Core Insights - Cracker Barrel Old Country Store, Inc. (CBRL) reported mixed results for the fourth quarter of fiscal 2025, with earnings missing estimates while revenues exceeded expectations, leading to a 9.9% decline in shares post-results due to macroeconomic concerns and lower traffic trends [1][3][8] Financial Performance - Adjusted earnings per share (EPS) for Q4 fiscal 2025 were 74 cents, missing the Zacks Consensus Estimate of 78 cents, and representing a 24.5% decline year over year [3][8] - Quarterly revenues reached $868 million, surpassing the consensus mark of $857 million, but decreased by 2.9% year over year [3][8] - Comparable-store restaurant sales increased by 5.4% year over year, marking the fifth consecutive quarter of positive growth, while comparable-store retail sales decreased by 0.8% [4][8] Cost and Expenses - The cost of goods sold (excluding depreciation and rent) was $265 million, down 3% year over year, but as a percentage of total revenues, it increased by 10 basis points to 30.5% [5] - General and administrative expenses totaled $50.2 million, down 2% year over year [5] Income and Balance Sheet - Adjusted net income for the fourth quarter was $16.7 million, compared to $22 million in the prior year [6] - As of August 1, 2025, cash and cash equivalents were $39.6 million, up from $12 million a year earlier [7] Future Guidance - For fiscal 2026, CBRL expects revenues between $3.35 billion and $3.45 billion, anticipating a customer traffic decline of 4% to 7% year over year [10] - Adjusted EBITDA is projected to be between $150 million and $190 million, with commodity inflation expected in the range of 2.5% to 3.5% and hourly wage inflation between 3% and 4% [10] Dividend Information - CBRL declared a cash dividend of 25 cents per share, payable on November 12, 2025, to shareholders on record as of October 17 [9]

Financial Data and Key Metrics Changes - For Q4 2025, total revenue was reported at $868 million, with restaurant revenue at $718.2 million and retail revenue at $149.8 million, reflecting a 4.4% increase when excluding the $62.8 million benefit from the 53rd week in the prior year [11][12] - Comparable store restaurant sales grew by 5.4%, marking the fifth consecutive quarter of positive growth, while pricing for the quarter was 5.4% [11][12] - Adjusted EBITDA for Q4 was $55.7 million, or 6.4% of total revenue, with an 8% increase when excluding the impact from the 53rd week in the prior year [14] Business Line Data and Key Metrics Changes - Off-premise sales accounted for 18.1% of restaurant sales, an increase of approximately 100 basis points year-over-year [12] - Comparable store retail sales decreased by 0.8% [12] Market Data and Key Metrics Changes - Traffic for the first half of August was down approximately 1%, with a decline of about 8% since the logo change on August 19 [16][17] - The company anticipates a Q1 traffic decline of approximately 7% to 8% [17] Company Strategy and Development Direction - The company is focused on a multi-year plan to return to growth, emphasizing food quality and guest experience [7][21] - A renewed focus on marketing and advertising initiatives is underway, particularly in light of recent challenges [8][36] - The company has paused remodels and reverted to traditional designs in four locations, reflecting a commitment to its heritage [8][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about regaining traffic and momentum, citing strong guest feedback and loyalty program growth [9][20] - The company plans to invest in marketing to drive traffic recovery, with expectations for a higher marketing spend as a percentage of sales in 2026 [36] - Management acknowledged the competitive landscape and the need to adapt to changing consumer expectations [62] Other Important Information - The company authorized a new $100 million share repurchase program and declared a quarterly dividend of $0.25 per share [16] - Capital expenditures for the upcoming fiscal year are expected to be between $135 million and $150 million, primarily focused on maintenance and technology [31] Q&A Session Summary Question: What is the marketing plan for traffic recovery? - Management expects marketing as a percentage of sales to be higher in 2026, continuing to invest in marketing to drive traffic [36] Question: Can you elaborate on food quality improvements? - Food quality has always been a priority, with ongoing evaluations and adjustments based on guest feedback [38] Question: How have traffic trends been affected recently? - Traffic has seen broad-based declines, particularly in the Southeast, but management is optimistic about recovery plans [45][46] Question: What is the approach to capital allocation and returning cash to shareholders? - The board aims for a balanced approach, focusing on value-creating investments while maintaining a conservative balance sheet [58] Question: How does the competitive landscape affect pricing strategy? - The company believes it offers great value and has a thoughtful pricing strategy that continues to resonate with guests [62]

Financial Data and Key Metrics Changes - For Q4 2025, total revenue was reported at $868 million, with restaurant revenue at $718.2 million and retail revenue at $149.8 million, reflecting a 4.4% increase excluding the $62.8 million benefit from the 53rd week in the prior year [11][12] - Comparable store restaurant sales grew by 5.4%, marking the fifth consecutive quarter of positive growth, while pricing for the quarter was 5.4% [11][12] - Adjusted EBITDA for Q4 was $55.7 million, or 6.4% of total revenue, with an 8% increase when excluding the impact from the 53rd week in the prior year [14][18] Business Line Data and Key Metrics Changes - Restaurant cost of goods sold was 26.3% of restaurant sales, up from 26% in the prior year, driven by menu mix and commodity inflation [12][13] - Comparable store retail sales decreased by 0.8% [12] - Off-premise sales accounted for 18.1% of restaurant sales, an increase of approximately 100 basis points year-over-year [12] Market Data and Key Metrics Changes - Traffic for the first half of August was down approximately 1%, with a decline of about 8% since the logo change on August 19 [16][17] - The company anticipates a Q1 traffic decline of approximately 7% to 8% based on current trends [17] Company Strategy and Development Direction - The company is focused on a multi-year plan to return to growth, emphasizing food quality and guest experience [7][21] - A renewed emphasis on traditional branding and nostalgia is being implemented, including reverting to the old-timer logo and traditional interiors [8][30] - The company plans to invest approximately $135 million to $150 million in capital expenditures for fiscal 2026, primarily for maintenance and technology [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about regaining traffic and momentum, citing strong guest connections and positive feedback on recent changes [9][21] - The company is navigating short-term headwinds while maintaining a conservative balance sheet and focusing on capital allocation [16][59] Other Important Information - A new $100 million share repurchase program was authorized, and a quarterly dividend of $0.25 per share was declared [16] - The company has seen strong growth in its loyalty program, with membership increasing by 3 million people over the past year [25] Q&A Session Summary Question: Marketing plan adjustments in light of traffic performance - Management expects marketing as a percentage of sales to be higher in 2026, particularly in Q1, to drive traffic recovery [37] Question: Food quality improvement plans - Food quality has always been a priority, with ongoing evaluations and adjustments based on guest feedback [39] Question: Traffic trends and regional performance - Traffic declines are broad-based, with larger declines in the Southeast, excluding Florida [46] Question: Loyalty program performance amidst traffic decline - The loyalty program has seen an increase in signups, exceeding expectations despite the traffic decline [83] Question: Competitive pricing strategies - The company maintains a strong value proposition and is confident in its pricing strategy, which includes a planned 4% to 5% menu pricing increase [68][70]