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1. Company Snapshot

1.a. Company Description

Cracker Barrel Old Country Store, Inc.develops and operates the Cracker Barrel Old Country Store concept in the United States.The company's Cracker Barrel stores consist of a restaurant with a gift shop.


Its restaurants serve breakfast, lunch, and dinner, as well as dine-in, pick-up, and delivery services.The company's gift shops comprise various decorative and functional items, such as rocking chairs, seasonal gifts, apparel, toys, cookware, and various other gift items, as well as various candies, preserves, and other food items.As of September 15, 2021, it operated 664 Cracker Barrel stores in 45 states.


The company was founded in 1969 and is headquartered in Lebanon, Tennessee.

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1.b. Last Insights on CBRL

Cracker Barrel's recent performance has been negatively impacted by a series of challenges. The company's logo change and rebranding efforts have been met with significant backlash, leading to a decline in customer traffic and sales. The Q4 earnings miss and weak guidance for FY 2026 have further exacerbated concerns. Additionally, proxy advisory firms ISS, Glass Lewis, and Egan-Jones have recommended that shareholders vote against the election of certain incumbent directors, citing faulty marketing expertise and poor governance. The company's financial underperformance, operational challenges, and management execution failures have also been highlighted as areas of concern.

1.c. Company Highlights

2. Cracker Barrel's Q4 Earnings: A Closer Look

Cracker Barrel reported Q4 revenue of $868M, with restaurant revenue at $718.2M and retail sales at $149.8M. Adjusted EBITDA was $55.7M, up 8% excluding the 53rd week effect. Comparable store sales grew 5.4%, driven by 5.4% pricing. EPS came in at $0.74, slightly below estimates of $0.78. The company's guidance for 2026 includes revenue of $3.35B-$3.45B and adjusted EBITDA of $150M-$190M.

Publication Date: Sep -23

📋 Highlights
  • Q4 Revenue: Total revenue of $868M, with adjusted EBITDA of $55.7M (6.4% of revenue), up 8% excluding the 53rd-week effect in 2024.
  • Comparable Store Sales: Grew 5.4% in Q4, driven by 5.4% price increases, but retail sales declined 0.8%.
  • 2026 Guidance: Revenue projected at $3.35B–$3.45B with adjusted EBITDA of $150M–$190M, reflecting 4%–7% annual traffic declines and reinvestment in marketing.
  • Brand Strategy: Reverted to heritage branding (old-timer logo) and paused store remodels after customer backlash; food quality and service improvements remain priorities.
  • Capital Allocation: $135M–$150M in 2026 CapEx for maintenance and tech, alongside $100M share repurchase authorization and $345M convertible debt issuance.

Financial Performance

The company's financial performance was marked by a 5.4% comparable store sales growth, driven by pricing. Retail sales declined 0.8%. Capital expenditures for 2025 totaled $158.6M, including $105M in maintenance and $20M in remodels. Debt net of cash was $445M, down $19.6M YoY. A $345M convertible debt issuance and a $100M share repurchase program were announced.

Strategic Shifts

Cracker Barrel is pivoting to re-emphasize heritage, nostalgia, and food quality after customer feedback on recent brand changes. The company reversed logo and store design updates, paused remodels at 4 locations, and prioritized menu improvements. The loyalty program grew to 9M members, with recent gains of 400K members in Q1. Food and service improvements, including back-of-house optimizations and The Herschel Way service standards, are central to recovery.

Outlook and Valuation

For 2026, the company expects traffic declines (-4% to -7% annually) and reinvestments in marketing. Capital spending targets $135M-$150M, focused on maintenance and technology. The current P/E Ratio is 16.97, and the EV/EBITDA is 12.44. The Dividend Yield is 2.27%, indicating a relatively stable return for investors.

Key Takeaways

The company's focus on heritage-driven branding, operational excellence, and food quality improvements aims to regain growth. While traffic trends indicate an 8% decline post-logo change, the company hopes for sequential improvement. The strategic focus remains on disciplined improvements and guest retention.

