Cracker Barrel Old Country Store (CBRL) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue increased 2.6% year-over-year to $845.1 million, driven by higher restaurant sales and menu innovation, while retail sales and guest traffic declined.

• Comparable store restaurant sales rose 2.9%, outperforming the casual dining industry by 290 basis points, with menu pricing contributing 4.7%.

• Adjusted EBITDA increased 4.3% to $45.8 million (5.4% of revenue), while GAAP net income was $4.8 million and GAAP EPS was $0.22.

• Transformation plan advanced across five pillars, including menu innovation, store remodels, digital initiatives, and employee experience improvements.

• Board declared a $0.25 per share quarterly dividend, payable February 12, 2025.

Financial highlights

• Total revenue for Q1 was $845.1 million, with restaurant revenue at $683.3 million and retail revenue at $161.8 million.

• Comparable store restaurant sales increased 2.9% year-over-year, with a 5.8% average check increase offset by a 2.9% decrease in guest traffic.

• Adjusted EBITDA was $45.8 million (5.4% of revenue), up from $43.9 million (5.3%) in the prior year quarter.

• Operating income was $7.1 million, down from $11.4 million year-over-year; operating margin declined to 0.8%.

• Cash flow from operations was negative $4.4 million for the quarter.

Outlook and guidance

• Fiscal 2025 revenue expected at $3.4–$3.5 billion, with adjusted EBITDA guidance reaffirmed at $200–$215 million.

• Capital expenditures projected at $160–$180 million; two new Cracker Barrel stores and 3–4 Maple Street units to open.

• Commodity inflation expected at 2–3%; hourly wage inflation at 3–4%.

• Anticipates higher interest expense due to refinancing $300 million convertible debt at higher rates.

• Effective tax rate for 2025 projected between (7%) and (11%).