Cracker Barrel Swings to $24.6M Loss Amid Revenue Decline

TL;DR

**Cracker Barrel's latest quarter is a disaster, showing deep losses and revenue drops; time to sell before the biscuits crumble further.**

AI Summary

Cracker Barrel Old Country Store, Inc. reported a significant net loss of $24.622 million for the quarter ended October 31, 2025, a stark contrast to the net income of $4.844 million in the prior year's comparable quarter. Total revenue decreased to $797.188 million from $845.089 million year-over-year. Operating income swung to a loss of $32.797 million from a gain of $7.071 million, primarily driven by increased other store operating expenses, which rose to $228.845 million from $211.548 million, and impairment and store closing costs of $3.473 million, up from $700 thousand. Cash and cash equivalents plummeted to $8.937 million from $39.643 million at August 1, 2025. The company increased its long-term debt to $400.897 million from $335.457 million, while current portion of long-term debt remained stable at $149.401 million. Inventories also saw a substantial increase to $209.148 million from $180.585 million. Despite the losses, the company declared cash dividends of $0.25 per share, totaling $5.475 million for the quarter.

Why It Matters

This filing reveals a concerning financial downturn for Cracker Barrel, with a significant net loss and revenue decline indicating operational challenges and potentially weakening consumer demand in a competitive restaurant and retail landscape. For investors, the negative shift from profit to loss, coupled with increased debt and inventory, signals potential erosion of shareholder value and raises questions about future profitability and dividend sustainability. Employees might face job insecurity if these trends continue, while customers could see changes in store experience or pricing as the company attempts to regain financial footing. The broader market may view this as a bellwether for the casual dining sector, especially for brands reliant on a traditional, value-oriented model.

Risk Assessment

Risk Level: high — The company reported a net loss of $24.622 million for the quarter ended October 31, 2025, a significant deterioration from a $4.844 million net income in the prior year. This, combined with a 5.67% decrease in total revenue from $845.089 million to $797.188 million, indicates substantial operational and financial challenges. Cash and cash equivalents also dropped sharply from $39.643 million to $8.937 million, raising liquidity concerns.

Analyst Insight

Investors should consider reducing their exposure to CBRL given the significant net loss, revenue decline, and increased debt. Monitor upcoming earnings reports closely for any signs of operational improvements or further deterioration, and evaluate the company's strategy to address declining profitability and cash flow.

Financial Highlights

debt To Equity

0.93

revenue

$797,188,000

operating Margin

-4.11%

total Assets

$2,151,374,000

total Debt

$540,298,000

net Income

-$24,622,000

eps

-$1.10

gross Margin

38.74%

cash Position

$8,937,000

revenue Growth

-5.67%

Revenue Breakdown

Key Numbers

• $24.622M — Net Loss (Swung from $4.844M net income in prior year, indicating significant financial deterioration.)
• $797.188M — Total Revenue (Decreased from $845.089M year-over-year, a 5.67% decline.)
• $8.937M — Cash and Cash Equivalents (Dropped significantly from $39.643M at August 1, 2025, raising liquidity concerns.)
• $32.797M — Operating Loss (Shifted from a $7.071M operating income in the prior year, highlighting operational challenges.)
• $400.897M — Long-term Debt (Increased from $335.457M at August 1, 2025, adding to financial leverage.)
• $209.148M — Inventories (Increased from $180.585M, potentially indicating slower sales or overstocking.)
• $3.473M — Impairment and Store Closing Costs (Increased from $700K, suggesting potential underperforming assets or store rationalization.)
• $0.25 — Cash Dividends Per Share (Declared despite net loss, totaling $5.475M, which could strain cash flow.)
• ($1.10) — Basic Net Loss Per Share (Compared to $0.22 basic net income per share in the prior year, reflecting the loss.)
• 6.31% — Weighted Average Interest Rate (On 2025 Revolving Credit Facility, impacting interest expense.)

