CBRL

It has been about a month since the last earnings report for Cracker Barrel Old Country Store (CBRL). Shares have added about 29.8% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Cracker Barrel due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Cracker Barrel Old Country Store, Inc. before we dive into how investors and analysts have reacted as of late. Cracker Barrel posted fourth-quarter fiscal 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line declined year over year, while the bottom line increased. Adjusted earnings were 99 cents per share, up 33.8% year over year and beating the consensus estimate of 20 cents by 395%. Revenues declined 2.2% to $849.30 million but topped the consensus mark of $831 million by 2.2%. Comparable store restaurant sales fell 2.1%, while retail comps rose 0.7%. Adjusted EBITDA increased 11.4%, aided by about $9.1 million of tariff refunds, net of investments. For Cracker Barrel stores, revenues were $836.99 million compared with $849.73 million a year earlier, down 1.5%. Restaurant revenues decreased 2% to $686.20 million, while retail revenues increased 0.7% to $150.80 million. At the consolidated level, restaurant sales represented 82.2% of revenues compared with 82.7% a year ago, while retail represented 17.8% compared with 17.3%. Restaurant average unit volume declined 1.8% to $1,045.2 thousand from $1,064.3 thousand. Retail average unit volume rose 0.9% to $229.7 thousand from $227.7 thousand, underscoring the stronger retail trend during the quarter. CBRL's cost of goods sold, excluding depreciation and rent, fell 7.9% to $244.21 million. As a share of revenues, the line decreased to 28.8% from 30.5%. Other store operating expenses declined 6.8% to $201.64 million, with the ratio easing to 23.7% from 24.9%. Within Cracker Barrel stores, restaurant cost of goods sold decreased 3.2% to $178.21 million, while retail cost of goods sold fell 17.8% to $62.77 million. Labor and other related expenses rose 0.6% to $318.20 million, representing 37.5% of revenues compared with 36.5%. General and administrative expense jumped 29.9% to $65.18 million, or 7.7% of revenues compared with 5.8%. Fiscal fourth-quarter consolidated results included Maple Street Biscuit Company through its July 20 divestiture. It opened one namesake store and closed or divested three during the quarter, ending with 655 Cracker Barrel locations compared with 657 a year ago. The company sold 35 MSBC locations and closed the remaining 16 after one earlier closure. Total stores ended at 655 compared with 725 a year earlier. GAAP net income increased to $12.20 million from $6.75 million. Reported results included a $47.42 million net gain on the sale-leaseback transaction, a $27.04 million loss on the sale of MSBC, $21.55 million of Cracker Barrel and MSBC impairment charges, $5.43 million of MSBC store closing costs and $6.68 million of CEO transition expenses. Adjusted EBITDA margin expanded to 7.3% from 6.4%. Cracker Barrel ended fiscal 2026 with cash and cash equivalents of $36.54 million compared with $39.64 million a year ago. Inventories fell to $163.87 million from $180.59 million, while total assets declined to $2.02 billion from $2.16 billion. Total debt fell to $337.23 million from $484.64 million. The company repaid $150 million of convertible notes that matured in June and deployed approximately $77 million of sale-leaseback proceeds toward debt reduction. It had no outstanding credit facility borrowings and approximately $541.3 million of available capacity at year-end. Operating cash flow was $206.20 million for fiscal 2026 compared with $218.90 million a year earlier. Purchases of property and equipment, net of insurance recoveries, were $115.32 million compared with $158.65 million. CBRL expects fiscal 2027 revenues of $3.325 billion to $3.4 billion, including comparable store restaurant sales growth of 3% to 5%, with no new store openings. Adjusted EBITDA is projected between $180 million and $200 million. Management expects commodity inflation of approximately 3% and hourly wage inflation of 2.5% to 3%. Capital expenditures are projected between $110 million and $125 million. In the past month, investors have witnessed a upward trend in estimates review. The consensus estimate has shifted 100.95% due to these changes. At this time, Cracker Barrel has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cracker Barrel has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Cracker Barrel belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Dave & Buster's (PLAY), has gained 12.7% over the past month. More than a month has passed since the company reported results for the quarter ended July 2026. Dave & Buster's reported revenues of $544.1 million in the last reported quarter, representing a year-over-year change of -2.4%. EPS of -$0.27 for the same period compares with $0.40 a year ago. For the current quarter, Dave & Buster's is expected to post a loss of $1.46 per share, indicating a change of -28.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days. Dave & Buster's has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Looking back on sit-down dining stocks' Q2 earnings, we examine this quarter's best and worst performers, including Cracker Barrel (NASDAQ:CBRL) and its peers. Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants. The 10 sit-down dining stocks we track reported a strong Q2. As a group, revenues beat analysts' consensus estimates by 1.1%. While some sit-down dining stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.9% since the latest earnings results. Known for its country-themed food and merchandise, Cracker Barrel (NASDAQ:CBRL) is a beloved American restaurant and retail chain that celebrates the warmth and charm of Southern hospitality. Cracker Barrel reported revenues of $849.3 million, down 2.2% year on year. This print exceeded analysts' expectations by 1.5%. Overall, it was an exceptional quarter for the company with a beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. Cracker Barrel President and Chief Executive Officer David Deno said, "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." Cracker Barrel delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 36.6% since reporting and currently trades at $62.12. Is now the time to buy Cracker Barrel? Access our full analysis of the earnings results here, it's free. Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory (NASDAQ:CAKE) is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands. The Cheesecake Factory reported revenues of $1.03 billion, up 7.7% year on year, outperforming analysts' expectations by 2.9%. The business had a stunning quarter with a solid beat of analysts' same-store sales estimates and a beat of analysts' EPS estimates. The market seems happy with the results as the stock is up 26.2% since reporting. It currently trades at $112.34. Is now the time to buy The Cheesecake Factory? Access our full analysis of the earnings results here, it's free. Operating a franchise model, Dine Brands (NYSE:DIN) is a casual restaurant chain that owns the Applebee's and IHOP banners. Dine Brands reported revenues of $240.9 million, up 4.4% year on year, exceeding analysts' expectations by 1.7%. Still, it was a mixed quarter as it posted a miss of analysts' EBITDA estimates. As expected, the stock is down 10.4% since the results and currently trades at $31.22. Read our full analysis of Dine Brands's results here. Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes. First Watch reported revenues of $354.7 million, up 15.2% year on year. This result surpassed analysts' expectations by 0.9%. More broadly, it was a mixed quarter as it also produced a solid beat of analysts' same-store sales estimates but EPS in line with analysts' estimates. The stock is down 5.4% since reporting and currently trades at $11.83. Read our full, actionable report on First Watch here, it's free. Founded in 1968 as Red Lobster, Darden (NYSE:DRI) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands. Darden reported revenues of $3.2 billion, up 5.1% year on year. This number was in line with analysts' expectations. Aside from that, it was a mixed quarter as it produced full-year EPS guidance meeting analysts' expectations. The stock is down 2.4% since reporting and currently trades at $208.50. Read our full, actionable report on Darden here, it's free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market's biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market's primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market's dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Domino's Pizza, Inc. DPZ reported third-quarter fiscal 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. Higher supply chain order volumes, procurement-led margin improvements and increased franchise royalties from global store expansion supported quarterly growth. However, sluggish U.S. and international same-store sales, lower franchise advertising revenues and reduced company-owned store revenues following refranchising partially offset the gains. Domino's reported third-quarter 2026 earnings of $4.60 per share, beating the Zacks Consensus Estimate of $4.33 by 6.2%. The bottom line increased 12.7% from $4.08 reported in the year-ago quarter. Higher net income and a lower weighted-average share count, resulting from share repurchases, supported earnings growth. Domino's Pizza Inc price-consensus-eps-surprise-chart | Domino's Pizza Inc Quote Quarterly revenues totaled $1.19 billion, compared with $1.15 billion a year earlier, and topped the consensus projection of $1.17 billion by 1.6%. Higher supply chain revenues and global franchise royalties more than offset lower U.S. company-owned store revenues following refranchising. Global retail sales increased 3.2% year over year, excluding foreign currency movements. Supply chain revenues rose 7.1% year over year to $746.2 million from $697 million. Higher order volumes and a 2.2% increase in food basket pricing supported growth. Management estimated that pricing contributed approximately $17 million to quarterly supply chain revenues. Our estimate for the metric was $740.1 million. U.S. franchise royalties and fees increased to $165.6 million from $157.2 million. Our estimate for the metric was $141.1 million. International franchise royalties and fees climbed to $83.7 million from $78.5 million, driven by net store additions, partially offset by a $0.2 million unfavorable currency impact. Our estimate for the metric was $80.9 million. U.S. franchise advertising revenues slipped to $128.7 million from $131.6 million as promotional incentives increased. Our estimate for the metric was $118.3 million. Global retail sales increased 3.2% year over year, excluding foreign currency fluctuations. U.S. retail sales grew 2.1%, while international retail sales advanced 4.3% on a constant-currency basis. U.S. company-owned same-store sales increased 1%, versus 3.4% a year earlier. Franchise comps grew 0.3%, compared with 5.3% in the year-ago period. International same-store sales edged up 0.2%, excluding currency effects, versus growth of 1.7% a year ago. Gross profit increased to $476.4 million from $459.9 million, while consolidated gross margin expanded 10 basis points to 40.2%. Supply chain gross margin widened 90 basis points to 12.2%, aided by procurement productivity and labor efficiencies. Higher fuel-related delivery expenses partly offset those gains. Our estimate for the metric was 38.7%. U.S. company-owned store gross margin contracted 430 basis points to 12%, pressured by higher food prices, wage rates and insurance costs. General and administrative expenses edged up to $105.7 million from $105.1 million. Income from operations increased 8.3% to $241.8 million from $223.2 million. Excluding a $0.2 million unfavorable currency effect on international franchise royalties, operating income