Financial Data and Key Metrics Changes - For Q3 2025, total revenue was $821.1 million, up 0.5% from the prior year quarter [20] - Restaurant revenue increased by 1.2% to $679.3 million, while retail revenue decreased by 2.7% to $141.8 million [21] - Adjusted EBITDA was $48.1 million, maintaining 5.9% of total revenue, compared to $47.9 million in the prior year [26] Business Line Data and Key Metrics Changes - Comparable store restaurant sales grew by 1%, while comparable store retail sales decreased by 3.8% [21] - Off-premise sales accounted for 19.1% of restaurant sales, compared to 18.9% in the prior year [21] - Labor and related expenses were 37.1% of revenue, down from 37.8% in the prior year, primarily due to improved productivity [24] Market Data and Key Metrics Changes - Pricing for the quarter was approximately 4.9%, consisting of 1.5% carry forward pricing from fiscal 2024 and 3.4% new pricing from fiscal 2025 [21] - Commodity inflation was approximately 2.9%, driven mainly by higher beef, egg, and pork prices [22] Company Strategy and Development Direction - The company is focused on brand refinement and enhancing guest engagement through partnerships, such as with Speedway Motorsports for the Cracker Barrel 400 NASCAR race [10][11] - The transformation plan aims to improve operational efficiency and profitability, with initiatives like back of house optimization and menu innovation [8][9] - The company is leveraging AI for traffic forecasting and guest relations to improve efficiency [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the macroeconomic environment but expressed confidence in the ongoing transformation and positive trends in guest engagement [17][18] - The company raised its guidance for total revenue and adjusted EBITDA for fiscal 2025, reflecting strong performance and positive momentum [29][30] Other Important Information - The company is actively managing tariff impacts, with approximately one-third of retail products sourced from China, and is implementing strategies to mitigate these effects [15][16] - The board declared a quarterly dividend of $0.25 per share, payable on August 13, 2025 [28] Q&A Session Summary Question: What does a strong start to Q4 mean in the context of the 1% restaurant same-store sales in Q3? - Management noted improvements in trends from Q3 into Q4, particularly pleased with the Campfire promotion's resonance with guests [32][33] Question: Can you provide more detail on managing expenses in Q3? - Management indicated that they adjusted discretionary expenses and expect G&A levels in Q4 to align more closely with Q1 and Q2 [34][35] Question: How do you view G&A as a percent of sales moving forward? - Management stated that G&A will return to historical levels as the transformation plan progresses, with more details to be provided in September [37] Question: What was the average check size and mix benefit in Q3? - The average check was up 6.6%, with 4.9% from pricing and 1.7% from mix, indicating a successful pricing strategy [39][40] Question: How is the $5 million tariff impact factored into your guidance? - Management explained that improvements in labor and menu mix are helping offset the tariff impact, with ongoing adjustments being made [46][48] Question: What are the expected benefits from the back of house optimization initiative? - Management anticipates more benefits in Q4 and into 2026, with a focus on improving food quality and operational efficiency [60][64] Question: Can you discuss the remodeling initiative and what has been learned? - Management indicated that they will provide more insights in September regarding the remodeling efforts and their impact on the business [66][68]

