Cracker Barrel Q2 Earnings Beat Estimates, Revenues Down Y/Y

Core Insights - Cracker Barrel Old Country Store (CBRL) reported second-quarter fiscal 2026 results with adjusted earnings per share (EPS) of 25 cents, exceeding the Zacks Consensus Estimate of a loss of 10 cents, while revenues of $874.8 million fell short of the consensus mark of $896 million, reflecting a year-over-year decline of 7.9% [4][9] Financial Performance - The company's total revenues were pressured by a decline in comparable restaurant and retail sales, with comparable-store restaurant sales decreasing by 7.1% and comparable-store retail sales declining by 9.2% year over year [2][5] - Adjusted net income for the fiscal second quarter was $5.6 million, down from $30.9 million in the same quarter last year [7] Operational Highlights - Management is focusing on operational excellence to improve key guest metrics and traffic indicators, alongside executing a corporate restructuring initiative to enhance financial performance [3] - The cost of goods sold (excluding depreciation and rent) was $292.7 million, down 6% year over year, but as a percentage of total revenues, it increased by 90 basis points to 33.5% [6] Balance Sheet Overview - As of January 30, 2026, cash and cash equivalents were $8.6 million, down from $10.3 million a year earlier, while inventory increased by 4.3% year over year to $180.3 million [8] Guidance and Projections - For fiscal 2026, CBRL expects revenues in the range of $3.24 billion to $3.27 billion, with adjusted EBITDA projected at $85 million to $100 million [11] - The company has revised its expectations for commodity inflation to 2-2.5% and hourly wage inflation to 2.5-3% [11] Dividend Declaration - Cracker Barrel declared a cash dividend of 25 cents per share, payable on May 13, 2026, to shareholders on record as of April 10 [10]