TLDR
- Cracker Barrel stock jumped about 8% Wednesday morning following fiscal fourth-quarter results.
- Adjusted EPS reached $0.99, far above Wall Street expectations.
- Revenue fell 2.2% to $849.3 million but still topped estimates.
- Comparable restaurant sales declined 2.1%, while retail sales increased 0.7%.
- Management expects comparable restaurant sales to grow 3% to 5% in fiscal 2027.
Cracker Barrel (CBRL) stock jumped about 8.3% to $49.25 Wednesday after fiscal fourth-quarter earnings came in well above Wall Street expectations. CBRL had closed Tuesday at $45.48, up 1.4% for the session.
Cracker Barrel Old Country Store, CBRL
Adjusted earnings reached $0.99 per stock for the quarter ended July 31. Published FactSet estimates ranged from $0.17 to $0.26, meaning the company beat expectations by a wide margin regardless of the specific consensus source.
GAAP earnings were $0.54 per stock, while net income increased to $12.2 million from $6.8 million a year earlier. Cracker Barrel’s adjusted EBITDA rose to $62.1 million from $55.7 million.
Earnings Beat Despite Lower Revenue
Revenue declined 2.2% from a year earlier to $849.3 million. The result still came in ahead of analyst expectations of roughly $835 million to $845 million.
Comparable restaurant sales fell 2.1%, showing that customer demand has not fully recovered. Comparable retail sales performed better, increasing 0.7% from the previous year.
Adjusted EBITDA received a roughly $9.1 million net benefit related to tariff refunds and associated investments. Investors should therefore separate that benefit from the underlying operating improvement when assessing the quarter.
Cracker Barrel said underlying traffic trends and key guest measures continued to improve. New CEO David Deno said the company’s focus remains on food, customer experience and employees.
Deno took over as CEO on August 10, replacing Julie Masino. He previously led Bloomin’ Brands, the parent company of Outback Steakhouse.
Cracker Barrel also took several balance-sheet actions during the quarter. It sold Maple Street Biscuit Company and completed a sale-leaseback involving 26 Cracker Barrel locations, generating about $77 million that was used to reduce debt.
Total debt ended fiscal 2026 at $337.2 million, down from $484.6 million a year earlier. The company also repaid $150 million of short-term convertible debt during the quarter.
Cracker Barrel Forecasts Restaurant Sales Growth
For fiscal 2027, Cracker Barrel expects total revenue of $3.325 billion to $3.4 billion. Wall Street had been looking for roughly $3.39 billion, putting the midpoint of company guidance slightly below that forecast.
More encouragingly, management expects comparable restaurant sales to grow between 3% and 5%. The company plans no new store openings during the fiscal year.
Adjusted EBITDA is forecast at $180 million to $200 million, while commodity inflation is expected to run around 3%. Hourly wage inflation is forecast between 2.5% and 3%.
The main investor risks remain weak restaurant traffic, consumer spending pressure, food and labor inflation, and whether recent operational improvements translate into sustained sales growth. Tuesday’s results were better than expected, but restaurant comparable sales were still negative.
The most recent update is Cracker Barrel’s fiscal 2027 forecast for 3% to 5% comparable restaurant sales growth, giving investors a clearer target for the turnaround under new CEO David Deno.
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