Restaurant Sales Momentum Fuels Adjusted EBITDA Growth in Fiscal 2025
Cracker Barrel Old Country Store, Inc. (CBRL) has reported its fourth quarter and full-year fiscal 2025 results, underscoring a fifth straight quarter of comparable restaurant sales growth and a notable 9% jump in adjusted EBITDA year over year. Even with the prior year’s extra 53rd week making year-over-year comparisons challenging, the company's performance signals operational improvements in labor efficiency and menu pricing that are delivering tangible results.
Q4: Underlying Restaurant Sales Rise, but Net Income Slides on Non-Recurring Costs
For the quarter ended August 1, 2025, total revenue landed at $868 million, a reported decrease of 2.9% from the previous year due to the absence of last year’s extra week. Stripping out that 53rd week, revenue actually grew 4.4%, and comparable store restaurant sales climbed by 5.4%. The improvement was driven by strategic price adjustments and a more favorable menu mix.
However, GAAP net income declined significantly, weighed by $16.2 million in impairment and store closing costs. Adjusted net income, which excludes these non-recurring items, fell modestly, down 24.1% year-over-year. Adjusted EBITDA—a key profitability metric—rose 8% after adjusting for the prior year’s 53rd week benefit, demonstrating better cost control and margin expansion despite ongoing industry headwinds.
| Q4 Metric | 8/1/25 | 8/2/24 | % Change Adjusted (ex-53rd week) |
|---|---|---|---|
| Revenue | $868.0M | $894.4M | +4.4% |
| GAAP Net Income | $6.8M | $18.1M | -46.6% |
| Adjusted EBITDA | $55.7M | $57.4M | +8.0% |
| Adjusted EPS (Diluted) | $0.74 | $0.98 | +0.8% |
| Comparable Restaurant Sales | +5.4% | ||
Full Year Results Highlight Resilience, but Margins Remain Thin
CBRL closed out the year with $3.48 billion in revenue—a 2.2% rise on an adjusted basis. The company also grew its full-year GAAP net income by 30.9% after normalizing for the 53rd week, while adjusted EBITDA was up 9.0%. Profitability, though improved, still appears slim, with a 6.4% adjusted EBITDA margin and GAAP net income margin at just 1.3% for the year.
| Full Year Metric | 2025 | 2024 | % Change Adjusted (ex-53rd week) |
|---|---|---|---|
| Revenue | $3.48B | $3.47B | +2.2% |
| GAAP Net Income | $46.4M | $40.9M | +30.9% |
| Adjusted EBITDA | $224.3M | $211.6M | +9.0% |
| Adjusted EPS (Diluted) | $3.16 | $3.52 | -3.4% |
Capital Allocation and Balance Sheet: New Buyback Program and Dividend Announced
Management remains committed to capital returns, authorizing a new $100 million share buyback and a $0.25 per share dividend, both signaling confidence even as debt increased to $484.6 million. Liquidity stood at $555.6 million at fiscal year-end. Most capital investment focused on store maintenance and strategic upgrades, with $135 million to $150 million planned for fiscal 2026.
2026 Outlook: Sales May Cool, Cost Pressures Loom, Store Footprint Shifts
CBRL’s guidance for fiscal 2026 is conservative, with revenue projected at $3.35 billion to $3.45 billion—implying a flat or slightly declining top line. The outlook bakes in a 4% to 7% comparable store traffic decline and tighter margins: adjusted EBITDA is forecast in the range of $150 million to $190 million, with inflation continuing to drive up commodity and labor costs. Two new stores are planned, but 14 Maple Street Biscuit units are set for closure.
Here’s a look at the 2026 guidance range:
| Metric | 2026 Guidance |
|---|---|
| Total Revenue | $3.35B – $3.45B |
| Adjusted EBITDA | $150M – $190M |
| Commodity Inflation | 2.5% – 3.5% |
| Hourly Wage Inflation | 3.0% – 4.0% |
| Store Changes | 2 openings, 14 Maple Street closures |
Key Takeaways: Adjusted EBITDA Growth Contrasted by Softer 2026 Expectations
Cracker Barrel has shown solid progress in driving higher restaurant sales and operating efficiencies in fiscal 2025. But management’s cautious 2026 outlook highlights a challenging environment: lower guest traffic and rising costs could pressure margins, even as shareholder returns continue through dividends and a substantial buyback authorization. For investors, fiscal discipline and the impact of forthcoming store closures will be critical watchpoints as CBRL moves into its next fiscal year.
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