Cracker Barrel Sees Turnaround Progress, Sets Fiscal 2027 Growth Target

Cracker Barrel reported $849.3 million in revenue and 99 cents in adjusted earnings per share for its fiscal fourth quarter, ended July 31. Adjusted EBITDA, a measure of operating profit, rose 11.4% to $62.1 million, the company said September 23.

Restaurant comparable sales fell 2.1%. Customer traffic dropped 6.1%, partly offset by a 4.2% increase in the average check, which included higher menu prices. Executives said the traffic trend continued to improve, though sales remained below the year-earlier quarter.

The retail shops provided a brighter spot: comparable sales grew 0.7%, Cracker Barrel’s best result in that measure since fiscal 2023’s second quarter. Toys and housewares sold well, and the company said an earlier Halloween merchandise rollout helped.

Chief Executive Dave Deno, who took the job in August, said the company’s priorities are food, the guest experience and employees. He pointed to higher food and service scores and lower employee turnover, while identifying dinner as a key opportunity to improve.

Management plans to upgrade chicken, hamburger and steak offerings and improve store layouts. Its Cracker Barrel Rewards program has more than 12.5 million members and accounts for over 40% of tracked sales, giving the company a channel to tailor offers to customers.

The profit increase came with help from tariff refunds. Cracker Barrel said adjusted EBITDA included a net $9.1 million benefit from those refunds after reinvestment, making the improvement less reflective of recurring operations alone.

For fiscal 2027, the company forecast revenue of $3.325 billion to $3.4 billion and adjusted EBITDA of $180 million to $200 million. It expects restaurant comparable sales to grow 3% to 5%, but plans no new locations and expects to spend $110 million to $125 million on capital projects.