Cracker Barrel Old Country Store (CBRL) Financials

Cracker Barrel’s financial performance improved materially during fiscal 2026, but the recovery remains uneven. Revenue was $849.3 million in Q4 2026, down from $868.0 million in Q4 2025 and $894.4 million in Q4 2024. Fiscal 2026 included a $24.6 million loss in Q1, followed by positive net income of $1.3 million, $42.8 million and $12.2 million in Q2 through Q4. The Q3 result benefited from $47.4 million of other income, while Q4 included a $27.3 million impairment charge and nearly $30.0 million of net other expense, making quarterly earnings somewhat volatile.

Cash generation was a major strength. Operating cash flow improved from negative $53.4 million in Q1 2026 to $113.7 million in Q4, producing approximately $206.2 million for the fiscal year. Capital expenditures totaled roughly $117.8 million, implying estimated annual free cash flow of about $88.4 million before financing activities. However, Q4 investing cash flow was helped by $79.8 million from selling property and equipment, so the quarter’s $52.4 million of investing inflow should not be viewed as recurring operating performance.

The balance sheet shows some progress in debt reduction, although liquidity remains tight. As of Q3 2026, cash was $26.1 million, up from $8.9 million at Q1, while total debt declined to approximately $486.6 million from $550.3 million. Total liabilities also decreased to $1.62 billion from $1.72 billion. Nevertheless, current liabilities of $580.1 million were approximately twice current assets of $290.6 million, and total equity of $465.5 million remained considerably below total liabilities.

• Operating cash flow rebounded strongly: Fiscal 2026 quarterly operating cash flow progressed from negative $53.4 million in Q1 to positive $113.7 million in Q4.
• Full-year cash generation exceeded capital spending: Approximately $206.2 million of operating cash flow compared with $117.8 million of capital expenditures suggests positive underlying free cash flow.
• Debt balances declined: Total short- and long-term debt fell by roughly $63.7 million from Q1 to Q3 2026, despite continued refinancing activity.
• Liquidity improved from its fiscal-year low: Cash increased from $8.9 million at Q1 2026 to $26.1 million at Q3, while total liabilities declined over the same period.
• Q4 returned to profitability: Net income increased to $12.2 million, or $0.54 per diluted share, from $6.8 million, or $0.29 per diluted share, in Q4 2025.
• Share count remained relatively stable: Diluted shares outstanding have stayed near 22.5 million, limiting dilution but providing little additional per-share leverage from buybacks.
• Asset investment remains substantial: Quarterly capital expenditures generally ranged from approximately $27 million to $35 million, indicating continued maintenance and remodeling needs across the store base.
• Revenue growth has weakened: Q4 2026 revenue declined year over year, and the first three quarters of fiscal 2026 were generally below comparable prior-year periods.
• Profitability remains inconsistent: Fiscal 2026 included a $24.6 million first-quarter loss, a Q3 profit boosted by $47.4 million of other income, and a Q4 impairment charge of $27.3 million.
• Liquidity and leverage remain concerns: Q3 current assets covered only about half of current liabilities, while total debt remained greater than shareholders’ equity.