grew 8.4%. Higher royalty revenues and supply chain gross profit drove the improvement. Net income advanced 9.2% to $152.2 million from $139.3 million. Net interest expense increased to $44.2 million from $41 million. The company recorded a $2.5 million unrealized loss on its DPC Dash investment, compared with a $3 million loss in the prior-year period. Domino's added 175 net stores globally during the quarter, comprising 26 in the United States and 149 internationally. The worldwide store count reached 22,706, including 7,257 U.S. stores and 15,449 international locations. Net store growth over the trailing four quarters totaled 956, including 167 domestic and 789 international additions. CEO Joe Jordan emphasized faster execution, improving franchisee profitability and stronger customer engagement as priorities. Net cash provided by operating activities declined to $520.6 million for the first three quarters of 2026 from $552.3 million a year earlier. Capital expenditures rose to $60.8 million from $56.7 million. Free cash flow decreased 7.2% to $459.8 million from $495.6 million, reflecting the timing of advertising payments and changes in operating assets and liabilities. Cash and cash equivalents stood at $229 million as of Sept. 6, 2026, compared with $125.7 million at 2025-end. The leverage ratio improved to 4.2 times from 4.5 times a year earlier. Total debt stood at about $4.89 billion, including $1.33 billion classified as current liabilities ahead of anticipated 2027 note repayments. Management expects to refinance those notes at higher interest rates. The company repurchased 216,282 shares for $73.6 million during the quarter, with $1.15 billion remaining under its authorization. The board also declared a $1.99-per-share quarterly dividend, payable Dec. 30, 2026, to its shareholders of record as of Dec. 15. Domino's currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the Zacks Retail-Wholesale sector are: Five Below, Inc. FIVE currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 68.3%, on average. FIVE stock has gained 14.6% year to date. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Five Below's fiscal 2027 sales and EPS indicates growth of 20.1% and 57.6%, respectively, from the year-ago period's levels. Cracker Barrel Old Country Store, Inc. CBRL currently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 228.6%, on average. CBRL stock has surged 133.6% year to date. The Zacks Consensus Estimate for Cracker Barrel's 2026 sales and EPS indicates a year-over-year decline of 1.5% and 95%, respectively, from the prior-year levels. FIGS, Inc. FIGS has a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average. FIGS stock has declined 39.8% year to date. The Zacks Consensus Estimate for FIGS' 2026 sales and EPS indicates growth of 19.8% and 89.5%, respectively, from the prior-year levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Domino's Pizza Inc (DPZ) : Free Stock Analysis Report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report Five Below, Inc. (FIVE) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Cracker Barrel Old Country Store (CBRL) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. The upward trend in estimate revisions for this restaurant operator reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for Cracker Barrel Old Country Store, as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $0.00 per share for the current quarter, which represents a year-over-year change of +100.0%. Over the last 30 days, two estimates have moved higher for Cracker Barrel compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 100.95%. The company is expected to earn $1.56 per share for the full year, which represents a change of +95.0% from the prior-year number. In terms of estimate revisions, the trend for the current year also appears quite encouraging for Cracker Barrel. Over the past month, three estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 22.09%. Thanks to promising estimate revisions, Cracker Barrel currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Cracker Barrel shares have added 11.9% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It is not surprising that before an earnings season, every investor looks for stocks that can beat market expectations. This is because investors always try to position themselves ahead of time and look to tap stocks that are high-quality in nature. In this regard, we ran a screener that yielded stocks e.l.f. Beauty ELF, IMAX IMAX, Cracker Barrel Old Country Store CBRL, Fortinet FTNT and Valero Energy VLO as the likely winners on the earnings beat potential. Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, a 20% earnings rise (though apparently looks good) doesn't tell you if earnings growth has been exhibiting a decelerating trend. Also, seasonal fluctuations come into play sometimes. If a company's Q1 is seasonally weak and Q4 strong, then it is likely to report a sequential earnings decline. In such cases, growth rates are misleading when judging the true health of a company. On the other hand, after much brainstorming and analysis of companies' financials and initiatives, Wall Street analysts project earnings of companies. They, in fact, club their insights and a company's guidance when deriving an earnings estimate. Thus, outperforming that estimate is almost equivalent to beating the company's own expectation as well as the market perception. And if the margin of earnings surprise is big, it typically drives the stock higher right after the release. Thus, more than anything else, an earnings surprise can push a stock higher. Now, finding stocks that have the potential to beat on the bottom line may be investors' dream but not an easy job. One way to do this is to look at the earnings surprise history of the company. An impressive track in this regard generally acts as a catalyst in sending a stock higher. It indicates the company's ability to surpass estimates. And investors generally believe that the company will apply the same secret sauce to execute yet another earnings beat in its next release. In order to shortlist stocks that are likely to come up with an earnings surprise, we chose the following as our primary screening parameters. Last EPS Surprise greater than or equal to 10%: Stocks delivering positive surprise in the last quarter tend to surprise again. Average EPS Surprise in the last four quarters greater than 20%: We lifted the bar for outperformance slightly higher by setting the average earnings surprise for the last four quarters at 20%. Average EPS Surprise in the last two quarters greater than 20%: This points to a more consistent surprise history and makes the case for another surprise even stronger. In addition, we place a few other criteria that push up the chance of a positive surprise. Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) rating can get through. Earnings ESP greater than zero: A stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for an earnings beat to happen, as per our proven model. In order to zero in on those that have long-term growth potential and high trading liquidity, we have added the following parameters too: Next 3-5 Years Estimated EPS Growth (Per Year) greater than 10%: Solid expected earnings growth exhibits the stock's long-term growth prospects. Average 20-day Volume greater than 100,000: High trading volume implies that the stocks have adequate liquidity. A handful of criteria has narrowed down the universe from over 7,700 stocks to only 12. Here are five out of 12 stocks: e.l.f. Beauty: The Zacks Rank #1 company is a multi-brand beauty company headquartered in Oakland, CA, focused on accessible, high-quality cosmetics and skincare. You can see the complete list of today's Zacks #1 Rank stocks here. The average earnings surprise of ELF for the past four quarters is 61.50%. IMAX: The Zacks Rank #2 (Buy) company is a leading global entertainment technology company specializing in motion picture technologies and presentations. The average earnings surprise of IMAX for the past four quarters is 31.37%. Cracker Barrel Old Country Store: The Zacks Rank #1 company owns and operates full-service restaurants that combine a restaurant and a retail store in the same unit. The average earnings surprise of CBRL for the past four quarters is 228.64%. Fortinet: The company is a leader in cybersecurity, driving the convergence of networking and security. The stock has a Zacks Rank #2. The average earnings surprise of FTNT for the past four quarters is 20.34%. Valero Energy: The company, through its subsidiaries, is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products.The stock has a Zacks Rank #1. The average earnings surprise of VLO for the past four quarters is 26.80%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report IMAX Corporation (IMAX) : Free Stock Analysis Report e.l.f. Beauty (ELF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

U.S. stocks enter the final quarter with a mildly bullish setup, helped by favorable seasonality, resilient corporate earnings and continued enthusiasm around artificial intelligence spending. The S&P 500 remains close to record territory, and expectations for solid profit growth could keep investor sentiment constructive. Still, the path higher may not be smooth. Elevated Treasury yields are pressuring valuations and raising borrowing costs, while investors are also watching Federal Reserve policy and geopolitical developments. Even so, recent market action suggests that equities are holding up well despite these headwinds. With the S&P 500 still within reach of 8,000 by year-end 2026, the broader tone remains cautiously positive. In this environment, focusing on stocks already outperforming the market through relative price strength can be a sensible strategy for investors seeking areas where momentum remains firm. At this stage, investors would be wise to consider companies such as PBF Energy PBF, BP plc BP, Delek US Holdings DK, Cenovus Energy CVE and Cracker Barrel Old Country Store CBRL. Earnings growth and valuation multiples are indeed important for investors to determine a stock's ability to offer considerable returns. However, these are also essential for determining whether a stock's price performance is better than its peers or the industry average. If a stock's performance is lacking that of the broader groups, despite impressive earnings growth or valuation multiples, then something must be wrong. It's always advisable to stay away from these stocks and bet on those that are outperforming their respective industry or benchmark. This is because betting on a winner always proves to be lucrative. Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 for 1 to 3 months, at least, and having solid fundamentals, indicate room for growth and are the best way to go about this strategy. Finally, it is crucial to find out whether analysts are optimistic about the upcoming earnings of these companies. In order to do this, we have added positive estimate revisions for the current quarter's (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains. Relative % Price change – 12 weeks greater than 0 Relative % Price change – 4 weeks greater than 0 Relative % Price change – 1 week greater than 0 (We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, four weeks and one week.) % Change (Q1) Est. over 4 Weeks greater than 0: Positive current-quarter estimate revisions over the last four weeks. Zacks Rank equal to 1: Only Zacks Rank #1 (Strong Buy) stocks — that have returned more than 26% annually over the last 26 years and surpassed the S&P 500 in 23 of the last 26 years — can get through. You can see the complete list of today's Zacks #1 Rank stocks here. Current Price greater than or equal to $5 and Average 20-day Volume greater than or equal to 50,000: A minimum price of $5 is a good standard to screen low-priced stocks, while a high trading volume would imply adequate liquidity. VGM Score less than or equal to B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential. Here are five of the 10 stocks that made it through the screen: PBF Energy: PBF Energy is a leading independent refiner of crude oil based in Parsippany, NJ. The company's expected EPS growth rate for three to five years is currently 55.2%, which compares favorably with the industry's growth rate of 32.7%. PBF Energy has a VGM Score of A. Over the past 60 days, the Zacks Consensus Estimate for PBF Energy's 2026 earnings has moved up 44.5%. The Zacks Consensus Estimate for 2026 earnings indicates 648.7% growth. PBF shares have gained 173.3% in a year. BP: It is an integrated oil and gas company with upstream, downstream and trading operations. Its portfolio spans global production, refining, customer businesses and low-carbon activities, supported by strong technical and commercial capabilities. The Zacks Consensus Estimate for BP's 2026 earnings indicates 152.8% growth. BP has a VGM Score of A. BP beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 17.9%, on average. BP shares have gained 31.4% in a year. Delek US Holdings: Brentwood, TN-based Delek US Holdings is an independent refiner, transporter and marketer of petroleum products. The Zacks Consensus Estimate for 2026 earnings of DK indicates 143.3% growth. The company has a VGM Score of A. DK has a trailing four-quarter earnings surprise of roughly 243%, on average. Over the past 60 days, the Zacks Consensus Estimate for the downstream operator's 2026 earnings has moved up from $8.32 per share to $16.06. Delek's shares have gone up 130.2% in a year. Cenovus Energy: It is an integrated energy company with oil sands, conventional and offshore production, supported by refining assets in Canada and the United States. Its diversified operations combine long-life resources, downstream capacity and growth investments. CVE has a market capitalization of $59 billion. It has a VGM Score of A. Notably, over the past 60 days, the Zacks Consensus Estimate for Cenovus Energy's 2026 earnings has gone up 11.6%. The Zacks Consensus Estimate for 2026 earnings of CVE indicates 131.8% growth. Cenovus Energy shares have gained 88.9% in a year. Cracker Barrel Old Country Store: It owns and operates full-service restaurants that combine a restaurant and a retail store in the same unit. Cracker Barrel's expected EPS growth rate for three to five years is currently 27%, which compares favorably with the industry's growth rate of 14.7%. CBRL has a VGM Score of A. Over the past 60 days, the Zacks Consensus Estimate for Cracker Barrel's fiscal 2027 earnings has moved up 21.9%. The Zacks Consensus Estimate for fiscal 2027 earnings indicates 81.3% growth. CBRL shares have gained 17% in a year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP) : Free Stock Analysis Report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report Delek US Holdings, Inc. (DK) : Free Stock Analysis Report Cenovus Energy Inc (CVE) : Free Stock Analysis Report PBF Energy Inc. (PBF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Darden Restaurants, Inc. DRI reported first-quarter fiscal 2027 results, with earnings and revenues missing the Zacks Consensus Estimate. However, the top and bottom lines increased on a year-over-year basis. The quarter benefited from a blended same-restaurant sales increase of 3.1% on a fiscal-calendar basis, with all four segments delivering positive same-restaurant sales. The company ended the quarter with 2,218 company-owned restaurants in continuing operations. Following the results, the stock inched down 5% in today's pre-market trading session, likely reflecting the earnings and revenue misses and lower operating income despite the reaffirmed fiscal 2027 outlook. During the fiscal first quarter, Darden reported adjusted earnings per share (EPS) of $2.05, which missed the Zacks Consensus Estimate of $2.06. In the prior-year quarter, DRI reported adjusted EPS of $1.97. Darden Restaurants, Inc. price-consensus-eps-surprise-chart | Darden Restaurants, Inc. Quote Total sales during the quarter were $3.20 billion, missing the consensus mark of $3.21 billion. Sales increased 5.1% from the prior-year quarter's level of $3.04 billion. Darden reports business under four segments — Olive Garden, LongHorn Steakhouse, Fine Dining and Other Business. Due to the transition from a 53-week to a 52-week fiscal year, year-over-year fiscal-period comparisons are offset by one week. Consolidated same-restaurant sales increased 3.2% on a comparable-calendar basis. During the fiscal first quarter, sales at Olive Garden increased 2.2% year over year to $1.33 billion. Our estimate for the metric was $1.38 billion. Same-restaurant sales in the segment increased 1.1% on a fiscal-calendar basis and 1% on a comparable-calendar basis. At LongHorn Steakhouse, sales were up 10.9% year over year to $860.9 million. Our estimate for the metric was $844.5 million. Same-restaurant sales in the segment rose 6.2% on a fiscal-calendar basis and 6.8% on a comparable-calendar basis. Sales in Fine Dining increased 6.2% year over year to $304.2 million. Our estimate for the metric was $300.6 million. Same-restaurant sales in the segment rose 1.6% on a fiscal-calendar basis and 1% on a comparable-calendar basis. Sales in Other Business increased 3.6% year over year to $705.4 million. Our estimate for the metric was $672.7 million. Same-restaurant sales in the segment rose 3.8% on a fiscal-calendar basis and 4.5% on a comparable-calendar basis. In the fiscal first quarter, total operating costs and expenses increased 6.5% year over year to $2.88 billion. This increase was primarily due to higher food and beverage costs, restaurant labor expenses, restaurant expenses, marketing expenses, pre-opening costs and depreciation and amortization. Operating income decreased to $319.3 million from $339.2 million reported in the prior-year quarter. The year-ago period included a $42 million gain on the Olive Garden Canada sale. Adjusted earnings per share from continuing operations increased 4.1% year over year to $2.05. As of Aug. 30, 2026, cash and cash equivalents were $220.5 million compared with $219.5 million as of May 31, 2026. Inventories were $321 million compared with $326.3 million at the end of fiscal 2026. Long-term debt was $1.64 billion, largely unchanged from the level of May 31, 2026. During the quarter, the company repurchased approximately 1.1 million shares for $222.3 million. Darden had $1.3 billion remaining under its $1.5 billion share repurchase authorization. The company also declared a quarterly cash dividend of $1.62 per share. For fiscal 2027, the company reaffirmed its full-year financial outlook. Darden expects total sales in the range of $13.60-$13.75 billion. Same-restaurant sales growth is anticipated to be between 2.5% and 3.5%. Darden expects to open 75-80 new restaurants and incur total capital spending of approximately $875 million. The company projects earnings per share from continuing operations between $11.10 and $11.35, EBITDA in the range of $2.26-$2.29 billion, an effective tax rate of approximately 13.5% and about 114 million weighted average shares outstanding. Darden currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below. The Cheesecake Factory CAKE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here. The Cheesecake Factory has a trailing four-quarter earnings surprise of 10.1%, on average. The Zacks Consensus Estimate for CAKE's fiscal 2026 sales and EPS indicates growth of 7% and 20.2%, respectively, from the year-ago period's levels. Cracker Barrel Old Country Store CBRL presently flaunts a Zacks Rank of 1. Cracker Barrel has a trailing four-quarter earnings surprise of 228.6%, on average. The consensus estimate for CBRL's fiscal 2026 EPS indicates growth of 60%, from the year-ago period's levels. Brinker International EAT currently holds a Zacks Rank of 2 (Buy). Brinker has a trailing four-quarter average earnings surprise of 6.2%. The Zacks Consensus Estimate for EAT's fiscal 2027 sales and EPS indicates growth of 8.1% and 22.7%, respectively, from the year-ago period's levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). 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Image source: The Motley Fool. Wed, Sept. 23, 2026 Director of Investor Relations - Adam Hanan President and CEO - Dave Deno Senior Vice President and CFO - Craig Pommells Operator: Good day, and welcome to the Cracker Barrel Fiscal 2026 Fourth Quarter Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Adam Hanan, Director of Investor Relations. Please go ahead. Adam Hannon: Thank you. Welcome to Cracker Barrel's Fourth Quarter Fiscal 2026 Conference Call and Webcast. Earlier today, we issued a press release announcing our fourth quarter results. In this press release and on this call, we will refer to non-GAAP financial measures such as adjusted EBITDA for the fourth quarter ended July 31, 2026. Please refer to the footnotes in our press release for further details about these metrics. The company believes these measures provide investors with an enhanced understanding of the company's financial performance. This information is not intended to be considered in isolation or as a substitute for net income or earnings per share information prepared in accordance with GAAP. The last pages of the press release include reconciliations from the non-GAAP information to the GAAP financials. On the call with me are Cracker Barrel's President and CEO, Dave Deno; and Senior Vice President and CFO, Craig Pommells. Dave and Craig will provide a review of the business, financials and outlook. We will then open up the call for questions. On this call, statements may be made by management of their beliefs and expectations regarding the company's future operating results or expected future events. These are known as forward-looking statements, which involve risks and uncertainties that, in many cases, are beyond management's control and may cause actual results to differ materially from expectations. We caution our listeners and readers in considering forward-looking statements and information. Many of the factors that could affect results are summarized in the cautionary description of risks and uncertainties found at the end of the press release and are described in detail in our reports that we file with or furnish to the SEC. Finally, the information shared on this call is valid as of today's date, and the company undertakes no obligation to update it, except as may be required under applicable law. I'll now turn the call over to Cracker Barrel's President and CEO, Dave Deno. Dave? David Deno: Good morning, everyone, and thank you for joining us. As many of you know, I stepped into the CEO role about 6 weeks ago. Having spent several decades working in the industry, I have long admired this iconic brand and been excited about the opportunity ahead of us. Given my brief tenure at the company, today's remarks will focus on early observations and priorities. Over the past few weeks, I've spent the vast majority of my time meeting with team members, visiting stores and speaking with our guests. I've also tried to get a deeper understanding of the brand, our current strategy and recent performance. A few things are already very clear to me. First, Cracker Barrel is on the right track. Second, we are a highly differentiated brand with tremendous potential. Third, we have a passionate guest base among the most passionate I've seen. Fourth, our people are critical to our success. They are the foundation for our hospitality and the connection that guests feel to our brand. We have 75,000 talented and dedicated employees who are committed to delivering exceptional guest experiences. They are energized by our momentum and are invested in the long-term success of Cracker Barrel. Next, broadly speaking, the