By Elias Schisgall

Cracker Barrel Old Country Store lifted its full-year outlook after reporting a higher profit in the fiscal third quarter, defying investor expectations of a loss.

The restaurant chain on Tuesday reported a profit of $42.8 million, or $1.90 a share, compared with a profit of $12.6 million, or 56 cents a share, a year earlier.

Stripping out certain one-time items, the company reported adjusted earnings of 29 cents a share. Analysts polled by FactSet were expecting an adjusted loss of 48 cents a share.

Revenue declined to $797.4 million from $821.1 million a year prior, ahead of the $776.7 million analysts were expecting.

Comparable store restaurant sales were off 2.6%. Comparable store retail sales declined 1.8%.

Cracker Barrel said it now expects full-year revenue between $3.27 billion and $3.3 billion, up from a previous range of $3.24 billion to $3.27 billion.

Analysts are expecting full-year revenue of $3.25 billion.

The company also said it expects adjusted earnings before interest, taxes, depreciation, and amortization to fall between $120 million and $125 million, up from a range of $85 million to $100 million. Analysts expect adjusted Ebitda of $92.7 million.

Shares of Cracker Barrel jumped 12% to $40.75 in after-hours trading. The stock closed up 6.1% at $36.30, up 43% this year.

The results are a welcome lift for Cracker Barrel, whose attempt to execute a turnaround has been complicated by backlash from the company's short-lived attempt to change its logo and customer complaints about food quality and menu changes. The company reinstated its old logo and some older cooking processes, including freshly rolled and baked biscuits.

The chain's struggles around its brand and menu have added to broader challenges facing the casual-dining industry, which has contended with low- and middle-income consumers watching their wallets and seeking maximum value for their dollars.

"Our initiatives to improve operations, deepen guest connection, and enhance profitability continue to gain traction, with strong execution from our teams driving third quarter results that exceeded expectations," Chief Executive Officer Julie Masino said.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

June 09, 2026 16:22 ET (20:22 GMT)

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