Cracker Barrel (NASDAQ:CBRL) Stock Plummets on Q4 Earnings Miss and Weak Guidance

CRACKER BARREL OLD COUNTRY STORE (NASDAQ:CBRL) reported its fourth quarter fiscal 2025 earnings, delivering a mixed financial picture that ultimately disappointed investors, as evidenced by a sharp after-hours selloff. While the company managed to surpass revenue expectations, it fell short on profitability metrics and provided forward guidance that failed to meet analyst projections, contributing to negative market sentiment.

Earnings Performance Versus Estimates

The restaurant and retail chain reported quarterly revenue of $868 million, which slightly exceeded the analyst consensus estimate of approximately $872.4 million. Despite this top-line beat, revenue still declined by 2.9% compared to the same period last year, indicating ongoing challenges in driving sales growth.

On the profitability front, the company's non-GAAP earnings per share came in at $0.74, falling short of the $0.81 analysts had projected. This earnings miss suggests that while the company managed to generate better-than-expected revenue, it faced pressure on margins or encountered higher operational costs during the quarter.

Market Reaction and Price Action

Investors responded negatively to the earnings release, with the stock dropping nearly 9% in after-market trading. This significant decline reflects market disappointment with both the earnings miss and the company's outlook. The negative reaction extends recent weakness in the stock, which has declined approximately 16.7% over the past month and 8.4% over the past two weeks, though it has remained essentially flat over the past week.

Forward Guidance and Analyst Expectations

The company's full-year revenue guidance of $3.4 billion at the midpoint came in 3.4% below analysts' estimates of $3.41 billion, creating additional concerns about the company's growth trajectory. This guidance shortfall appears particularly significant given the recent controversies surrounding the company's rebranding efforts, which may be impacting consumer perception and sales performance.

Looking ahead to the next quarter, analysts project revenue of approximately $870.9 million for Q1 2026, with full-year 2026 revenue estimates standing at $3.6 billion. The company's own guidance falling below these projections suggests management maintains a more cautious outlook than Wall Street analysts.

Press Release Summary

The earnings release highlighted the company's fourth quarter and full-year fiscal 2025 results while providing initial guidance for the coming period. The report emphasized the company's operational performance amid challenging market conditions but ultimately failed to inspire investor confidence due to the earnings miss and conservative forward guidance.

For more detailed earnings information and analyst estimates, readers can review the complete earnings data here.

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Disclaimer: This article provides financial information for educational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.