CRACKER BARREL REPORTS FIRST QUARTER FISCAL 2026 RESULTS AND UPDATES FISCAL 2026 OUTLOOK

LEBANON, Tenn., Dec. 9, 2025 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today reported its financial results for the first quarter of fiscal 2026 ended October 31, 2025.

Cracker Barrel President and Chief Executive Officer Julie Masino said, "First quarter results were below our expectations amid unique and ongoing headwinds. We have adjusted our operational initiatives, menu, and marketing to ensure we are consistently delivering delicious food and exceptional experiences. Additionally, we are executing a variety of cost savings initiatives to bolster our financial performance. Although our recovery will take time, our teams are more committed than ever, and we are confident that we will regain momentum."

First Quarter Fiscal 2026 Highlights

First Quarter Ended

(In thousands, except per share amounts)

10/31/25

11/1/24

Revenue

$797,188

$845,089

GAAP net income (loss)

($24,622)

$4,844

Adjusted net income (loss) 1

($16,429)

$10,165

Adjusted EBITDA 1

$7,193

$45,806

GAAP earnings (loss) per share – diluted

($1.10)

$0.22

Adjusted 1 earnings (loss) per share – diluted

($0.74)

$0.45

Balance Sheet & Capital Allocation

Fiscal 2026 Outlook

The Company provided the following updated outlook for fiscal 2026:

1 Adjusted net income (loss), adjusted EBITDA, and adjusted earnings (loss) per diluted share are non-GAAP financial measures. For definitions of these non-GAAP measures and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures, please refer to the Reconciliation of GAAP-Basis Operating Results to Non-GAAP Operating Results section of this release.

2 The Company has determined to provide guidance focused on adjusted EBITDA because the Company believes it will be more useful to investors to evaluate the Company's performance prior to the impact of depreciation, taxes, impairment charges, and other items that management believes are not reflective of the Company's current operations. The Company is not able to reconcile the forward-looking estimate of adjusted EBITDA set forth above to a forward-looking estimate of net income (loss), the most directly comparable estimated measure calculated in accordance with GAAP, without unreasonable efforts because the Company is unable to predict, forecast or determine the probable significance of certain items impacting these estimates, including interest expense, taxes, impairment charges and share-based compensation, with a reasonable degree of accuracy. Accordingly, the most directly comparable forward-looking GAAP estimate is not provided.

3 Consolidated total leverage is defined as total debt divided by adjusted EBITDA 1 (as defined under our revolving credit facility). Available liquidity is defined as cash and cash equivalents on hand plus revolving credit facility capacity less amount drawn on revolving credit facility and standby letters of credit.

Fiscal 2026 First Quarter Conference Call

As previously announced, the live broadcast of Cracker Barrel's quarterly conference call will be available to the public online at investor.crackerbarrel.com today beginning at 5:00 p.m. (ET). The online replay will be available tomorrow and through December 23, 2025.

About Cracker Barrel Old Country Store®

Cracker Barrel Old Country Store, Inc. – rooted in a rich legacy of warmth, generosity, and tradition – is on a mission to bring the goodness of country hospitality to life. Since 1969, when the first store opened in Lebanon, Tenn., Cracker Barrel has been serving up abundant portions of craveable homestyle food and offering one-of-a-kind retail finds. With approximately 660 company-owned Cracker Barrel Old Country Store® locations in 43 states, and ownership of the fast-casual Maple Street Biscuit Company, the brand continues to honor its heritage while welcoming everyone with more than a meal. For more information, visit CrackerBarrel.com.

