Cracker Barrel Old Country Store swung to a loss in the fiscal first quarter amid a sales decline that was below management’s expectations.

For the quarter ended October 31, the chain reported GAAP net loss of $24.6 million, compared to net income of $4.8 million in the year-ago period. Adjusted EBITDA plunged from $45.8 million a year earlier to $7.2 million.

Total revenue for the quarter decreased 5.7 per cent to $797.2 million. Comparable store restaurant sales fell 4.7 per cent and comparable store retail sales dropped 8.5 per cent.

Cracker Barrel president and CEO Julie Masino said the results were below expectations amid unique and ongoing headwinds. 

“We have adjusted our operational initiatives, menu, and marketing to ensure we are consistently delivering delicious food and exceptional experiences. 

“Additionally, we are executing a variety of cost savings initiatives to bolster our financial performance,” Masino said.

The company has lowered its outlook for the full year, with revenue expected to range from $3.2 billion to $3.3 billion, compared to the prior outlook of $3.35 billion to $3.45 billion. 

Adjusted EBITDA is expected to be $70 million to $110 million, down from the previous outlook of $150 million to $190 million.