We were pleased with our third quarter performance which included positive comparable store restaurant sales for the fourth consecutive quarter and adjusted EBITDA that exceeded our expectations. These results further underscore that our transformation plan is working.
— Julie Masino
03Detailed Report
CBRL
Company CBRL
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 20, 2026
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Executive Summary
Cracker Barrel reported a solid Q3 FY2025 showing resilience through a constructive transformation phase. Total revenue reached $821.1 million, up 0.5% year over year, with restaurant revenue up 1.2% and retail revenue down 2.7%. Comparable store restaurant sales rose 1%, while retail comps declined 3.8%. The company continued to monetize its pricing and mix strategy, delivering a 4.9% price increase and a 6.6% total check growth (4.9% pricing, 1.7% mix). EBITDA of $48.1 million represented a 5.9% margin, broadly in line with the prior year, as back-of-house optimization and labor productivity improvements mitigated costs, even as advertising and depreciation rose. Management stressed the ongoing transformation under its three imperatives: driving relevancy, delivering loveable experiences, and growing profitability. Notable catalysts include the phased back-of-house optimization (Phase 1 completed), Cracker Barrel Rewards growth (8 million members, >one-third tracked sales from loyalty), and brand refinements highlighted by Campfire Meals and the Cracker Barrel 400 NASCAR partnership. They raised FY2025 revenue guidance to $3.45–$3.50 billion and adjusted EBITDA guidance to $215–$225 million, incorporating an estimated $5 million tariff headwind in Q4. The company signaled continued investment in remodeling and SKU rationalization, with September updates anticipated for 2026 guidance and tariff mitigation details. On balance, Cracker Barrel remains exposed to tariff and macro headwinds, but is progressively extracting operating leverage from pricing, mix, labor productivity, and strategic investments.
Key Performance Indicators
Revenue
Stable
821.15M
QoQ: -13.51% | YoY: N/A
Gross Profit
Stable
269.09M
32.77% margin
QoQ: -14.10% | YoY: N/A
Operating Income
Stable
14.86M
QoQ: -48.99% | YoY: N/A
Net Income
Stable
12.57M
QoQ: -43.38% | YoY: N/A
EPS
Decreasing
0.56
QoQ: -44.00% | YoY: -31.71%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability
- Q3 2025 total revenue: $821.147 million, up 0.5% YoY; restaurant revenue $679.3 million (+1.2% YoY); retail revenue $141.8 million (−2.7% YoY). Off-premise share: 19.1% of restaurant sales (vs 18.9% prior year).
- Comparable store restaurant sales: +1.0%; comparable store retail sales: −3.8%.
- Pricing: quarter pricing ~4.9% (1.5% carry forward from FY2024; 3.4% new from FY2025). Check dynamics: total check up 6.6% in Q3 (pricing 4.9% and mix +1.7%).
- Gross margin: 32.77% (269.086 / 821.147).
- EBITDA and margins: adjusted EBITDA $48.1 million; EBITDA margin 5.9% of revenue. GAAP operating income $14.857 million; operating margin ~1.81%; net income $12.574 million; net income margin ~1.53%; EPS $0.56.
- Cost structure: COGS at 30.1% of total revenue; restaurant COGS 26.2% of restaurant sales (vs 25.9% prior year); labor and related expenses 37.1% of revenue (vs 37.8% prior year); other operating expenses 25.3% (vs 24.5%); G&A 5.6% (vs 5.4% prior year).
- Cash flow and capital: net cash provided by operating activities $22.984 million; capital expenditures $36.601 million; free cash flow −$13.617 million; cash at end of period $9.814 million; net change in cash −$0.532 million.
- Balance sheet and leverage: total assets $2.139 billion; cash and cash equivalents $9.814 million; total debt $1.142 billion; net debt $1.133 billion; total stockholders’ equity $469.311 million; current ratio 0.654, quick ratio 0.256, cash ratio 0.0232. Debt-to-capitalization ~0.709; debt-to-equity ~2.43; interest coverage ~2.98x.
- Valuation and momentum: price/earnings ~18.92x; price-to-book ~2.03x; price-to-sales ~1.16x; enterprise value multiple ~42.51x EBITDA; dividend yield ~0.59%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
821.15M
N/A
-13.51%
Gross Profit
269.09M
N/A
-14.10%
Operating Income
14.86M
N/A
-48.99%
Net Income
12.57M
N/A
-43.38%
EPS
0.56
-31.71%
-44.00%
Key Financial Ratios
Gross Profit Margin
Fair
32.80%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
1.81%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
1.53%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.59%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.68%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.65
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
2.43
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Fair Value
18.92x
P/E ratio in line with market averages
Price to Book
Fair Value
2.03x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
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