Cracker Barrel's Q2 2025: Navigating Consumer Anxiety, Egg Costs, and Pricing Strategies

These are the key contradictions discussed in Cracker Barrel Old Country Store, Inc.'s latest 2025Q2 earnings call, specifically including: Consumer Angst and Daypart Pricing Strategy, Egg Cost Management and Pricing Strategy, Consumer Anxiety and Demographics, and Pricing Strategy and Labor Costs:



Revenue and Sales Growth:
- Cracker Barrel Old Country Store reported total revenue of $949.4 million for Q2 fiscal 2025, with comparable store restaurant sales growth of 4.7%.
- The growth was attributed to improved operational execution, enhanced profitability in seasonal channels like Heat n' Serve and catering, and positive trends in dinner traffic.

Profitability and EBITDA Improvement:
- Adjusted EBITDA for the quarter exceeded expectations, reaching $74.6 million, which was 7.9% of total revenue.
- The improvement was driven by strategic actions to enhance profitability in off-premise and catering channels during the busy holiday season.

Menu and Value Strategy:
- Cracker Barrel's menu strategy focused on enhancing value and craveability, resulting in improved scores for menu choice, food and taste, and value metrics.
- The company introduced new shrimp dishes and adjusted pricing strategies to maintain a strong value proposition.

Digital and Off-Premise Performance:
- The company saw improvements in digital and off-premise performance, particularly in catering and occasion channels, contributing to overall EBITDA performance.
- These improvements were due to strategic adjustments in prioritizing more profitable channels and streamlining offerings.