10-Q · June 9, 2026
Cracker Barrel reported Q3 2026 results with total revenue of $797.4M, a decrease of 2.9% year-over-year. The operating margin fell to 0.8% from 1.8%, while diluted EPS was $1.09, significantly higher than the estimated…
Earnings analysis · 10-K
CBRL earnings analysis
Filed September 25, 2026 · Our reading of the company's report
The latest report
Cracker Barrel’s fiscal 2026 results show a meaningful deterioration in demand and core profitability: revenue declined 4.7% to $3.319 billion, comparable restaurant traffic fell 7.6%, and operating income shifted to a…
Read full summary
Cracker Barrel’s fiscal 2026 results show a meaningful deterioration in demand and core profitability: revenue declined 4.7% to $3.319 billion, comparable restaurant traffic fell 7.6%, and operating income shifted to a $12.5 million loss. Liquidity and capital structure improved through $206.2 million of operating cash flow, repayment of the $150 million 2026 Notes and $541.3 million of unused revolver capacity, but these positives were partly supported by a $47.4 million litigation settlement and a $47.4 million sale-and-leaseback gain. The brand reset and refocus on the core Cracker Barrel concept provide a potential recovery path, but traffic, inflation and execution risks remain substantial.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.4
What stood out
-
Refocus on core Cracker Barrel brand
The company is refocusing on its core Cracker Barrel brand after selling assets used in 35 Maple Street Biscuit Company locations and closing the remaining 16 MSBC locations. It operated 655 Cracker Barrel stores in 43 states as of September 11, 2026.
-
Strong liquidity and available credit
Liquidity remained adequate, with $206.2 million of operating cash flow, $541.3 million of borrowing availability, and no outstanding borrowings under the $550 million revolving credit facility at July 31, 2026.
-
Debt maturity was fully repaid
Interest expense declined to $14.4 million from $20.5 million, while the remaining $150 million principal amount of the 2026 Notes was repaid at maturity on June 15, 2026.
-
Real-estate monetization supported cash
The company generated a $47.4 million net gain from a sale-and-leaseback transaction involving 26 Cracker Barrel properties, providing near-term capital proceeds and supporting liquidity.
-
Brand strategy reset underway
Management describes the Cracker Barrel brand as one of the restaurant industry’s “strongest and most differentiated brands” and is focusing its strategy on food, experience, people and profitability. It also returned to the former logo and discontinued modern test-store remodels during the first quarter of 2026.
-
Lower capex preserved cash generation
Cash generated from operations remained substantial at $206.2 million, and capital expenditures declined to $115.3 million from $158.6 million in 2025. The company paid regular dividends of $1.00 per share in 2026 and 2025.
What to watch
-
Traffic and brand perception remain pressured
Comparable restaurant sales fell 4.2%, comparable retail sales fell 5.2%, and comparable restaurant guest traffic declined 7.6% in 2026. Management attributed the traffic decline partly to negative publicity and customer reactions to the new logo and modern test-store remodels, as well as inflation, higher consumer debt and lower savings rates.
-
Inflation and labor costs threaten margins
Profitability deteriorated materially: operating income moved from positive $55.0 million in 2025 to a $12.5 million operating loss in 2026, while labor and related expenses increased to 37.3% of revenue from 36.0%. Management expects commodity inflation of approximately 3.0% and wage inflation of 2.5%-3.0% in 2027.
-
Restructuring and lease obligations add pressure
The 2026 MSBC exit generated a $27.0 million loss on sale of business assets, $8.5 million of impairment charges and $5.4 million of closing and other exit-related costs. Separately, the July 2026 sale-and-leaseback added approximately $5.7 million of initial annual lease payments and contributed to total operating lease liabilities of $698.8 million.
Management's outlook
The 10-K does not provide full-year revenue or EPS guidance. Quantitative 2027 outlook discussed in MD&A includes capital expenditures of approximately $110 million-$125 million, commodity inflation of approximately 3.0%, wage inflation of approximately 2.5%-3.0%, and an income tax benefit of approximately $4 million-$8 million. Annual outlook was also addressed in the fiscal 2027 earnings release/call.
Earlier filings 4
10-Q · March 4, 2026
Cracker Barrel reported quarterly revenue of $874.8M (down from $949.4M a year ago), with gross margin at 66.6% and operating income collapsing to $0.5M. Diluted EPS was $0.06 for the quarter and cash and cash…
10-Q · December 9, 2025
Cracker Barrel reported Q1 revenue of $797,188,000 and a net loss of $24,622,000 (basic/diluted EPS -$1.10), driven by an operating loss of $32,797,000. Gross margin remained resilient at 68.8% but operating margin…
10-K · September 26, 2025
Cracker Barrel’s 10-K reiterates a multi-year strategic plan focused on “driving relevancy,” “delivering food and an experience guests love,” and “growing profitability,” and discloses a portfolio of 657 Cracker Barrel…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.