Cracker Barrel Beats Earnings Estimates Amid Turnaround Plan

Cracker Barrel Old Country Store reported fiscal fourth-quarter results ending July 31 that significantly beat Wall Street expectations, with adjusted earnings of 99 cents per diluted share compared to the projected 26 cents. While total revenue dipped 2.2% year-over-year to $849.3 million and comparable-store restaurant sales fell 2.1%, the company saw an 11.4% increase in adjusted EBITDA to $62.1 million. Profit growth was supported by lower operating costs, improved margins, and a $9.1 million benefit from tariff refunds.

Under the leadership of CEO David Deno, who assumed the role on August 10, the company is executing a turnaround plan initiated by former CEO Julie Felss Masino. The strategy focuses on improving food quality for dinner items—including steak, hamburgers, and chicken—and expanding the breakfast menu. The company is also leveraging a loyalty program with 12.5 million members to improve guest metrics and employee retention.

To strengthen its balance sheet, the company reduced total debt to $337.2 million by repaying $150 million in convertible notes and completing a sale-leaseback of 26 store locations, which generated $77 million. Additionally, the company divested the Maple Street Biscuit Company, transferring 35 locations to Biscuit Belly, LLC and closing 16 others. For fiscal 2027, the company projects total revenue between $3.325 billion and $3.4 billion, with expected comparable-store restaurant sales growth of 3% to 5%.