Revenue Performance - Total revenue for the third quarter of 2025 increased by 0.5% compared to the same period in the prior year[94]. - Total revenue for the first nine months of 2025 increased by 1.5% compared to the same period in the prior year[94]. - Total revenue for the third quarter of 2025 was $821,147, an increase from $817,135 in the same period of 2024, representing a growth of 0.2%[1]. Income and Expenses - Operating income for the quarter ended May 02, 2025, was 1.8% of total revenue, compared to a loss of 2.4% in the same quarter of the prior year[93]. - Net income for the quarter ended May 02, 2025, was 1.5%, compared to a loss of 1.1% in the same quarter of the prior year[93]. - Labor and other related expenses as a percentage of total revenue decreased from 37.8% in the prior year to 37.1% in the current quarter[93]. - Labor and related expenses as a percentage of total revenue decreased to 37.1% in the third quarter of 2025 from 37.8% in the same period of 2024[1][106]. - Other store operating expenses increased to 25.3% of total revenue in the third quarter of 2025, compared to 24.5% in the same period of 2024[1][111]. - General and administrative expenses decreased to 5.6% of total revenue in the third quarter of 2025, down from 6.7% in the prior year[1][115]. - Interest expense for the third quarter of 2025 was $4,984, a slight decrease from $5,187 in the same period of 2024[1][121]. - Impairment charges recorded in the third quarter of 2025 amounted to $718 due to the deterioration in operating performance in two locations[1][118]. Sales Metrics - Comparable store restaurant sales metrics are used to evaluate sales growth, excluding new store openings and sales related to Maple Street Biscuit Company[92]. - Comparable store restaurant sales increased by 1.0% in the third quarter of 2025, driven by an average check increase of 6.6%[1][7]. - Average store volumes for restaurants reached $1,006.0 in the third quarter of 2025, compared to $994.6 in the same period of 2024[1]. Capital Expenditures and Financing - Capital expenditures for the first nine months of 2025 were $113,214, up from $80,081 in the prior year, driven by maintenance and remodel initiatives[128]. - The company expects to increase capital expenditures to approximately $600,000 to $700,000 from 2025 to 2027, with $160,000 to $170,000 planned for 2025[129]. - The company entered into a five-year $800,000 credit facility on May 16, 2025, which includes a $550,000 revolving credit facility and a $250,000 delayed draw term loan[126]. - As of May 02, 2025, the company had $191,500 in outstanding borrowings under the 2022 Revolving Credit Facility and $474,496 in borrowing availability[131]. Cash Flow and Working Capital - Cash generated from operations for the first nine months of 2025 was $116,677, an increase from $99,456 in the same period of 2024, primarily due to timing of cash receipts and payments[127]. - Negative working capital was $146,208 as of May 02, 2025, an improvement from negative working capital of $175,993 at August 02, 2024[139]. Tax and Inflation Expectations - The effective tax rate for the quarter ended May 02, 2025, was (27.4)%, compared to 62.4% for the same period in 2024[122]. - The company anticipates an effective tax rate for 2025 to be approximately (11%) to (17%)[124]. - The company expects commodity inflation to remain in the mid 2% range for 2025[1][103]. Store Operations - The company operated 658 Cracker Barrel stores and 70 Maple Street Biscuit Company locations as of May 02, 2025[80]. - The company plans to complete 25-30 remodels and 25-30 store refreshes in 2025[89]. - The projected net impact of tariffs on retail margins is approximately $5,000 in the fourth quarter of 2025[87]. Interest Rate Sensitivity - The impact of a one-percentage point change in interest rates on the $191,500 of outstanding borrowings is approximately $1,936 on a pre-tax annualized basis[148].

Group 1 - Cracker Barrel Old Country Store reported quarterly earnings of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.17 per share, but down from $0.88 per share a year ago, representing an earnings surprise of 241.18% [1] - The company posted revenues of $821.15 million for the quarter ended April 2025, missing the Zacks Consensus Estimate by 0.66%, compared to $817.14 million in the same quarter last year [2] - Cracker Barrel shares have increased approximately 9.3% since the beginning of the year, outperforming the S&P 500's gain of 1.5% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.69 on revenues of $854.23 million, and for the current fiscal year, it is $2.70 on revenues of $3.48 billion [7] - The Zacks Industry Rank indicates that the Retail - Restaurants sector is currently in the bottom 29% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] Group 3 - The estimate revisions trend for Cracker Barrel is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] - Darden Restaurants, a competitor in the same industry, is expected to report quarterly earnings of $2.92 per share, reflecting a year-over-year change of +10.2%, with revenues anticipated to be $3.25 billion, up 10% from the previous year [9][10]

