Group 1 - The company specializes in analyzing restaurant stocks in the U.S. market, covering various segments such as QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide detailed insights and actionable strategies for investors [1] - The founder actively engages in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] Group 2 - The company has a solid foundation in Business Administration and Accounting, complemented by an MBA in Forensic Accounting and Controllership [1] - Previous experience includes being a columnist discussing topics like monetary policy, financial education, and financial modeling [1]

Group 1 - The article discusses different trading strategies, emphasizing short-term momentum trading and long-term contrarian and deep value plays [1] - It highlights the importance of using mathematical equations and technical analysis for making trading decisions [1] - The author advises traders to act quickly on opportunities, cut losses rapidly, and maintain a low-risk profile [1] Group 2 - The article mentions that the author has a beneficial long position in CBRL shares, indicating a personal investment interest [2] - It clarifies that the opinions expressed are solely those of the author and not influenced by any compensation or business relationships [2] - The disclosure emphasizes that the author's investment position may change at any time for any reason [2]

Core Insights - Cracker Barrel is launching a new spring menu featuring a variety of pancake dishes and other flavorful items to attract customers [1][2][4] Pancake Offerings - The new menu includes OREO® Stuffed Cheesecake Pancakes and Strawberry Cheesecake Pancakes, both served with eggs and a choice of bacon or sausage [1] - Signature Pancake Platters are introduced with six flavor options: Blueberry, Pecan, Chocolate Chip, Fresh Strawberry, Cinnamon Spiced Apples, and Country Peach, also served with eggs and a choice of bacon or sausage [2] Additional Menu Items - New dishes include the Louisiana-Style Shrimp Skillet with grilled shrimp and seasoned rice, and Shrimp n' Grits featuring shrimp in a creole sauce served over creamy grits [3][4] - Other new items include Onion Petals with Country Comeback Sauce, Strawberry Icebox Pie, Pancake Latte, and Strawberry Peach Lemonade [8] Company Overview - Cracker Barrel Old Country Store, Inc. operates approximately 660 locations across 43 states and also owns the Maple Street Biscuit Company [6]

Company Overview - Cracker Barrel Old Country Store (CBRL) shares increased by 13.4% to close at $62.05, supported by higher trading volume compared to normal sessions [1] - The stock has gained 5.6% over the past four weeks [1] Strategic Initiatives - The rise in shares is attributed to various strategic initiatives including menu innovations, sales-building efforts, loyalty programs, and unit expansion, which have positively influenced investor sentiment [2] Earnings Expectations - Cracker Barrel is expected to report quarterly earnings of $1 per share, reflecting a year-over-year decline of 27% [3] - Revenue is anticipated to be $941.1 million, representing a 0.6% increase from the same quarter last year [3] Earnings Estimate Trends - The consensus EPS estimate for Cracker Barrel has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - The stock currently holds a Zacks Rank of 3 (Hold) [4] Industry Comparison - Cracker Barrel is part of the Zacks Retail - Restaurants industry, where another competitor, Cheesecake Factory (CAKE), saw a 6.2% increase in shares, closing at $51.79 [4] - Cheesecake Factory's consensus EPS estimate has increased by 0.6% over the past month to $0.91, marking a 13.8% rise from the previous year [5]

Core Insights - The company is well-positioned for sustained growth through market share expansion, enhanced guest experiences, and improved profitability, despite concerns from softness in the retail segment and elevated cost pressures [1] Growth Initiatives - Cracker Barrel is implementing a back-of-house optimization initiative to enhance menu offerings, improve profitability, and increase employee job satisfaction, with the first phase focusing on process improvements and a just-in-time approach [2] - The company has seen a 29.9% increase in shares over the past six months, outperforming the industry average of 8.6%, driven by menu innovation, digital initiatives, and strategic remodels [3] - Investments in technology are aimed at enhancing the digital store experience and revamping the app to streamline ordering and provide a personalized experience [4] Financial Performance - In the first quarter of fiscal 2025, the adjusted operating margin contracted by 