Shares of Cracker Barrel Old Country Store (NASDAQ:CBRL) plummeted 8.99% in after-hours trading on Wednesday following the release of its fourth-quarter fiscal 2025 earnings report and fiscal 2026 guidance. The restaurant chain's results fell short of analyst expectations, raising concerns about its near-term performance.

Cracker Barrel reported quarterly earnings of $0.74 per share, missing the analyst consensus estimate of $0.80 by 7.15%. This represents a significant 24.49% decrease from earnings of $0.98 per share in the same period last year. While the company's quarterly sales of $868.009 million beat the analyst consensus estimate of $855.295 million by 1.49%, it still marked a 2.95% decrease from the $894.387 million reported in the previous year.

Adding to investor concerns, Cracker Barrel's outlook for fiscal 2026 appears challenging. The company anticipates comparable store traffic to decline by 4% to 7%, along with commodity inflation of 2.5% to 3.5% and hourly wage inflation of 3.0% to 4.0%. Furthermore, Cracker Barrel plans to open only two new stores while closing 14 Maple Street Biscuit Company locations, signaling potential difficulties in its expansion strategy. These factors combined have likely contributed to the sharp sell-off in after-hours trading as investors reassess the company's growth prospects and profitability in the coming year.