Cracker Barrel Old Country Store (CBRL) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $874.8 million, down 7.9% year-over-year, with comparable restaurant sales down 7.1% and retail sales down 9.2%.

• Net income was $1.3 million, a 94% decrease from $22.2 million in the prior year; adjusted EBITDA was $38.2 million, down from $74.6 million.

• Leadership changes, menu innovation, and loyalty program growth contributed to improved guest experience metrics, including a Google star rating of 4.28.

• The company closed 1 Cracker Barrel and 14 MSBC locations in the first half of 2026, ending with 710 total units.

• Operational focus and cost-saving initiatives are driving guest engagement and traffic recovery.

Financial highlights

• Total Q2 revenue was $874.8 million, with restaurant revenue at $694.3 million and retail revenue at $180.5 million.

• Comparable store restaurant sales declined 7.1%, with traffic down 10.1% and average check up 3.4%.

• Adjusted EBITDA was $38.2 million (4.4% of revenue), and adjusted EPS was $0.25; GAAP EPS was $0.06.

• Operating income dropped to $0.5 million from $29.1 million year-over-year.

• Cost of goods sold as a percentage of revenue increased to 33.5%, and labor expenses rose to 36.1% of revenue.

Outlook and guidance

• Fiscal 2026 revenue guidance is $3.24–$3.27 billion, with adjusted EBITDA expected at $85–$100 million.

• Commodity inflation projected at 2.0–2.5%, wage inflation at 2.5–3.0%.

• Capital expenditures planned at $105–$115 million, funded by operations and credit facility.

• Traffic for the year projected at -8.5% to -9.5%.

• Management expects continued macroeconomic challenges, including inflation volatility and high consumer debt.