Cracker Barrel Q1 Loss Narrower Than Expected, Revenues Down Y/Y

Core Insights - Cracker Barrel Old Country Store (CBRL) reported first-quarter fiscal 2026 results with adjusted loss per share narrower than expectations, but revenues fell short of estimates [1][3][8] Financial Performance - For Q1 fiscal 2026, CBRL reported an adjusted loss per share of 74 cents, better than the Zacks Consensus Estimate of a loss of 78 cents, compared to an adjusted EPS of 45 cents in the same quarter last year [3][8] - Quarterly revenues were $797.2 million, missing the consensus mark of $801 million, and decreased by 5.7% year over year [3][8] Comparable Sales - Comparable-store restaurant sales decreased by 4.7% year over year, while comparable-store retail sales fell by 8.5% [4][8] Operational Challenges - The company faced a difficult macro and industry backdrop, leading to softer traffic patterns and operational challenges that affected food initiatives [2][8] - Adjusted net loss for the quarter was $16.4 million, compared to adjusted net income of $10.2 million in the prior year [6] Cost and Expenses - Cost of goods sold (excluding depreciation and rent) was $248.4 million, down 4% year over year, but as a percentage of total revenues, it increased by 60 basis points to 31.2% [5] - General and administrative expenses totaled $48 million, down 20% year over year [5] Balance Sheet - As of October 31, 2025, cash and cash equivalents were $8.9 million, down from $11.5 million a year earlier, while inventory increased by 3.6% to $209.1 million [7] - Long-term debt decreased to $400.9 million from $527 million a year ago [7] Fiscal 2026 Guidance - CBRL revised its fiscal 2026 revenue guidance to a range of $3.2-$3.3 billion, down from $3.35-$3.45 billion, and adjusted EBITDA expectations to $70 million to $110 million, down from $150 million to $190 million [9][10] - The company anticipates commodity inflation in the range of 2.5-3.5% and hourly wage inflation of 3% to 4% [9]