Cracker Barrel Old Country Store’s sales slowdown deepened in the second quarter, with total revenue falling 7.9 per cent year over year to $874.8 million.

For the quarter ended January 30, restaurant sales fell 7.1 per cent while retail sales declined 9.2 per cent. Adjusted EBITDA decreased to $38.2 million, down from $74.6 million in the prior-year period.

The restaurant operator ended the quarter with total debt of $531.5 million.

President and CEO Julie Masino said the company remains focused on improving guest metrics and rebuilding momentum.

“Our disciplined focus on operational excellence is driving significant improvements in several key guest metrics, many of which serve as important leading traffic indicators,” Masino said. 

“We have also taken additional actions to improve financial performance.”

Looking ahead, the company projects full-year revenue between $3.24 billion and $3.27 billion.

The company expects its Adjusted EBITDA to range from $85 million to $100 million, narrowing from the previous guidance of $70 million to $110 million.

Capital expenditure is forecast at $105 million to $115 million, down from prior guidance of $110 million to $125 million.

Cracker Barrel plans to open two new stores this fiscal year, unchanged from its earlier outlook.

• Further reading: Cracker Barrel in the red as sales slide.