company is already focused on the right areas and has a strong plan as demonstrated by the continued improvements in performance over the last several quarters. We are working to refine and further strengthen our plan, particularly as it relates to our focus on food and guests. Finally, this company has been through a difficult stretch and has come out stronger. The team made hard calls, listened to guests and got the business back on offense. The results of the past couple of quarters speak for themselves. A big part of my management philosophy is doing fewer things better and concentrating on opportunities that can have the greatest impact. For restaurants, the formula is pretty straightforward. You must offer great food, provide a guest -- great guest experience and hire and retain excellent employees who deliver both. So these are the priorities that we will be focused on: food, experience and people. I'll now speak briefly about each area. Our first priority is food, more specifically enhancing our quality while making it more craveable. We are making investments to improve food quality. Dinner is our biggest opportunity, and we plan to upgrade our chicken, hamburger and steak offerings. We also want to ensure our great food meets guest expectations for taste, temperature and quality on every visit. These changes are all about increasing guest satisfaction and not about taking out costs and the associated investments are embedded in our guidance. Although enhancing our dinner offerings is the priority from a daypart perspective, breakfast remains our strongest area in both food scores and traffic trends. Our menu work and marketing will capitalize on this strength even as we work to improve dinner. Guest experience is our second priority. Operationally, the company has made impressive gains across the key metrics in recent quarters. This is thanks to the dedicated efforts of our teams in the stores as well as our store support center. In Q4, our Google Star rating increased 2% year-over-year and remained near an all-time high. Food taste and service scores increased nearly 400 basis points and food temperature scores improved 500 basis points compared to Q4 last year. These results are very encouraging, and we are confident in our ability to improve hospitality even further. The retail shop is critically important to the Cracker Barrel brand. This has been one of the biggest and most pleasant surprises for me since I joined the company. The business is a real competitive advantage because we are the only full-service restaurant brand offering guests a true retail experience alongside their meal. We will make the retail experience even better for our guests. From a product standpoint, we'll continue to offer unique quality assortments at a strong value. From a merchandising standpoint, we're introducing targeted enhancements to improve the shopping experience. This includes simplifying our product layouts, widening aisles and improving sight lines. Another key part of the guest experience is our loyalty program, Cracker Barrel Rewards. The strength of the program is remarkable. We have over 12.5 million members that account for over 40% of tracked sales. This is a differentiator that we will continue to leverage. The team is continuing to improve our personalization capabilities, and we recently launched a new website and app to make the experience easier and more seamless for our guests. Turning to our final priority, our people. Cracker Barrel has a special culture, and our team members are our greatest asset. Employee engagement and retention are critical to our plan. We continue to see favorable turnover trends. In Q4, hourly turnover improved 450 basis points and manager turnover improved 85 basis points compared to the prior year. To sustain these gains and support strong execution, we will ensure our team members are equipped with the skills and training to be successful and highly effective. Additionally, we'll be enhancing our training and development programs and tools. In closing, we have a strong and focused plan. We will accomplish our objectives by relentlessly executing against the priorities we have identified and doing fewer things much better. Most importantly, the entire organization is aligned against our objectives, investing in and improving our food, continuing to provide outstanding service and hospitality and creating a great work experience for our people. As a result of the strong execution of these priorities, we will meaningfully improve profitability and cash flow in fiscal '27 and set the business up for long-term success. I'll now turn it over to Craig to review Q4 financials and the fiscal '27 outlook. Craig Pommells: Thank you, Dave, and good morning, everyone. Before reviewing our results, I want to build on Dave's remarks and thank our teams. The business continues to gain traction as reflected in the improvement in our underlying traffic trend, key guest metrics and overall financial results. I'm proud of our team's work and excited about the opportunity ahead. Now, turning to the fourth quarter results. Total revenue was $849.3 million. Restaurant revenue was $698.5 million. Comparable store restaurant sales decreased 2.1%, which included a traffic decline of 6.1%. As a reminder, in Q4, we were lapping a stronger quarter in the prior year, and there was significant variability in the prior year comparisons for Q3 and Q4. Controlling for this variability, we were pleased with the continued gradual improvement in the traffic trend and these top line results exceeded our expectations. The restaurant average check increased 4.2%, including pricing of 4.4%. Menu mix was slightly negative, but we continue to benefit from menu initiatives, such as the option to upgrade to 3 sides. Off-premise sales were 19% of restaurant sales, an increase of approximately 100 basis points compared to the prior year, driven by growth in third-party delivery. Retail revenue was $150.8 million. Comparable store retail sales increased 0.7%, driven by increases in the average unit selling price and units per transaction. This was partially offset by lower traffic. We were pleased with the performance of our retail business with this quarter representing the strongest retail comp sales growth since the second quarter of fiscal '23. We saw strength in the toys and housewares categories, and we also benefited from pulling forward our Halloween assortment. Moving to profitability. We reported adjusted EBITDA of $62.1 million, which was up 11.4% versus the prior year. The current year adjusted EBITDA results include a $15 million tariff refund benefit, $5.9 million of which was reinvested in the business for a net tariff refund benefit of $9.1 million. Additionally, the adjusted EBITDA results include 2 offsetting $10 million legal settlements, one of which favorably impacts other operating expenses and another that unfavorably impacts G&A. As noted in the press release, our adjusted EBITDA results exclude CEO transition costs, expenses related to the Maple Street divestiture and a gain from the sale-leaseback transaction. Please review the non-GAAP reconciliation tables in the press release for additional details. Now, moving on to our fourth quarter expenses. Total cost of goods sold was 28.8% of total revenue versus 30.5% in the prior year. Restaurant cost of goods sold was 26% of restaurant sales versus 26.3% in the prior year. This 30 basis point decrease was primarily driven by menu pricing, partially offset by commodity inflation. Commodity inflation was 3.1%, driven principally by higher beef, produce and seafood prices, partially offset by lower egg and poultry prices. Retail cost of goods sold was 41.6% of retail sales and includes a benefit of approximately $15 million from tariff refunds. Excluding the tariff refund impact, retail COGS were 51.6% of retail sales and increased 60 basis points compared to the prior year, primarily due to higher markdowns. Quarter-end inventories were $163.9 million compared to $180.6 million in the prior year. This decrease was primarily driven by timing and retail clearance events to reduce aged inventory. Labor and related expenses were 37.5% of revenue compared to 36.5% in the prior year. This 100 basis point increase was primarily driven by the following: first, sales deleverage; second, the reversal of the prior year's kitchen labor initiative; and third, higher store bonuses. Wage inflation was approximately 2%. Other operating expenses were 23.7% of revenue and include a $10 million benefit from a legal settlement related to antitrust litigation. Excluding this benefit, other operating expenses were 24.9% of revenue and approximately flat to the prior year as lower advertising expenses offset higher maintenance expenses. Adjusted general and administrative expenses were 6.9% of revenue. This excludes approximately $6.7 million in CEO transition expenses, but includes an unfavorable $10 million legal expense. Backing out the legal expense, G&A was 5.7% of revenue and approximately flat to the prior year. Additionally, our GAAP financial results include the following items, which are excluded from adjusted EBITDA. First, a $47.4 million net gain on sale of assets related to the sale-leaseback transaction; second, a $27 million noncash loss on sale related to the Maple Street divestiture; and third, a noncash impairment charge of $8.5 million related to the Maple Street divestiture and a noncash impairment charge of $13 million related to low-performing Cracker Barrel stores, three of which closed during the quarter. Taking all of the above into account, adjusted EBITDA was $62.1 million or 7.3% of total revenue and increased 11.4% compared to the prior year's $55.7 million. These results exceeded our expectations and demonstrate our continued momentum. Net interest expense was $3 million compared to $4.7 million in the prior year. This decrease was primarily the result of a lower debt balance. GAAP income taxes were a $2 million credit and adjusted income taxes were $1.1 million. GAAP earnings per diluted share were $0.54 and adjusted earnings per diluted share were $0.99. Now, turning to capital allocation and the balance sheet. We continue to diligently manage the company's capital resources and are pleased with the progress we have made to further strengthen the balance sheet. The sale-leaseback transaction generated $77 million in net proceeds, which were used to pay down debt and partially offset the $150 million debt related to the 0.625% convertible senior notes that matured and was repaid in June. The quarter ended with total debt of $337.2 million, which was $147.4 million below the prior year. The current debt is comprised entirely of the 1.75% convertible senior notes due in 2030, with the revolver balance undrawn at quarter end. We continue to have ample access to liquidity, ending the quarter with $541.3 million in available capacity. Capital expenditures in the fourth quarter were $27.4 million. Turning to the outlook. We expect the following for fiscal '27. Total revenue of $3.325 billion to $3.4 billion. This assumes comparable store restaurant sales growth of approximately 3% to 5% with no new stores. Total pricing of approximately 3% with pricing highest in Q1 and dropping sequentially each quarter, commodity inflation of approximately 3% and hourly wage inflation of approximately 2.5% to 3%. Taking all of the above into account, we anticipate full year adjusted EBITDA between $180 million and $200 million. When thinking about the quarterly cadence in fiscal '27, please keep in mind that the quarterly EBITDA distribution for fiscal '26 was unusual. The first half of fiscal '26 was meaningfully below the prior year, while the second half significantly improved and was largely in line with prior year. Regarding taxes, on an adjusted basis, we anticipate a full year tax credit