60 basis points year over year to 0.8%, primarily due to rising labor and operating expenses, with commodity inflation at approximately 1.9% [5] - The company anticipates commodity inflation to be between 2% and 3% and hourly restaurant wage inflation to be around 3% to 4% for fiscal 2025 [5] Menu and Brand Strategy - Enhanced menu offerings have led to strong average check growth and increased customer traffic, supported by a barbell pricing strategy that balances value and premium options [10] - The company is redefining its brand through in-store design improvements, with 19 stores updated and 12 refreshed, aiming for 25-30 remodels and refreshes each year [11] Retail Segment Challenges - The retail segment is facing challenges, with comparable store retail sales declining by 1.6% year over year due to decreased guest traffic, influenced by macroeconomic factors such as inflation and higher interest rates [12] Conclusion - While the company shows potential for growth through various initiatives, challenges such as declining retail sales and cost pressures necessitate a cautious approach [13]

Core Insights - Cracker Barrel Old Country Store, Inc. (CBRL) reported first-quarter fiscal 2025 results with earnings and revenues exceeding the Zacks Consensus Estimate, showing growth compared to the prior-year quarter [1][3][4] Financial Performance - Adjusted earnings per share (EPS) for the first quarter were 45 cents, surpassing the Zacks Consensus Estimate of 40 cents and up from 40 cents in the prior-year quarter [3] - Quarterly revenues reached $845.1 million, exceeding the consensus mark of $824 million, and increased by 2.6% year over year [4] - Comparable-store restaurant sales rose by 2.9% year over year, while comparable-store retail sales declined by 1.6% [5] Cost and Expenses - The cost of goods sold (excluding depreciation and rent) was $258.9 million, down 1% year over year, and represented 30.6% of total revenues, a decrease of 40 basis points from the previous year [6] - General and administrative expenses totaled $59.6 million, reflecting a 22% increase year over year [6] Net Income and Balance Sheet - Adjusted net income for the quarter was $10.2 million, compared to $8.8 million in the year-ago quarter [7] - As of November 1, 2024, cash and cash equivalents were $11.5 million, down from $13.9 million as of October 27, 2023, while inventory decreased to $201.9 million from $207.7 million [8] Debt and Dividends - Long-term debt increased to $527 million from $475.3 million as of October 27, 2023 [9] - CBRL declared a cash dividend of 25 cents per share, payable on February 12, 2025, to shareholders on record as of January 17 [9] Future Guidance - For fiscal 2025, CBRL expects revenues between $3.4 billion and $3.5 billion, with adjusted EBITDA anticipated to be between $200 million and $215 million [10] - Management projects commodity inflation of 2% to 3% and hourly wage inflation of 3% to 4% year over year [10] - The company plans to open three to four new Maple Street Biscuit company units, with capital expenditures projected between $160 million and $180 million [11]

Financial Data and Key Metrics - Total revenue for Q1 2025 was $845.1 million, up 2.6% YoY [34] - Restaurant revenues increased 3.4% to $683.3 million, while retail revenues decreased 0.8% to $161.8 million [34] - Comparable store restaurant sales increased 2.9% YoY, with pricing contributing approximately 4.7% [35] - Adjusted EBITDA was $45.8 million, or 5.4% of total revenue, compared to $43.9 million, or 5.3% of total revenue in the prior year quarter [47] - Hourly turnover improved by 17 percentage points [13] Business Line Performance - Off-premise sales accounted for 18.4% of restaurant sales [36] - Comparable store retail sales decreased 1.6% YoY, with declines in decor and toys categories partially offset by increases in kitchen food and bed and bath categories [37] - Retail cost of goods sold decreased by 70 basis points to 49.7% of retail sales, driven by higher vendor allowances and initial margin [39] Market Performance - The company outperformed the Black Box Casual Dining Industry by 290 basis points in comparable store sales [11] - Dinner traffic improved by over 600 basis points compared to the prior year quarter and 200 basis points compared to Q4 [20] - The Northeast and Midwest regions showed stronger performance, while Texas was relatively softer [141] Strategic Direction and Industry Competition - The company's transformation plan focuses on five pillars: refining the brand, enhancing the menu, evolving the store and guest experience, winning in digital and off-premise, and elevating the employee