Cracker Barrel Reports Revenue Growth and Net Income Recovery in Q3 Fiscal 2025

Cracker Barrel Old Country Store, Inc. reported a slight increase in total revenue for the third quarter and first nine months of fiscal 2025, with figures reaching $821.1 million and $2.62 billion, respectively. This represents a 0.5% increase for the quarter and a 1.5% increase year-to-date compared to the same periods in the previous fiscal year. The company's net income for the quarter was $12.6 million, translating to earnings of $0.56 per share, a significant recovery from a net loss of $9.2 million, or $(0.41) per share, in the same quarter last year. For the nine-month period, net income rose to $39.6 million from $22.8 million in the prior year.

The financial performance reflects a strategic focus on enhancing restaurant operations, which saw revenue growth of 1.0% in comparable store sales, driven primarily by an increase in average check size. However, retail sales experienced a decline of 3.8% in comparable store sales, attributed to decreased guest traffic amid challenging macroeconomic conditions, including inflation and high consumer debt levels. The company operated 658 Cracker Barrel locations and 70 Maple Street Biscuit Company (MSBC) locations as of May 2, 2025, maintaining its footprint across 43 states.

Operationally, Cracker Barrel has been investing in its strategic transformation plan, which includes remodeling existing stores and enhancing the guest experience. The company plans to complete 25-30 remodels and refreshes in 2025. Additionally, the company has been focusing on digital engagement through its Cracker Barrel Rewards loyalty program, which aims to drive customer frequency and engagement. The total employee headcount remained stable, with ongoing efforts to improve training and development programs.

The company’s balance sheet showed total assets of $2.14 billion, a decrease from $2.16 billion in the previous fiscal year. Current liabilities also decreased to $423.0 million from $454.2 million, while total shareholders' equity increased to $469.3 million from $440.1 million, reflecting improved profitability and effective cost management. Cracker Barrel's long-term debt stood at $489.4 million, up from $476.6 million, as the company continues to manage its capital structure amid ongoing investments.

Looking ahead, Cracker Barrel anticipates continued challenges from inflation and changing consumer behaviors but remains committed to its long-term growth strategy. The company has recently entered into a new five-year $800 million credit facility to support its operational and strategic initiatives. Management believes that the combination of cash on hand, operational cash flow, and borrowing capacity will be sufficient to meet its financial obligations and support future growth.