Cracker Barrel — Jun 5, 2025 release
Fiscal 2025 third-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001104659-25-056681
Showing in the filing
Adjusted EBITDA
“$215 million to $225 million”
Period
FY2025
Measure
Company-defined measure
Source
Prose
All guidance in this release · 6
Quarterly dividend
“$0.25 per share”
Total revenue for FY2025
“$3.45 billion to $3.50 billion”
Adjusted EBITDA for FY2025
“$215 million to $225 million”
Commodity inflation for FY2025
“in the mid 2% range”
Hourly wage inflation for FY2025
“in the mid 2% range”
Capital expenditures for FY2025
“$160 million to $170 million”
Exhibit 99.1 · full document
EXHIBIT 99.1
Exhibit 99.1
Investor Contact:
Adam Hanan
(615) 443-9887
Media
Contact:
Heidi Pearce
(615) 235-4135
CRACKER BARREL REPORTS THIRD QUARTER FISCAL
2025 RESULTS AND UPDATES OUTLOOK
Company increases expectation for fiscal 2025
adjusted EBITDA 1 to between $215 million and $225 million 2
LEBANON, Tenn. – June 5,
2025 – Cracker Barrel Old Country Store, Inc. (“Cracker Barrel” or the “Company”) (Nasdaq: CBRL)
today reported its financial results for the third quarter of fiscal 2025 ended May 2, 2025.
Third Quarter Fiscal 2025 Highlights
· Third quarter total revenue was $821.1 million.
Compared to the prior year third quarter, total revenue increased 0.5%.
o Comparable store restaurant sales increased 1.0% over the prior year quarter, and comparable store retail
sales decreased 3.8%.
· GAAP earnings per diluted share were $0.56,
and adjusted 1 earnings per diluted share were $0.58.
· GAAP net income for the third quarter was $12.6 million compared to the prior year quarter GAAP net income
(loss) of ($9.2) million. Adjusted EBITDA 1 was $48.1 million, a 0.4% increase compared to the prior year quarter adjusted EBITDA 1
of $47.9 million.
Commenting on the third quarter results, Cracker
Barrel President and Chief Executive Officer Julie Masino said, “Our third quarter performance exceeded our expectations and represents
the fourth consecutive quarter of positive comparable store restaurant sales growth. We remain focused on executing our transformation
plan and believe we are well-positioned to deliver a strong finish to the fiscal year.”
Third Quarter Fiscal 2025 Results
Revenue
The Company reported total revenue of $821.1 million
for the third quarter of fiscal 2025, representing an increase of 0.5% compared to the third quarter of fiscal 2024.
Cracker Barrel comparable store restaurant sales
increased 1.0%, including total menu pricing increases of 4.9%. Comparable store retail sales decreased 3.8% from the prior year quarter.
- MORE -
Page 2
Net Income, EBITDA, and Earnings per Diluted
Share
GAAP
net income for the third quarter was $12.6 million, or 1.5% of total revenue, compared to prior year quarter GAAP net income (loss)
of ($9.2) million, or (1.1%) of total revenue. Adjusted EBITDA 1 was $48.1 million, or 5.9% of total revenue, a 0.4% increase
compared to the prior year quarter adjusted EBITDA 1 of $47.9 million, or 5.9% of total revenue.
GAAP
earnings per diluted share for the third quarter were $0.56 compared to the prior year quarter GAAP earnings (loss) per diluted
share of ($0.41). Adjusted 1 earnings per diluted share were $0.58 compared to the prior year quarter adjusted 1 earnings
per diluted share of $0.88.
Quarterly Dividend Declaration
The Company announced that its Board of Directors
declared a quarterly dividend of $0.25 per share of the Company’s common stock. The quarterly dividend is payable on August 13,
2025 to shareholders of record as of July 18, 2025.
Fiscal 2025 Outlook
The
Company updated its outlook and expects the following for fiscal 2025 :
· Total revenue of $3.45 billion to $3.50 billion
(no change vs. previous outlook)
· Adjusted EBITDA 1 of $215 million to
$225 million 2 (vs. previous outlook of $210 million to $220 million 2 )
· Commodity inflation in the mid 2% range compared
to the prior year (vs. previous outlook of 2% to 3%)
· Hourly wage inflation in the mid 2% range compared
to the prior year (vs. previous outlook of approximately 3%)
· Capital expenditures of $160 million to $170
million (vs. previous outlook of $160 million to $180 million)
· 1 new Cracker Barrel store, which has already
opened (vs. previous outlook of 1 to 2)
· 4 new Maple Street Biscuit Company units, which
have already opened (no change vs. previous outlook)
1
Adjusted net income, adjusted EBITDA, and adjusted earnings 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 (given the expected increase
in investments and the resulting higher expected depreciation expense), 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, 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.