CBRL-F

Except for specific historical information, certain of the matters discussed in this press release may express or imply projections of items such as revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These and similar statements regarding events or results that the Company expects will or may occur in the future are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual results and performance of the Company to differ materially from those expressed or implied by such forward-looking statements. All forward-looking information is provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these risks, uncertainties and other factors. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "trends," "assumptions," "target," "guidance," "outlook," "opportunity," "future," "plans," "goals," "objectives," "expectations," "near-term," "long-term," "projection," "may," "will," "would," "could," "expect," "intend," "estimate," "anticipate," "believe," "potential," "regular," "should," "projects," "forecasts," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. The Company believes that the assumptions underlying any forward-looking statements are reasonable; however, any of the assumptions could be inaccurate, and therefore, actual results may differ materially from those projected in or implied by the forward-looking statements. In addition to the risks of ordinary business operations, factors and risks that may result in actual results differing from this forward-looking information include, but are not limited to risks and uncertainties associated with inflationary conditions with respect to the price of commodities, ingredients, transportation, distribution and labor; disruptions to the Company's restaurant or retail supply chain; effects of changes in international, national, regional and local economic and market conditions (such as the imposition of trade barriers or other changes in trade policy) on our business; the Company's ability to manage retail inventory and merchandise mix; the Company's ability to sustain or the effects of plans intended to improve operational or marketing execution and performance, including the Company's multi-year strategic plan; the effects of increased competition at the Company's locations on sales and on labor recruiting, cost, and retention; consumer behavior based on negative publicity or changes in consumer health or dietary trends or safety aspects of the Company's food or products or those of the restaurant industry in general, including concerns about outbreaks of infectious disease as well as the possible effects of such events on the price or availability of ingredients used in our restaurants; the effects of the Company's indebtedness and associated restrictions on the Company's financial and operating flexibility and ability to execute or pursue its operating plans and objectives; changes in interest rates, increases in borrowed capital or capital market conditions affecting the Company's financing costs and ability to refinance its indebtedness, in whole or in part; the Company's reliance on a single distribution facility and certain significant vendors, particularly for foreign-sourced retail products; information technology disruptions and data privacy and information security breaches, whether as a result of infrastructure failures, employee or vendor errors or actions of third parties; the Company's compliance with privacy and data protection laws; changes in or implementation of additional governmental or regulatory rules, regulations and interpretations affecting tax, health and safety, animal welfare, pensions, insurance or other undeterminable areas; the actual results of pending, future or threatened litigation or governmental investigations; or the Company's ability to manage the impact of negative social media attention and the costs and effects of negative publicity; the impact of activist shareholders; the Company's ability to achieve aspirations, goals and projections related to its sustainability initiatives; the Company's ability to enter successfully into new geographic markets that may be less familiar to it; changes in land, building materials and construction costs; the availability and cost of suitable sites for restaurant development and the Company's ability to identify those sites; the Company's ability to retain key personnel; the ability of and cost to the Company to recruit, train, and retain qualified hourly and management employees; uncertain performance of acquired businesses, strategic investments and other initiatives that the Company may pursue from time to time; the effects of business trends on the outlook for individual restaurant locations and the effect on the carrying value of those locations; general or regional economic weakness, business and societal conditions and the weather impact on sales and customer travel; discretionary income or personal expenditure activity of the Company's customers; implementation of new or changes in interpretation of existing accounting principles generally accepted in the United States of America ("GAAP"); and other factors described from time to time in the Company's filings with the Securities and Exchange Commission, press releases, and other communications. Any forward-looking statement made by the Company herein, or elsewhere, speaks only as of the date on which made. The Company expressly disclaims any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED INCOME STATEMENT

(Unaudited)

(In thousands, except share and per share amounts, percentages and ratios)

First Quarter Ended

10/31/25

11/1/24

Percentage

Change

Total revenue

$797,188

$845,089

(6 %)

Cost of goods sold (exclusive of depreciation & rent)

248,405

258,901

(4)

Labor and other related expenses

301,302

307,225

(2)

Other store operating expenses

228,845

211,548

General and administrative expenses

47,960

59,644

(20)

Impairment and store closing costs

3,473

700

396

Operating income (loss)

(32,797)

7,071

(564)

Interest expense

3,724

5,822

(36)

Income (loss) before income taxes

(36,521)

1,249

(3024)

Income tax benefit

(11,899)

(3,595)

(231)

Net income (loss)

($24,622)

$4,844

(608)

Earnings (loss) per share – basic:

($1.10)

$0.22

(600)

Earnings (loss) per share – diluted:

($1.10)

$0.22

(600)

Weighted average shares:

Basic

22,288,991

22,217,737

Diluted

22,288,991

22,390,249

(0)

Ratio Analysis

Total revenue:

Restaurant

81.6 %

80.9 %

Retail

18.4

19.1

Total revenue

100.0

Cost of goods sold (exclusive of depreciation & rent)

31.2

30.6

Labor and other related expenses

37.8

36.4

Other store operating expenses

28.7

25.0

General and administrative expenses

6.0

7.1

Impairment and store closing costs

0.4

0.1

Operating income (loss)

(4.1)

0.8

Interest expense

0.5

0.7

Income (loss) before income taxes

(4.6)

0.1

Income tax benefit

(1.5)

(0.5)

Net income (loss)

(3.1 %)

0.6 %

CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited and in thousands, except share amounts)

