Cracker Barrel Old Country Store (CBRL) investor relations material

Executive summary

• Q1 2026 revenue declined 5.7% year-over-year to $797.2 million, with a net loss of $24.6 million and adjusted EBITDA dropping to $7.2 million due to lower sales, higher costs, and negative brand publicity.

• Comparable store restaurant sales fell 4.7% and retail sales dropped 8.5%, driven by a 7.3% traffic decline and negative consumer response to brand changes.

• Leadership changes, operational retraining, and menu enhancements were implemented to address food quality, guest experience, and rebuild trust.

• The company closed 1 Cracker Barrel and 14 Maple Street Biscuit Company stores due to poor performance.

• Strategic focus remains on brand refinement, digital growth, and employee experience, with loyalty program membership surpassing 10 million.

Financial highlights

• Restaurant revenue was $650.6 million (down 4.8%), retail revenue $146.6 million (down 9.4%), and operating loss was $32.8 million versus $7.1 million income a year ago.

• Cost of goods sold rose to 31.2% of revenue, with restaurant at 26.6% and retail at 51.4%, driven by inflation and higher discounts.

• Labor expenses increased to 37.8% of revenue due to wage inflation and sales deleverage.

• Adjusted EPS was -$0.74; adjusted EBITDA margin dropped to 0.9% from 5.4% year-over-year.

• Cash used in operations was $53.4 million for the quarter.

Outlook and guidance

• Fiscal 2026 revenue guidance lowered to $3.2–$3.3 billion, with adjusted EBITDA projected at $70–$110 million and capital expenditures at $110–$125 million.

• Traffic guidance revised to -8% to -10% for the year, reflecting continued pressure and gradual recovery.

• Annualized G&A savings of $20–$25 million and advertising expense reductions of $12–$16 million expected.

• Commodity inflation projected at 2.5–3.5% and wage inflation at 3.0–4.0%.

• Liquidity is considered sufficient for ongoing operations and debt service.