of $4 million to $8 million, which reflects routine employer tax credits such as the FICA tip credit. Finally, we expect capital expenditures to be between $110 million and $125 million, comprised of approximately 65% maintenance and 35% technology and other strategic initiatives. We are not opening any new units this year. With that, I'll now turn the call over to the operator for Q&A. Operator: [Operator Instructions] The first question today comes from Anthony Trainor with Wells Fargo. Anthony Trainor: So my first question for you, Dave, is you spent several weeks, kind of, in the business. What still needs to be fixed today? And as you -- as investors are comparing what's -- looking at what's changing in the strategy today? What more can you, kind of, elaborate on where it's moving? David Deno: Yes. Well, as I mentioned in my remarks, I mean, this is really a well-positioned iconic brand. And I think the company is very well positioned to move forward. So let me spend a minute or 2 just talking about what we can build on and some of those things I already mentioned. So we have great strength at breakfast, a very strong value equation, a passionate guest base and talented employees. And I think one of our biggest opportunities is food, especially at dinner. And I talked in my prepared remarks about the steps we're doing to address it. We're going to be investing in food quality, and that's embedded in our guidance for the year. We're going to absolutely remain a relentless focus on consistent execution, and we've made progress in hospitality over the past year. We want to make even more faster. And we want to ensure that our stores and our people are trained to give the hospitality that people expect from Cracker Barrel. So that's what I've been trying to do it since I've been here for the last 6 weeks or so. And when you look at the restaurant industry overall, that's what great restaurant companies do. Anthony Trainor: And then my second question, Craig. So the FY '27 EBITDA outlook implies $30 million to $50 million step-up in EBITDA. Can you bucket us out what's actually driving the -- bridge us what's actually driving the increase? And then with the restaurant comp guide of 3% to 5%, I see that price was going to be plus 3%, maybe that's, kind of, the lower end towards the historical range that we were expecting. How should we think about the price component of the outlook over the next several years? Craig Pommells: Absolutely. Anthony, good question. The -- it is a robust increase in EBITDA year-over-year. There are a couple of things driving that. One is the underlying improvement traffic trend. Then building on that are a number of our initiatives, our -- one of those is menu mix, and initiatives that support that, that will drive increased menu margin outside of pricing. We also have a number of cost savings and efficiency initiatives that are -- initiatives that do not -- they're not takeaways in any way, shape or form from the guest. So that menu margin work is particularly important. As it relates to pricing, we're essentially pricing on a percent basis to offset inflation. We've done a lot of work over the last couple of years on the strategic pricing initiative. That's a pretty sophisticated data-driven approach at a store level. That initiative has worked well. It is largely successfully completed. There is always more work to do with pricing as you optimize. But the big chunk of that was done and it was well received. So as we go forward, there's always a little bit of pluses and minuses on strategic pricing, but a big chunk of that is behind us. We do think as we look to the future and we think about dinner and so on, there's opportunity in the menu mix component of the business that is a win-win for our customers and then obviously improving our margins as well. Operator: The next question comes from Dennis Geiger with UBS. Dennis Geiger: I wanted to ask a little bit more about the same-store sales comp -- same-store sales guide for the full year. Helpful on the pricing dynamic, Craig. Anything on cadence through the year, sort of, how you started the year and how you're thinking about cadence of same-store sales through the year? And just anything more on, sort of, some of the biggest sales drivers and traffic drivers this year? Craig Pommells: Yes. Dennis, it's a great question. In terms of cadence, our pricing is going to be at the highest level, 3% across the full year. It's at its highest early in the year, in the first quarter, and then it will, kind of, taper down as the year goes on. So sequentially, quarter-by-quarter, that number will tick down a bit. Then in terms of drivers, what we have found in terms of menu mix, in particular, is that the -- there are a lot of things that we've been adding, for example, in shareables or appetizers where the take rate in those is really good. So we've been pleased with the work there. We've made some changes with sides as well and the option to use 3 sides instead of 2 sides, and that's gone over very well also. Some of those initiatives are supporting that 3% to 5%. And then obviously, there is the underlying traffic trend improvement. Now that traffic trend improvement is multifaceted. There are a lot of operational components to that, and the team has done an outstanding job when we look at our operating metrics, they keep getting better, and Dave mentioned those as well. Now as we think about the cadence in terms of EBITDA growth year-over-year for '27 versus '26, I would just keep in mind that the first half of '26 was particularly challenged in relation to '25 and the second half of '26 was much closer to '25. So I would just take that in consideration as you do your modeling. David Deno: Yes. If I could add -- thanks, Craig. If I could add a couple of things on the traffic drivers. First of all, I've been in the restaurant business for a long time. We've got 12.5 million loyalty members. That's amazing. That allows us to speak to our guests, market them in a certain way and clearly, it's a traffic-driving opportunity. Craig talked about the attach rates. And certainly, we'll get over time with our improvements in hospitality and food, we'll see traffic from that. Then lastly, we have a very strong -- this has probably been the biggest surprise for me, a very strong and successful retail business. And the opportunity to merchandise between retail and our restaurants is very strong. And we -- and you look at their trends in the past quarter, it's been very good. And so there's an opportunity there to also drive traffic for the whole box. So those are the 4 or 5 different levers we have to drive traffic this year. Dennis Geiger: Very helpful. And if I could ask one more. Just a question about how you think about the opportunity for margins, obviously, as we look to this year, but even longer term. And maybe, Dave, it's a little bit early, but given your track record of finding efficiencies on the margin side of things and the margin opportunity presumably that exists here to get back to levels that the business was previously had. Any commentary right now on both the, kind of, short or medium term, but also the longer term at a high level as far as margin opportunity goes? David Deno: Yes, sure. Being a former CFO and CEO in the business, what I learned over the years is you pursue margin opportunities and the stuff that guests does not see. So in other words, margin is not about taking cost of food out. It's not about taking labor out, et cetera. It's about our store support centers being stronger and stronger and stronger and investing in technology. And I have to say, I've been pleasantly surprised by the level of our technology and expertise we have here and the progress we've made in technology. That's a big help to us as we go forward. On the overall box, it's all about traffic and improving our menu mix as we think about our menu and merchandising. So we have great food. We want to invest in it more and make it even more craveable. We want -- we've seen opportunities in mix. People are attaching sides to a greater level than we thought. We just did a strong dessert promotion that has worked really well. That's -- it's obvious. Our customers and our guests crave our desserts. So there's attachment opportunity, there's menu mix opportunity and there's traffic opportunity. And that's how we're going to build margin in the box and then look at cost outside the restaurant for productivity. Operator: The next question comes from Sara Senatore with Bank of America. Unknown Analyst: This is [ Aisling ] on for Sara. Congrats on the results. My question is just on free cash flow priorities. After CapEx and any remaining transition or Maple Street cash costs, how are you thinking about 2027 free cash flows, specifically shareholder returns? Is debt reduction the priority? Or has, kind of, the lower leverage position changed the relative attractiveness of buybacks? David Deno: Yes. No, I -- thank you for the compliment of our results, by the way. I appreciate it. First and foremost, the balance sheet that the company has is in great shape. And like I said, I can speak to that as a former CFO as well. And we're very fortunate to be in this position. The team has done a great job strengthening over the past year given some of the headwinds. And for us, this puts, sort of, opportunity to allocate capital in a very broad way, and it's something we discuss regularly. We're going to pursue a balanced capital allocation strategy. We're going to continue to prioritize organic growth. So opportunities come up, if we have more of a chance to invest in some of our stores, if we have a chance to push a little harder on food, et cetera, we're going to be using some of the free cash flow for that because it's going to grow sales and grow traffic. But past that, we're going to remain -- retain a conservative balance sheet. So we're going to look at -- as we work with our Board, we're going to discuss our dividend policy and future repurchases. This is something we talk about regularly with our Board. And as you noticed today, we announced our regular quarterly dividend. So the good news is with these results and this forecast, there's ample free cash flow to go forward with this business, and it's a very, very big step in the right direction. Unknown Analyst: Great. My other question is just on marketing in 2027. How are you thinking about marketing expense following the slight step down in the second half of this year? Does your outlook assume spending remains near the recent run rate? Or is there any kind of reinvestment around traffic? David Deno: Yes, a couple of things. And I'll turn it over to Craig in a second to talk about some of the financials. But what's really progressed in the industry is the chance to do marketing in so many different ways in so many different channels. And our team is all over that, especially through social media and through other technology opportunities and things like that. That is, for us, a mechanism that we have to really think through how we're going to spend our money. And I'm very pleased with what I've seen so far. And for the financial side of it, I'll turn it over to Craig. Craig Pommells: Yes. Just for a little bit of context in terms of our marketing spend. Our longer-term marketing spend was in the, kind of, upper 2% range. In fiscal '25 and the first half of '26, we increased that a bit. And then in the second half of '26, we reduced our marketing spend, our advertising spend down to about 3% of sales. So that is actually closer to our long-term run rate. As we think about '27, our initial point of view on this is we'll be in that roughly 3% range. Now keep in mind, that 3% is in addition to all of this capability that we have with our loyalty program, and that now represents over 40% of sales. But beyond all of that, we're continuing to test and learn. And