Key Players & Entities

• Cracker Barrel Old Country Store, Inc. (company) — registrant
• U.S. Bank National Association (company) — Trustee for 2026 Notes
• SEC (regulator) — Securities and Exchange Commission
• $24.622 million (dollar_amount) — Net loss for the quarter ended October 31, 2025
• $797.188 million (dollar_amount) — Total revenue for the quarter ended October 31, 2025
• $845.089 million (dollar_amount) — Total revenue for the quarter ended November 1, 2024
• $8.937 million (dollar_amount) — Cash and cash equivalents at October 31, 2025
• $39.643 million (dollar_amount) — Cash and cash equivalents at August 1, 2025
• $400.897 million (dollar_amount) — Long-term debt at October 31, 2025
• $335.457 million (dollar_amount) — Long-term debt at August 1, 2025

FAQ

Risk Factors

• Increased Operating Expenses [high — operational]: Other store operating expenses increased to $228.845 million from $211.548 million year-over-year. This rise contributed significantly to the operating loss.
• Impairment and Store Closing Costs [medium — operational]: These costs rose to $3.473 million from $700 thousand, indicating potential underperforming assets or strategic store rationalization efforts.
• Deteriorating Liquidity [high — financial]: Cash and cash equivalents plummeted from $39.643 million to $8.937 million, raising concerns about the company's ability to meet short-term obligations.
• Increased Debt Load [medium — financial]: Long-term debt increased to $400.897 million from $335.457 million, increasing financial leverage and interest expense burden.
• Inventory Build-up [medium — operational]: Inventories increased substantially to $209.148 million from $180.585 million, which could signal slower sales or overstocking issues.

Industry Context

Cracker Barrel operates in the casual dining restaurant sector, which has faced significant headwinds from changing consumer preferences, increased competition, and inflationary pressures on food and labor costs. The industry is characterized by a need for strong brand loyalty and efficient operations to manage thin margins.

Regulatory Implications

The company must comply with various financial reporting regulations, including accurate disclosure of its financial condition and risks. Any misstatements or failures to adhere to accounting standards could lead to SEC scrutiny and potential penalties.

What Investors Should Do

1. Monitor inventory levels closely.
2. Analyze the drivers of increased operating expenses.
3. Evaluate the company's liquidity position.
4. Assess the impact of increased debt.
5. Scrutinize impairment and store closing costs.

Glossary

Operating income (loss)

Profit or loss from a company's core business operations before accounting for interest and taxes. (A significant swing to a loss of $32.797 million from a gain of $7.071 million highlights severe operational challenges.)

Impairment and store closing costs

Expenses recognized when the carrying amount of an asset exceeds its recoverable amount, or costs associated with closing down operations. (An increase to $3.473 million from $700 thousand suggests potential underperforming assets or strategic decisions to exit certain locations.)

Cash and cash equivalents

The most liquid assets held by a company, including physical currency, bank deposits, and short-term, highly liquid investments. (A sharp decline to $8.937 million from $39.643 million indicates a significant reduction in readily available funds, raising liquidity concerns.)

Long-term debt

Financial obligations that are due more than one year from the balance sheet date. (An increase to $400.897 million from $335.457 million signifies increased financial leverage and potential future interest payment obligations.)

Inventories

The goods and materials a company holds for the sale of products in the normal course of business. (A substantial increase to $209.148 million from $180.585 million may indicate slower sales or an overestimation of demand.)

Retained earnings

The cumulative amount of net income that a company has retained over time, rather than distributing to shareholders as dividends. (A decrease from $450.951 million to $420.854 million reflects the net loss incurred during the quarter.)

Year-Over-Year Comparison

Compared to the prior year's comparable quarter, Cracker Barrel experienced a significant downturn. Total revenue declined by 5.67% from $845.089 million to $797.188 million. The company swung from a net income of $4.844 million to a net loss of $24.622 million, with operating income turning into a substantial loss of $32.797 million. Key balance sheet changes include a sharp decrease in cash and cash equivalents from $39.643 million to $8.937 million and an increase in long-term debt from $335.457 million to $400.897 million.

