Cracker Barrel Q1 Results Show Loss and Guidance Cut
Cracker Barrel Q1 results show a quarterly loss and lower fiscal-2026 targets, a setback that could pressure investor sentiment and share trading.
KEY TAKEAWAYS
- Q1 revenue fell to $797 million, down 5.7% year over year.
- GAAP net loss was $25 million; adjusted EBITDA fell to $7 million.
- Cut fiscal-2026 revenue to $3.2 billion to $3.3 billion and cited traffic weakness after a logo backlash.
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Cracker Barrel Old Country Store, Inc. reported a quarterly loss and a 5.7% revenue decline for the first quarter of fiscal 2026, ended Oct. 31, 2025. The company lowered its full-year targets and outlined cost-saving and operational changes in a press release on Dec. 9, 2025.
Quarter Results and Updated Guidance
The company said total revenue fell to $797.2 million from the prior year. It posted a GAAP net loss of $24.6 million, or a diluted loss per share of $1.10, with an adjusted diluted loss per share of $0.74. Adjusted EBITDA dropped sharply to $7.2 million from $45.8 million a year earlier. Cracker Barrel swung to an operating loss of $32.8 million from operating income of $7.1 million, pushing the operating margin to negative 4.1% from positive 0.8%.
Management cut its fiscal 2026 revenue guidance to a range of $3.20 billion to $3.30 billion from $3.35 billion to $3.45 billion. The adjusted EBITDA target was lowered to $70 million–$110 million from $150 million–$190 million. Capital expenditures were trimmed to $110 million–$125 million from $135 million–$150 million. The plan to open two new stores remains unchanged. The guidance incorporates roughly $20 million–$25 million in planned general and administrative savings and reduced advertising spend.
Brand Challenges and Operational Adjustments
Comparable-store restaurant sales declined 4.7% year over year, while retail sales fell 8.5%. The company attributed these results to ongoing headwinds, including softer traffic following an August 2025 rebrand that removed the Uncle Herschel character and reduced country-store décor. After significant criticism, Cracker Barrel reinstated the classic “Old Timer” logo and traditional décor.
In response, management said it will focus on menu, marketing, and operational changes to restore food quality and the traditional brand experience. The company also plans to pursue cost savings and reduce capital spending. It indicated the recovery will be gradual, with the lowered outlook reflecting the time needed for these efforts to improve customer traffic and margins.