if we find an approach that requires more spending and we can drive profitable guest growth with that approach, we'll happily do it. It's not a philosophical issue. In terms of our marketing spend, we're just trying to have the optimal level. We feel comfortable at 3%, where we're willing to do more, and we also have the benefit of the loyalty program as well. Operator: The next question comes from Jeff Farmer with Gordon Haskett. Jeffrey Farmer: And definitely welcome back, Dave. Good to have you back in the fold. A couple of questions for you guys. So really, the high-level assumptions about the consumer backdrop that are captured in your guidance, how are you guys thinking about what's going on out there in terms of, sort of, a bigger backdrop knowing that both the lower income consumer and some of the younger age demo consumers are, sort of, not spending as much. So I'm just curious how you guys are thinking about the broader consumer backdrop in casual dining. David Deno: Jeff, first, thank you for the welcome. I really appreciate it, and I admired your work over the years. So it's good to be back. So the state of the consumer, as we all know, the macroeconomic environment remains mixed. But having said that, if you look at the industry, casual dining sales have held up pretty well. And I think there are people in this industry doing really well, and we want to be one of them. And I think our trends, as you saw, are getting stronger and stronger. When it comes to us specifically, yes, we do see some pressure with our low-income guests. But our trends, as I said, have gotten better. And our current trends that we're seeing is embedded in Craig's guidance for the year. We don't give quarter-to-date updates and things, but I think our current trends are embedded in what Craig is talking about. And finally, to make sure that we continue to keep our trends going and improve our trends, our priority is going to be on food, experience and people and what matter most in regardless of the backdrop. That's how restaurant companies win. Craig Pommells: And related to your -- the second part of your question, Jeff, in terms of the cohorts of guests, we are continuing to see some softness with the lower income cohort, and we're seeing relative strength at the higher income. So I think a lot of folks have reported that and that's the relationship that we see. And then in terms of how we maneuver in that environment, I believe -- I think we believe that Cracker Barrel value equation is really outstanding. We've got a check average that's in the $16 range, and that compares to casual dining, that's $27 versus our $16 and family dine-in, that's $20 again, versus our $16. And I think even if you break that apart and you look at dinner, our dinner check average is still in the low $16. So I think that positions us well in that regard. Then beyond that, we have a -- some special pricing constructs with really sharp starting price points. For example, we have our Sunrise Pancake Special that's every day at $7.99. It's a great deal. We have Early Dine Monday through Friday that starts at $8.99. And then we also have, again, the loyalty program, and we have lunch specials. So there are a lot of ways that if you're feeling pressured from an income perspective -- discretionary income perspective, there are a lot of ways you can still have a great experience at Cracker Barrel. Jeffrey Farmer: Okay. And then just as a follow-up really for both of you, a lot of moving pieces. But as, sort of, the business continues to, sort of, get set and your -- get reset, I should say, and as you move forward into '27 and '28, how are you thinking about a potential framework for, let's just call it, a longer-term algorithm? So the same-store sales unit growth, cash return to shareholders. Do you envision this, sort of, returning -- the business returning to low single-digit unit growth? Cash return to shareholders, obviously, has come down as you guys have cleaned up the balance sheet, but that could theoretically go back up with free cash flow holds on. So I'm just curious your early thoughts from both of you guys on a longer-term algorithm as you move forward. David Deno: Yes, Jeff. First of all, not to dodge the question, but I've been here 6 weeks. So maybe give me a little more time to get my arms around that. You know the business well. You know what we can do. We should be able to have strong, maintain sales growth, earnings growth, cash flow, return cash to shareholders, run a strong balance sheet. All that is certainly possible here, and we would like to return to unit growth. So -- and invest in our stores. That's all part of the equation here, Jeff. But it's a little early for me to say this much in sales, this much in pricing, this much in margin, et cetera. But, no, top of mind for us is to improve those key metrics. Same-store sales, revenue growth, cash flow, margin, traffic, capital allocation, returning cash to shareholders, that is all certainly part of the equation. More to follow though. Operator: [Operator Instructions] The next question comes from Jon Tower with Citi. Karen Holthouse: This is Karen Holthouse on for Jon. I wanted to ask about freight prices on the retail side of the business. And what are you starting to see or expecting to see in terms of fuel surcharges and how you're thinking about absorbing that versus passing it on? Craig Pommells: Karen, it's Craig. Yes, we are seeing fuel surcharges and so on related to freight, both from the perspective of retail and to a lesser degree on the restaurant side. All of that's built into our projection with the best information that we have today. So it goes into the overall pricing algorithm and overall margin structure that we've got planned in. Operator: This concludes our question-and-answer session. I would like to turn the conference back over for any closing remarks. David Deno: Yes. Thank you, everybody, for your interest today. As I mentioned before, I'm very pleased to be part of this company and have the opportunity. We have a terrific brand, well positioned, and I think we're going to be very strong going forward. We've got -- the reason why we've got a good foundation. This is a very, very, very differentiated brand I mentioned, and it's engaged and has committed employees and passionate guests. We're working on the right areas as demonstrated by the continued improvement in our performance. In closing, our results wouldn't be possible without the hard work of our employees. I want to thank them for their passion, dedication and commitment, which gives each of them give me high confidence -- which gives me high confidence in the path ahead and the time ahead. Going forward, our priorities will be to lean even more into food, experience and people. And we're very optimistic about the future of Cracker Barrel and look forward to talking about more in the coming months. Thank you. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Cracker Barrel (CBRL) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Total Revenue: $849.3 million in Q4 fiscal 2026. Restaurant Revenue: $698.5 million. Retail Revenue: $150.8 million. Comparable Store Restaurant Sales: Decreased 2.1%, including a traffic decline of 6.1%. Comparable Store Retail Sales: Increased 0.7%, the strongest retail comp growth since Q2 fiscal 2023. Restaurant Average Check: Increased 4.2%, including pricing of 4.4%. Off-Premise Sales: 19% of restaurant sales, up approximately 100 basis points year-over-year. Adjusted EBITDA: $62.1 million, or 7.3% of total revenue, up 11.4% versus prior year's $55.7 million. Total Cost of Goods Sold: 28.8% of total revenue versus 30.5% prior year. Restaurant Cost of Goods Sold: 26% of restaurant sales versus 26.3% prior year. Retail Cost of Goods Sold: 41.6% of retail sales, including approximately $15 million tariff refund benefit; excluding it, 51.6% of retail sales. Commodity Inflation: 3.1%, driven by higher beef, produce, and seafood prices. Labor and Related Expenses: 37.5% of revenue versus 36.5% prior year; wage inflation approximately 2%. Other Operating Expenses: 23.7% of revenue, including $10 million legal settlement benefit; excluding it, 24.9% of revenue. Adjusted G&A Expenses: 6.9% of revenue; excluding $10 million legal expense, 5.7% of revenue. Net Interest Expense: $3 million versus $4.7 million prior year. GAAP Earnings Per Diluted Share: $0.54. Adjusted Earnings Per Diluted Share: $0.99. Quarter-End Inventories: $163.9 million versus $180.6 million prior year. Total Debt: $337.2 million, $147.4 million below prior year. Available Liquidity: $541.3 million in available capacity. Capital Expenditures: $27.4 million in Q4. Loyalty Program: Over 12.5 million members, accounting for over 40% of tracked sales. Fiscal 2027 Revenue Outlook: $3.325 billion-$3.4 billion, with comparable store restaurant sales growth of approximately 3%-5% and no new stores. Fiscal 2027 Adjusted EBITDA Outlook: $180 million-$200 million. Fiscal 2027 Capital Expenditures Outlook: $110 million-$125 million, approximately 65% maintenance and 35% technology and other strategic initiatives. Warning! GuruFocus has detected 9 Warning Signs with CBRL. Is CBRL fairly valued? Test your thesis with our free DCF calculator. Release Date: September 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cracker Barrel Old Country Store Inc (NASDAQ:CBRL) reported Q4 adjusted EBITDA of $62.1 million, up 11.4% year-over-year, exceeding expectations. Key guest metrics improved significantly: food taste and service scores rose nearly 400 basis points, and food temperature scores improved 500 basis points compared to Q4 last year. The loyalty program, Cracker Barrel Rewards, has over 12.5 million members accounting for over 40% of tracked sales, providing a strong traffic-driving and personalization opportunity. Retail comparable store sales increased 0.7%, the strongest growth since Q2 fiscal 2023, driven by higher average unit selling price and units per transaction. The company strengthened its balance sheet, reducing total debt by $147.4 million year-over-year to $337.2 million, with $541.3 million in available liquidity and no revolver balance. Fiscal 2027 guidance projects total revenue of $3.325-$3.4 billion and adjusted EBITDA of $180-$200 million, implying a $30-$50 million step-up, driven by traffic improvement, menu mix initiatives, and cost savings. Comparable store restaurant sales decreased 2.1% in Q4, with a traffic decline of 6.1%, reflecting ongoing top-line pressure. Labor and related expenses increased 100 basis points as a percentage of revenue, due to sales deleverage, reversal of prior year's kitchen labor initiative, and higher store bonuses. Commodity inflation was 3.1% in Q4, driven by higher beef, produce, and seafood prices, and is expected to remain around 3% in fiscal 2027. The company recorded non-cash impairment charges of $13 million related to low-performing Cracker Barrel stores and $8.5 million related to the Maple Street divestiture. Lower-income consumers are showing softness, which could pressure traffic, though the company believes its value equation remains strong. Fiscal 2027 guidance assumes no new store openings, limiting unit growth, and capital expenditures are focused on maintenance and technology rather than expansion. Q: Craig, the FY 2027 EBITDA outlook implies a $30 million-$50 million step-up in EBITDA. Can you bucket out what is actually driving the increase? With the restaurant comp guide of 3%-5% and price at +3%, how should we think about the price component over the next several years? A: CFO Craig Pommells said the robust year-over-year EBITDA increase is driven by the underlying improvement in traffic trend plus a number of initiatives, including menu mix and initiatives that drive increased menu margin outside of pricing, along with cost savings and efficiency initiatives that are