Cracker Barrel Old Country Store, Inc. reported a total revenue of $949.4 million for the quarter ended January 31, 2025, reflecting a 1.5% increase from $935.4 million in the same quarter of the previous year. For the first six months of fiscal 2025, revenue rose to $1.79 billion, up 2.0% from $1.76 billion in the prior year. The company's net income for the quarter was $22.2 million, or $1.00 per share, compared to $26.5 million, or $1.20 per share, in the same quarter last year. For the first half of the fiscal year, net income decreased to $27.1 million from $32.0 million in the previous year.
The financial performance indicates a decline in profitability, with operating income for the second quarter at $29.1 million, down from $30.8 million a year earlier. The decrease in net income was attributed to higher general and administrative expenses, which rose to $61.7 million from $52.5 million, largely due to increased legal fees and costs associated with a proxy contest. Additionally, the company recorded impairment charges of $2.5 million during the quarter, reflecting the underperformance of certain locations.
Operationally, Cracker Barrel operated 657 locations as of January 31, 2025, a decrease of one store from the previous year. The company also reported a decline in comparable restaurant guest traffic, which fell by 2.7% in the second quarter, attributed to lower consumer demand amid inflationary pressures and higher consumer debt levels. However, the average check per guest increased by 7.4%, driven by menu price increases. Retail sales, which account for 21% of total revenue, saw a slight decline, with comparable store retail sales decreasing by 0.2%.
Looking ahead, Cracker Barrel is focused on its strategic transformation plan, which includes enhancing the menu, evolving the store experience, and improving employee engagement. The company plans to invest between $160 million and $180 million in capital expenditures for fiscal 2025, aimed at store remodels and technology improvements. Despite the challenges posed by the current economic environment, management remains optimistic about long-term growth and profitability, emphasizing the importance of brand strength and customer experience in driving future performance.
About CRACKER BARREL OLD COUNTRY STORE, INC
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