Fiscal 2025 Third 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 11:00 a.m. (ET). The online replay will be available at 2:00 p.m. (ET) and continue through June 19, 2025.
About Cracker
Barrel Old Country Store ®
Cracker Barrel Old Country Store, Inc. (Nasdaq:
CBRL) is on a mission to bring craveable, delicious homestyle food and unique retail products to all guests while serving up memorable,
distinctive experiences that make everyone feel welcome. Established in 1969 in Lebanon, Tenn., Cracker Barrel and its affiliates operate
approximately 660 company-owned Cracker Barrel Old Country Store® locations in 43 states and own the fast-casual Maple Street Biscuit
Company. For more information about the company, visit www.crackerbarrel.com.
- MORE -
Page 3
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 strategic transformation 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 environmental, social and governance 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.
- MORE -
Page 4
CRACKER BARREL OLD COUNTRY STORE, INC.
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited)
(In thousands, except share and per share amounts,
percentages and ratios)
Third Quarter Ended
Nine Months Ended
5/2/25
4/26/24
Percentage Change
5/2/25
4/26/24
Percentage Change
Total revenue
$ 821,147
$ 817,135
0 %
$ 2,615,675
$ 2,576,375
2 %
Cost of goods sold (exclusive of depreciation & rent)
247,280
245,070
1
816,013
815,480
0
Labor and other related expenses
304,781
308,791
(1 )
938,342
936,434
0
Other store operating expenses
207,486
200,390
4
639,059
618,131
3
General and administrative expenses
46,025
54,524
(16 )
167,341
155,795
7
Impairment and store closing costs
718
22,942
(97 )
3,869
22,942
(83 )
Goodwill impairment
0
4,690
(100 )
0
4,690
(100 )
Operating income (loss)
14,857
(19,272 )
177
51,051
22,903
123
Interest expense
4,984
5,187
(4 )
15,784
15,192
4
Income (loss) before income taxes
9,873
(24,459 )
140
35,267
7,711
357
Income tax benefit
(2,701 )
(15,260 )
82
(4,358 )
(15,080 )
71
Net income (loss)
$ 12,574
$ (9,199 )
237
$ 39,625
$ 22,791
74
Earnings (loss) per share – basic:
$ 0.56
$ (0.41 )
237
$ 1.78
$ 1.03
73
Earnings (loss) per share – diluted:
$ 0.56
$ (0.41 )
237
$ 1.77
$ 1.02
74
Weighted average shares:
Basic
22,264,782
22,201,964
0
22,246,936
22,188,191
0
Diluted
22,459,281
22,201,964
1
22,435,317
22,307,646
1
Ratio Analysis
Total revenue:
Restaurant
82.7 %
82.2 %
80.8 %
80.1 %
Retail
17.3
17.8
19.2
19.9
Total revenue
100.0
100.0
100.0
100.0
Cost of goods sold (exclusive of depreciation & rent)
30.1
30.0
31.2
31.7
Labor and other related expenses
37.1
37.8
35.9
36.3
Other store operating expenses
25.3
24.5
24.4
24.0
General and administrative expenses
5.6
6.7
6.4
6.0
Impairment and store closing costs
0.1
2.8
0.1
0.9
Goodwill impairment
0.0
0.6
0.0
0.2
Operating income (loss)
1.8
(2.4 )
2.0
0.9
Interest expense
0.6
0.6
0.7
0.6
Income (loss) before income taxes
1.2
(3.0 )
1.3
0.3
Income tax benefit
(0.3 )
(1.9 )
(0.2 )
(0.6 )
Net income (loss)
1.5 %
(1.1 %)
1.5 %
0.9 %
- MORE -
Page 5
CRACKER BARREL OLD COUNTRY STORE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except share amounts)
5/2/25
4/26/24
Assets
Cash and cash equivalents
$ 9,814
$ 11,852
Accounts receivable
37,439
34,847
Inventories
168,695
175,278
Prepaid expenses and other current assets
60,877
57,026
Property and equipment, net
971,021
944,859
Operating lease right-of-use assets, net
822,269
860,879
Intangible assets
24,369
24,480
Other assets
44,565
47,872
Total assets
$ 2,139,049
$ 2,157,093
Liabilities and Shareholders’ Equity
Accounts payable
$ 121,117
$ 137,672
Other current liabilities
301,916
308,535
Long-term debt
489,410
