.
- Current portion of long-term debt was 0 at 7/31/26, compared with 149,178 at 8/1/25.
- Net cash provided by operating activities was 206,204 for the twelve months ended 7/31/26, compared with 218,899 for the twelve months ended 8/1/25.
- Purchase of property and equipment, net of insurance recoveries, was (115,321 ) for the twelve months ended 7/31/26, compared with (158,647 ) for the twelve months ended 8/1/25.
- Proceeds from sale of property and equipment, net, were 81,101 for the twelve months ended 7/31/26, compared with 1,945 for the twelve months ended 8/1/25.
- Net cash used in investing activities was (34,220 ) for the twelve months ended 7/31/26, compared with (156,702 ) for the twelve months ended 8/1/25.
- Net cash used in financing activities was (175,092 ) for the twelve months ended 7/31/26, compared with (34,589 ) for the twelve months ended 8/1/25.
- The fourth-quarter sale-leaseback transaction for 26 Company-owned Cracker Barrel store locations generated net proceeds of approximately $77 million that were deployed towards debt reduction.
- The consolidated total leverage ratio was 1.7x and the consolidated senior leverage ratio was 0.0x at the end of the fourth quarter.
- The Company had approximately $541.3 million in available capacity under its credit facility at the end of the fourth quarter.
Analysis
Cracker Barrel reported fourth-quarter fiscal 2026 total revenue of $ 849,342, down (2% ) from $ 868,009 in the prior-year quarter. Comparable store restaurant sales decreased 2.1%, while comparable store retail sales increased 0.7%. For Cracker Barrel stores only, fourth-quarter restaurant revenue was $ 686,196 and retail revenue was $ 150,795. The results include Maple Street Biscuit Company through its July 20, 2026 divestiture.
Fourth-quarter profitability improved on several reported measures. GAAP net income was $ 12,204 versus $ 6,754, and GAAP diluted earnings per share were $ 0.54 versus $ 0.30. Adjusted net income was $ 22,359 versus $ 16,702, while adjusted diluted earnings per share were $ 0.99 versus $ 0.74. Adjusted EBITDA was $ 62,054, compared with $ 55,713, and adjusted EBITDA margin was 7.3% versus 6.4%. The quarter included a benefit of approximately $9.1 million related to tariff refunds, net of investments, and a gain on sale and leaseback transaction, net, of (47,421 ).
The full-year results remained weaker than the prior year. Total revenue was $ 3,318,714, compared with $ 3,483,684, while GAAP net income was $ 31,675, compared with $ 46,379. Full-year operating income (loss) was (12,470 ), compared with operating income of 55,029, and adjusted EBITDA was $ 147,714, compared with $ 224,264. Full-year results included the litigation settlement income of (47,422 ), the gain on sale-leaseback transaction, net, of (47,421 ), a loss on sale of MSBC of 27,039, impairment charges, MSBC store closing costs, corporate restructuring charges, proxy contest expenses, and CEO transition expenses.
Capital allocation centered on debt reduction and the sale-leaseback transaction. The Company ended fiscal 2026 with total debt of $337.2 million, compared with $484.6 million at the end of fiscal 2025, after repaying $150 million of short-term debt associated with maturing convertible senior notes. The sale-leaseback of 26 Company-owned Cracker Barrel locations generated net proceeds of approximately $77 million for debt reduction. Cash and cash equivalents were $ 36,535, and net cash provided by operating activities for the year was 206,204. The Board also declared a quarterly dividend of $0.25 per share.
For fiscal 2027, the Company guided to total revenue of $3.325 billion to $3.4 billion, including comparable store restaurant sales growth of 3% to 5%, with no new store openings. It expects adjusted EBITDA of $180 million to $200 million, commodity inflation of approximately 3.0%, hourly wage inflation of 2.5% to 3.0%, and capital expenditures of $110 million to $125 million. The guide places particular emphasis on returning restaurant comparable sales to growth and improving adjusted EBITDA after full-year fiscal 2026 adjusted EBITDA of $ 147,714.
Management, verbatim
I’m honored to lead such a differentiated and iconic brand. The Company is focused on the right areas and has a strong plan, as demonstrated by the continued improvements in the underlying traffic trend, key guest metrics, and EBITDA results. I am excited about the opportunity ahead and confident that our strategic priorities around food, experience, and people will sustain this momentum and drive long-term value creation.
David Deno, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported income-statement metrics.
- Reported gross profit and gross margin.
- Quarterly operating cash flow, investing cash flow, financing cash flow, capital expenditures, and free cash flow.
- Share repurchases and repurchase authorization.
- A separate reported revenue figure for Maple Street Biscuit Company.
- Prior fiscal guidance, so no comparison of actual results with prior guidance is available.
- Forward-looking GAAP net income reconciliation for adjusted EBITDA guidance.
- Fiscal 2027 guidance for gross margin, operating expenses, and tax rate.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Cracker Barrel filed an 8‑K with Q4 results and FY2027 guidance, marking the first public disclosure of these numbers.
Ticker impact
SEC Form 8‑K reports Cracker Barrel's Q4 2026 results and FY2027 outlook, including revenue guidance of $3.325‑$3.4 B and adjusted EBITDA guidance of $180‑$200 M.
likely modest price appreciation in the near term
Revenue and EBITDA guidance exceed prior year, dividend declared, and debt reduction improves balance sheet, supporting a bullish view.
Market effects
Restaurant and casual dining sector may see a lift as Cracker Barrel signals growth and improved margins.
U.S. consumer‑discretionary sentiment could be bolstered by the upbeat outlook.
Limited; primarily impacts U.S. equities and sector indices.
Counterpoint
Guidance may be modest relative to peers; investors could view the outlook as insufficient to justify price gains.
Key entities
- companyCracker Barrel Old Country Store, Inc.
U.S. restaurant chain reporting earnings and outlook.