Financial Performance - Total revenue for Q3 fiscal 2025 was $821.1 million, a 0.5% increase compared to Q3 fiscal 2024[4] - GAAP net income for Q3 was $12.6 million, or 1.5% of total revenue, compared to a net loss of $9.2 million in the prior year[7] - Adjusted EBITDA for Q3 was $48.1 million, a 0.4% increase from $47.9 million in the prior year, representing 5.9% of total revenue[6] - GAAP earnings per diluted share were $0.56, compared to a loss of $0.41 per diluted share in the prior year[8] - Net income for the third quarter was $12.6 million, a significant increase of 237% from a net loss of $9.2 million in the prior year[16] - Earnings per share (diluted) for the third quarter was $0.56, compared to a loss of $0.41 per share in the same quarter last year, representing a 237% improvement[16] - Operating income for the third quarter was $14.9 million, a turnaround from an operating loss of $19.3 million in the prior year, reflecting a 177% increase[16] - Adjusted net income for the third quarter was $13,123,000, representing an adjusted net income margin of 1.6%[23] Revenue and Sales - Comparable store restaurant sales increased by 1.0%, with total menu pricing increases of 4.9%, while comparable store retail sales decreased by 3.8%[5] - Revenue for the third quarter ended May 2, 2025, was $821,147,000, a slight increase from $817,135,000 in the same period last year, representing a growth of 0.25%[23] Costs and Expenses - Total cost of goods sold for the third quarter was $242.8 million, up 1% from $240.8 million in the same quarter last year[21] - The company incurred $30,991,000 in depreciation and amortization expenses for the third quarter, up from $28,337,000 in the previous year[25] - Total impairment charges for the third quarter were $718,000, a decrease from $17,448,000 in the same quarter last year[25] Future Outlook - The company expects adjusted EBITDA for fiscal 2025 to be between $215 million and $225 million, an increase from the previous outlook of $210 million to $220 million[13] - The company expects continued revenue growth and improvement in profitability metrics in the upcoming quarters[23] - Commodity inflation is expected to be in the mid 2% range, while hourly wage inflation is also projected to be in the mid 2% range[13] - Capital expenditures are projected to be between $160 million and $170 million, unchanged from the previous outlook[13] Strategic Initiatives - The company plans to open 1 new Cracker Barrel store and 4 new Maple Street Biscuit Company units, both of which have already opened[13] - The company plans to continue its strategic transformation initiatives, which may include new product development and market expansion efforts[22] - The company has initiated a strategic transformation initiative, with expenses amounting to $7,263,000 for the nine months ended May 2, 2025[25] Assets and Cash Flow - Cash and cash equivalents at the end of the period were $9.8 million, down from $11.9 million at the end of the previous year[18] - Total assets decreased to $2.14 billion from $2.16 billion year-over-year[18] - The company reported a net cash provided by operating activities of $116.7 million for the nine months ended May 2, 2025, compared to $99.5 million in the prior year[20] Company Structure - The company-owned units for Cracker Barrel remained stable at 658, while Maple Street Biscuit Company increased to 70 from 63 units[21] - The weighted average shares outstanding for the third quarter were 22,459,281, compared to 22,201,964 in the prior year[25]

Core Viewpoint - Cracker Barrel Old Country Store (CBRL) is positioned well to continue its trend of beating earnings estimates in the upcoming quarterly report [1]. Group 1: Earnings Performance - Cracker Barrel has a strong history of exceeding earnings estimates, with an average surprise of 24.57% over the last two quarters [2]. - In the last reported quarter, the company achieved earnings of $1.38 per share, surpassing the Zacks Consensus Estimate of $1.01 per share by 36.63% [3]. - For the previous quarter, Cracker Barrel was expected to post earnings of $0.40 per share but delivered $0.45 per share, resulting in a surprise of 12.50% [3]. Group 2: Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Cracker Barrel, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [6]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [7]. - Cracker Barrel currently has an Earnings ESP of +17.65%, suggesting analysts are optimistic about its near-term earnings potential [9].