not takeaways from the guest. On pricing, the company is essentially pricing on a percent basis to offset inflation; the strategic pricing initiative a sophisticated, data-driven approach at the store level has worked well and is largely successfully completed, though there is always more optimization work to do. He added there is opportunity in the menu mix component that is a win-win for customers and improves margins. Q: Dave, you spent several weeks in the business. What still needs to be fixed today, and what more can you elaborate on regarding where the strategy is moving? A: CEO Dave Deno said Cracker Barrel is a well-positioned, iconic brand with great strength at breakfast, a very strong value equation, a passionate guest base, and talented employees. He identified food especially dinner as one of the biggest opportunities, with investments in food quality embedded in the guidance for the year. The company will remain relentlessly focused on consistent execution and wants to make even more progress faster on hospitality, ensuring stores and people are trained to deliver the hospitality guests expect from Cracker Barrel. Q: How are you thinking about the opportunity for margins, both short and medium term, and longer term at a high level? A: CEO Dave Deno said that based on his experience as a former CFO and CEO, you pursue margin opportunities in the things guests do not see margin is not about taking cost of food or labor out, but about strengthening store support centers and investing in technology. He was pleasantly surprised by the company's level of technology and expertise. On the overall box, it is about traffic and improving menu mix through menu and merchandising, noting strong attachment on sides and a successful dessert promotion. There is attachment, menu mix, and traffic opportunity, and costs outside the restaurant will be examined for productivity. Q: What are the high-level assumptions about the consumer backdrop captured in your guidance, given that lower-income and younger consumers are not spending as much? A: CEO Dave Deno said the macroeconomic environment remains mixed, but casual dining sales have held up pretty well industry-wide, and Cracker Barrel's trends are getting stronger, with current trends embedded in the guidance. He acknowledged some pressure with low-income guests, but said priorities on food, experience, and people matter most regardless of the backdrop. CFO Craig Pommells added the company continues to see softness with the lower-income cohort and relative strength at higher income, but believes the value equation is outstanding, with a check average in the $16 range versus $27 for casual dining and $20 for family dining, plus sharp starting price points like the $7.99 Sunrise Pancake Special and Early Dine starting at $8.99. Q: What is the cadence of same-store sales through the year, and what are the biggest sales and traffic drivers? A: CFO Craig Pommells said pricing will be highest early in the year, at about 3% in Q1, then taper down sequentially each quarter. Drivers include menu mix initiatives such as shareables and appetizers with good take rates, and the option to use three sides instead of two, which has gone over well. The underlying traffic trend improvement is multifaceted with strong operational components. He reminded that the first half of fiscal 2026 was particularly challenged versus 2025 while the second half was much closer, which should be considered in modeling. CEO Dave Deno added the 12.5 million loyalty members, improvements in hospitality and food, and the strong retail business as traffic levers. Q: On free cash flow priorities, after CapEx and remaining transition or Maple Street cash costs, how are you thinking about 2027 free cash flows and shareholder returns? Is debt reduction the priority, or has the lower leverage position changed the attractiveness of buybacks? A: CEO Dave Deno said the balance sheet is in great shape and the team has done a great job strengthening it over the past year. The company will pursue a balanced capital allocation strategy, prioritizing organic growth including potential investments in stores and food to grow sales and traffic while retaining a conservative balance sheet. The company will discuss dividend policy and future repurchases with the Board, and announced its regular quarterly dividend. With these results and forecast, there is ample free cash flow, which he called a very big step in the right direction. Q: How are you thinking about marketing expense in 2027 following the slight step down in the second half of this year? A: CFO Craig Pommells said longer-term marketing spend was in the upper 2% range; it was increased in fiscal 2025 and the first half of 2026, then reduced in the second half of 2026 to about 3% of sales, which is closer to the long-term run rate. For 2027, the initial view is roughly 3%, in addition to the loyalty program capability that now represents over 40% of sales. The company continues to test and learn and would happily spend more if it can drive profitable guest growth. CEO Dave Deno added that marketing now spans many channels, especially social media and technology. Q: As the business gets reset and you move into 2027 and 2028, how are you thinking about a longer-term algorithm for same-store sales, unit growth, and cash return to shareholders? A: CEO Dave Deno said it is early after six weeks in the role, but the company should be able to have strong, sustained sales growth, earnings growth, cash flow, return cash to shareholders, and a strong balance sheet. He said the company would like to return to unit growth and invest in stores, and that improving key metrics same-store sales, revenue growth, cash flow, margin, traffic, capital allocation, and return of cash to shareholders is top of mind, with more to follow. Q: What are you seeing or expecting on freight prices on the retail side, including fuel surcharges, and how are you thinking about absorbing that versus passing it on? A: CFO Craig Pommells said the company is seeing fuel surcharges related For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Performance Underscores Continued Improvement in Key Operating & Financial Metrics LEBANON, Tenn., Sept. 23, 2026 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today reported its financial results for the fourth quarter of fiscal 2026 ended July 31, 2026. Cracker Barrel President and Chief Executive Officer David Deno said, "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." Fourth Quarter Fiscal 2026 HighlightsThe financial results presented below reflect consolidated operations, including Maple Street Biscuit Company's ("MSBC") results up to the divestiture of MSBC that occurred on July 20, 2026. Total revenue was $849.3 million. Compared to the prior year quarter, total revenue decreased 2.2%. As previously disclosed, during the fourth quarter, the Company completed a sale-leaseback transaction, divested MSBC, and announced that David Deno was appointed to serve as Chief Executive Officer, effective August 10, 2026. GAAP earnings per diluted share were $0.54, and adjusted1 earnings per diluted share were $0.99. (See non-GAAP reconciliation table below.) GAAP net income was $12.2 million compared to prior year quarter GAAP net income of $6.8 million. Adjusted EBITDA1 was $62.1 million and includes a benefit of approximately $9.1 million related to tariff refunds, net of investments, compared to prior year quarter adjusted EBITDA1 of $55.7 million. (See non-GAAP reconciliation table below.) Balance Sheet & Capital Allocation The Company ended fiscal 2026 with total debt of $337.2 million, comprised of its 1.75% Convertible Senior Notes due 2030, with no outstanding borrowings on its credit facility, compared to total debt of $484.6 million at the end of fiscal 2025. The Company ended the fourth quarter with a consolidated total leverage ratio3 of 1.7x and a consolidated senior leverage ratio3 of 0.0x. At the end of the fourth quarter, the Company had approximately $541.3 million in available capacity3 under its credit facility. During the fourth quarter, the Company repaid $150 million of short-term debt related to its 0.625% Convertible Senior Notes when they matured in June 2026. During the fourth quarter, the Company completed a sale-leaseback transaction for 26 Company-owned Cracker Barrel store locations, generating net proceeds of approximately $77 million that were deployed towards debt reduction. The tax-efficient transaction enabled the Company to utilize capital loss carryforwards that otherwise would have expired. 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, 2026 to shareholders of record as of October 16, 2026. Fiscal 2027 Outlook The Company provided the following outlook for fiscal 2027: Total revenue of $3.325 billion to $3.4 billion including comparable store restaurant sales growth of 3% to 5% and no new store openings Adjusted EBITDA1 of $180 million to $200 million2 Commodity inflation of approximately 3.0% Hourly wage inflation of 2.5% to 3.0% Capital expenditures of $110 million to $125 million Fiscal 2026 Fourth Quarter Conference CallAs previously announced, the live broadcast of Cracker Barrel's quarterly conference call will be available to the public online at investor.crackerbarrel.com later today beginning at 8:15 a.m. (ET). The online replay will be available later today. About Cracker Barrel Old Country Store®Cracker Barrel Old Country Store, Inc. – rooted in a rich legacy of warmth, generosity, and tradition – is on a mission to bring the goodness of country hospitality to life. Since 1969, when the first store opened in Lebanon, Tenn., Cracker Barrel has been serving up abundant portions of craveable homestyle food and offering one-of-a-kind retail finds. With over 650 company-owned Cracker Barrel Old Country Store® locations in 43 states, the brand continues to honor its heritage while welcoming everyone with more than a meal. For more information, visit CrackerBarrel.com. CBRL-F Except for specific historical information, certain of the matters discussed in this press release may express or imply projections of items such as revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These and similar statements regarding events or results that the Company expects will or may occur in the future are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual results and performance of the Company to differ materially from those expressed or implied by such forward-looking statements. All forward-looking information is provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these risks, uncertainties and other factors. