CRACKER BARREL OLD COUNTRY STORE, INC. recently released its latest 10-K report. The company develops and operates the Cracker Barrel Old Country Store concept in the United States, where each location combines a restaurant and a gift shop. Its restaurants serve breakfast, lunch, and dinner, with dine-in, pick-up, and delivery options, while the gift shops sell items such as rocking chairs, seasonal gifts, apparel, toys, cookware, candies, preserves, and other food products. Founded in 1969 and based in Lebanon, Tennessee, the company operated 655 Cracker Barrel stores in 43 states as of September 11, 2026.
In Item 7, management said the business entered fiscal 2026 with a strategy centered on food, experience, people, and profitability, but the year was marked by weaker traffic, brand disruption, and softer consumer demand. The company said it had completed the divestiture of Maple Street Biscuit Company in 2026, selling the business and the assets used in 35 locations and then closing the remaining 16 locations.
Revenue for 2026 fell 4.7% to $3.319 billion from $3.484 billion in 2025. Restaurant revenue declined to $2.702 billion from $2.831 billion, while retail revenue fell to $616.9 million from $652.4 million. Comparable restaurant sales decreased 4.2%, compared with a 3.5% increase in 2025, and comparable retail sales declined 5.2% after a 1.3% decline a year earlier. Average check rose 3.7%, helped by a 4.3% menu price increase, but comparable restaurant guest traffic dropped 7.6%.
Management tied the traffic decline to negative publicity around brand initiatives, including the launch of a new logo and modern test store remodels in the first quarter of 2026, as well as lower consumer demand linked to inflation, higher consumer debt, lower savings, and geopolitical and trade uncertainty. Off-premise sales were about 20% of restaurant sales in both 2026 and 2025.
Costs moved in different directions. Restaurant cost of goods sold rose to 26.5% of restaurant revenue from 26.4%, driven by higher food waste, commodity inflation, increased discounts, and a shift to higher-cost menu items, partly offset by menu pricing. Commodity inflation was 2.3% in 2026, and management expects it to be about 3.0% in 2027. Retail cost of goods sold improved to 50.2% of retail revenue from 51.0%, helped by tariff refunds of $15.0 million, though markdowns, discounts, and lower initial margin offset some of that benefit.
Operating income turned to a loss of 0.4% of revenue in 2026 from income of 1.6% in 2025. Labor and other related expenses rose to 37.3% of revenue from 36.0%, other store operating expenses increased to 25.5% from 24.6%, and general and administrative expenses increased to 6.4% from 6.2%. The company also recorded a 1.4% gain on sale and leaseback transactions, 0.9% for impairment and store closing costs, and 0.8% for loss on sale of business assets. Net income was 1.0% of revenue in 2026, down from 1.3% in 2025.
Store count ended the year at 655 Cracker Barrel locations, down from 657 a year earlier. During 2026, the company opened 2 Cracker Barrel stores and closed 4, while MSBC store count fell from 68 to zero after the divestiture and closures. Today the company's shares have moved 9.09% to a price of $51.84. For the full picture, make sure to review CRACKER BARREL OLD COUNTRY STORE, INC's 10-K report.