Key Financial Figures

• $0.01 — ch registered Common Stock (Par Value $0.01) Rights to Purchase Series A Junior Pa
• $1,000 — n of cash (which shall not be less than $1,000 for each $1,000 principal amount of 203

Filing Documents

• cbrl-20251031x10q.htm (10-Q) — 1363KB
• cbrl-20251031xex10d1.htm (EX-10.1) — 35KB
• cbrl-20251031xex31d1.htm (EX-31.1) — 15KB
• cbrl-20251031xex31d2.htm (EX-31.2) — 18KB
• cbrl-20251031xex32d1.htm (EX-32.1) — 8KB
• cbrl-20251031xex32d2.htm (EX-32.2) — 9KB
• 0001104659-25-119676.txt ( ) — 5753KB
• cbrl-20251031.xsd (EX-101.SCH) — 39KB
• cbrl-20251031_cal.xml (EX-101.CAL) — 58KB
• cbrl-20251031_def.xml (EX-101.DEF) — 141KB
• cbrl-20251031_lab.xml (EX-101.LAB) — 353KB
• cbrl-20251031_pre.xml (EX-101.PRE) — 260KB
• cbrl-20251031x10q_htm.xml (XML) — 875KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

ITEM 1. Financial Statements (Unaudited) Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Income (Loss) 4 Condensed Consolidated Statements of Changes in Shareholders' Equity 5 Condensed Consolidated Statements of Cash Flows 6 Notes to Condensed Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures About Market Risk

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 33

Controls and Procedures

ITEM 4. Controls and Procedures 33

OTHER INFORMATION

PART II. OTHER INFORMATION

Risk Factors

ITEM 1A. Risk Factors 33

Other Information

ITEM 5. Other Information 34

Exhibits

ITEM 6. Exhibits 34

SIGNATURES

SIGNATURES 35 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements (Unaudited)

ITEM 1. Financial Statements (Unaudited) CRACKER BARREL OLD COUNTRY STORE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) October 31, August 01, 2025 2025* ASSETS Current Assets: Cash and cash equivalents $ 8,937 $ 39,643 Accounts receivable 31,331 35,070 Income taxes receivable 8,348 12,820 Inventories 209,148 180,585 Prepaid expenses and other current assets 47,821 44,994 Total current assets 305,585 313,112 Property and equipment 2,538,410 2,520,468 Less: Accumulated depreciation and amortization 1,570,231 1,553,492 Property and equipment – net 968,179 966,976 Operating lease right-of-use assets, net 799,892 806,084 Intangible assets 24,331 24,350 Other assets 53,387 51,362 Total assets $ 2,151,374 $ 2,161,884 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 157,446 $ 169,848 Current portion of long-term debt 149,401 149,178 Accrued employee compensation 41,213 66,069 Other current liabilities 245,810 240,508 Total current liabilities 593,870 625,603 Long-term debt 400,897 335,457 Long-term operating lease liabilities 632,309 644,026 Other long-term obligations 95,530 95,109 Commitments and Contingencies (Note 10) Shareholders' Equity: Preferred stock – 100,000,000 shares of $ 0.01 par value authorized; 300,000 shares designated as Series A Junior Participating Preferred Stock; no shares issued — — Common stock – 400,000,000 shares of $ 0.01 par value authorized; 22,326,566 shares issued and outstanding at October 31, 2025, and 22,267,724 shares issued and outstanding at August 01, 2025 223 223 Additional paid-in capital 7,691 10,515 Retained earnings 420,854 450,951 Total shareholders' equity 428,768 461,689 Total liabilities and shareholders' equity $ 2,151,374 $ 2,161,884 See Notes to un

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