Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL) Surpasses Earnings Expectations

Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL) is a renowned American chain of combined restaurant and gift stores with a Southern country theme, operating within the Zacks Retail - Restaurants industry. On June 5, 2025, Cracker Barrel reported an earnings per share (EPS) of $0.58, significantly surpassing the estimated $0.17, marking an earnings surprise of 241.18%.

Despite the impressive EPS, Cracker Barrel's revenue for the quarter was approximately $821.1 million, slightly below the estimated $823.6 million. This revenue figure represents a 0.5% increase compared to the same period in fiscal 2024, as highlighted by Zacks. The company has exceeded consensus EPS estimates three times in the past four quarters, showcasing its ability to outperform expectations.

Cracker Barrel's financial metrics provide further insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 34.65, indicating how the market values its earnings. Additionally, the price-to-sales ratio stands at about 0.36, reflecting investor willingness to pay per dollar of sales. The enterprise value to sales ratio is around 0.67, showing the company's total valuation relative to its sales.

The company's financial leverage is evident in its debt-to-equity ratio of about 2.45, suggesting a higher reliance on debt financing. The current ratio of approximately 0.62 may indicate potential liquidity challenges in meeting short-term obligations. Despite these challenges, Cracker Barrel's earnings yield of approximately 2.89% offers a perspective on the return on investment for shareholders.

Cracker Barrel's President and CEO, Julie Masino, expressed confidence in the company's performance, highlighting the fourth consecutive quarter of positive comparable store restaurant sales growth. The company has increased its expectation for fiscal 2025 adjusted EBITDA to a range between $215 million and $225 million, reflecting its focus on executing its transformation plan and delivering a strong finish to the fiscal year.