experience [15] - Menu innovation, including new items like Hashbrown Casserole Shepherd's Pie and Pot Roast, has driven traffic growth, particularly at dinner [17][20] - The company is testing and learning with remodels, with 25 to 30 remodels and 25 to 30 refreshes expected in FY 2025 [29] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the progress of the transformation plan, with initiatives gaining traction and momentum [32] - The company expects total revenue of $3.4 billion to $3.5 billion for FY 2025, with pricing contributing approximately 5% [51] - Adjusted EBITDA for FY 2025 is expected to be between $200 million and $250 million, excluding consulting fees and proxy contest expenses [53] Other Important Information - The company declared a quarterly dividend of $0.25 per share, payable on February 12, 2025 [49] - Capital expenditures for FY 2025 are expected to be between $160 million and $180 million [55] Q&A Session Summary Question: Thanksgiving Week Performance and Q2 Momentum [57] - Thanksgiving week results were in line with expectations, with a focus on improving the guest and employee experience [58][59] - The company is pleased with Q2 performance so far, with a focus on dine-in occasions [60] Question: Loyalty Program Performance [62] - The loyalty program has over 6 million members, with members visiting more frequently and spending more than non-members [63] - The program has shown success in driving incremental retail sales through targeted offers [64] Question: Efficiency Efforts and Back-of-House Optimization [67] - Initial efficiency efforts are focused on labor productivity and job satisfaction, with potential benefits in waste reduction and employee experience [69] - The company expects $50 million to $60 million in structural cost savings over three years [69] Question: Retail Business Outlook and Gross Margins [71] - The retail business faces industry headwinds but remains a key differentiator for the brand [72] - Retail margins were strong in Q1 but are expected to be slightly unfavorable for the full year due to industry challenges [77] Question: Gift Card Breakage and Atypical Items [80] - The $6 million gift card breakage benefit is a timing impact and will largely be offset in Q2 [83] - Atypical items, including reserve increases and legal settlements, resulted in a net drag of $3.3 million to EBITDA [86] Question: Remodel Program and Performance [93] - The company is testing different remodel tiers and refreshes, with 25 to 30 remodels and 25 to 30 refreshes planned for FY 2025 [96] - The company is focused on understanding the economics and efficacy of the remodel spend before making final decisions on the program's scope [97] Question: Menu Innovation and Marketing [103] - Menu innovation is driven by guest feedback and culinary team efforts, with new items like Pot Roast and Hashbrown Casserole Shepherd's Pie resonating strongly [104][108] - Marketing efforts are being refined under a new CMO, with a focus on targeted communication and loyalty program integration [114][115] Question: Average Check Growth and Value Perception [121] - Average check growth was 5.8% in Q1, with 4.7% from pricing and 1.1% from favorable mix [123] - The company's value proposition is supported by menu abundance and loyalty program benefits, with value scores improving [131][134] Question: Regional Performance and Remodel Initiatives [140] - Regional performance was steady, with stronger results in the Northeast and Midwest [141] - The company is in the early stages of its transformation plan, with some initiatives moving from "transform" to "run" status, such as pricing and loyalty [145][146]

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for Q1 FY2025 show slight asset growth, decreased operating income, and net cash usage from operations [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased slightly to $2.19 billion, driven by inventories, while long-term debt rose and equity remained stable Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Nov 01, 2024 | Aug 02, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$2,192,996** | **$2,161,494** | | Inventories | $201,915 | $180,958 | | Property and equipment – net | $966,557 | $959,821 | | **Total Liabilities** | **$1,752,296** | **$1,721,345** | | Long-term debt | $527,023 | $476,581 | | **Total Shareholders' Equity** | **$440,700** | **$440,149** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 FY2025 saw revenue increase by 2.6% to $845.1 million, but operating and net income declined due to higher expenses Quarterly Income Statement Summary (in thousands, except per share data) | Metric | Q1 FY2025 (ended