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Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) is a U.S.-based company specializing in the operation and development of the Cracker Barrel Old Country Store® concept. Founded in 1969 and headquartered in Lebanon, Tennessee, the company combines homestyle restaurant dining with retail shopping. It operates Cracker Barrel stores across 44 states and Maple Street Biscuit Company locations in 10 states, offering a unique blend of food and retail products.
- Restaurant - Offers breakfast, lunch, and dinner with a focus on homestyle food served in Cracker Barrel stores.
- Retail - Provides decorative and functional items, including rocking chairs, holiday gifts, toys, apparel, and specialty foods in Cracker Barrel gift shops.
- Maple Street Biscuit Company (MSBC) - Operates fast-casual breakfast and lunch locations, serving innovative biscuit-based dishes and beverages.
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Given the recent announcement of $4 million in incremental egg costs amid vendor capacity issues and an avian influenza outbreak, can you detail your contingency plans to further mitigate these supply risks and their impact on margins in future quarters? [Index 20][Index 14]
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With pricing at 6% in Q2 and an expectation to average 5% for the year, how will you balance slowing pricing momentum with the need to drive revenue growth and maintain margin expansion? [Index 14]
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Since approximately one-third of your retail purchases are sourced from China—and amid ongoing tariff pressures—what specific measures are you implementing to secure alternate sourcing or negotiate better terms to protect your retail business? [Index 5]
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In light of the transformational initiatives, including deferred expenditures and nonworking marketing investments, can you explain the expected timeline and quantifiable labor or cost savings from your back-of-house optimization and service model changes? [Index 12][Index 21]
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Regarding your remodeling program and store refreshes, what detailed KPIs are you tracking to directly link these investments to improvements in same-store sales and overall guest satisfaction, and how do you plan to accelerate this impact in the near term? [Index 16]
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Maple Street Biscuit Company (MSBC) | 2019 | The acquisition was completed for $36,000,000 (with $32,000,000 in cash and $4,000,000 as a security hold) along with installments of $1,500,000 in Q1 2021 and Q1 2022, incurred acquisition-related costs of $1,269,000, and recognized goodwill of $4,690,000; the deal supports Cracker Barrel’s strategic expansion, highlighted by direct ownership changes and new location openings in 2022. |
Recent press releases and 8-K filings for CBRL.
- Cracker Barrel upsized its private offering to $300 million aggregate principal amount of 1.75% convertible senior notes due 2030 (from $275 million) and granted initial purchasers an option for an additional $45 million; settlement is scheduled on or about June 13, 2025.
- The notes accrue interest at 1.75% per annum, payable semi-annually on March 15 and September 15, beginning March 15, 2026, and mature on September 15, 2030.
- The initial conversion rate is 13.8455 shares per $1,000 principal (equivalent to a $72.23 per-share conversion price, a 32.5% premium to the $54.51 stock price on June 10, 2025).
- Notes are redeemable for cash at Cracker Barrel’s option from September 15, 2028 if the stock trades above 130% of the conversion price, and noteholders may require repurchase upon a fundamental change; conversions will settle in cash, shares, or a combination, at the issuer’s election.
- Cracker Barrel reported Q3 2025 revenue of $821.1 million with GAAP net income of $12.6 million, marking a turnaround from the prior year quarter's loss.
- The company announced GAAP EPS of $0.56 and adjusted EPS of $0.58, with adjusted EBITDA for the quarter at $48.1 million.
- Updated fiscal 2025 guidance now projects adjusted EBITDA between $215 million and $225 million alongside total revenue of $3.45 billion to $3.50 billion.
- A quarterly dividend of $0.25 per share was declared, scheduled to be paid on August 13, 2025.
- New Credit Facility Issued: On May 16, 2025, the company entered into a second amended and restated credit agreement, replacing its previous $700.0M revolving credit facility with a new facility that includes a $550.0M revolving facility, a $25.0M swingline subfacility, a $75.0M letter of credit subfacility, and a $250.0M delayed draw term loan ( ; ).
- Prior Agreement Terminated: The 2022 Credit Agreement was terminated on May 16, 2025, in connection with the adoption of the new credit facility ( ; ).
- Bylaws Amended: The Board approved and adopted amendments to the company’s bylaws effective immediately, which include provisions such as a majority vote standard in uncontested director elections and proxy access for qualifying shareholders ( ).
- Cracker Barrel delivered strong Q2 fiscal 2025 results with total revenue of $949.4 million, GAAP EPS of $0.99, and adjusted EBITDA of $74.6 million .
- The company raised its full-year outlook, now expecting adjusted EBITDA of $210–220 million and total revenue of $3.45–3.50 billion .
- Q2 performance also included GAAP net income of $22.2 million and adjusted EPS of $1.38 .
- Operationally, restaurant comparable store sales increased by 4.7% .
- A quarterly dividend of $0.25 per share was declared with a payment date of May 14, 2025 .
- The company allocated $38.1 million in capital expenditure to strategic investments .
- Management highlighted ongoing enhancements in brand, menu, and service models to boost guest satisfaction and labor productivity .
- Cracker Barrel outlines its multiyear transformation strategy, emphasizing menu innovation, operational improvements, and digital investments to drive long-term growth .
- CEO Julie Masino and CFO Craig Pommells detail strategic initiatives and bolster leadership with key new hires in strategy and marketing .
- Early progress shows Q1 results with a 2.9% comp sales improvement and notable gains in the dinner segment, signaling positive revenue trends .
- The recent 8-K filing reaffirms the brand’s legacy as a trusted destination since 1969, serving genuine comfort food and classic traditions .
- This enduring brand heritage fosters treasured family memories and a strong sense of community .