Cracker Barrel Old Country Store Inc. reported first‑quarter fiscal 2026 revenue of $797.2 million, a 5.7% decline from the $842.8 million earned a year earlier. The company posted a net loss of $24.6 million, but its adjusted earnings per share of $0.74 beat the consensus estimate of $0.68, a $0.06 upside that reflects disciplined cost control and a 120‑basis‑point improvement in general and administrative expenses.
The quarter’s adjusted EBITDA collapsed from $45.8 million in Q1 FY2025 to $7.2 million, a 84% drop that underscores the impact of lower sales volume and the need for aggressive margin protection. Revenue was driven by a 4.7% decline in comparable restaurant sales and an 8.5% decline in retail sales, while the company’s core restaurant business continued to see traffic erosion.
Management attributed the revenue shortfall to macro‑economic softness and the lingering effects of a rebranding backlash that began in August 2025. The company reversed a logo change after customer backlash, which has dampened foot traffic and eroded brand equity. In response, CEO Julie Masino said the firm is “adjusting our operational initiatives, menu, and marketing to ensure we are consistently delivering delicious food and exceptional experiences.”
Full‑year guidance was lowered to $3.20 billion–$3.30 billion in revenue and $70 million–$110 million in adjusted EBITDA, down from $3.35 billion–$3.45 billion and $150 million–$190 million, respectively. The cuts signal management’s concern about sustained traffic declines and the cost of re‑establishing brand confidence. The company also announced a restructuring of its corporate support center that is expected to generate $20 million–$25 million in annualized savings and a reduction in advertising spend.
Analysts noted the guidance cut as a warning sign, but the company’s dividend policy remains unchanged. Cracker Barrel declared a quarterly dividend of $0.25 per share, payable February 11 2026, indicating confidence in its cash‑flow generation despite the earnings miss. The company’s focus on cost savings, menu adjustments, and a renewed emphasis on food quality and guest experience will be closely watched as it seeks to reverse the traffic decline and restore profitability.
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