Cracker Barrel Old Country Store (CBRL) Q1 2026 earnings summary

Executive summary

• Q1 revenue declined 5.7% year-over-year to $797.2 million, with comparable restaurant sales down 4.7% and traffic down 7.3%.

• Net loss was $24.6 million versus net income of $4.8 million in the prior year; adjusted EBITDA dropped to $7.2 million from $45.8 million, impacted by sales declines and higher advertising, marketing, and conference costs.

• Comparable store restaurant sales declined 4.7% and retail sales declined 8.5%, driven by lower guest traffic and negative publicity from recent brand initiatives.

• Leadership changes, operational retraining, and a multi-year strategic plan focusing on brand refinement, menu innovation, digital growth, and employee experience were implemented.

• The company closed one Cracker Barrel and 14 Maple Street Biscuit Company locations due to poor performance.

Financial highlights

• Restaurant revenue was $650.6 million (down from $683.3 million), retail revenue was $146.6 million (down from $161.8 million).

• Restaurant cost of goods sold rose to 26.6% of sales, up 50 bps, and retail cost of goods sold was 51.4% of sales.

• Labor expenses increased to 37.8% of revenue, up from 36.4% year-over-year, driven by sales deleverage and wage inflation.

• Adjusted EPS was -$0.74; GAAP EPS was -$1.10.

• General and administrative expenses decreased to 6.0% of revenue from 7.1% due to lower incentive compensation and professional fees.

Outlook and guidance

• Fiscal 2026 revenue guidance lowered to $3.2–$3.3 billion, with adjusted EBITDA guidance reduced to $70–$110 million, reflecting slower recovery and macroeconomic challenges.

• Traffic guidance revised to -8% to -10% for the year, with the low end assuming higher discounts and lower retail attachment.

• Annualized G&A savings of $20–$25 million expected from corporate restructuring; advertising expense to be reduced by $12–$16 million.

• Capital expenditures forecasted at $110–$125 million, funded by operations and credit facility.

• Commodity inflation expected at 2.5–3.5% and hourly wage inflation at 3.0–4.0%.