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "trends," "assumptions," "target," "guidance," "outlook," "opportunity," "future," "plans," "goals," "objectives," "expectations," "near-term," "long-term," "projection," "may," "will," "would," "could," "expect," "intend," "estimate," "anticipate," "believe," "potential," "regular," "should," "projects," "forecasts," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. The Company believes that the assumptions underlying any forward-looking statements are reasonable; however, any of the assumptions could be inaccurate, and therefore, actual results may differ materially from those projected in or implied by the forward-looking statements. In addition to the risks of ordinary business operations, factors and risks that may result in actual results differing from this forward-looking information include, but are not limited to risks and uncertainties associated with inflationary conditions with respect to the price of commodities, ingredients, transportation, distribution and labor; disruptions to the Company's restaurant or retail supply chain; effects of changes in international, national, regional and local economic, political and market conditions (such as the imposition of trade barriers or other changes in trade policy) on our business; the Company's ability to manage retail inventory and merchandise mix; the Company's ability to sustain or the effects of plans intended to improve operational or marketing execution and performance or liquidity; the impact of adverse or extreme weather events on sales and customer travel; the effects of increased competition at the Company's locations on sales and on labor recruiting, cost, and retention; consumer behavior based on negative publicity or changes in consumer health or dietary trends or safety aspects of the Company's food or products or those of the restaurant industry in general, including concerns about outbreaks of infectious disease; the effects of the Company's indebtedness and associated restrictions on the Company's financial and operating flexibility and ability to execute or pursue its operating plans and objectives; changes in interest rates, increases in borrowed capital or capital market conditions affecting the Company's financing costs and ability to refinance its indebtedness, in whole or in part; the Company's reliance on a single distribution facility and certain significant vendors, particularly for foreign-sourced retail products; information technology disruptions and data privacy and information security breaches, whether as a result of infrastructure failures, employee or vendor errors or actions of third parties; the Company's compliance with privacy and data protection laws; changes in or implementation of additional governmental or regulatory rules, regulations and interpretations affecting tax, health and safety, animal welfare, pensions, insurance or other undeterminable areas; the actual results of pending, future or threatened litigation or governmental investigations; or the Company's ability to manage the impact of negative social media attention and the costs and effects of negative publicity; the impact of activist shareholders; the Company's ability to achieve aspirations, goals and projections related to its sustainability initiatives; the effects of local market and economic conditions on individual store locations, and uncertain profitability at any newly opened store locations; the Company's ability to retain key personnel; the ability of and cost to the Company to recruit, train, and retain qualified hourly and management employees; uncertain performance of acquired businesses, strategic investments and other initiatives that the Company may pursue from time to time; the effects of business trends on the outlook for individual restaurant locations and the effect on the carrying value of those locations; general or regional economic weakness, business and societal conditions; discretionary income or personal expenditure activity of the Company's customers; implementation of new or changes in interpretation of existing accounting principles generally accepted in the United States of America ("GAAP"); and other factors described from time to time in the Company's filings with the Securities and Exchange Commission, press releases, and other communications. Any forward-looking statement made by the Company herein, or elsewhere, speaks only as of the date on which made. The Company expressly disclaims any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. CRACKER BARREL OLD COUNTRY STORE, INC.Reconciliation of GAAP-Basis Operating Results to Non-GAAP Operating Results(Unaudited and in thousands, except per share amounts) Adjusted Net Income and Earnings Per ShareIn the accompanying press release, the Company makes reference to adjusted net income and adjusted earnings per share. The Company defines adjusted net income as net income, calculated in accordance with GAAP, excluding, to the extent the following items occurred during the periods presented: (i) impairment charges related to Cracker Barrel stores, and, for periods prior to the second quarter of fiscal 2025, store closing costs (ii) expenses related to the proxy contest in connection with the Company's 2024 and 2025 annual meeting of shareholders, (iii) expenses associated with the Company's strategic transformation initiative, (iv) a corporate restructuring charge that includes consulting fees related to business model improvement and severance related to a reduction in headcount, (v) a gain on extinguishment of debt related to the Company's repurchase of $150 million aggregate principal amount of its 0.625% convertible senior notes due and repaid in June 2026, (vi) store closing costs associated with MSBC reorganization that occurred in the first quarter of fiscal 2026, (vii) a benefit of approximately $47 million related to a litigation settlement that occurred in the third quarter of fiscal 2026, (viii) a net gain on the sale-leaseback transaction that occurred in the fourth quarter of fiscal 2026, (ix) a non-cash loss on sale charge related to the divestiture of MSBC that occurred in the fourth quarter of fiscal 2026, (x) store closing costs related to the divestiture of MSBC, (xi) other non-cash impairment charges related to MSBC, (xii) severance in connection with our CEO transition and expenses related to acceleration of share-based compensation, and (xiii) the related tax impacts of the foregoing. CRACKER BARREL OLD COUNTRY STORE, INC.Reconciliation of GAAP-Basis Operating Results to Non-GAAP Operating Results(Unaudited and in thousands) EBITDA/Adjusted EBITDAIn the accompanying press release and the below reconciliation tables, the Company makes reference to EBITDA and adjusted EBITDA. The Company defines EBITDA as net income, calculated in accordance with GAAP, excluding depreciation and amortization, interest expense and tax expense. The Company further adjusts EBITDA to exclude, to the extent the following items occurred during the periods presented: (i) expenses related to share-based compensation, (ii) impairment charges related to Cracker Barrel stores, and, for periods prior to the second quarter of fiscal 2025, store closing costs, (iii) expenses related to the proxy contest in connection with the Company's 2024 and 2025 annual meeting of shareholders, (iv) expenses associated with the Company's strategic transformation initiative, (v) a corporate restructuring charge that includes consulting fees related to business model improvement and severance related to a reduction in headcount, (vi) a gain on extinguishment of debt related to the Company's repurchase of $150 million aggregate principal amount of its 0.625% convertible senior notes due and repaid in June 2026, (vii) store closing costs associated with MSBC reorganization that occurred in the first quarter of fiscal 2026, (viii) a benefit of approximately $47 million related to a litigation settlement that occurred in the third quarter of fiscal 2026, (ix) a net gain on the sale-leaseback transaction that occurred in the fourth quarter of fiscal 2026, (x) a non-cash loss on sale charge related to the divestiture of MSBC that occurred in the fourth quarter of fiscal 2026, (xi) store closing costs related to the divestiture of MSBC, (xii) other non-cash impairment charges related to MSBC, and (xiii) severance in connection with our CEO transition and expenses related to acceleration of share-based compensation. The Company calculates EBITDA and adjusted EBITDA margin by dividing EBITDA and adjusted EBITDA by consolidated GAAP revenue. The Company believes that presentation of EBITDA and adjusted EBITDA (together with related margin figures) provides investors with an enhanced understanding of the Company's operating performance and debt leverage metrics and enhances comparability with the Company's historical results, and that the presentation of this non-GAAP financial measure, when combined with the primary presentation of net income, is beneficial to an investor's complete understanding of the Company's operating performance. This information is not intended to be considered in isolation or as a substitute for net income or net income margin prepared in accordance with GAAP. Investor Contact: Adam Hanan (615) 443-9887 Media Contact: Heidi Pearce (615) 235-4135 View original content to download multimedia:https://www.prnewswire.com/news-releases/cracker-barrel-reports-fourth-quarter-and-full-year-fiscal-2026-results-and-provides-fiscal-2027-outlook-302886679.html

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. New CEO Dave Deno identified food quality, guest experience, and people as the three primary strategic pillars to drive long-term success. Management is prioritizing dinner daypart improvements, specifically upgrading chicken, hamburger, and steak offerings to increase craveability and guest satisfaction. The retail segment is viewed as a unique competitive advantage, with plans to enhance the shopping experience through simplified layouts and improved sight lines. Operational momentum is supported by significant improvements in guest metrics, including a 400 basis point increase in food taste and service scores year-over-year. The Cracker Barrel Rewards program has reached over 12.5 million members, now accounting for more than 40% of tracked sales, providing a critical platform for personalized marketing. Employee engagement remains a core focus, evidenced by hourly turnover improving 450 basis points and manager turnover improving 85 basis points compared to the prior year. Fiscal 2027 guidance assumes comparable store restaurant sales growth of 3% to 5%, driven by underlying traffic improvements and menu mix initiatives. Pricing is expected to be approximately 3% for the full year, with the highest levels in Q1 and sequential decreases in subsequent quarters. Management anticipates adjusted EBITDA between $180 million and $200 million, reflecting a robust step-up driven by cost efficiencies and traffic recovery. Capital expenditures are projected between $110 million and $125 million, with 65% allocated to maintenance and 35% to technology and strategic initiatives. The company plans to pause new unit openings for the fiscal year to focus resources on organic growth and existing store performance. Q4 results included a $15 million tariff refund benefit, of which $5.9 million was reinvested into the business. The company completed a sale-leaseback transaction generating $77 million in net proceeds, which was utilized to reduce total debt by $147.4 million year-over-year. GAAP results were impacted by a $27 million noncash loss and an $8.5 million impairment charge related to the divestiture of the Maple Street brand. Management noted a $13 million impairment charge related to low-performing Cracker Barrel stores, including three locations that were closed during the quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth will be driven by underlying traffic trend improvements and menu mix initiatives, such as the '3 sides' upgrade, which increases margin without pure pricing. Cost savings and efficiency initiatives are focused on areas the guest does not see, such as store support center productivity and technology investments. Management observed continued softness in the lower-income guest cohort, while higher-income segments show relative strength. The brand is leaning into its value equation, noting a $16 average check compared to the $27 casual dining industry average, supported by $7.99 and $8.99 entry price points. CEO Dave Deno indicated it is too early to provide a specific long-term algorithm but expressed a desire to eventually return to unit growth and store investment. The company remains committed to a balanced capital allocation strategy, prioritizing organic growth while maintaining a conservative balance sheet and regular dividends. Advertising spend has been normalized to approximately 3% of sales, which management considers a sustainable long-term run rate. The 3% spend is supplemented by the loyalty program's ability to drive traffic through direct, personalized digital channels.