Cracker Barrel Old Country Store reported $849.3 million in revenue for the fourth quarter of fiscal 2026, representing a 2.2% decline year over year. Despite lower sales, the company reported higher quarterly earnings and adjusted EBITDA following changes to its operating strategy and several significant balance sheet transactions.
The results come as Cracker Barrel begins fiscal 2027 under David Deno, who became President and CEO on August 10, 2026.
For the quarter ended July 31, 2026, comparable-store restaurant sales declined 2.1%, while comparable-store retail sales increased 0.7%.
The company generated $12.2 million in GAAP net income, compared with $6.8 million in the prior-year quarter.
Diluted earnings increased to $0.54 per share from $0.30, while adjusted diluted earnings reached $0.99 per share, compared with $0.74 a year earlier.
Adjusted EBITDA increased to $62.1 million from $55.7 million. However, the latest quarterly result included approximately $9.1 million in benefits related to tariff refunds, net of associated investments.
Cracker Barrel’s fourth-quarter results included contributions from Maple Street Biscuit Company through July 20, 2026, when Cracker Barrel completed the divestiture of the business.
For the full fiscal year, Cracker Barrel reported approximately $3.32 billion in revenue, compared with $3.48 billion in fiscal 2025.
Annual net income declined to $31.7 million from $46.4 million, while adjusted net income decreased to $18 million from $70.9 million.
Adjusted EBITDA fell to $147.7 million from $224.3 million, while adjusted diluted earnings declined to $0.80 per share from $3.16.
The annual results reflect a difficult operating environment and changes to the company’s business portfolio.
Cracker Barrel also completed several transactions intended to strengthen its balance sheet and reduce outstanding debt.
During the fourth quarter, the company sold and leased back 26 company-owned restaurant properties, generating approximately $77 million in net proceeds.
Those proceeds were used to reduce debt. The transaction also allowed Cracker Barrel to utilize capital loss carryforwards that would otherwise have expired.
The company separately repaid $150 million in short-term debt associated with its 0.625% convertible senior notes, which matured in June 2026.
Cracker Barrel ended fiscal 2026 with $337.2 million in total debt, compared with $484.6 million at the end of the previous fiscal year.
Its remaining debt consists of 1.75% convertible senior notes due in 2030.
The company reported no outstanding borrowings under its revolving credit facility at year-end, leaving approximately $541.3 million in available borrowing capacity.
Its consolidated total leverage ratio stood at 1.7 times, while its consolidated senior leverage ratio was zero.
Under Deno’s leadership, Cracker Barrel is focusing its strategy on improving food quality, restaurant experiences, and employee engagement.
Management indicated that underlying customer traffic trends and certain guest experience metrics improved during the quarter, although comparable restaurant sales remained negative.
Looking ahead, Cracker Barrel expects fiscal 2027 revenue between $3.325 billion and $3.4 billion.
The outlook assumes 3% to 5% comparable-store restaurant sales growth and no new store openings.
Adjusted EBITDA is expected to reach $180 million to $200 million, compared with $147.7 million in fiscal 2026.
The company anticipates approximately 3% commodity inflation and 2.5% to 3% hourly wage inflation.
Capital expenditures are projected between $110 million and $125 million.
Cracker Barrel’s board also declared a quarterly dividend of $0.25 per share, payable November 12, 2026, to shareholders of record on October 16.
KEY QUOTE:
“I’m honored to lead such a differentiated and iconic brand. The Company is focused on the right areas and has a strong plan, as demonstrated by the continued improvements in the underlying traffic trend, key guest metrics, and EBITDA results. I am excited about the opportunity ahead and confident that our strategic priorities around food, experience, and people will sustain this momentum and drive long-term value creation.”
David Deno, President and CEO of Cracker Barrel
