Cracker Barrel Old Country Store

Fourth-quarter total revenue was $849.3 million, including restaurant revenue of $698.5 million and retail revenue of $150.8 million. Comparable store restaurant sales decreased 2.1% and traffic declined 6.1%, while restaurant average check increased 4.2% and pricing increased 4.4%; comparable store retail sales increased 0.7%. Adjusted EBITDA was $62.1 million, up 11.4% year over year from $55.7 million, and adjusted EPS was $0.99 versus GAAP EPS of $0.54. Gross margin details cited included total cost of goods sold at 28.8% of revenue versus 30.5% last year, restaurant COGS at 26.0% of restaurant sales versus 26.3%, and retail COGS at 41.6% of retail sales, which included about $15 million of tariff refund benefit. Management guided FY27 revenue to $3.325 billion to $3.4 billion, comparable restaurant sales growth of about 3% to 5%, total pricing of about 3%, commodity inflation of about 3%, hourly wage inflation of about 2.5% to 3%, adjusted EBITDA of $180 million to $200 million, adjusted tax credit of $4 million to $8 million, and capital expenditures of $110 million to $125 million with no new unit openings.

Dave Deno said his early read is that Cracker Barrel is a differentiated brand with strong guests, engaged employees, and a clear opportunity set. He centered the strategy on three priorities: food, guest experience, and people, with dinner quality, hospitality execution, retail merchandising, and loyalty as key levers. His tone was upbeat and confident, and he said the company is on the right track and positioned to improve profitability and cash flow in fiscal 2027 and beyond.

Craig Pommells detailed a quarter with $849.3 million of revenue, $62.1 million of adjusted EBITDA, and $0.99 of adjusted EPS. He said EBITDA benefited from a $15 million tariff refund, partially reinvested by $5.9 million for a net benefit of $9.1 million, and also reflected two offsetting $10 million legal settlements. He noted debt ended at $337.2 million, down $147.4 million year over year, with $541.3 million of available liquidity, and said capex was $27.4 million in Q4. For FY27, he guided to $180 million to $200 million of adjusted EBITDA, $110 million to $125 million of capex, and a $4 million to $8 million adjusted tax credit.

Analysts focused on what still needs fixing, the drivers of the FY27 EBITDA step-up, and how to think about pricing, traffic, margins, capital returns, marketing, and the consumer backdrop. Management said the biggest opportunity remains food, especially dinner, plus continued execution on hospitality and employee training; the EBITDA increase should come from improving traffic, menu mix, and cost savings/efficiency initiatives. On capital allocation, management said the balance sheet is in great shape and that they will pursue a balanced approach, prioritizing organic investment while also discussing dividends and repurchases with the Board. On consumer pressure, management acknowledged softness in lower-income guests but said the value equation remains strong, with check averages around $16 and multiple price points and promotions supporting traffic.