10/31/25

11/1/24

Assets

Cash and cash equivalents

$8,937

$11,534

Accounts receivable

31,331

39,898

Inventories

209,148

201,915

Prepaid expenses and other current assets

56,169

57,029

Property and equipment, net

968,179

966,557

Operating lease right-of-use assets, net

799,892

846,166

Intangible assets

24,331

24,406

Other assets

53,387

45,491

Total assets

$2,151,374

$2,192,996

Liabilities and Shareholders' Equity

Accounts payable

$157,446

$159,608

Current portion of long-term debt

149,401

Other current liabilities

287,023

288,430

Long-term debt

400,897

527,023

Long-term operating lease liabilities

632,309

667,182

Other long-term obligations

95,530

109,978

Shareholders' equity, net

428,768

440,700

Total liabilities and shareholders' equity

$2,151,374

$2,192,996

Common shares issued and outstanding

22,326,566

22,242,228

CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

(Unaudited and in thousands)

Three Months Ended

10/31/25

11/1/24

Cash flows from operating activities:

Net income (loss)

($24,622)

$4,844

Depreciation and amortization

30,202

29,154

Amortization of debt issuance costs

663

442

Loss on disposition of property and equipment

1,929

2,338

Impairment

700

Share-based compensation

(921)

2,625

Noncash lease expense

15,297

14,957

Amortization of asset recognized from gain on sale and leaseback transaction

3,184

Increase in inventories

(28,563)

(20,957)

Decrease in accounts payable

(12,402)

(2,680)

Net changes in other assets and liabilities

(38,197)

(39,002)

Net cash used in operating activities

(53,430)

(4,395)

Cash flows from investing activities:

Purchase of property and equipment, net of insurance recoveries

(34,165)

(38,887)

Proceeds from sale of property and equipment

134

Net cash used in investing activities

(34,095)

(38,753)

Cash flows from financing activities:

Net proceeds from long-term debt

65,000

50,000

Taxes withheld from issuance of share-based compensation awards

(1,903)

(1,239)

Dividends on common stock

(6,278)

(6,114)

Net cash provided by financing activities

56,819

42,647

Net decrease in cash and cash equivalents

(30,706)

(501)

Cash and cash equivalents, beginning of period

39,643

12,035

Cash and cash equivalents, end of period

$8,937

$11,534

First Quarter Ended

10/31/25

11/1/24

Company-owned units opened during quarter:

Cracker Barrel

Maple Street Biscuit Company

Company-owned units closed during quarter:

Cracker Barrel

Maple Street Biscuit Company

Company-owned units in operation at end of quarter:

Cracker Barrel

656

658

Maple Street Biscuit Company

Total stores at end of period

710

727

First Quarter Ended

10/31/25

11/1/24

Total revenue*: (In thousands)

Restaurant

$634,841

$666,433

Retail

146,526

161,600

Total revenue

$781,367

$828,033

Cost of goods sold* (exclusive of depreciation and rent): (In thousands)

Restaurant

$168,921

$174,083

Retail

75,278

80,447

Total cost of goods sold

$244,199

$254,530

Average unit volume*: (In thousands)

Restaurant

$966.5

$1,012.8

Retail

223.1

245.6

Total

$1,189.6

$1,258.4

Operating weeks*:

8,539

8,554

Note*: This information is for Cracker Barrel stores only and excludes Maple Street Biscuit Company.

CRACKER BARREL OLD COUNTRY STORE, INC.

Reconciliation of GAAP-Basis Operating Results to Non-GAAP Operating Results

(Unaudited and in thousands, except per share amounts)

Adjusted Net Income and Earnings Per Share

In the accompanying press release, the Company makes reference to its first quarter fiscal 2025 and fiscal 2026 adjusted net income (loss) and earnings (loss) per share. The Company defines adjusted net income (loss) as net income (loss), calculated in accordance with GAAP, excluding, to the extent the following items occurred during the periods presented: (i) impairment charges, and, for periods prior to the second quarter of fiscal 2025, store closing costs, (ii) expenses related to the proxy contest in connection with the Company's 2024 and 2025 annual meeting of shareholders, (iii) expenses associated with the Company's strategic transformation initiative, (iv) a corporate restructuring charge that includes consulting fees related to business model improvement and severance related to a reduction in headcount, (v) a gain on extinguishment of debt related to the Company's repurchase of $150 million aggregate principal amount of its 0.625% convertible senior notes due June 2026, (vi) store closing costs associated with MSBC reorganization, and (vii) the related tax impacts of the foregoing. The Company believes excluding these items from its financial results provides investors with an enhanced understanding of the Company's financial results and enhances comparability across periods. The Company calculates adjusted net income (loss) margin by dividing adjusted net income (loss) by consolidated GAAP revenue. This information is not intended to be considered in isolation or as a substitute for net income (loss) or earnings (loss) per share information prepared in accordance with GAAP.

