Longstanding restaurant chain Cracker Barrel has seen a one-off boom in its profits after the settlement of a large legal dispute over interchange fees.

The unexpected 240 per cent increase in its profits for the fiscal third quarter, compared to the previous year, was thanks to a $47.4 million benefit from the legal dispute. The interchange fee case was a long-running antitrust lawsuit against Visa and Mastercard for allegedly conspiring to fix credit card fees and impose anti-competitive rules. 

The presiding judge in the case approved a $38 billion settlement, which was distributed among retailers and merchants such as Cracker Barrel. This one-off cash injection, however, didn’t hide a challenging quarter for the business.

Year-on-year revenues fell by 2.9 per cent to $797.4 million. Earnings before interest, tax, depreciation, and amortization also fell, by 16.2 per cent.

“Our initiatives to improve operations, deepen guest connection, and enhance profitability continue to gain traction, with strong execution from our teams driving third-quarter results that exceeded expectations,” Cracker Barrel president and CEO Julie Masino said.

“We remain focused on serving delicious food and delivering experiences guests love, and believe we are well-positioned to sustain this new momentum.”

Going forward, Cracker Barrel has raised its full-year revenue guidance to $3.3 billion at the top end, up from $3.27 billion previously.