Cracker Barrel Old Country Store Inc

XMUN:OLD

Q4 results: Revenue was $849.3 million, and adjusted EBITDA was $62.1 million, up 11.4% year over year; management said both results exceeded expectations.

Sales trends: Comparable restaurant sales declined 2.1%, including a 6.1% traffic decline, but management said the underlying traffic trend continued to improve. Retail comparable sales rose 0.7%, the strongest growth since Q2 fiscal 2023.

Fiscal 2027: Cracker Barrel expects revenue of $3.325 billion to $3.4 billion and adjusted EBITDA of $180 million to $200 million, with restaurant comparable sales growth of approximately 3% to 5%.

Business priorities: New CEO Dave Deno emphasized improving food, guest experience and employee support, with dinner food quality a key opportunity. Food-quality investments are included in guidance.

Profit drivers: Management cited improving traffic, menu mix and cost-efficiency initiatives as drivers of the expected EBITDA increase, while saying it would avoid cost cuts that guests would notice.

Balance sheet: Debt ended the quarter at $337.2 million, down $147.4 million from a year earlier, with $541.3 million of available liquidity. Management said capital allocation would balance investment in the business with a conservative balance sheet and shareholder returns.