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Cracker Barrel (CBRL) to Post Q4 Earnings: What's in Store?

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Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) is scheduled to report fourth-quarter fiscal 2021 results on Sep 21. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 1,410%.

Q4 Estimates

The Zacks Consensus Estimate for the fourth-quarter earnings is pegged at $2.42. In the year-ago quarter, the company had reported an adjusted loss of 85 cents per share. The consensus mark for revenues stands at $791.2 million, suggesting growth of 59.8% from the prior-year quarter.

Factors to Note

Cracker Barrel’s fiscal fourth-quarter performance is likely to have benefited from focus on off-premise initiatives, such as curbside delivery, third-party delivery and family meal baskets. In third-quarter fiscal 2021, its comparable store off-premise sales soared 144% compared with third-quarter 2019 levels. Stimulus spending, pent-up demand and continued vaccinations might have favored the company’s performance in the quarter to be reported. Cracker Barrel has been focusing on rejuvenating its menu, which is crucial to its growth potential.

The company has initiated a new food management program that comprises back of the house process improvements, additional focus on food reporting and analytics, and a new food auditing process. On the utility front, the company has undertaken the implementation of LED lighting, which is being installed on the exterior of its stores. These factors may get reflected in the to-be-reported quarter’s results.

The Zacks Consensus Estimate for Restaurant revenues is pegged at $651 million, indicating an improvement of 64.8% from the year-ago quarter. The consensus mark for retail revenues stands at $144 million, suggesting growth of 53.2% from the prior-year reported figure.

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 -6.07% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Peer Releases

BJ's Restaurants, Inc. (BJRI - Free Report) reported second-quarter fiscal 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Both the metrics increased year over year. The company’s adjusted earnings per share (EPS) of 26 cents beat the Zacks Consensus Estimate of 16 cents. In the prior-year quarter, the company had reported an adjusted loss of 99 cents per share. Quarterly revenues of $290.3 million outpaced the consensus mark of $285 million. The top line improved 126.7% year over year. The upside can primarily be attributed to the lifting of capacity and social-distancing restrictions, which boosted dining room capacity.

McDonald's Corporation (MCD - Free Report) reported second-quarter 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year. The company reported adjusted EPS of $2.37, which outpaced the Zacks Consensus Estimate of $2.12. The bottom line soared 259.1% year over year. Quarterly revenues of $5,887.9 million beat the Zacks Consensus Estimate of $5,629 million. The figure surged 56.5% year over year. The top line benefited from an increase in global comparable sales.

Starbucks Corporation (SBUX - Free Report) reported solid third-quarter fiscal 2021 results, wherein both earnings and revenues outpaced the Zacks Consensus Estimate and increased year over year. The company reported adjusted EPS of $1.01, which beat the Zacks Consensus Estimate of 77 cents. In the prior-year quarter, the company had reported an adjusted loss per share of 46 cents. Meanwhile, quarterly revenues of $7,496.5 million beat the Zacks Consensus Estimate of $7,243 million. The top line increased 77.6% from the year-ago quarter’s levels. The uptick was driven by growth in comparable store sales.

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