Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) Earnings Report Analysis

• Earnings Per Share (EPS) fell short of expectations at $0.74, missing the Zacks Consensus Estimate by 5.13%.
• Revenue exceeded estimates at $868 million, showcasing the company's strong sales performance despite a year-over-year decrease.
• The stock experienced a near 10% drop in extended trading hours following the mixed earnings report.

Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) is a prominent player in the Zacks Retail - Restaurants industry, known for its unique blend of restaurant and gift store offerings with a Southern country theme. On September 17, 2025, the company disclosed its latest earnings, presenting a mix of underwhelming and exceeding figures that influenced its stock performance.

The company's Earnings Per Share (EPS) for the quarter was reported at $0.74, not meeting the Zacks Consensus Estimate of $0.78. This discrepancy marked a 5.13% negative surprise and a downturn from the $0.98 EPS reported in the corresponding quarter of the previous year. Despite this shortfall, Cracker Barrel has a commendable track record, having surpassed EPS estimates in three of the past four quarters.

On the revenue front, Cracker Barrel announced $868 million, which was above the anticipated $831 million. This outperformance against the Zacks Consensus Estimate by 1.33% is notable, even though it represents a decline from the $894 million reported in the same period the year before. The company's consistent ability to exceed revenue expectations underscores its robust sales capabilities.

However, the earnings announcement led to a nearly 10% decline in Cracker Barrel's stock during extended trading hours. The mixed results, characterized by missed earnings but surpassed revenue forecasts, fueled investor discontent. Nonetheless, the company observed a significant uptick in loyalty program registrations, providing a silver lining amidst the financial turbulence.

Analyzing Cracker Barrel's financial metrics reveals more about its market position. The company's price-to-earnings (P/E) ratio stands at approximately 19.11, and its price-to-sales ratio is around 0.31, suggesting a modest market valuation relative to its revenue. Furthermore, a debt-to-equity ratio of roughly 2.43 indicates a substantial dependence on debt for asset financing, a factor that investors should consider.