Cracker Barrel Old Country Store (NASDAQ:CBRL) shares dropped 4.5% in early Wednesday trading after the restaurant chain reported disappointing first-quarter earnings and lowered its full-year guidance.
For the quarter ended October 31, 2025, the company reported revenue of $797.2 million, missing Wall Street estimates of about $801 million.
Total revenue fell 5.7% year over year, driven by declines in both restaurant and retail sales. Comparable-store restaurant sales decreased 4.7%, while comparable retail sales dropped 8.5%.
Cracker Barrel posted a GAAP net loss of $24.6 million, or $1.10 per diluted share, compared with net income of $4.8 million in the prior-year quarter. Adjusted loss per share was $0.74, wider than analyst expectations of a $0.68 loss.
Adjusted EBITDA fell sharply to $7.2 million, down from $45.8 million a year earlier.
Management attributed the results to “unique and ongoing headwinds,” including weaker traffic and challenges tied to recent rebranding and marketing efforts.
CEO Julie Masino said the company is adjusting menu offerings, marketing, and operational initiatives while executing cost-saving measures to support financial performance.
As such, Cracker Barrel lowered its full-year fiscal 2026 outlook, reflecting ongoing margin pressure and weaker sales trends.
The company now expects total revenue between $3.2 billion and $3.3 billion, down from a prior range of $3.35 billion to $3.45 billion, and adjusted EBITDA of $70 million to $110 million, compared with a previous target of $150 million to $190 million.
Management expects commodity inflation of 2.5% to 3.5% and hourly wage inflation of 3% to 4% for the year. Planned capital expenditures were lowered to $110 million to $125 million from $135 million to $150 million.
The results follow Cracker Barrel’s earlier 2025 rebrand, which drew backlash from some longtime customers for removing nostalgic branding elements.