Cracker Barrel Reports $845.1 Million Revenue in Q1 Fiscal 2025, Net Income Declines

Cracker Barrel Old Country Store, Inc. reported a total revenue of $845.1 million for the first quarter of fiscal 2025, reflecting a 2.6% increase from $823.8 million in the same period last year. The company's net income for the quarter was $4.8 million, or $0.22 per diluted share, down from $5.5 million, or $0.25 per diluted share, in the prior year. The decline in profitability was attributed to increased costs, including a rise in general and administrative expenses, which grew to $59.6 million from $48.7 million, largely due to legal settlements and costs associated with a proxy contest.

In terms of operational performance, Cracker Barrel's restaurant revenue increased to $683.3 million, up from $660.8 million, while retail revenue decreased slightly to $161.8 million from $163.0 million. The company experienced a 2.9% increase in comparable store restaurant sales, driven by a 5.8% rise in average check size, although this was offset by a 2.9% decrease in guest traffic. The retail segment faced challenges, with comparable store sales declining by 1.6%, attributed to lower consumer demand amid macroeconomic pressures such as inflation and high interest rates.

Cracker Barrel continues to expand its footprint, operating 658 locations in 44 states and 69 Maple Street Biscuit Company (MSBC) locations across ten states as of November 1, 2024. The company has plans to remodel 25-30 stores in 2025 as part of its strategic transformation plan, which aims to enhance the customer experience and drive profitability. The company also reported an increase in inventory levels to $201.9 million, up from $181.0 million, reflecting preparations for the holiday season.

The company’s financial position remains stable, with total assets of $2.2 billion and total liabilities of $1.8 billion as of November 1, 2024. Cracker Barrel's long-term debt increased to $527.0 million from $476.6 million, primarily due to borrowings under its $700 million revolving credit facility. The company reported compliance with all financial covenants associated with this facility, which provides sufficient liquidity to support ongoing operations and strategic initiatives.

Looking ahead, Cracker Barrel anticipates continued challenges from inflation and changing consumer behaviors but remains focused on long-term growth. The company plans to invest between $600,000 and $700,000 in capital expenditures over the next three years, with a significant portion allocated to store remodels and technology improvements. Management believes that these initiatives, combined with a strong brand and customer loyalty programs, will position the company for future success despite current economic headwinds.