Core Insights - Cracker Barrel Old Country Store, Inc. (CBRL) is set to report its third-quarter fiscal 2025 results on June 5, with earnings per share (EPS) expected to be 23 cents, reflecting a 73.9% decline from 88 cents in the same quarter last year [1][9] - The consensus revenue estimate for the quarter is $826.6 million, indicating a 1.2% increase from the previous year [2] Factors Influencing Quarterly Results - The fiscal third-quarter performance is anticipated to show steady momentum from transformation initiatives and operational enhancements aimed at increasing guest traffic and profitability [3] - Menu innovations, particularly in the dinner segment, are expected to have positively impacted demand, with new offerings likely resonating well with customers [4] - Digital and off-premise sales are projected to normalize after a holiday surge, with a stronger dine-in mix and loyalty program engagement potentially offsetting some traffic declines [5] Challenges Faced - Early-quarter traffic softness, influenced by adverse weather and consumer spending concerns, may have negatively affected performance, with retail revenues predicted to decrease by 1.4% year over year to $143.4 million [6] - Macroeconomic challenges, including inflation and increased egg costs due to supply constraints, are expected to have exerted pressure on margins, with adjusted EBITDA forecasted to decline by 4.5% year over year to $45.8 million [7]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Cracker Barrel Old Country Store (CBRL) despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $0.25 per share, reflecting a year-over-year decrease of 71.6%, while revenues are projected to be $829.4 million, an increase of 1.5% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their outlook for the company [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Cracker Barrel is lower than the consensus estimate, resulting in an Earnings ESP of -2.44%, suggesting a bearish sentiment among analysts [10]. Historical Performance - In the last reported quarter, Cracker Barrel exceeded expectations by posting earnings of $1.38 per share against an expected $1.01, achieving a surprise of +36.63%. Over the last four quarters, the company has beaten consensus EPS estimates three times [12][13]. Stock Movement Factors - An earnings beat or miss is not the sole determinant of stock price movement, as other factors can influence investor sentiment and stock performance [14]. Investment Considerations - Cracker Barrel does not currently appear to be a strong candidate for an earnings beat, and investors should consider additional factors before making investment decisions [16].

Core Points - Cracker Barrel Old Country Store, Inc. will host a third quarter earnings conference call on June 5, 2025, at 11:00 a.m. Eastern Time to discuss financial results for the fiscal third quarter ended May 2, 2025 [1] - The live broadcast will be accessible online, with a replay available starting at 2:00 p.m. Eastern Time on the same day, continuing through June 19, 2025 [2] - Cracker Barrel was established in 1969 in Lebanon, Tennessee, and operates approximately 660 locations, also owning the fast-casual Maple Street Biscuit Company [3]

Core Viewpoint - Cracker Barrel Old Country Store, Inc. has elected Steve Bramlage to its Board of Directors, enhancing its leadership with significant retail and financial expertise [1][3]. Company Overview - Cracker Barrel Old Country Store, Inc. operates 660 company-owned locations across 43 states and owns the fast-casual Maple Street Biscuit Company, focusing on providing homestyle food and unique retail products [4]. Leadership Background - Steve Bramlage, the new Board member, is currently the CFO of Casey's General Stores, overseeing financial operations and strategic planning since joining in 2020. He has prior experience as CFO at Aramark and Owens-Illinois, and has held various financial roles at PPG Industries, Eli-Lilly, and EY [2]. Board's Strategic Vision - The Chairman of Cracker Barrel's Board expressed confidence in Bramlage's ability to contribute to the company's strategic transformation and deliver value to shareholders, highlighting the importance of retail industry knowledge and executive leadership experience [3].

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