Cracker Barrel 2026 Q1 Earnings Severe Loss Amid Revenue Drop and Guidance Cut

Cracker Barrel Old Country Store (CBRL) reported Q1 2026 earnings that significantly missed expectations, with a net loss of $24.62 million (a 608.3% deterioration) and a revenue decline of 5.7%. The company slashed full-year guidance, projecting $3.2–$3.3 billion revenue (down from $3.35–$3.45 billion) and adjusted EBITDA of $70–$110 million (vs. $150–$190 million).

Revenue

Cracker Barrel’s Q1 revenue fell 5.7% to $797.19 million, driven by a 4.7% drop in restaurant sales and an 8.5% decline in retail. The restaurant segment generated $650.59 million, while the retail segment accounted for $146.59 million.

Earnings/Net Income

The company swung to a loss of $1.10 per share in Q1 2026 from a profit of $0.22 per share in Q1 2025, marking a 600% negative change. This reflects a net loss of $24.62 million, compared to $4.84 million in net income the prior year. The dramatic decline underscores operational and macroeconomic challenges.

Post-Earnings Price Action Review

The stock’s post-earnings performance worsened sharply. Buying shares after the Q1 revenue drop and holding for 30 days resulted in a CAGR of -40.11% and excess return of -145.90%, with a Sharpe ratio of -0.86. Maximum drawdown was 0.00%, highlighting a high-risk, high-loss scenario. The stock fell 11–13% in the week following the report, compounding its year-to-date losses.

CEO Commentary

CEO Julie Masino attributed the decline to macroeconomic pressures and operational setbacks, including the back-of-house initiative rollback. Strategic priorities include menu revamps, leadership changes, and cost-cutting. She emphasized cautious optimism, citing improved guest metrics as leading indicators for long-term recovery.

Guidance

Cracker Barrel outlined 2026 guidance: $3.2–$3.3 billion revenue, $70–$110 million adjusted EBITDA, and $110–$125 million capex. Cost savings from restructuring and advertising reductions aim to offset inflationary pressures.

Additional News

1. Owner GMT Capital Corp

   sold 84,800 shares ($2.4M) on Dec. 4–5, 2025, reducing holdings to 2.62 million shares directly.

2. Stock Price Drop: CBRL shares tumbled 11–13% post-earnings, driven by a 6% revenue miss and slashed guidance, reflecting investor skepticism.

3. Rebranding Fallout: The controversial logo and store remodels, abandoned in August, continued to hurt traffic, with same-store sales down 4.7% in restaurants and 8.5% in retail.