Cracker Barrel(CBRL) - 2025 Q3 - Quarterly Report

Revenue Performance - Total revenue for the third quarter of 2025 increased by 0.5% compared to the same period in the prior year[94]. - Total revenue for the first nine months of 2025 increased by 1.5% compared to the same period in the prior year[94]. - Total revenue for the third quarter of 2025 was $821,147, an increase from$817,135 in the same period of 2024, representing a growth of 0.2%[1]. Income and Expenses - Operating income for the quarter ended May 02, 2025, was 1.8% of total revenue, compared to a loss of 2.4% in the same quarter of the prior year[93]. - Net income for the quarter ended May 02, 2025, was 1.5%, compared to a loss of 1.1% in the same quarter of the prior year[93]. - Labor and other related expenses as a percentage of total revenue decreased from 37.8% in the prior year to 37.1% in the current quarter[93]. - Labor and related expenses as a percentage of total revenue decreased to 37.1% in the third quarter of 2025 from 37.8% in the same period of 2024[1][106]. - Other store operating expenses increased to 25.3% of total revenue in the third quarter of 2025, compared to 24.5% in the same period of 2024[1][111]. - General and administrative expenses decreased to 5.6% of total revenue in the third quarter of 2025, down from 6.7% in the prior year[1][115]. - Interest expense for the third quarter of 2025 was $4,984, a slight decrease from$5,187 in the same period of 2024[1][121]. - Impairment charges recorded in the third quarter of 2025 amounted to $718 due to the deterioration in operating performance in two locations[1][118]. Sales Metrics - Comparable store restaurant sales metrics are used to evaluate sales growth, excluding new store openings and sales related to Maple Street Biscuit Company[92]. - Comparable store restaurant sales increased by 1.0$1,006.0 in the third quarter of 2025, compared to $994.6 in the same period of 2024[1]. Capital Expenditures and Financing - Capital expenditures for the first nine months of 2025 were$113,214, up from $80,081 in the prior year, driven by maintenance and remodel initiatives[128]. - The company expects to increase capital expenditures to approximately$600,000 to $700,000 from 2025 to 2027, with$160,000 to $170,000 planned for 2025[129]. - The company entered into a five-year$800,000 credit facility on May 16, 2025, which includes a $550,000 revolving credit facility and a$250,000 delayed draw term loan[126]. - As of May 02, 2025, the company had $191,500 in outstanding borrowings under the 2022 Revolving Credit Facility and$474,496 in borrowing availability[131]. Cash Flow and Working Capital - Cash generated from operations for the first nine months of 2025 was $116,677, an increase from$99,456 in the same period of 2024, primarily due to timing of cash receipts and payments[127]. - Negative working capital was $146,208 as of May 02, 2025, an improvement from negative working capital of$175,993 at August 02, 2024[139]. Tax and Inflation Expectations - The effective tax rate for the quarter ended May 02, 2025, was (27.4)%, compared to 62.4% for the same period in 2024[122]. - The company anticipates an effective tax rate for 2025 to be approximately (11%) to (17%)[124]. - The company expects commodity inflation to remain in the mid 2% range for 2025[1][103]. Store Operations - The company operated 658 Cracker Barrel stores and 70 Maple Street Biscuit Company locations as of May 02, 2025[80]. - The company plans to complete 25-30 remodels and 25-30 store refreshes in 2025[89]. - The projected net impact of tariffs on retail margins is approximately $5,000 in the fourth quarter of 2025[87]. Interest Rate Sensitivity - The impact of a one-percentage point change in interest rates on the$191,500 of outstanding borrowings is approximately $1,936 on a pre-tax annualized basis[148].