Cracker Barrel Old Country Store CBRL 2025Q3 Earnings Preview Upside Potential on Improved Revenue Guidance

AinvestwebMonday, Jun 2, 2025 7:46 pm ET
1min read
Forward-Looking Analysis
Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL) is set to release its 2025Q3 earnings report on June 5th. The company has updated its fiscal year 2025 revenue guidance to $3.45 billion-$3.5 billion, reflecting an optimistic outlook compared to previous estimates of $3.4 billion-$3.5 billion. Analysts project the company's earnings per share (EPS) to reach $2.82 for 2025, indicating a continued positive trend following the previous quarter's EPS of $1.38, which surpassed the Zacks Consensus Estimate. Adjusted EBITDA expectations have also been raised to $210 million-$220 million, pointing to solid operational performance. The company anticipates moderate commodity inflation and has adjusted hourly wage inflation expectations downward, signaling effective cost management. Strategic initiatives in off-premise channels and menu price adjustments are expected to sustain revenue growth and profitability. These factors, coupled with plans to open four new Maple Street Biscuit Company units, suggest Cracker Barrel is on track to meet or exceed market expectations.

Historical Performance Review
In 2025Q2, Cracker Barrel Old Country Store reported a notable performance with revenue reaching $949.44 million, a growth of 1.5% year over year. Net income stood at $22.21 million, with earnings per share (EPS) recorded at $1.00. The gross profit for the quarter was $639.61 million, reflecting efficient cost management and strategic pricing initiatives. Comparable-store restaurant sales increased by 4.7%, showcasing resilience amidst industry challenges. The results exceeded the Zacks Consensus Estimate, reinforcing the company's strong operational execution and financial stability.

Additional News
Recently, Cracker Barrel Old Country Store updated its earnings guidance for fiscal year 2025, projecting revenue between $3.45 billion and $3.5 billion, an increase from the prior range. The company attributed its strong performance to effective strategies in enhancing profitability in off-premise channels, especially during the busy holiday season. CEO Julie Masino highlighted the success of the company's teams in executing these strategies despite broader industry challenges. The company announced a cash dividend of 25 cents per share, to be paid on May 14, 2025. Furthermore, Cracker Barrel aims to open four new Maple Street Biscuit Company units, expanding its footprint and supporting future growth.

Summary & Outlook
Cracker Barrel Old Country Store exhibits a robust financial position with steady revenue growth, efficient cost management, and strategic pricing adjustments. The company's increased revenue guidance and improved EBITDA projections indicate a positive outlook. Growth catalysts include the expansion of off-premise channels and new store openings, while risk factors such as commodity and wage inflation appear to be well-managed. Overall, Cracker Barrel's strong earnings performance and strategic initiatives support a bullish stance on its future prospects, with expectations of continued growth and profitability in the forthcoming quarters.