$3.27 billion to $3.3 billion is Cracker Barrel’s new fiscal-year revenue target, and it raised adjusted EBITDA guidance to $120 million-$125 million from $80 million-$100 million.
Same-store restaurant sales fell 2.6% in the quarter ended May 1, improving from a 7.1% drop in the prior quarter, while traffic declines narrowed to 6.7% from 10% as customers returned faster than expected.
Menu additions, the return of legacy items and tighter operations helped win back diners, while average spend of $15.85 versus $19 in family dining and $27 in casual dining supported its value pitch.
Quarterly revenue slipped 2.9% to $797.4 million, but net income rose to $42.8 million from $12.6 million, helped by a $47.4 million interchange-fee settlement and a $5 million tariff refund.
Shares jumped nearly 28% after the update, though the chain said high gas prices and softer lower-income demand could still pressure summer traffic.