Cracker Barrel Swings to $23.3M Loss as Revenue Falls 6.8% in First Half of Fiscal 2026

Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL), a restaurant and retail chain operator, posted a net loss of $23.3 million for the six months ending January 30, 2026, compared to net income of $27.1 million in the same period a year earlier. The loss per diluted share was $1.05, compared to earnings of $1.21 per share in the prior-year period. Read more earnings reports.

Revenue fell 6.8% to $1.67 billion for the first half of fiscal 2026, down from $1.79 billion in the year-ago period. Restaurant revenue declined to $1.34 billion from $1.43 billion, while retail revenue dropped to $327.1 million from $360.8 million.

The company reported an operating loss of $32.3 million for the six-month period, compared to operating income of $36.2 million a year earlier. The swing represents a decline of $68.5 million in operating performance.

Quarterly Performance Shows Modest Recovery

For the three months ending January 30, 2026, Cracker Barrel posted net income of $1.3 million, down 94.2% from $22.2 million in the prior-year quarter. Revenue for the second fiscal quarter totaled $874.8 million, down 7.9% from $949.4 million a year earlier.

Operating income for the quarter was $463,000, compared to $29.1 million in the same quarter last year. The company recorded a tax benefit of $4.9 million in the second quarter, compared to a tax expense of $1.9 million in the prior-year period.

Cost Structure and Margins Under Pressure

Cost of goods sold for the six-month period was $541.1 million, down 4.9% from $568.7 million. Labor and related expenses totaled $617.0 million for the first half, down 2.6% from $633.6 million in the prior-year period.

For the second fiscal quarter, cost of goods sold declined to $292.7 million from $309.8 million, while labor expenses fell to $315.7 million from $326.3 million.

Balance Sheet and Cash Position

Total assets stood at $2.10 billion as of January 30, 2026, down from $2.16 billion at the start of the fiscal year on August 1, 2025. Cash and cash equivalents fell sharply to $8.6 million from $39.6 million at the beginning of the fiscal year.

Long-term debt increased to $381.8 million from $335.5 million at fiscal year-end. Total stockholders' equity declined to $425.8 million from $461.7 million. Current liabilities decreased to $581.0 million from $625.6 million.

Cash Flow Deteriorates

Cash from operations turned negative at $2.2 million for the first half of fiscal 2026, compared to positive operating cash flow of $93.7 million in the prior-year period. Cash used in investing activities was $60.5 million, compared to $76.1 million a year earlier.

Cash from financing activities was $31.6 million, compared to negative $19.3 million in the prior-year period, reflecting increased borrowing activity. The company had 22.4 million shares outstanding as of January 30, 2026, compared to 22.3 million at the start of the fiscal year.

Key Financial Metrics

Inventory remained relatively stable at $180.3 million compared to $180.6 million at fiscal year-end. Accounts receivable increased slightly to $35.4 million from $35.1 million. Property, plant and equipment declined to $961.5 million from $967.0 million.