Cracker Barrel Old Country Store 2026 Q1 Earnings Net Loss Surpasses 600% as Revenue Declines

Cracker Barrel Old Country Store’s Q1 2026 results fell short of expectations, marked by a sharp revenue decline and a significant net loss. The company adjusted its full-year guidance downward, signaling ongoing challenges.

Revenue

Cracker Barrel’s total revenue dropped 5.7% to $797.19 million in Q1 2026, reflecting weaker performance across both core segments. The restaurant division, which constitutes 81.6% of total revenue, generated $650.59 million, while the retail segment declined 8.5% to $146.59 million. This followed a broader trend of declining guest traffic and promotional pressures, particularly in retail, where SKU reductions and tariff-driven assortment changes further strained sales.

Earnings/Net Income

The company reported a net loss of $24.62 million, or $1.10 per share, a 608.3% deterioration from a $4.84 million profit a year earlier. Adjusted EBITDA fell to $7.2 million, a 83.6% decline, underscoring the impact of higher operating costs and lower sales. The earnings performance highlights a significant misalignment with previous profitability trends.

Post-Earnings Price Action Review

The strategy of buying Cracker Barrel shares after a revenue drop quarter-over-quarter on the financial report release date and holding for 30 days resulted in a significant underperformance. The strategy had a CAGR of -40.11% and an excess return of -145.90%, with a maximum drawdown of 0.00% and a Sharpe ratio of -0.86, indicating a high risk and a substantial loss compared to the benchmark.

CEO Commentary

Julie Masino emphasized operational retraining, leadership changes, and heritage-driven marketing to rebuild guest trust. Despite 3–4% improvements in food satisfaction, she acknowledged the need for patience as traffic recovery remains uncertain.

Guidance

Cracker Barrel revised its 2026 revenue outlook to $3.2–$3.3 billion (from $3.35–$3.45 billion) and cut adjusted EBITDA guidance to $70–$110 million. The company cited traffic recovery risks, sustained discounting, and cost-saving initiatives as key constraints.

Additional News

1. Insider Sale: GMT Capital Corp sold 84,800 shares of Cracker Barrel for $2.4 million, indicating potential skepticism about near-term prospects.

2. Dividend Declaration: The board approved a $0.25 per share quarterly dividend, payable on February 11, 2026, to shareholders of record as of January 16, 2026.

3. Strategic Restructuring: The company announced $20–$25 million in annualized G&A savings from corporate restructuring, alongside a $12–$16 million reduction in advertising expenses for the remainder of 2026.