Cracker Barrel Old Country Store 2025 Q3 Earnings Beats Expectations as Net Income Swings 237%

Cracker Barrel Old Country Store (CBRL) reported its fiscal 2025 Q3 earnings on June 5, 2025. The company's results exceeded expectations, marking a significant turnaround from the previous year. Cracker Barrel raised its adjusted EBITDA guidance to between $215 million and $225 million, reflecting confidence in its transformation plan. The company has successfully navigated challenging market conditions, demonstrating strong operational resilience and strategic agility. With a focus on delivering value and enhancing customer experience, Cracker Barrel remains optimistic about its prospects for a strong finish to the fiscal year.

Revenue
Cracker Barrel Old Country Store achieved a modest increase in total revenue of 0.5% to $821.15 million in 2025 Q3, compared to $817.13 million in 2024 Q3. The restaurant segment generated $679.34 million, while the retail segment contributed $141.81 million, culminating in a total revenue of $821.15 million.

Earnings/Net Income
Cracker Barrel Old Country Store reported a return to profitability with earnings per share (EPS) of $0.56 in Q3 2025, a remarkable reversal from a loss of $0.41 per share in Q3 2024. Net income was $12.57 million, marking a 236.7% positive swing from the net loss of $-9.20 million in Q3 2024. This EPS indicates strong performance improvements and strategic execution.

Price Action
The stock price of Cracker Barrel Old Country Store has experienced volatility, dropping 7.71% during the latest trading day and tumbling 8.70% over the most recent full trading week. However, month-to-date, the stock has surged by 25.42%, reflecting positive investor sentiment despite short-term fluctuations.

Post-Earnings Price Action Review
The strategy of buying CBRL stocks when revenue exceeds expectations and holding for 30 days proved ineffective, yielding a return of -51.01%. The poor performance resulted in a Sharpe ratio of -0.30 and a maximum drawdown of -78.51%, significantly underperforming the benchmark. The negative compound annual growth rate (CAGR) of -13.38% highlights the strategy's inability to capitalize on positive momentum from the revenue beat, making it a losing approach. Investors are advised to reconsider the effectiveness of this strategy, as historical backtests indicate substantial risk and underperformance relative to market benchmarks.

CEO Commentary
Julie Felss Masino, President and CEO, expressed satisfaction with the company's third-quarter results, emphasizing positive comparable store restaurant sales for the fourth consecutive quarter and exceeding adjusted EBITDA expectations. Masino highlighted the transformation plan's success, focusing on agility and discipline in overcoming challenges. Strategic initiatives include culinary innovations, operational enhancements, and brand refinement, with the aim of delivering food and experiences that customers love. Masino remains optimistic and confident in the company's ability to execute its plans and drive long-term value creation.

Guidance
For fiscal 2025, Cracker Barrel anticipates total revenue between $3.45 billion and $3.5 billion, with an adjusted EBITDA of approximately $215 million to $225 million, factoring in a $5 million tariff impact. The company expects pricing around 5%, commodity inflation in the mid-2% range, and hourly wage inflation also in the mid-2% range. Capital expenditures are projected at approximately $160 million to $170 million, indicating continued investment in supporting the transformation plan.

Additional News
Cracker Barrel Old Country Store recently announced the election of Steve Bramlage to its Board of Directors, underscoring a commitment to strong governance and leadership. In May, the company launched its iconic Campfire Meals, signaling the commencement of summertime promotions. Additionally, Cracker Barrel opened a new store location in Denver, bringing its signature country hospitality to the Central Park area. These developments reflect Cracker Barrel's strategic expansion and focus on enhancing its brand presence across key markets. The company continues to prioritize customer experience and value, ensuring sustainable growth and engagement with its loyal customer base.