Executive Summary

Q1 FY2025 was in line with expectations: revenue $845.1M (+2.6% YoY), GAAP EPS $0.22, adjusted EPS $0.45, adjusted EBITDA $45.8M (+4.3% YoY) .
Comparable-store restaurant sales rose 2.9% (pricing +4.7%), outpacing the Black Box casual dining industry by ~290 bps; comparable retail fell 1.6% .
Management reaffirmed FY2025 outlook (revenue $3.4–$3.5B; adjusted EBITDA $200–$215M; capex $160–$180M), and declared a $0.25 dividend payable Feb 12, 2025 .
Call nuance: dinner traffic improved by ~600 bps YoY and ~200 bps QoQ; however, a ~$6M Q1 gift-card breakage timing benefit will be a headwind in Q2 with no offset identified, a near-term trading catalyst to watch .

What Went Well and What Went Wrong

What Went Well
- Comparable-store restaurant sales +2.9% with improved dinner trends; CEO: “We… saw continued improvement in the dinner daypart” .
- Strategic initiatives gaining traction: menu innovation (e.g., Hashbrown Casserole Shepherd’s Pie, Pot Roast), pricing optimization with favorable mix, and loyalty driving incremental sales .
- Adjusted EBITDA up 4.3% YoY to $45.8M; GAAP net income positive ($4.8M) and dividend maintained at $0.25/share .
What Went Wrong
- Retail softness persisted: comparable-store retail sales -1.6% in Q1, echoing broader discretionary headwinds .
- Cost items and reserves: ~$9.3M atypical costs (workers’ comp and general liability reserve increases, wage-and-hour settlement, hurricane impact, DM conference) outweighed a $6M gift-card breakage timing benefit; net ~$3.3M EBITDA drag .
- Interest expense remained elevated and is expected to rise with planned refinancing of the $300M convertible debt at higher coupons later in FY2025 .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$817.1	$894.4	$845.1
GAAP EPS ($)	($0.41)	$0.81	$0.22
Adjusted EPS ($)	$0.88	$0.98	$0.45
GAAP Net Income ($USD Millions)	($9.2)	$18.1	$4.8
Net Income Margin (%)	(1.1%)	2.0%	0.6%
Adjusted EBITDA ($USD Millions)	$47.9	$57.4	$45.8
Adjusted EBITDA Margin (%)	5.9%	6.4%	5.4%
Restaurant Revenue Mix (%)	82.2%	81.8%	80.9%
Retail Revenue Mix (%)	17.8%	18.2%	19.1%

Segment revenue (Cracker Barrel stores only; excludes Maple Street Biscuit Company):

Metric	Q3 2024	Q4 2024	Q1 2025
Restaurant Revenue ($USD Millions)	$654.4	$713.0	$666.4
Retail Revenue ($USD Millions)	$145.4	$162.7	$161.6
Total ($USD Millions)	$799.8	$875.7	$828.0

KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
Comp Restaurant Sales (%)	(1.5%)	+0.4%	+2.9%
Comp Retail Sales (%)	(3.8%)	(4.2%)	(1.6%)
Menu Pricing (%)	+4.0%	+4.2%	+4.7%
Off-Premise as % of Restaurant Sales	—	—	18.4%
Average Check Growth (%)	—	—	+5.8%
Mix Effect (%)	—	—	+1.1%
Dinner Traffic Change	—	—	+600 bps YoY; +200 bps QoQ

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($USD)	FY2025	$3.4B–$3.5B	$3.4B–$3.5B	Maintained
Adjusted EBITDA ($USD)	FY2025	$200M–$215M	$200M–$215M	Maintained
Capital Expenditure ($USD)	FY2025	$160M–$180M	$160M–$180M	Maintained
Commodity Inflation (%)	FY2025	2%–3%	2%–3%	Maintained
Hourly Wage Inflation (%)	FY2025	3%–4%	3%–4%	Maintained
Unit Openings	FY2025	2 CB stores; 3–4 Maple Street	2 CB stores; 3–4 Maple Street	Maintained
Dividend	Q1 FY2025	$0.25 declared (Nov 13, 2024 payable)	$0.25 declared (Feb 12, 2025 payable)	Maintained

