This strong Q2 performance, coupled with our confidence in our trajectory, resulted in us increasing our fiscal '25 EBITDA guidance.
— Julie Masino
03Detailed Report
CBRL
Company CBRL
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 20, 2026
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Executive Summary
Cracker Barrel reported solid Q2 FY2025 operating performance with total revenue of $949.4 million, up 1.5% year over year, driven by a 4.7% comp-store restaurant sales increase and a continued shift toward more profitable channels. Management highlighted notable profitability improvements in Heat n’ Serve and holiday catering, which contributed to Adjusted EBITDA of $74.6 million (7.9% of revenue), leading to an elevation of FY2025 EBITDA guidance to $210–$220 million. GAAP EBITDA was $62.5 million for the quarter, with net income of $22.2 million and GAAP EPS of $0.99 (Adjusted EPS $1.38). The company also underscored progress across its transformation pillars (brand refinement, menu evolution, store and guest experience, digital/off-premise, and store remodels), and reiterated a multi-year plan that emphasizes profitability, guest value, and capital discipline.
Key Performance Indicators
Revenue
Increasing
949.44M
QoQ: 12.35% | YoY: 16.19%
Gross Profit
Increasing
313.27M
33.00% margin
QoQ: 12.30% | YoY: 398.17%
Operating Income
Increasing
29.12M
QoQ: 311.87% | YoY: 248.36%
Net Income
Increasing
22.21M
QoQ: 358.44% | YoY: 341.41%
EPS
Increasing
1.00
QoQ: 354.55% | YoY: 343.90%
Revenue Trend
Margin Analysis
Financial Highlights
Key quarterly metrics (Q2 FY2025):
- Revenue: $949.4 million (+1.5% YoY)
- Restaurant revenue: $750.5 million (+2.7% YoY); Retail revenue: $199.0 million (−2.8% YoY)
- Comparable store restaurant sales: +4.7%; Comparable store retail sales: +0.2%
- Gross margin: 32.99% (gross profit $313.27 million); Gross profit margin ~0.330
- Operating income: $29.12 million; Operating margin: 3.07%
- EBITDA (GAAP): $62.54 million; EBITDA margin: 6.57%; Adjusted EBITDA: $74.60 million; Adjusted EBITDA margin: 7.89%
- Net income: $22.21 million; Net income margin: 2.34%
- EPS (GAAP): $0.99 (Diluted $0.99); Adjusted EPS: $1.38
- Cash flow: Operating cash flow $98.09 million; Capex $38.12 million; Free cash flow $59.97 million
- Balance sheet: Total assets $2.149B; Total debt $1.127B; Net debt $1.117B; Cash $10.35 million; Total stockholders’ equity $460.92 million
- Liquidity/ratios: Current ratio 0.617; Quick ratio 0.236; Cash ratio 0.0228; Debt to capitalization 0.710; ROE 4.82%; ROA 1.03%
- Valuation: P/E ~16.3x; P/S ~1.52x; EV/EBITDA ~41x; Dividend yield ~0.4%
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
949.44M
16.19%
12.35%
Gross Profit
313.27M
398.17%
12.30%
Operating Income
29.12M
248.36%
311.87%
Net Income
22.21M
341.41%
358.44%
EPS
1.00
343.90%
354.55%
Key Financial Ratios
Gross Profit Margin
Fair
33.00%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
3.07%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
2.34%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
1.03%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
4.82%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.62
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
2.45
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Fair Value
16.28x
P/E ratio in line with market averages
Price to Book
Premium
3.14x
Trading at premium to book value, reflects strong intangibles or growth
Management Insights Available for Members
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