Cracker Barrel Old Country Store, Inc. reported a decline in financial performance for the third quarter and first nine months of fiscal 2026, as detailed in its latest 10-Q filing. Total revenue for the quarter ended May 1, 2026, was $797.4 million, a decrease of 2.9% from $821.1 million in the same quarter of the previous year. For the nine-month period, revenue fell 5.6% to $2.47 billion from $2.62 billion. The company recorded a net income of $42.8 million for the quarter, significantly up from $12.6 million a year earlier, largely due to a $47.4 million litigation settlement income. However, net income for the nine months was $19.5 million, down from $39.6 million in the prior year.
The filing highlights several operational changes, including a decrease in customer traffic, which the company attributes to negative publicity surrounding recent brand initiatives, such as a new logo and store remodels. Comparable store restaurant sales decreased by 2.6% for the quarter and 4.9% for the nine months, while retail sales also saw declines. The average check per guest increased by 4.3% in the quarter, indicating that while fewer customers visited, those who did spent more. The company operated 657 Cracker Barrel locations and 52 Maple Street Biscuit Company (MSBC) locations as of May 1, 2026.
Cracker Barrel's cost management strategies showed some effectiveness, as the cost of goods sold (COGS) decreased as a percentage of revenue. COGS for the quarter was $240.9 million, down from $247.3 million a year prior, reflecting a reduction in restaurant COGS as a percentage of restaurant revenue. Labor and related expenses, however, increased to 37.9% of total revenue, up from 37.1% in the previous year, primarily due to lower productivity and a decrease in total revenue.
Looking ahead, Cracker Barrel's management expressed caution regarding the macroeconomic environment, citing inflationary pressures and high consumer debt levels as potential challenges. The company plans to focus on enhancing guest experiences and improving operational efficiency to drive traffic and profitability. Capital expenditures are expected to range between $105 million and $115 million for the fiscal year, aimed at maintaining existing stores and opening new locations. The company remains committed to leveraging its brand strength while navigating the current economic landscape.
About CRACKER BARREL OLD COUNTRY STORE, INC
Cracker Barrel Old Country Store, Inc. operates a chain of full-service restaurants and retail gift shops offering home-style country food and nostalgic merchandise. Its core markets include travelers and local customers across the U.S., emphasizing quality, value, and hospitality. The company leverages a distinctive rustic store design, a diversified menu, and retail merchandise to create a unique guest experience and drive revenue through dine-in, takeout, delivery, and retail sales.
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