Nasdaq:CBRL
CRACKER BARREL OLD COUNTRY STORE, INC
A US-based family entertainment provider combining award-winning barbecue dining with immersive game room experiences and retail merchandise.
Key Metrics
Investment Thesis
Bull Case
Investors may favor CBRL due to its diversified revenue model that mitigates risk against any single segment, the potential for franchise growth to drive organic sales without heavy equity dilution, and the strong brand moat in the family entertainment sector which commands premium pricing power.
Bear Case
The significant decline in profitability over the last two years raises concerns about margin compression from rising cost of revenue, high leverage indicated by $335.5M in long-term debt relative to equity, and the inherent cyclicality of the leisure industry that makes earnings volatile during inflationary periods.
About CRACKER BARREL OLD COUNTRY STORE, INC
CRACKER BARREL OLD COUNTRY STORE, INC. (CBRL) operates as a family entertainment destination serving the United States with its signature BBQ restaurants, game rooms, and retail stores. The company combines high-quality culinary offerings with interactive entertainment to drive consistent revenue streams across its extensive store network.
Analysis
Management Discussion
Despite a notable decline in net income from $99.0M in 2023 to $46.4M in 2025, the company maintained steady revenue growth to $3.48B, demonstrating resilience in a challenging macroeconomic environment. The substantial capital expenditures of $159.1M and debt issuances of $548.5M suggest aggressive reinvestment in store upgrades and network expansion, while cash flow from operations of $218.9M provides a healthy buffer for liquidity needs.
Industry Overview
The family entertainment center industry is highly competitive with barriers to entry centered on real estate acquisition and brand recognition, while consumer preferences are shifting towards experiential spending over traditional retail. Operators face ongoing pressure to innovate with new gaming technologies and menu items to retain foot traffic in a post-pandemic landscape.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $3.44B | $3.47B | $3.48B |
| Cost of Revenue | $1.13B | $1.09B | $1.08B |
| Gross Profit | $2.32B | $2.38B | $2.40B |
| Operating Expenses | $2.19B | $2.34B | $2.35B |
| Operating Income | $120.6M | $45.1M | $55.0M |
| G&A | $174.1M | $207.1M | $217.5M |
| Stock-Based Comp | $9.0M | $10.3M | $11.7M |
| D&A | $104.5M | $111.7M | $122.2M |
| Depreciation | $103.7M | $110.9M | $121.4M |
| Other OpEx | $2.02B | $2.13B | $2.13B |
| Non-Operating Income | $-17.0M | $-20.9M | $-17.3M |
| Pre-Tax Income | $103.6M | $24.2M | $37.7M |
| Income Tax | $4.6M | $-16.7M | $-8.7M |
| Continuing Ops | $99.0M | $40.9M | $46.4M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $99.0M | $40.9M | $46.4M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $99.0M | $40.9M | $46.4M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $282.3M | $278.2M | $313.1M |
| Cash & Equivalents | $25.1M | $12.0M | $39.6M |
| Accounts Receivable | $30.4M | $39.2M | $35.1M |
| Inventory | $189.4M | $181.0M | $180.6M |
| Prepaid Expenses | $35.3M | $36.1M | $45.0M |
| Other Current Assets | $2.1M | $9.9M | $12.8M |
| Long-Term Assets | $1.94B | $1.88B | $1.85B |
| PP&E (Net) | $971.9M | $959.8M | $967.0M |
| Intangibles | $23.4M | $24.4M | $24.4M |
| Goodwill | $4.7M | — | — |
| Operating Leases | $889.3M | $850.8M | $806.1M |
| Other LT Assets | $46.4M | $48.2M | $51.4M |
| Total Assets | $2.22B | $2.16B | $2.16B |
| Current Liabilities | $489.0M | $454.2M | $625.6M |
| Accounts Payable | $165.5M | $162.3M | $169.8M |
| Current Debt | $75.0K | $75.0K | $149.2M |
| Current Leases | $46.3M | $49.8M | $50.9M |
| Deferred Revenue | $95.0M | — | — |
| Other Current Liab | $152.6M | $235.7M | $249.3M |
| Long-Term Liabilities | $1.25B | $1.27B | $1.07B |
| Long-Term Debt | $414.9M | $476.6M | $335.5M |
| LT Operating Leases | $702.4M | $676.0M | $644.0M |
| Other LT Liab | $128.0M | $114.6M | $95.1M |
| Total Liabilities | $1.73B | $1.72B | $1.70B |
| Shareholders' Equity | $483.8M | $440.1M | $461.7M |
| Paid-In Capital | $3.9M | $12.6M | $10.5M |
| Retained Earnings | $479.7M | $427.4M | $451.0M |
| Total L&E | $2.22B | $2.16B | $2.16B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $99.0M | $40.9M | $46.4M |
| Non-Cash Adjustments | $159.7M | $130.7M | $135.0M |
| Working Capital Changes | $-8.3M | $-2.6M | $37.5M |
| Cash from Operations | $250.5M | $169.0M | $218.9M |
| Capital Expenditures | $127.0M | $128.3M | $159.1M |
| Cash from Investing | $-124.3M | $-124.3M | $-156.7M |
| Debt Issuances | — | $406.5M | $548.5M |
| Debt Repayments | $190.1M | $346.6M | $728.6M |
| Share Buybacks | $17.4M | — | — |
| Dividends Paid | $116.1M | $116.1M | $23.1M |
| Cash from Financing | $-146.1M | $-57.8M | $-34.6M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-20.0M | $-13.1M | $27.6M |
| Beginning Cash | $45.1M | $25.1M | $12.0M |
| Ending Cash | $25.1M | $12.0M | $39.6M |
Frequently Asked Questions
How does CRACKER BARREL OLD COUNTRY STORE, INC make money?
Primary revenue is generated through full-service restaurant operations featuring proprietary BBQ recipes, a secondary stream comes from in-store retail sales of branded apparel and gift items, and the third segment derives income from on-site gaming activities including arcade games, bowling lanes, and shuffleboard courts.
What are the main risks for CBRL?
Sensitivity to discretionary spending during economic downturns which could disproportionately impact food and beverage sales, significant exposure to inflationary pressures affecting supply chain costs for meat and produce, and operational risks associated with maintaining safety standards in high-traffic gaming environments.
What is CBRL's competitive advantage?
Strong brand loyalty among families seeking weekend entertainment destinations, a unique vertical integration model that captures spending across dining, gaming, and retail within a single location, and a robust franchise system that allows rapid expansion with lower capital intensity than corporate-owned units.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.