The sharp upward revision to FY2026 adjusted EBITDA guidance (midpoint from $92.5M to $122.5M, +32%) signals improving underlying trends, but revenue continues to decline and adjusted earnings remain well below prior year. The $47.4M litigation settlement is non-recurring. Watch for further operational improvement at the next quarterly conference call and whether comparable sales trends can stabilize. The stock has already moved +11.4% at T+5 on the prior quarter's report, suggesting positive momentum may be priced in.
Price Chart
Executive Summary
Cracker Barrel reported Q3 FY2026 results that exceeded expectations, with adjusted EPS of $0.29 vs consensus of $-0.48, though adjusted EPS declined 50% YoY. Revenue of $797.4M missed prior-year by 2.9% and comparable restaurant sales fell 2.6%. The company sharply raised revenue and adjusted EBITDA guidance for FY2026, but the guidance midpoint still implies an annual decline in adjusted EBITDA. GAAP EPS of $1.90 was boosted by a $47.4M litigation settlement, masking ongoing operational weakness.
Key Financial Metrics
Key Facts
- Q3 FY2026 revenue $797.4M, down 2.9% YoY; comparable restaurant sales -2.6%, retail -1.8%
- GAAP EPS $1.90 (includes $47.4M litigation settlement); adjusted EPS $0.29, down 50% from $0.58 YoY
- Adjusted EBITDA $40.3M, down 16.2% from $48.1M YoY; margin compressed from 5.9% to 5.1%
- FY2026 revenue guidance raised to $3.27-$3.30B (prev $3.24-$3.27B); adjusted EBITDA guidance raised to $120-$125M (prev $85-$100M)
- Total debt $486.6M; $149.9M of 0.625% convertible notes due June 2026 to be refinanced via revolver
- Company received $47.4M net from interchange fee litigation settlement
Financial Impact
Q3 revenue declined $23.8M YoY (-2.9%); adjusted EBITDA declined $7.8M (-16.2%); adjusted net income declined $6.6M (-50.2%)
Risk Factors
- Revenue decline persists for 4th consecutive quarter; comparable restaurant sales down 2.6%
- Core adjusted EBITDA margin declining (5.1% vs 5.9% prior year) despite cost-cutting
- $149.9M convertible note maturity in June 2026 requires refinancing at higher rates
- Litigation settlement of $47.4M is non-recurring; GAAP EPS inflated by one-time item
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-071853 |
| Document: tm2617153d1_8k.htm | 0001104659-26-071853 |
| Document: 0001104659-26-071853-index-headers.html | 0001104659-26-071853 |
| Document: 0001104659-26-071853-index.html | 0001104659-26-071853 |
| Document: 0001104659-26-071853.txt | 0001104659-26-071853 |
| 8-K Data (Synthetic) | 0001104659-26-071853 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 19, 2026 6w ago | Court Ruling | $56.07 $43.76 | ▲ +21.95% | ▲ +20.00% | $55.76 (+0.55%) |
Aug 14, 2026 7w ago | Institutional Cluster | $59.04 $45.15 | ▼ −23.53% | ▼ −21.55% | $55.76 (−5.56%) |
Jul 27, 2026 9w ago | 8-K | $52.43 $58.02 | ▲ +10.66% | ▲ +7.36% | $55.76 (+6.35%) |
Jun 9, 2026 16w ago | 8-K | $44.49 $49.51 | ▲ +11.28% | ▲ +7.66% | $55.76 (+25.33%) |
Jun 1, 2026 17w ago | Court Ruling | $35.06 $53.94 | ▲ +53.85% | ▲ +56.16% | $55.76 (+59.04%) |
Mar 4, 2026 30w ago | 8-K | $30.81 $28.65 | ▲ +7.02% | ▲ +3.23% | $55.76 (−80.99%) |
US Market Status
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