First Quarter Ended

10/31/25

Margin

11/1/24

Margin

Revenue

$797,188

100 %

$845,089

100 %

GAAP net income (loss)

(24,622)

(3.1)

4,844

0.6

Strategic transformation initiative expenses

0.0

3,298

0.4

Impairment and store closing costs

0.0

700

0.1

Store closing costs associated with MSBC reorganization

3,095

0.4

0.0

Proxy contest expenses

1,439

0.2

2,958

0.3

Corporate restructuring charge

6,175

0.8

0.0

Tax impacts of the foregoing

(2,516)

(0.3)

(1,635)

(0.2)

Adjusted net income (loss)

($16,429)

(2.1 %)

$10,165

1.2 %

GAAP earnings (loss) per share - basic

($1.10)

$0.22

GAAP earnings (loss) per share - diluted

($1.10)

$0.22

Adjusted earnings (loss) per share - basic

($0.74)

$0.46

Adjusted earnings (loss) per share - diluted

($0.74)

$0.45

Weighted average shares - basic

22,288,991

22,217,737

Weighted average shares - diluted

22,288,991

22,390,249

CRACKER BARREL OLD COUNTRY STORE, INC.

Reconciliation of GAAP-Basis Operating Results to Non-GAAP Operating Results

(Unaudited and in thousands)

EBITDA/Adjusted EBITDA

In the accompanying press release and the below reconciliation tables, the Company makes reference to EBITDA and adjusted EBITDA. The Company defines EBITDA as net income (loss), calculated in accordance with GAAP, excluding depreciation and amortization, interest expense and tax expense. The Company further adjusts EBITDA to exclude, to the extent the following items occurred during the periods presented: (i) expenses related to share-based compensation, (ii) impairment charges, and, for periods prior to the second quarter of fiscal 2025, store closing costs, (iii) the proxy contest in connection with the Company's 2024 and 2025 annual meeting of shareholders, (iv) expenses associated with the Company's strategic transformation initiative, (v) a corporate restructuring charge that includes consulting fees related to business model improvement and severance related to a reduction in headcount, (vi) a gain on extinguishment of debt related to the Company's repurchase of $150 million aggregate principal amount of its 0.625% convertible senior notes due June 2026, and (vii) store closing costs associated with MSBC reorganization. The Company calculates EBITDA and adjusted EBITDA margin by dividing EBITDA and adjusted EBITDA by consolidated GAAP revenue. The Company believes that presentation of EBITDA and adjusted EBITDA (together with related margin figures) provides investors with an enhanced understanding of the Company's operating performance and debt leverage metrics and enhances comparability with the Company's historical results, and that the presentation of this non-GAAP financial measure, when combined with the primary presentation of net income (loss), is beneficial to an investor's complete understanding of the Company's operating performance. This information is not intended to be considered in isolation or as a substitute for net income (loss) or net income (loss) margin prepared in accordance with GAAP.

First Quarter Ended

10/31/25

Margin

Revenue

$797,188

100 %

GAAP Net income (loss)

(24,622)

(3.1)

(+) Depreciation & amortization

30,202

3.8

(+) Interest expense

3,724

0.5

(+) Tax expense (tax benefit)

(11,899)

(1.5)

EBITDA

($2,595)

(0.3 %)

Adjustments

(+) Share-based compensation

(921)

(0.1)

(+) Store closing costs associated with MSBC reorganization

3,095

0.4

(+) Proxy contest expenses

1,439

0.2

(+) Corporate restructuring charge

6,175

0.8

Adjusted EBITDA

$7,193

0.9 %

First Quarter Ended

11/1/24

Margin

Revenue

$845,089

100 %

GAAP Net income (loss)

4,844

0.6

(+) Depreciation & amortization

29,154

3.4

(+) Interest expense

5,822

0.7

(+) Tax expense (tax benefit)

(3,595)

(0.4)

EBITDA

36,225

4.3 %

Adjustments

(+) Share-based compensation

2,625

0.3

(+) Strategic transformation initiative expenses

3,298

0.4

(+) Impairment and store closing costs

700

0.1

(+) Proxy contest expenses

2,958

0.3

Adjusted EBITDA

$45,806

5.4 %

Investor Contact:

Adam Hanan

(615) 443-9887

Media Contact:

Heidi Pearce

(615) 235-4135

SOURCE Cracker Barrel Old Country Store, Inc.