Sep 23, 2026 earnings call — New CEO prioritizes food, experience, people
Guided fiscal '27 revenue to $3.325 billion to $3.4 billion and adjusted EBITDA to $180 million to $200 million.
Revenue $0.8B (est $0.8B) · EPS $0.99 (est $0.17) · Next-quarter revenue outlook $3.3B–$3.4B
Key quotes
"Our first priority is food, more specifically enhancing our quality while making it more craveable."
"In Q4, our Google Star rating increased 2% year-over-year and remained near an all-time high."
"In Q4, hourly turnover improved 450 basis points and manager turnover improved 85 basis points compared to the prior year."
Analyst Q&A 5
food quality and pricing drivers
Q (Anthony Trainor · Wells Fargo): First, what still needs fixing and where is the strategy moving? Second, please bridge the FY'27 EBITDA increase and explain the price component going forward.
A: Management said the biggest opportunity is food, especially at dinner, and they will invest in food quality and hospitality training. They also said EBITDA growth is driven by improving traffic, menu mix initiatives, cost savings and efficiencies, and that strategic pricing was done to offset inflation and is largely behind them.
"We're going to be investing in food quality, and that's embedded in our guidance for the year." — David Deno (CEO)
same-store sales timing and traffic drivers
Q (Dennis Geiger · UBS): How will same-store sales progress through the year and what are the main sales and traffic drivers?
A: They said pricing is highest early in the year at about 3% and will taper as the year goes on. They pointed to menu-mix moves (shareables, sides, dessert attachments), improving operating metrics, the loyalty program, and a strong retail business as the levers to drive traffic and sales.
"In terms of cadence, our pricing is going to be at the highest level, 3% across the full year." — Craig Pommells (CFO)
free cash flow priorities and marketing
Q (BofA): After CapEx and transition costs, will 2027 free cash flow go to debt paydown or buybacks? And how will marketing be handled in 2027?
A: They said they will pursue a balanced capital allocation approach, prioritize organic growth and keep a conservative balance sheet while discussing dividend and repurchases with the Board. For marketing, they plan to be around a roughly 3% of sales run rate and will test more spending if it drives profitable guest growth, using loyalty capabilities as well.
"As we think about '27, our initial point of view on this is we'll be in that roughly 3% range." — Craig Pommells (CFO)
consumer outlook and long-term targets
Q (Jeffrey Farmer · Gordon Haskett): How do you view the broader consumer backdrop for casual dining, and do you have an early framework for longer-term growth, unit growth and cash returns?
A: They said the macro is mixed but casual dining has held up, noting pressure with lower-income guests while trends are improving and are embedded in guidance; priorities are food, experience and people. They added Cracker Barrel's value positioning (lower check averages and sharp starting prices) helps, and it's early to give detailed long-term numbers but they aim to grow sales, earnings, cash flow, return cash to shareholders and return to unit growth.
"I think even if you break that apart and you look at dinner, our dinner check average is still in the low $16." — Craig Pommells (CFO)
freight fuel surcharges on retail
Q (Karen Holthouse · Citi): What are you seeing on freight fuel surcharges for retail and will you absorb them or pass them on?
A: They said they are seeing fuel surcharges on freight for retail (and to a lesser degree in restaurants) and that those costs are built into their projections. The impact is included in their overall pricing algorithm and margin planning.
"All of that's built into our projection with the best information that we have today." — Craig Pommells (CFO)