Shares of Cracker Barrel Old Country Store (CBRL) plummeted 5.19% in pre-market trading on Thursday following the release of its third-quarter fiscal 2025 earnings report. Despite beating earnings estimates, the company's revenue fell short of expectations, and comparable store retail sales declined, raising concerns among investors.

Cracker Barrel reported adjusted earnings per share of $0.58, surpassing the analyst consensus estimate of $0.32. However, this represents a 34.09% decrease from earnings of $0.88 per share in the same period last year. The company's quarterly revenue came in at $821.1 million, missing the analyst estimate of $824.3 million by 0.38%. While comparable store restaurant sales increased by 1.0%, comparable store retail sales disappointed with a 3.8% decline.

Despite the earnings beat, investors seem to be focusing on the revenue miss and the decline in retail sales. The company's decision to maintain its quarterly dividend at $0.25 per share, rather than increase it, may have also contributed to the negative sentiment. Looking ahead, Cracker Barrel reaffirmed its fiscal 2025 revenue guidance of $3.45 billion to $3.50 billion and raised its adjusted EBITDA outlook to $215 million-$225 million. However, this outlook, combined with the mixed Q3 results, appears to have failed to impress investors, leading to the significant stock price drop.