0001104659-26-071825
SEC filingSingle segment; convertible notes due 2026; litigation settlement $47.4M; quarterly dividend $0.25/sh; no share repurchases.
As of May 1, 2026, Cracker Barrel had $26.1M cash, total debt of $486.6M (including $149.9M current portion of convertible notes due June 2026), and shareholders' equity of $465.5M. Inventory stood at $179.9M, with retail and restaurant components. Deferred revenue from gift cards ($83.6M) and loyalty program ($10.0M) totaled $93.7M.
The company has significant operating lease commitments: undiscounted future minimum lease payments of $983.5M, with a present value of $661.5M. Additionally, standby letters of credit of $8.7M support workers' compensation insurance. Lease guarantees on assigned leases have a maximum potential payment of $2.1M, but likelihood of payment is considered remote.
Cracker Barrel repurchased no shares in the nine-month period. Quarterly dividends remained steady at $0.25 per share, totaling $17.6M. Net debt issuance was zero, with $238.0M borrowings and repayments under the revolver. Capital expenditures were $90.1M (3.65% of revenue). The 2026 Notes (0.625% convert) mature in June 2026 and are classified as current; the 2030 Notes (1.75% convert) are long-term. The company has $541.3M available under its $550M revolving credit facility.
Cracker Barrel operates as a single reportable segment with restaurant (81% of total revenue) and retail (19%) product lines. Nine-month revenue declined 5.6% YoY to $2.47B, with restaurant down 5.2% and retail down 7.3%. The CODM uses consolidated net income for performance evaluation. All operations are within the United States.
Litigation settlement income of $47.4M (net of legal fees) was recognized in Q3 2026 from interchange fee litigation. The company's convertible note hedge and warrant transactions were not exercisable as of period end.
Operating cash flow (CFO) of $92.5M for the nine months ended May 01, 2026, represented 4.8x net income of $19.5M, indicating strong cash conversion. However, CFO declined 20.7% from $116.7M a year earlier, primarily due to unfavorable working capital changes: accounts payable and long-term operating lease liabilities each decreased significantly, draining cash. Depreciation and amortization remained stable at $91.8M, providing a steady non-cash add-back.
Capital expenditures were $90.1M, slightly below CFO, resulting in minimal free cash flow of $2.4M (implicitly). The company maintained its dividend of $17.6M, which exceeded free cash flow, necessitating external financing or cash reserves. Investing activities also included proceeds from asset sales and insurance recoveries totaling $3.5M.
Financing activities showed net debt issuance was essentially flat ($238M proceeds and repayments), with the primary outflows being dividends and taxes on share-based compensation. No share repurchases were made. The net decrease in cash was $13.6M, ending cash at $26.1M. Overall, cash generation weakened, and the company relied on its credit facility to sustain capital returns.