Cracker Barrel Old Country Store Inc (CBRL) stock plummeted 5.3% in the intraday trading session on Thursday, following the company's mixed fiscal Q1 2025 earnings report.
While the company reported a 3.4% increase in restaurant revenue and a 2.9% rise in comparable store restaurant sales, retail revenue declined by 0.8%. The drop was attributed to declines in decor and toys categories, reflecting the challenges faced by the retail sector due to cuts in consumer discretionary spending.
Moreover, Cracker Barrel faced higher costs, with a $9.3 million headwind from atypical expenses such as increased workers' compensation and general liability reserves, impacting its adjusted EBITDA. The company also expects a $6 million unfavorable impact in Q2 related to the timing shift of gift card breakage.
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