0001104659-25-093663
SEC filingCracker Barrel's Notes reveal a single operating segment, $180.6M inventory, $484.6M total debt, and $100M new buyback authorization in Q1 2026.
Cracker Barrel Old Country Store, Inc. is principally engaged in the operation and development of the Cracker Barrel Old Country Store concept, founded in 1969 and headquartered in Lebanon, Tennessee. As of September 12, 2025, the company operated 657 Cracker Barrel stores in 43 states and 68 Maple Street Biscuit Company stores in 10 states. No stores were franchised. The company’s mission is 'Pleasing People,' and it emphasizes consistent quality, value, and friendly service.
The company does not report discrete segment financial information; however, it operates two distinct concepts: Cracker Barrel Old Country Store and Maple Street Biscuit Company. The Cracker Barrel concept is a full-service restaurant and retail gift shop, with restaurants generating approximately 81% of total revenue in 2025. The Maple Street Biscuit Company is a breakfast and lunch fast casual concept with a smaller footprint and limited hours; all locations are leased.
Cracker Barrel restaurants serve home-style country cooking (breakfast, lunch, dinner) with average check of $15.23 in 2025. Breakfast items include biscuits and gravy; lunch/dinner features fried chicken, meatloaf, and country fried steak. The menu includes beer and wine at 93% of locations. Gift shops feature approximately 3,100 SKUs, including apparel (33% of retail sales), food (18%), toys (13%), décor (13%), and media (7%). The company also offers off-premise channels: Individual To Go (50% of off-premise sales), Third-Party Delivery via DoorDash and Uber Eats (32%), and Catering and Occasion including Heat n’ Serve meals (18%). The Cracker Barrel Rewards loyalty program engages guests.
Restaurant sales occur through dine-in, pick-up, and delivery. Gift shop sales are primarily to restaurant guests, achieving high retail sales per square foot ($489 in 2025). The company relies on an unaffiliated distributor for most food products, with deliveries once per week. Retail merchandise is primarily warehoused at a single distribution center in Lebanon, Tennessee, with approximately one-third of retail items sourced from China. No single customer or group accounts for a material portion of revenue; the company serves general consumers and travelers.
The restaurant and retail industries are intensely competitive regarding food quality, price, service, location, and marketing. Competitors include national and regional restaurant and retail chains, locally owned restaurants and stores, supermarkets (convenient meals), fast casual and quick-service restaurants, and family dining restaurants. The company differentiates through its unique brand, full-service menu, and nostalgic retail items.
In 2024, Cracker Barrel announced a multi-year strategic plan anchored on three imperatives: driving relevancy, delivering food and an experience guests love, and growing profitability. Initiatives include modifying capital allocation to support increased investment in the business for organic growth. The company focuses on menu-driven growth through core menu enhancements, new core offerings, and limited-time seasonal events. Retail efforts aim to convert restaurant guests via core and seasonal themes. Technology investments support digital experience, loyalty program, off-premise channels, and operational efficiency.
As of August 1, 2025, the company employed approximately 76,730 people, including 364 advisory/supervisory personnel, 3,446 in-store managers, and 45 officers. Many store personnel are part-time. No employees are unionized. The company emphasizes employee development through blended learning (hands-on, classroom, cloud-based) and offers competitive benefits including medical, dental, vision, 401(k), employee stock purchase plan, paid parental leave, and an employee assistance program. Compensation systems focus on pay equity based on experience and performance.
Cracker Barrel's Notes provide selective balance sheet data. Inventory as of August 1, 2025 totaled $180.6 million (Note 3), down slightly from $181.0 million a year earlier. Total debt, disclosed in Note 4, stood at $484.6 million, comprising $149.2 million current (the 0.625% convertible notes due 2026) and $335.5 million long-term (the 1.75% convertible notes due 2030). Deferred revenue, mainly from gift cards and the loyalty program, was $87.9 million (Note 7). Cash and equivalents are not explicitly stated in the notes, but Note 2 indicates $27.5 million in money market funds classified as Level 1.
The most significant commitment is the operating lease portfolio. Note 8 details undiscounted future minimum lease payments of $1.044 billion, with $86.2 million due in fiscal 2026, $144.2 million in the 1-3 year bucket, and $814.0 million beyond three years. The weighted-average remaining lease term is 15.2 years. Additionally, Note 14 reveals $34.0 million in standby letters of credit related to workers' compensation insurance and certain sale-leaseback transactions. There are no purchase commitments disclosed beyond leases.
No share repurchases occurred in 2025 or 2024, but management announced a new $100 million buyback authorization in the first quarter of 2026 (Note 5). Dividends declared per share dropped sharply to $1.00 in 2025 from $4.15 in 2024, totaling $22.8 million. Debt activity was dominated by the issuance of $345 million in 1.75% convertible notes due 2030 (Note 4), with a portion of the proceeds used to repurchase $150 million of the 0.625% notes due 2026, resulting in a $3.2 million gain on extinguishment. The net debt increase was $195 million. Capital expenditures are not detailed in the notes but can be inferred from the cash flow statement; the notes do not provide a capex figure.
As disclosed in Note 6, Cracker Barrel operates as a single reportable segment. Revenue is generated within the United States. The segment profit measure is consolidated net income, which was $46.4 million for 2025. The notes break out revenue between restaurant ($2.831 billion) and retail ($652 million) along with major cost categories, but do not provide separate profitability by product line. There is no geographic disaggregation beyond the U.S.
Cracker Barrel faces persistent inflationary pressures on food, labor, and utilities, which may not be fully offset by menu price increases due to value-conscious consumers. Higher minimum wages and competitive labor markets add to cost challenges. These factors could materially reduce operating margins.
The multi-year strategic plan carries execution risks, as evidenced by the negative consumer reaction to the updated logo in Q1 2026. Failure to achieve goals (e.g., menu and retail enhancements, brand expansion) could harm financial performance. Intense competition from restaurant chains, supermarkets, and meal delivery services pressures sales and margins. Reliance on a single retail distribution center in Lebanon, TN exposes the company to disruption from natural disasters or other events.
High indebtedness and restrictive covenants under the credit facility and notes (2026 and 2030) limit flexibility. Macroeconomic downturns could trigger covenant defaults, affecting liquidity and the ability to service debt. Dividend reductions in 2024 reflect strategic capital allocation but may disappoint shareholders. Convertible note and warrant transactions introduce dilution risk and counterparty exposure.
Vendor concentration (especially foreign-sourced goods) and tariff uncertainties (e.g., on imports from China) increase cost and supply risks. Cybersecurity threats are a major concern; though no material incidents have occurred, the company acknowledges sophisticated attacks (e.g., AI-enabled) could disrupt operations and lead to data breaches. IT system failures or third-party vendor issues could impair business processes.
Extensive federal, state, and local regulations (labor, food safety, environmental, advertising) impose compliance costs. Failure to comply could result in license revocations, fines, or litigation. Activist shareholder Sardar Biglari (2.9% ownership) is conducting a vote-no campaign, potentially distracting management and affecting strategic decision-making. Litigation risks from employees, customers, or shareholders could harm reputation and financial results.
Seasonality, extreme weather, and natural disasters can disrupt operations. The business depends on attracting and retaining qualified employees; high turnover and management vacancies could impair service levels. Failure to achieve sustainability goals may damage reputation with stakeholders.