Cracker Barrel's adjusted EBITDA rose 11.4% as traffic fell 6.1%

Insider Monkey

Cracker Barrel's fourth-quarter revenue fell 2.2% year over year to $849.3 million as guest traffic dropped 6.1%, but adjusted EBITDA rose 11.4% to $62.1 million. Management also forecast $180 million to $200 million in adjusted EBITDA for fiscal 2027.

Retail comparable sales rose 0.7%, their strongest growth since the second quarter of fiscal 2023, while comparable restaurant sales fell 2.1%. Management cited softer spending among lower-income guests amid the restaurant traffic decline. Cracker Barrel Rewards exceeded 12.5 million members and accounted for more than 40% of tracked sales.

Total debt fell $147.4 million to $337.2 million after repayment of maturing convertible notes and a $77 million sale-leaseback of 26 stores, leaving $541.3 million in available liquidity. The article cites a forward price-to-earnings ratio of 48.54 as of Sept. 24 and says the valuation leaves little margin if a traffic recovery is delayed.

#Cracker-Barrel-Q4-results #Cracker-Barrel-traffic-decline
Share