Nov 01, 2024) | Q1 FY2024 (ended Oct 27, 2023) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $845,089 | $823,839 | +2.6% | | Operating Income | $7,071 | $11,413 | -38.0% | | Net Income | $4,844 | $5,456 | -11.2% | | Diluted EPS | $0.22 | $0.25 | -12.0% | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash usage improved to $4.4 million, but increased investing activities led to a net cash decrease of $0.5 million Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended Nov 01, 2024 | Three Months Ended Oct 27, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,395) | $(15,797) | | Net cash used in investing activities | $(38,753) | $(24,598) | | Net cash provided by financing activities | $42,647 | $29,162 | | **Net decrease in cash** | **$(501)** | **$(11,233)** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, debt structure, revenue recognition, and operating lease disclosures for the financial statements - The company operates a single reportable segment, Cracker Barrel Old Country Store, with all operations located within the United States[55](index=55&type=chunk) Revenue Disaggregation (in thousands) | Revenue Source | Q1 FY2025 (ended Nov 01, 2024) | Q1 FY2024 (ended Oct 27, 2023) | | :--- | :--- | :--- | | Restaurant | $683,271 | $660,793 | | Retail | $161,818 | $163,046 | | **Total Revenue** | **$845,089** | **$823,839** | - Gift card breakage revenue recognized in Q1 2025 was **$9.2 million**, a substantial increase from **$3.2 million** in the prior-year quarter[65](index=65&type=chunk) - As of November 1, 2024, the company had **$230 million** in outstanding borrowings under its **$700 million** revolving credit facility and **$297 million** (net carrying amount) of **0.625%** convertible senior notes due in 2026[36](index=36&type=chunk)[48](index=48&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=20&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2025 financial performance, strategic transformation, and liquidity, noting revenue growth and declining operating income [Overview and Strategy](index=22&type=section&id=Overview%20and%20Strategy) The company's long-term strategy focuses on relevancy, food, and profitability, with a five-pillar transformation plan including store remodels - The company's strategic transformation plan is built on five key pillars: - Refining the brand - Enhancing the menu - Evolving the store and guest experience - Winning in digital and off-premise - Elevating the employee experience[95](index=95&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q1 FY2025 revenue rose 2.6% due to higher prices, but guest traffic declined, leading to a drop in operating income percentage Q1 2025 Key Performance Indicators vs. Q1 2024 | Metric | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | Comparable Restaurant Sales | +2.9% | -0.5% | | Comparable Retail Sales | -1.6% | -8.1% | | Comparable Restaurant Guest Traffic | -2.9% | -7.1% | | Average Check Increase | +5.8% | +6.6% | - The decrease in guest traffic is attributed to lower consumer demand from macroeconomic factors like inflation, higher interest rates, and lower savings rates[112](index=112&type=chunk) - General and administrative expenses increased to **7.1%** of revenue from **5.9%**, driven by costs related to a wage arbitration settlement (~**$3.3M**), a proxy contest (~**$3.0M**), and the strategic transformation plan (~**$3.3M**)[128](index=128&type=chunk) - An impairment charge of **$0.7 million** was recorded for two underperforming Maple Street Biscuit Company (MSBC) locations[129](index=129&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by operations and a $700 million credit facility, with significant capital expenditure increases planned for strategic transformation - The company plans to increase capital expenditures to approximately **$600 million** to **$700 million** over the three-year period from 2025 to 2027[139](index=139&type=chunk) - At the end of the quarter, the company had **$230 million** outstanding on its revolving credit facility and was in compliance with all financial covenants[141](index=141&type=chunk)[142](index=142&type=chunk) - The company paid a regular dividend of **$0.25** per share during the quarter[146](index=146&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on its variable-rate debt, with a $2.3 million impact for a 1% rate change - The company is exposed to interest rate risk on its **$230 million** of outstanding borrowings under its revolving credit facility[160](index=160&type=chunk) - A one-percentage point increase or decrease in interest rates on the outstanding variable-rate debt would result in an approximate **$2.3 million** impact on pre-tax annualized earnings[161](index=161&type=chunk) [Controls and Procedures](index=36&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Management concluded that as of November 1, 2024, the company's disclosure controls and procedures were effective[163](index=163&type=chunk) - No material changes were made to the internal control over financial reporting during the quarter[164](index=164&type=chunk) PART II. OTHER INFORMATION [Risk Factors](index=36&type=page&id=ITEM%201A.