Cracker Barrel Old Country Store (CBRL) Q2 2025 earnings summary

Executive summary

• Second quarter revenue reached $949.4 million, up 1.5% year-over-year, with comparable store restaurant sales up 4.7% and retail sales up 0.2%; net income was $22.2 million, down 16.3% from the prior year.

• Adjusted EBITDA increased 19.6% to $74.6 million, exceeding expectations due to strong execution in catering, heat and serve channels, and improved off-premise profitability.

• Adjusted earnings per share rose 9.5% to $1.38, while GAAP EPS declined to $0.99.

• Transformation strategy focused on brand refinement, menu innovation, store remodels, digital/off-premise growth, and operational excellence is progressing as planned.

• Dinner traffic trend improved for the fifth straight quarter, with positive comparable store restaurant sales for the third consecutive quarter.

Financial highlights

• Total revenue for Q2 2025 was $949.4 million, with restaurant revenue at $750.5 million and retail revenue at $199 million.

• Adjusted EBITDA margin was 7.9%, up from 6.7% in the prior year; operating income margin was 3.1%, down from 3.3%.

• GAAP net income margin was 2.3%, compared to 2.8% prior year; adjusted net income margin was 3.3%.

• Adjusted EPS increased 9.5% to $1.38; GAAP EPS was $0.99.

• Cost of goods sold improved to 32.6% of revenue; restaurant COGS decreased to 27.1% of sales, mainly due to menu pricing.

Outlook and guidance

• Fiscal 2025 revenue guidance raised to $3.45–$3.5 billion, with pricing of ~5%, commodity inflation of 2–3%, and hourly wage inflation of ~3%.

• Full-year adjusted EBITDA guidance increased to $210–$220 million, excluding transformation and proxy contest costs.

• Capital expenditures projected at $160–$180 million; 1–2 new Cracker Barrel stores and 4 new Maple Street units to open.

• G&A expenses to remain elevated in FY25 due to transformation investments, normalizing in FY26–27.

• Full-year GAAP effective tax rate expected between -13% and -19%.