CRACKER BARREL OLD COUNTRY STORE, INC Revenue Disclosure
7. Revenue Recognition
Disaggregation of revenue
Total revenue was comprised of the following for each of the three years:
2025 |
| 2024 |
| 2023 | |||||
Revenue: | |||||||||
Restaurant | $ | 2,831,289 | $ | 2,794,128 | $ | 2,740,866 | |||
Retail | 652,395 |
| 676,634 |
| 701,942 | ||||
Total revenue | $ | 3,483,684 | $ | 3,470,762 | $ | 3,442,808 | |||
Gift Card Breakage
For 2025, 2024 and 2023, gift card breakage was $11,653, $11,397, and $10,713, respectively. Revenue recognized in the Consolidated Statements of Income for 2025, 2024 and 2023, respectively, for the redemption of gift cards which were included in the deferred revenue balance at the beginning of the fiscal year was $34,935, $36,958, and $40,103, respectively. Deferred revenue related to the Company’s gift cards was $82,452 and $84,854, respectively, at August 01, 2025 and August 02, 2024, and is included in the deferred revenue on the Consolidated Balance Sheets.
Loyalty Program
During the first quarter of 2024, the Company launched its customer loyalty program, Cracker Barrel Rewards, which allows members to earn points (“pegs”) for each qualifying purchase in store or online. Pegs earned are then converted to rewards upon reaching certain thresholds. These rewards may be redeemed on future restaurant or retail purchases in store or online.
The estimation of the standalone selling price of pegs and other rewards issued to customers involves several assumptions, primarily the estimated value of the product for which the reward is expected to be redeemed and the probability that the pegs or reward will expire. These inputs are subject to change over time due to factors such as increased costs or changes in customer behavior.
The Company defers a portion of the revenue related to the pegs earned at the time of the original transaction based on the estimated value of the item for which the reward is expected to be redeemed, net of estimated unredeemed pegs. Pegs expire after twelve months. Revenue is recognized for these performance obligations upon redemption of pegs or rewards earned by the customer. As of August 01, 2025 and August 02, 2024, deferred revenue related to the loyalty program was $5,419 and $1,544, respectively, and is included in deferred revenue on the Consolidated Balance Sheets.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.