%20Risk%20Factors) No material changes occurred in the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - There have been no material changes in the risk factors from those disclosed in the 2024 Form 10-K[165](index=165&type=chunk) [Other Information](index=36&type=section&id=ITEM%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[166](index=166&type=chunk) [Exhibits](index=37&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - The report includes CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act as exhibits[170](index=170&type=chunk) Signatures

[Preliminary Q1 FY2025 Results and FY2025 Outlook](index=1&type=section&id=Preliminary%20First%20Quarter%20Fiscal%202025%20Results%20and%20Fiscal%202025%20Outlook) The company reported strong preliminary Q1 FY2025 financial results, including increased revenue and adjusted EBITDA, and reaffirmed its positive full-year fiscal 2025 guidance [Preliminary Q1 FY2025 Financial Highlights](index=1&type=section&id=Preliminary%20First%20Quarter%20Fiscal%202025%20Financial%20Highlights) Cracker Barrel reported preliminary Q1 FY2025 total revenue of approximately $845.1 million, a 2.6% increase year-over-year, driven by a 2.9% rise in comparable store restaurant sales which outperformed the casual dining industry index. However, comparable store retail sales declined by 1.6%. The company expects GAAP EPS of $0.22 and adjusted EPS of $0.45, with adjusted EBITDA growing 4.3% to $45.8 million Preliminary Q1 FY2025 Financial Highlights | Metric | Value | YoY Change/Comment | | :--- | :--- | :--- | | Total Revenue | ~$845.1 million | +2.6% | | Comparable Restaurant Sales | +2.9% | Outperformed Casual Dining Index by 290 bps | | Comparable Retail Sales | -1.6% | N/A | | GAAP Net Income | ~$4.8 million | -11.2% (vs. $5.46M in Q1 FY24) | | Adjusted EBITDA | ~$45.8 million | +4.3% | | GAAP EPS (diluted) | ~$0.22 | -12.0% (vs. $0.25 in Q1 FY24) | | Adjusted EPS (diluted) | ~$0.45 | +12.5% (vs. $0.40 in Q1 FY24) | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Julie Masino stated that the fiscal year began strongly, with financial results meeting expectations and comparable store sales and traffic outperforming the casual dining industry. She expressed confidence that the company's strategic transformation plan is gaining momentum and is on the right path to drive growth and shareholder value - The company's strategic transformation plan is showing early positive results, contributing to a **strong start to the fiscal year**[4](index=4&type=chunk) - Comparable store sales and traffic results **outperformed the Casual Dining industry**, indicating positive momentum[4](index=4&type=chunk) - Management is confident that current strategic initiatives will **drive growth and create significant shareholder value**[4](index=4&type=chunk) [Fiscal 2025 Outlook](index=2&type=section&id=Fiscal%202025%20Outlook) The company reaffirmed its full-year fiscal 2025 guidance, expecting total revenue between $3.4 billion and $3.5 billion and adjusted EBITDA of $200 million to $215 million. The outlook includes plans for new store openings, anticipated commodity and wage inflation, and capital expenditures of $160 million to $180 million Reaffirmed Fiscal 2025 Outlook | Metric | Guidance | | :--- | :--- | | Total Revenue | $3.4 billion to $3.5 billion | | New Stores | 2 Cracker Barrel, 3-4 Maple Street Biscuit Co. | | Commodity Inflation | 2% to 3% | | Hourly Wage Inflation | 3% to 4% | | Adjusted EBITDA | $200 million to $215 million | | Capital Expenditures | $160 million to $180 million | - The company's outlook is subject to risks from macroeconomic conditions such as ongoing inflation, low consumer confidence, and high interest rates[5](index=5&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=4&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP financial metrics to non-GAAP measures like Adjusted Net Income and Adjusted EBITDA, providing a clearer view of operational performance [Adjusted Net Income and Earnings Per Share](index=4&type=section&id=Adjusted%20Net%20Income%20and%20Earnings%20Per%20Share) The company provides a reconciliation of GAAP Net Income to Adjusted