Cracker Barrel’s Q1 FY2025 results reflect a transitional year as the company advances its transformation plan across five pillars: brand refinement, menu enhancement, store and guest experience evolution, digital/off-premise growth, and elevated employee experience. Management highlighted progress on menu innovation and pricing discipline, with dinner traffic improvement contributing to positive comps for the second consecutive quarter and outperformance versus the Black Box Casual Dining Industry by 290 basis points. The quarter featured meaningful non-GAAP benefits from gift card breakage timing (approximately $6 million), ongoing remodels and store updates, and a ramp in loyalty-driven traffic. However, GAAP results show a modest net income of $4.8 million on $845.1 million of revenue, with adjusted EBITDA of $45.8 million (5.4% of revenue), signaling continued margin pressure from commodity costs, labor, and elevated G&A tied to transformation investments. The company reaffirmed FY2025 guidance (revenue of $3.4–$3.5 billion; adjusted EBITDA of $200–$250 million) while signaling that improvements are expected to accrue more meaningfully in the latter half of FY2026 and into FY2027 as its initiatives mature. Key investor implications center on (1) the pace and economics of remodels and menu-driven traffic, (2) the sustainability of the pricing program and its impact on traffic and mix, (3) the dilutionary impact of near-term transformation costs and higher interest expense tied to refinancing, and (4) the upside from loyalty and retail initiatives when macro conditions stabilize. Overall, Cracker Barrel remains well-positioned to regain revenue growth and improve profitability as its transformation matures, but near-term cash flow and leverage remain meaningful headwinds to monitor.