Cracker Barrel stock jumps 30% after Q3 beat, outlook raise

Cracker Barrel Old Country Store shares climbed about 30% in Wednesday trading after the company reported fiscal third-quarter adjusted earnings of $0.29 per share and raised its full-year guidance. The stock had gained roughly 40% over several sessions heading into Wednesday.

Short interest was about 27% of the float before the session, which accelerated buying as some short sellers covered positions and added momentum to the rally.

For the quarter, revenue was $797.4 million, above analysts’ expectations of $776.7 million. The company reported net income of $42.8 million, or $1.90 per share, compared with $12.6 million, or $0.56 per share, in the prior-year quarter. Results included a $47.4 million litigation settlement that boosted reported earnings.

Management said profitability benefited from cost reductions tied to a corporate restructuring completed in the second quarter, which the company expects will deliver $20 million to $25 million in annualized savings.

Cracker Barrel raised its full-year revenue outlook to about $3.3 billion and increased its adjusted EBITDA forecast to $120 million to $125 million, up from prior guidance of $85 million to $100 million.

Operational trends were mixed. Comparable restaurant sales declined 2.6% in the quarter, while comparable retail sales fell 1.8%; retail sales outperformed restaurant sales for the first time in more than four years. Traffic dropped about 6.7% year over year.

Chief Executive Julie Masino noted, “Our value remains strong,” and pointed to a 4% year-over-year rise in the company’s Google star rating to its highest level since 2018. Chief Financial Officer Craig Pommells added that, “Although traffic remained negative, we’re encouraged by the gradual improvements in the underlying traffic trend.”

Following the results, analysts at Citi, UBS and Wells Fargo raised price targets on the stock. Wells Fargo upgraded Cracker Barrel to overweight and increased its target price to $50 from $35.

The earnings beat and the stronger guidance follow a 2025 rebranding that drew customer backlash. The company reversed parts of that redesign and restored elements of its traditional brand identity, including older food preparation methods, as it works to regain patrons.