Net Income. For Q1 FY2025, GAAP Net Income of $4.8 million was adjusted for items such as strategic transformation expenses ($3.3M) and proxy contest costs ($3.0M), resulting in an Adjusted Net Income of $10.2 million. This translates to a GAAP diluted EPS of $0.22 and an Adjusted diluted EPS of $0.45 - **Adjusted Net Income** is calculated by excluding specific items from GAAP Net Income, such as impairment charges, proxy contest expenses, CEO transition costs, and strategic transformation initiative expenses, to provide investors with an enhanced understanding of financial results and comparability[11](index=11&type=chunk) Q1 Net Income & EPS Reconciliation (GAAP vs. Adjusted) | Metric (in thousands, except per share) | Q1 FY2025 (preliminary) | Q1 FY2024 | | :--- | :--- | :--- | | GAAP Net Income | $4,844 | $5,456 | | **Adjusted Net Income** | **$10,165** | **$8,837** | | GAAP Diluted EPS | $0.22 | $0.25 | | **Adjusted Diluted EPS** | **$0.45** | **$0.40** | [EBITDA and Adjusted EBITDA](index=5&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) The report details the calculation of EBITDA and Adjusted EBITDA from GAAP Net Income. For Q1 FY2025, GAAP Net Income of $4.8 million was reconciled to an Adjusted EBITDA of $45.8 million by adding back depreciation, interest, taxes, and other specific expenses. This represents a 4.3% year-over-year increase from the prior year's Adjusted EBITDA of $43.9 million - **Adjusted EBITDA** is presented to provide an enhanced understanding of operating performance and debt leverage metrics. It is calculated by taking GAAP Net Income and adding back depreciation, amortization, interest, taxes, and other specific items like share-based compensation and strategic initiative expenses[13](index=13&type=chunk) Q1 EBITDA Reconciliation (in thousands) | Metric | Q1 FY2025 (preliminary) | Q1 FY2024 | | :--- | :--- | :--- | | GAAP Net Income | $4,844 | $5,456 | | EBITDA | $36,225 | $38,082 | | **Adjusted EBITDA** | **$45,806** | **$43,897** | | Adjusted EBITDA Margin | 5.4% | 5.3% | [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines the inherent risks and uncertainties associated with forward-looking projections, emphasizing that actual results may differ materially - The press release contains forward-looking statements concerning projections, plans, and future economic performance, which are subject to risks and uncertainties that could cause actual results to differ materially[10](index=10&type=chunk) - Identified risks include inflation, supply chain disruptions, competition, changes in consumer behavior, and interest rate changes[10](index=10&type=chunk) - The preliminary financial information presented is unaudited and subject to change as the company completes its financial close procedures[10](index=10&type=chunk)

Core Insights - Cracker Barrel Old Country Store, Inc. reported total revenue of $845.1 million for the first quarter of fiscal 2025, reflecting a 2.6% increase compared to the same period last year [2][4][15] - Comparable store restaurant sales rose by 2.9%, significantly outperforming the Black Box Intelligence Casual Dining Index by approximately 290 basis points [2][4] - GAAP net income for the quarter was $4.8 million, representing an 11.2% decrease from the prior year, while adjusted EBITDA increased by 4.3% to $45.8 million [5][6][25] Financial Performance - Total revenue for the first quarter was $845.1 million, up from $823.8 million in the previous year [15][21] - Comparable store restaurant sales increased by 2.9%, driven by a total menu pricing increase of 4.7% [4][21] - Comparable store retail sales decreased by 1.6% compared to the prior year [2][4] Earnings and Income - GAAP earnings per diluted share were $0.22, a decrease of 12.0% from $0.25 in the prior year [6][26] - Adjusted earnings per diluted share were $0.45, reflecting a 12.5% increase from $0.40 in the previous year [6][26] - GAAP net income was $4.8 million, or 0.6% of total revenue, down from $5.5 million, or 0.7% of total revenue, in the prior year [5][26] Strategic Outlook - The company reaffirmed its fiscal 2025 outlook, expecting total revenue between $3.4 billion and $3.5 billion, with adjusted EBITDA projected at $200 million to $215 million [7][8] - Plans include opening two new Cracker Barrel stores and 3 to 4 new Maple Street Biscuit Company units [7][8] - The company anticipates commodity inflation of 2% to 3% and hourly wage inflation of 3% to 4% compared to the prior year [7][8] Dividend Declaration - The Board of Directors declared a quarterly dividend of $0.25 per share, payable on February 12, 2025, to shareholders of record as of January 17, 2025 [7]