472,216
Long-term operating lease liabilities
653,060
681,272
Other long-term obligations
104,235
130,841
Shareholders’ equity, net
469,311
426,557
Total liabilities and shareholders’ equity
$ 2,139,049
$ 2,157,093
Common shares issued and outstanding
22,266,951
22,202,296
- MORE -
Page 6
CRACKER BARREL OLD COUNTRY STORE, INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
(Unaudited and in thousands)
Nine Months Ended
5/2/25
4/26/24
Cash flows from operating activities:
Net income
$ 39,625
$ 22,791
Depreciation and amortization
90,379
82,765
Amortization of debt issuance costs
1,329
1,312
Loss on disposition of property and equipment
6,249
8,860
Impairment
3,581
17,448
Goodwill impairment
0
4,690
Share-based compensation
8,056
9,189
Noncash lease expense
45,560
45,050
Amortization of asset recognized from gain on sale and leaseback transaction
9,551
9,551
Decrease in inventories
12,263
14,086
Decrease in accounts payable
(41,171 )
(27,812 )
Net changes in other assets and liabilities
(58,745 )
(88,474 )
Net cash provided by operating activities
116,677
99,456
Cash flows from investing activities:
Purchase of property and equipment, net of insurance recoveries
(113,214 )
(80,081 )
Proceeds from sale of property and equipment
1,829
131
Net cash used in investing activities
(111,385 )
(79,950 )
Cash flows from financing activities:
Net proceeds from/principal payments on long-term debt
11,425
56,000
Taxes withheld from issuance of share-based compensation awards
(1,428 )
(1,597 )
Dividends on common stock
(17,510 )
(87,204 )
Net cash used in financing activities
(7,513 )
(32,801 )
Net decrease in cash and cash equivalents
(2,221 )
(13,295 )
Cash and cash equivalents, beginning of period
12,035
25,147
Cash and cash equivalents, end of period
$ 9,814
$ 11,852
- MORE -
Page 7
Third Quarter Ended
5/2/25
4/26/24
Net change in company-owned units during quarter:
Cracker Barrel
1
(4 )
Maple Street Biscuit Company
1
0
Company-owned units in operation at end of quarter:
Cracker Barrel
658
658
Maple Street Biscuit Company
70
63
Third
Quarter Ended
Nine
Months Ended
5/2/25
4/26/24
5/2/25
4/26/24
Total revenue*: (In thousands)
Restaurant
$
661,945
$
654,410
$
2,061,681
$
2,013,609
Retail
141,695
145,430
502,052
512,981
Total revenue
$
803,640
$
799,840
$
2,563,733
$
2,526,590
Cost of goods sold* (exclusive of depreciation and rent): (In thousands)
Restaurant
$
173,431
$
169,373
$
546,757
$
540,553
Retail
69,346
71,432
256,015
262,430
Total cost of goods sold
$
242,777
$
240,805
$
802,772
$
802,983
Average unit volume*: (In thousands)
Restaurant
$
1,006.0
$
994.6
$
3,134.8
$
3,049.4
Retail
215.3
221.0
763.4
776.8
Total
$
1,221.3
$
1,215.6
$
3,898.2
$
3,826.2
Operating weeks*:
8,554
8,554
25,649
25,753
Note*: This information is for Cracker Barrel stores only and excludes Maple Street Biscuit Company
- MORE -
Page 8
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 third quarter fiscal 2024 and fiscal 2025 adjusted net income and earnings
per share . The Company defines adjusted net income as net income, 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 annual meeting
of shareholders, (iii) expenses related to the Company’s CEO transition, (iv) expenses associated with the Company’s
strategic transformation initiative, (v) a corporate restructuring charge, (vi) an employee benefits policy change, (vii) goodwill
impairment charges, and (viii) 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 margin by dividing adjusted net income by consolidated GAAP revenue. This information is not
intended to be considered in isolation or as a substitute for net income or earnings per share information prepared in accordance with
GAAP.
