A month has gone by since the last earnings report for Cracker Barrel Old Country Store (CBRL). Shares have lost about 7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cracker Barrel due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Cracker Barrel Old Country Store, Inc. before we dive into how investors and analysts have reacted as of late.
Cracker Barrel Q2 Earnings Beat Estimates, Revenues Down Y/Y
Cracker Barrel reported second-quarter fiscal 2026 results, wherein the bottom line surpassed the Zacks Consensus Estimate, but revenues missed the same. Both metrics declined on a year-over-year basis.
Cracker Barrel's second-quarter fiscal 2026 results were pressured by a decline in total revenues, primarily due to lower comparable restaurant and retail sales. Profitability was further affected by higher labor and store operating expenses as a percentage of revenues, which weighed on overall margins.
Management noted that the company is currently focused on operational excellence to drive improvements in key guest metrics and traffic indicators. To bolster financial performance and regain prior momentum, the company is taking additional strategic actions and executing a corporate restructuring initiative. Despite these ongoing headwinds, management remains confident that the brand is well-positioned for recovery.
Q2 Earnings & Revenues of Cracker Barrel
For second-quarter fiscal 2026, the company reported adjusted earnings per share (EPS) of 25 cents, surpassing the Zacks Consensus Estimate of a loss of 10 cents. In the year-ago quarter, the company reported an adjusted EPS of $1.38.
Quarterly revenues of $874.8 million missed the consensus mark of $896 million. The top line decreased 7.9% year over year.
CBRL's Comps Details
Comparable-store restaurant sales decreased 7.1% in the reported quarter compared with the same period in fiscal 2025. Comparable-store retail sales decreased 9.2% year over year.
Q2 Operating Highlights of CBRL
In the fiscal second quarter, the cost of goods sold (excluding depreciation and rent) was $292.7 million, which was down 6% year over year. As a percentage of total revenues, the cost of goods sold (excluding depreciation and rent) increased 90 basis points year over year to 33.5%. Per our model, the metric was pegged at 32.7%.
General and administrative expenses totaled $48 million, down 22% year over year. Our prediction for the metric was $53.8 million.
Adjusted net income in the fiscal second quarter amounted to $5.6 million against $30.9 million reported in the year-ago quarter. Our prediction for the metric was $0.5 million.
Balance Sheet of CBRL
As of Jan. 30, 2026, cash and cash equivalents were $8.6 million compared with $10.3 million as of Jan. 31, 2025.
Inventory at the fiscal second-quarter end reached $180.3 million, up 4.3% year over year.
Long-term debt as of Jan. 30, 2026, was $381.8 million compared with $471.5 million as of Jan. 31, 2025.
Cracker Barrel declared a cash dividend of 25 cents per share. The dividend will be paid out on May 13, 2026, to its shareholders on record as of April 10.
CBRL’s FY26 Revised Guidance
For fiscal 2026, the company expects revenues in the range of $3.24-$3.27 billion compared with the prior estimate of $3.2-$3.3 billion. Adjusted EBITDA is projected to be $85 million to $100 million, versus the earlier guidance range of $70 million to $110 million.
Management now anticipates commodity inflation of 2-2.5%, down from the previous expectation of 2.5-3.5%. Hourly wage inflation is also expected to moderate to 2.5-3%, compared with the prior estimate of 3-4%.
Capital expenditures are envisioned in the range of $105-$115 million, down from the earlier projection of $110 million to $125 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted -13.68% due to these changes.
VGM Scores
At this time, Cracker Barrel has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Cracker Barrel has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Cracker Barrel is part of the Zacks Retail - Restaurants industry. Over the past month, BJ's Restaurants (BJRI), a stock from the same industry, has gained 0%. The company reported its results for the quarter ended December 2025 more than a month ago.
BJ's Restaurants reported revenues of $355.4 million in the last reported quarter, representing a year-over-year change of +3.2%. EPS of $0.66 for the same period compares with $0.47 a year ago.
BJ's Restaurants is expected to post earnings of $0.62 per share for the current quarter, representing a year-over-year change of +5.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for BJ's Restaurants. Also, the stock has a VGM Score of A.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
