Q2 2026 Cracker Barrel Old Country Store Inc Earnings Call Transcript
Key Points
- Cracker Barrel Old Country Store Inc (CBRL) reported total sales of $874.8 million and adjusted EBITDA of $38.2 million for Q2, indicating a strong financial performance.
- The company achieved its highest Google star rating of 4.28 since fiscal year 2020, reflecting improved customer satisfaction.
- There was a 10% improvement in management turnover year over year, suggesting better employee retention and stability.
- The loyalty program, Cracker Barrel Rewards, has grown to over 11 million members, accounting for over 40% of tracked sales, enhancing customer engagement and retention.
- The introduction of new menu items and the reintroduction of guest favorites have been well received, with items like the Breakfast Burger and carrot cake outperforming expectations.
- Total revenue decreased by 7.9% from the prior year quarter, with restaurant revenue down 7.5% and comparable store restaurant sales decreasing by 7.1%.
- Traffic declined by 10.1%, with November and December seeing declines between 10% and 11%, indicating challenges in attracting customers.
- Retail revenue decreased by 9.3%, and comparable store retail sales decreased by 9.2%, reflecting pressure on the retail segment.
- Higher tariffs and increased discounts led to a 340 basis point increase in retail cost of goods sold, impacting profitability.
- Labor and related expenses increased to 36.1% of revenue, driven by sales deleverage and lower productivity, contributing to higher operational costs.
Good day, and welcome to the Cracker Barrel's fiscal 2026 second-quarter conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Adam Hanan, Director of Investor Relations. Please go ahead.
Thank you. Good afternoon, and welcome to Cracker Barrel's second-quarter fiscal 2026 conference call and webcast. This afternoon, we issued a press release announcing our second quarter results. In this press release and on this call, we will refer to non-GAAP financial measures such as adjusted EBITDA for the second quarter ended January 30, 2026. Please refer to the footnotes in our press release for further details about these metrics.
The company believes these measures provide investors with an enhanced understanding of the company's financial performance. This information is not intended to be considered in isolation or as a substitute for net income or earnings per share information prepared
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