Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) is scheduled to report fourth-quarter fiscal 2020 results on Sep 15. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 44.3%.
The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at a loss of 55 cents. In the year-ago quarter, the company had reported adjusted earnings of $2.70 per share. For revenues, the consensus mark stands at $483.7 million, suggesting a decline of 38.6% from the prior-year quarter.
Factors to Note
Cracker Barrel’s fiscal fourth-quarter results are likely to reflect the negative impact of the coronavirus pandemic. Notably, decline in store traffic and high operating costs owing to the pandemic might have hurt the to-be-reported quarter’s performance. Despite cost-saving initiatives, higher labor costs due to increased wages are anticipated to have kept profits under pressure. Further, the company remains apprehensive about the fact that it may have incurred inflationary costs in the quarter to be reported.
However, the company’s effort to increase off-premise sales is likely to have provided a boost to the to-be-reported quarter’s performance. Additionally, Cracker Barrel has been focused on rejuvenating its menu, which is crucial to its growth.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Cracker Barrel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Cracker Barrel has an Earnings ESP of -148.78% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McDonald's Corporation (MCD - Free Report) reported mixed second-quarter 2020 results, wherein the bottom line missed the Zacks Consensus Estimate but the top line beat the same. The company reported adjusted earnings of 66 cents per share, which missed the consensus of 76 cents. Moreover, the bottom line declined 68% year over year. In the second quarter, revenues of $3,761.5 million surpassed the Zacks Consensus Estimate of $3,698 million.
Starbucks Corporation (SBUX - Free Report) reported solid third-quarter fiscal 2020 results, with both earnings and revenues surpassing the Zacks Consensus Estimate. In the quarter under review, the company reported adjusted loss per share of 46 cents per share, narrower than the Zacks Consensus Estimate of loss per share of 61 cents. In the prior-year quarter, the company had reported adjusted earnings per share of 78 cents. Total revenues were $4,222.1 million, which beat the Zacks Consensus Estimate of $4,111 million. However, the top line fell 38.1% from the year-ago quarter’s level.
YUM! Brands, Inc. (YUM - Free Report) reported robust second-quarter 2020 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The company’s adjusted earnings of 82 cents beat the Zacks Consensus Estimate of 52 cents. In the prior-year quarter, the company had reported adjusted earnings of 93 cents. YUM! Brands’ total revenues of $1,198 million declined 9% year over year but outpaced the consensus estimate of $1,168 million.
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