Note: Later in Q3 FY2025, guidance was raised to adjusted EBITDA $215M–$225M (no change needed for Q1 recap, but relevant for trend) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Dinner Daypart	Softer traffic; below expectations, transformation needed	Early progress; remodel and operational excellence highlighted	+600 bps YoY, +200 bps QoQ improvement; menu innovations resonating	Improving
Pricing & Value	Pricing ~4.0%; traffic softness	Optimized pricing; remodel program	Pricing +4.7%; favorable mix +1.1%; value scores improving	Positive flow-through
Loyalty Program	—	—	>6M members; higher frequency and check; retail cross-sell tests successful	Scaling
Back-of-House Optimization	—	—	Phase 1 expanding; labor productivity focus; part of $50–$60M structural savings over 3 years	Early deployment
Remodel Program	—	Progress on pilot stores; testing tiers	25–30 remodels + 25–30 refreshes planned; test-and-learn year	Ongoing testing
Retail Strategy	Retail comps weak	Retail differentiation; inventory/margin management	Holiday promotions; margins ahead in Q1 but full-year retail margins expected a bit unfavorable	Mixed
Off-Premise/Thanksgiving	—	—	Shifted strategy to prioritize dine-in experience and profitability; executed well	More balanced
Financing/Interest	—	—	Convertible $300M refinancing expected at higher coupons; interest expense to increase	Headwind ahead

Management Commentary

CEO (Julie Masino): “We delivered first quarter results that were in line with our expectations… and we saw continued improvement in the dinner daypart.” .
CEO on menu and value: “Our optimized pricing initiative is delivering strong flow-through… Cracker Barrel Rewards is delivering incremental sales and traffic.” .
CFO (Craig Pommells): “We reported total revenue of $845.1 million… Comparable store restaurant sales increased 2.9%… Pricing was approximately 4.7%.” .
CFO on cost items: “Headwind is about $9.3 million… all included in GAAP and adjusted results; net drag to EBITDA of about $3.3 million after $6 million breakage benefit.” .
CFO on outlook: “We reaffirm our FY’25 outlook… adjusted EBITDA of approximately $200 million to $215 million… capex of $160 million to $180 million.” .

Q&A Highlights

Gift-card breakage timing: ~$6M benefited Q1 sales/EBITDA at corporate level; largely reverses and becomes a headwind in Q2 with no identified offsets .
Back-of-house optimization: Focused on labor productivity and job ease; part of a $50–$60M multiyear structural cost savings plan .
Check dynamics: Average check +5.8% (price +4.7%, mix +1.1%), aided by dinner and premium barbell items .
Loyalty program: >6M members, higher spend and frequency; effective retail cross-sell via targeted offers .
Remodel tiers: 25–30 high/medium/low remodels plus 25–30 refreshes in FY2025; test-and-learn to optimize ROI mix .
Regional trends: Stronger in Northeast/Midwest; softer in Texas; steady from September to October .

Estimates Context

Consensus EPS and revenue estimates from S&P Global were unavailable due to a daily request limit error; we cannot quantify beat/miss versus Wall Street consensus for Q1 FY2025 at this time. Values retrieved from S&P Global.*
Management characterized results as “in line with our expectations,” suggesting limited surprise versus internal plans; the explicit $6M Q1 breakage timing benefit and expected Q2 reversal may prompt intra-quarter estimate rebalancing (EBITDA phasing) .

Key Takeaways for Investors

Restaurant momentum: Dinner traffic and menu innovation are improving mix and check, supporting comps and margin flow-through .
Near-term risk: Q2 will face a ~$6M headwind from gift-card breakage timing with no identified offsets; could pressure quarterly EBITDA despite full-year reaffirmation .
Retail remains mixed: Inventory/margins well managed; topline still pressured; management expects full-year retail margins to be “a bit unfavorable” .
Cost program early but tangible: Back-of-house phase rollout aims at labor productivity; part of $50–$60M structural savings over three years .
Capital and financing watch: Expected refinancing of $300M converts at higher coupons implies rising interest expense—monitor leverage and coverage metrics .
FY2025 outlook steady: Reaffirmed revenue and adjusted EBITDA with maintained capex and inflation assumptions; dividend held at $0.25 .
Trading setup: Q1 print in line; Q2 headwind and dinner momentum create dispersion risk—watch comp trends, margin flow-through, and any update to FY phasing on the next call .

Footnote: *Consensus estimates were not retrievable due to S&P Global daily request limit; we will update beat/miss analysis once data access resumes.

CRACKER BARREL OLD COUNTRY STORE, INC (CBRL)·Q1 2025 Earnings Summary