New York, June 10, 2026, 12:05 EDT
- Cracker Barrel shares surged over 26% in late morning trade as the company’s fiscal third-quarter numbers came in above muted forecasts.
- The company lifted its fiscal 2026 revenue and adjusted EBITDA targets, though restaurant traffic is still in the red.
- Investors are wagering that expense cuts, value menus and steadier branding can keep the turnaround on track.
Cracker Barrel Old Country Store, Inc. shares jumped Wednesday as the company posted an unexpected profit for its fiscal third quarter and lifted its full-year guidance. Investors took that as the strongest proof so far that Cracker Barrel’s turnaround is starting to take hold after a stretch of sluggish traffic and brand issues. The stock was last at $45.81, up $9.51, about 26%, with volume topping 6 million shares. It opened at $43.50 and hit $48.88 earlier in the day.
Cracker Barrel’s report beat expectations, even as sales dropped. Revenue came in at $797.4 million for the quarter to May 1, falling 2.9% year over year but topping Wall Street’s estimates. Adjusted earnings were 29 cents per share. Analysts in the Zacks survey were looking for a 45-cent loss; sales were expected at $775.3 million.
Cracker Barrel’s GAAP net income came in at $42.8 million, or $1.90 a diluted share, up from $12.6 million, or 56 cents, a year ago. Results got a $47.4 million lift from an interchange-fee litigation settlement, which the company said is not part of adjusted results.
Investors mostly looked past the one-time settlement and paid attention to the updated guidance. Cracker Barrel bumped its fiscal 2026 revenue forecast to $3.27 billion to $3.30 billion from the previous $3.24 billion to $3.27 billion. The company also lifted its expected adjusted EBITDA to $120 million to $125 million, up from $85 million to $100 million. Adjusted EBITDA, which takes out interest, taxes, depreciation and amortization as well as some other items, is a commonly used proxy for operating cash flow.
Cracker Barrel President and CEO Julie Masino said the push to fix operations, rebuild ties with guests and boost profit “continue to gain traction.” Masino said Cracker Barrel is “well-positioned to sustain this new momentum.” Cracker Barrel Old Country Store, Inc.
Cracker Barrel’s stock popped, but the move looked bigger because expectations had sunk. Shares were still off roughly 17% in the past year even after Wednesday’s run, Investopedia said, as a weak 2025 outlook and lagging sales weighed on the stock.
Comparable sales numbers explain investor caution. The metric tracks results at existing stores, excluding recent openings, to give a clear year-over-year view. Cracker Barrel said comparable restaurant sales slipped 2.6% for the quarter. Comparable retail sales dropped 1.8%.
Traffic is still the weak spot. Cracker Barrel reported in its quarterly filing that comparable restaurant guest traffic dropped 6.7% in the third quarter. That was partly made up for by a 4.3% bump in average check. The company said menu prices increased 4.4% in the quarter, so higher prices covered some of the shortfall in visits.
That’s the issue in Wednesday’s rally. Cracker Barrel is managing to hold profit above worries, but hasn’t shown a rebound in guest counts yet. The filing pointed to weak traffic linked to bad press and pushback against new brand moves, like a new logo and test-store remodels. It also cited pressure from inflation, debt, and falling savings rates.
Lower costs boosted results. Management cited a drop in ad and supply spending, and adjusted EBITDA for the quarter came in at $40.3 million. The company finished the period with its credit facility untapped and around $541.3 million in available access.
Cracker Barrel has $149.9 million in 0.625% convertible senior notes coming due in June 2026. The company plans to pay off that debt using its existing revolving credit facility, it said.
Wall Street reacted to the news. Wells Fargo upgraded Cracker Barrel to Overweight from Equal Weight and lifted its price target to $50 from $35, according to Investing.com. The bank pointed to the third-quarter beat and raised outlook as signs the turnaround is gaining traction.
Cracker Barrel’s stock move on Wednesday is baking in a turnaround before traffic has come back. If guest counts keep trending negative, raising menu prices could get tougher as customers watch their spending. Retail sales, which follow diner traffic, could also take a hit if visitation stays weak. Higher food costs, wage pressure, tariffs on what it sells in its shops, plus looming refinancing, leave Cracker Barrel little margin for error on branding or if summer travel disappoints.
The key question now is if the company can push better guest metrics into real traffic gains and still keep the higher profit targets. Management’s updated 2026 goal puts out a simple metric for investors: $3.27 billion to $3.30 billion in revenue and adjusted EBITDA between $120 million and $125 million.