3. NewsRoom

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Countdown to Cracker Barrel (CBRL) Q1 Earnings: A Look at Estimates Beyond Revenue and EPS

Dec -04

Source: zacks.com

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Hyster-Yale (NYSE:HY) Shares Acquired Rep. Tim Moore

Dec -04

Source: defenseworld.net

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Rep. Tim Moore Purchases Shares of Genprex (NASDAQ:GNPX)

Dec -04

Source: defenseworld.net

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Rep. Tim Moore Sells Off Shares of Harley-Davidson, Inc. (NYSE:HOG)

Dec -04

Source: defenseworld.net

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Harley-Davidson (NYSE:HOG) Shares Acquired Rep. Tim Moore

Dec -04

Source: defenseworld.net

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LGI Homes (NASDAQ:LGIH) Shares Unloaded Rep. Tim Moore

Dec -04

Source: defenseworld.net

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Rep. Tim Moore Sells Off Shares of Verizon Communications Inc. (NYSE:VZ)

Dec -04

Source: defenseworld.net

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Rep. Tim Moore Sells Off Shares of Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)

Dec -04

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.12%)

6. Segments

Restaurant

Expected Growth: 1.2%

Cracker Barrel's 1.2% growth is driven by increasing off-premise sales, menu innovation, and effective marketing strategies. Additionally, the company's focus on convenience, including curbside pickup and delivery, has contributed to the growth. Furthermore, Cracker Barrel's strong brand reputation and loyal customer base have also supported the segment's growth.

Retail

Expected Growth: 0.8%

Cracker Barrel's retail segment growth of 0.8% is driven by increased sales of nostalgic and unique items, strategic pricing, and effective inventory management. Additionally, the company's focus on e-commerce and omnichannel experiences has contributed to the growth. Furthermore, the brand's strong marketing efforts and loyalty programs have helped to attract and retain customers, resulting in a steady increase in retail sales.

7. Detailed Products

Homestyle Cooking

Cracker Barrel's restaurants serve classic American comfort food, including breakfast items, sandwiches, salads, and entrees

Retail Goods

Cracker Barrel's retail stores offer a wide range of products, including clothing, accessories, home decor, and souvenirs

Bakery and Coffee

Cracker Barrel's in-store bakeries offer freshly baked goods, including pies, cakes, and cookies, as well as specialty coffee drinks

Gift Cards

Cracker Barrel offers gift cards that can be used in-store or online

Catering Services

Cracker Barrel offers catering services for events and gatherings

Online Shopping

Cracker Barrel's e-commerce platform allows customers to shop online for retail goods and have them shipped directly to their doorstep

8. Cracker Barrel Old Country Store, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Cracker Barrel's menu items and retail products are moderately substitutable with those of its competitors. While customers may find similar products elsewhere, Cracker Barrel's unique blend of Southern-style cooking and rustic, country-themed retail offerings helps to differentiate it from competitors.

Bargaining Power Of Customers

Cracker Barrel's customers have relatively low bargaining power due to the company's strong brand recognition and loyal customer base. Additionally, the company's unique retail offerings and restaurant menu items make it difficult for customers to find suitable alternatives.

Bargaining Power Of Suppliers

Cracker Barrel's suppliers have relatively low bargaining power due to the company's large scale and diversified supply chain. The company's ability to negotiate prices and terms with suppliers helps to mitigate supplier power.

Threat Of New Entrants

The threat of new entrants in the casual dining and retail industries is relatively low due to the high barriers to entry, including significant capital requirements and the need for a strong brand presence. Cracker Barrel's established brand and loyal customer base also make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The intensity of rivalry in the casual dining and retail industries is high, with many established competitors vying for market share. Cracker Barrel faces intense competition from other casual dining chains and retailers, which can lead to pricing pressure and advertising wars.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 70.63%
Debt Cost 3.95%
Equity Weight 29.37%
Equity Cost 11.33%
WACC 6.11%
Leverage 240.53%

11. Quality Control: Cracker Barrel Old Country Store, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Flanigan's

A-Score: 5.3/10

Value: 8.1

Growth: 3.7

Quality: 5.1

Yield: 4.0

Momentum: 7.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
RAVE

A-Score: 5.3/10

Value: 5.0

Growth: 6.0

Quality: 8.8

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Biglari

A-Score: 4.8/10

Value: 4.2

Growth: 2.3

Quality: 5.9

Yield: 0.0

Momentum: 10.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Cannae Holdings

A-Score: 4.7/10

Value: 8.4

Growth: 1.6

Quality: 3.8

Yield: 3.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Cracker Barrel

A-Score: 4.6/10

Value: 6.3

Growth: 3.3

Quality: 2.8

Yield: 7.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Ark Restaurants

A-Score: 3.1/10

Value: 9.6

Growth: 2.1

Quality: 2.4

Yield: 1.0

Momentum: 0.5

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.73$

Current Price

27.73$

Potential

-0.00%

Expected Cash-Flows