US restaurant chain Cracker Barrel's Q4 revenue beats estimates

Overview

• US restaurant chain's fiscal Q4 revenue fell 2% yr/yr, but beat analyst expectations

• Adjusted EPS and adjusted EBITDA for fiscal Q4 beat analyst expectations

• Company divested Maple Street Biscuit Company and completed sale-leaseback of 26 stores

Outlook

• Cracker Barrel sees fiscal 2027 revenue of $3.325 bln to $3.4 bln

• Company expects fiscal 2027 adjusted EBITDA of $180 mln to $200 mln

• Cracker Barrel anticipates commodity inflation of about 3% and hourly wage inflation of 2.5% to 3% in fiscal 2027

Result Drivers

• DIVESTITURE IMPACT - Co divested Maple Street Biscuit Company during Q4, affecting reported results

• SALE-LEASEBACK PROCEEDS - Sale-leaseback of 26 stores generated $77 mln for debt reduction

• TARIFF REFUNDS - Adjusted EBITDA includes benefit of $9.1 mln related to tariff refunds, net of investments

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy."

• Wall Street's median 12-month price target for Cracker Barrel Old Country Store Inc is $44.00, about 3.3% below its September 22 closing price of $45.48

• The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 125 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)