Third Quarter Ended
Nine Months Ended
5/2/25
Margin
4/26/24
Margin
5/2/25
Margin
4/26/24
Margin
Revenue
$ 821,147
100 %
$ 817,135
100 %
$ 2,615,675
100 %
$ 2,576,375
100 %
GAAP net income
$ 12,574
1.5
($ 9,199 )
(1.1 )
$ 39,625
1.5
$ 22,791
0.9
CEO transition expenses
0
0.0
3,465
0.4
0
0.0
8,574
0.3
Strategic transformation initiative expenses
0
0.0
6,590
0.8
7,263
0.3
11,546
0.4
Employee benefit adjustment
0
0.0
0
0.0
0
0.0
(5,284 )
(0.2 )
Corporate restructuring charge
0
0.0
0
0.0
0
0.0
1,643
0.1
Proxy contest expenses
0
0.0
0
0.0
8,220
0.3
0
0.0
Impairment
718
0.1
17,448
2.1
3,581
0.1
17,448
0.7
Store closing costs
0
0.0
5,494
0.7
0
0.0
5,494
0.2
Goodwill impairment
0
0.0
4,690
0.6
0
0.0
4,690
0.2
Tax impacts of the foregoing
(169 )
(0.0 )
(8,856 )
(1.1 )
(4,480 )
(0.2 )
(10,366 )
(0.4 )
Adjusted net income
$ 13,123
1.6 %
$ 19,632
2.4 %
$ 54,209
2.1 %
$ 56,536
2.2 %
GAAP earnings (loss) per share - basic
$ 0.56
$ (0.41 )
$ 1.78
$ 1.03
GAAP earnings (loss) per share - diluted
$ 0.56
$ (0.41 )
$ 1.77
$ 1.02
Adjusted earnings per share - basic
$ 0.59
$ 0.88
$ 2.44
$ 2.55
Adjusted earnings per share - diluted
$ 0.58
$ 0.88
$ 2.42
$ 2.53
Weighted average shares - basic
22,264,782
22,201,964
22,246,936
22,188,191
Weighted average shares - diluted
22,459,281
22,201,964
22,435,317
22,307,646
- MORE -
Page 9
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, 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 annual meeting of shareholders, (iv) goodwill
impairment charges, (v) expenses related to the Company’s CEO transition, (vi) expenses associated with the Company’s
strategic transformation initiative, (vii) a corporate restructuring charge, and (viii) an employee benefits policy change.
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, 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 or net income margin prepared in accordance with GAAP.
Third Quarter Ended
5/2/25
Margin
Nine Months Ended
5/2/25
Margin
Revenue
$
821,147
100
%
$
2,615,675
100
%
GAAP Net income
12,574
1.5
39,625
1.5
(+) Depreciation& amortization
30,991
3.8
90,379
3.5
(+) Interest expense
4,984
0.6
15,784
0.6
(+) Tax expense (tax benefit)
(2,701
)
(0.3
)
(4,358
)
(0.2
)
EBITDA
$
45,848
5.6
%
$
141,430
5.4
%
Adjustments
(+) Share-based compensation, net
1,551
0.2
8,056
0.3
(+) Strategic transformation initiative expenses
0
0.0
7,263
0.3
(+) Impairment
718
0.1
3,581
0.1
(+) Proxy contest expenses
0
0.0
8,220
0.3
Adjusted EBITDA
$
48,117
5.9
%
$
168,550
6.4
%
Third Quarter Ended
4/26/24
Margin
Nine Months Ended
4/26/24
Margin
Revenue
$
817,135
100
%
$
2,576,375
100
%
GAAP Net income (loss)
(9,199
)
(1.1
)
22,791
0.9
(+) Depreciation& amortization
28,337
3.5
82,765
3.2
(+) Interest expense
5,187
0.6
15,192
0.6
(+) Tax expense (tax benefit)
(15,260
)
(1.9
)
(15,080
)
(0.6
)
EBITDA
9,065
1.1
%
$
105,668
4.1
%
Adjustments
(+) Share-based compensation, net
1,187
0.1
4,475
0.2
(+) Strategic transformation initiative expenses
6,590
0.8
11,546
0.4
(+) Impairment
17,448
2.1
17,448
2.1
(+) Store closing costs
5,494
0.7
5,494
0.7
(+) Goodwill impairment
4,690
0.6
4,690
0.2
(+) CEO transition expenses
3,465
0.4
8,574
0.3
(+) Corporate restructuring charge
0
0.0
1,643
0.1
(-) Employee benefit adjustment
0
0.0
(5,284
)
(0.2
)
Adjusted EBITDA
$
47,939
5.9
%
$
154,254
6.0
%
- END -
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.