Cracker Barrel’s first quarter results reflected continued efforts to transform its core business and drive operational improvements, as discussed by CEO Julie Masino. Management highlighted that, despite a slow start to the quarter due to weather and consumer uncertainty, the company was able to generate positive comparable restaurant sales and improve productivity through back-of-house optimization. The introduction of new menu items, such as expanded pancake flavors and spring shrimp promotions, played a role in maintaining guest engagement. CFO Craig Pommells emphasized that labor productivity gains and disciplined expense management, particularly in general and administrative costs, helped offset commodity cost pressures—especially from higher beef, egg, and pork prices. Masino described the quarter as a “test and learn” period, reiterating that some benefits from operational changes are only just beginning to materialize.
Is now the time to buy CBRL? Find out in our full research report (it’s free).
Cracker Barrel (CBRL) Q1 CY2025 Highlights:
- Revenue: $821.1 million vs analyst estimates of $824.5 million (flat year on year, in line)
- Adjusted EPS: $0.58 vs analyst estimates of $0.21 (significant beat)
- Adjusted EBITDA: $48.12 million vs analyst estimates of $41.1 million (5.9% margin, 17.1% beat)
- The company reconfirmed its revenue guidance for the full year of $3.48 billion at the midpoint
- EBITDA guidance for the full year is $220 million at the midpoint, above analyst estimates of $212.6 million
- Operating Margin: 1.8%, up from -2.4% in the same quarter last year
- Locations: 728 at quarter end, up from 721 in the same quarter last year
- Same-Store Sales rose 1% year on year (-1.5% in the same quarter last year)
- Market Capitalization: $1.33 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Cracker Barrel’s Q1 Earnings Call
- Jeff Farmer (Gordon Haskett): Asked for clarification on what a "strong start" to Q4 means for same-store sales; management responded they are seeing improving trends but declined to provide specific numbers, citing positive guest response to Campfire promotions.
- Todd Brooks (The Benchmark Company): Asked about expense management and G&A expense trends; CFO Craig Pommells explained that discretionary projects were adjusted in Q3, and G&A in Q4 will be more consistent with earlier quarters, including some deferred spending.
- Todd Brooks (The Benchmark Company): Sought more detail on pricing and mix contribution; management explained the average check rose 6.6%, with 4.9% from pricing and 1.7% from product mix, driven by new menu offerings.
- Jake Bartlett (Truist Securities): Inquired why EBITDA guidance was raised despite flat sales guidance and new tariff headwinds; management attributed improved outlook to labor productivity gains and cost savings offsetting incremental tariff costs.
- Brian Mullan (Piper Sandler): Asked about the expected permanence of labor cost reductions from back-of-house optimization and plans for future remodels; management said benefits from phase one are just starting and will be more fully realized in future quarters, with more details on remodels to come in September.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will focus on (1) the effectiveness of brand refinement initiatives and the return of Campfire Meals in driving guest traffic and frequency, (2) the company’s ability to offset tariff-related retail cost pressures through SKU rationalization and vendor negotiations, and (3) the sustained impact of back-of-house optimization on labor costs and operational consistency. Progress in these areas will be key indicators of transformation plan execution.
Cracker Barrel currently trades at $60.12, up from $57.79 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
