CRACKER BARREL REPORTS FOURTH QUARTER AND FULL YEAR FISCAL 2025 RESULTS AND PROVIDES OUTLOOK

Cracker Barrel President and Chief Executive Officer Julie Masino said, “We thank our guests for sharing their voices and their passion for Cracker Barrel in recent weeks, and we’ve listened, switching back to our ‘Old Timer’ logo, hitting pause on remodels, and placing an even bigger emphasis in the kitchen and other areas that enhance the guest experience. Many elements of our plan are working well and delivering results, as evidenced by five consecutive quarters of comparable store restaurant sales increases and 9% adjusted EBITDA growth in fiscal 2025. Looking ahead, there is much to be optimistic about, and our teams are focused on getting back to the momentum we created last fiscal year.”

Fourth Quarter Fiscal 2025 Highlights

• Total revenue was $868.0 million. Compared to the prior year fourth quarter, which included a benefit of $62.8 million related to the 53rd week of the prior fiscal year, total revenue decreased 2.9%. Adjusting for the impact of the 53rd week in the prior year quarter, current year quarter revenue increased 4.4%.
  • Comparable store restaurant sales increased 5.4% over the prior year quarter, and comparable store retail sales decreased 0.8%.
• GAAP earnings per diluted share were $0.30, and adjusted1 earnings per diluted share were $0.74.
• GAAP net income was $6.8 million compared to the prior year quarter GAAP net income of $18.1 million. GAAP net income in the prior year quarter includes a benefit of $5.5 million related to the 53rd week. Adjusting for the impact of the 53rd week in the prior year quarter, current year quarter net income decreased 46.6%.
• Adjusted EBITDA¹ was $55.7 million compared to the prior year quarter adjusted EBITDA¹ of $57.4 million. Adjusted EBITDA¹ in the prior year quarter includes a benefit of $5.8 million related to the 53rd week. Adjusting for the impact of the 53rd week in the prior year quarter, current year quarter adjusted EBITDA¹ increased 8.0% primarily due to higher sales driven by strategic pricing increases and favorable menu mix as well as lower labor and related expenses driven by improved labor productivity, partially offset by higher advertising expense and general and administrative expenses.

Full Year Fiscal 2025 Highlights

• Total revenue was $3.48 billion. Compared to the prior year which included a benefit of $62.8 million related to the 53rd week, total revenue increased 0.4%. Adjusting for the impact of the 53rd week in the prior year, current year revenue increased 2.2%.
• GAAP earnings per diluted share were $2.06, and adjusted1 earnings per diluted share were $3.16.
• GAAP net income was $46.4 million compared to the prior year GAAP net income of $40.9 million. GAAP net income in the prior year includes a benefit of $5.5 million related to the 53rd week. Adjusting for the impact of the 53rd week in the prior year, current year net income increased 30.9%.
• Adjusted EBITDA¹ was $224.3 million, compared to the prior year adjusted EBITDA¹ of $211.6 million. Adjusted EBITDA¹ in the prior year includes a benefit of $5.8 million related to the 53rd week. Adjusting for the impact of the 53rd week in the prior year, current year adjusted EBITDA¹ increased 9.0%, primarily due to higher sales driven by strategic pricing increases and favorable menu mix as well as lower labor and related expenses driven by improved productivity, partially offset by a decrease in comparable store traffic and higher advertising expense and general and administrative expenses.

Balance Sheet & Capital Allocation

• In fiscal 2025, the Company invested $158.6 million in capital expenditures, composed of approximately $105 million in store maintenance, $20 million related to remodels, $19 million associated with technology and other strategic initiatives, and $15 million for new stores.
• As previously disclosed, during the fourth quarter of fiscal 2025 the Company completed the issuance and sale of $345 million aggregate principal amount of 1.75% Convertible Senior Notes due in 2030.
• The Company ended fiscal 2025 with total debt of $484.6 million, comprised of $149.2 million of short-term debt related to its 0.625% Convertible Senior Notes due 2026 and $335.4 million of long-term debt related to its 1.75% Convertible Senior Notes due 2030.
• The Company ended fiscal 2025 with a consolidated total leverage ratio³ of 2.0x and available liquidity³ of $555.6 million.
• The Company announced that its Board of Directors declared a quarterly dividend of $0.25 per share of the Company’s common stock. The quarterly dividend is payable on November 12, 2025 to shareholders of record as of October 17, 2025.
• The Company also today announced that its Board of Directors authorized a new share repurchase program under which the Company may repurchase up to $100 million of its outstanding common stock.

Outlook

The Company provided the following outlook for fiscal 2026, which reflects current business trends as of the date of this release and replaces all previous guidance or projections, including with respect to fiscal 2027:

• Total revenue of $3.35 billion to $3.45 billion, which assumes a comparable store traffic decline of 4% to 7%
• Adjusted EBITDA1 of $150 million to $190 million²
• Commodity inflation of 2.5% to 3.5%
• Hourly wage inflation of 3.0% to 4.0%
• Capital expenditures of $135 million to $150 million, the majority of which is related to maintenance and includes no spending on new remodels
• 2 new Cracker Barrel stores
• The closure of 14 Maple Street units

¹ Adjusted net income, adjusted EBITDA, and adjusted earnings per diluted share are non-GAAP financial measures. For definitions of these non-GAAP measures and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures, please refer to the Reconciliation of GAAP-Basis Operating Results to Non-GAAP Operating Results section of this release

² The Company has determined to provide guidance focused on adjusted EBITDA because the Company believes it will be more useful to investors to evaluate the Company’s performance prior to the impact of depreciation (given the expected increase in investments and the resulting higher expected depreciation expense), taxes, impairment charges, and other items that management believes are not reflective of the Company’s current operations. The Company is not able to reconcile the forward-looking estimate of adjusted EBITDA set forth above to a forward-looking estimate of net income, the most directly comparable estimated measure calculated in accordance with GAAP, without unreasonable efforts because the Company is unable to predict, forecast or determine the probable significance of certain items impacting these estimates, including interest expense, taxes, impairment charges and share-based compensation, with a reasonable degree of accuracy. Accordingly, the most directly comparable forward-looking GAAP estimate is not provided.

³ Consolidated total leverage is defined as total debt divided by adjusted EBITDA1 (as defined under our revolving credit facility). Available liquidity is defined as cash and cash equivalents on hand plus revolving credit facility capacity less amount drawn on revolving credit facility and standby letters of credit.

Fiscal 2025 Fourth Quarter Conference Call

As previously announced, the live broadcast of Cracker Barrel’s quarterly conference call will be available to the public online at investor.crackerbarrel.com today beginning at 5:00 p.m. (ET). The online replay will be available tomorrow and through October 2, 2025.

Click HERE to read the full release.