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Cracker Barrel Old Country Store Q4 Preview: Another EPS Beat Inbound?

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The Zacks Retail and Wholesale Sector has struggled more than the broader market in 2022, down nearly 25%.

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Image Source: Zacks Investment Research

A highly-popular stock in the sector with a unique business approach, Cracker Barrel Old Country Store (CBRL - Free Report) , is slated to unveil Q4 earnings on September 27th before market open.

Cracker Barrel Old Country Store is engaged in the ownership and operation of full-service restaurants with a restaurant and a retail store in the same unit.

Currently, the company carries a favorable Zacks Rank #2 (Buy) paired with an overall VGM Score of a C.

How does Cracker Barrel shape up heading into its print? Let’s take a closer look.

Share Performance & Valuation

Year-to-date, CBRL shares have displayed a fair amount of relative strength, declining roughly 17% vs. the S&P 500’s 20% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Over the last month, Cracker Barrel shares have continued on their market-beating trajectory, declining 5%.

Zacks Investment Research
Image Source: Zacks Investment Research

The favorable price action that shares have enjoyed tells us that buyers have defended the stock at a higher level than most, undoubtedly a positive.

In addition, CBRL shares could be considered undervalued – the company’s 17.6X forward earnings multiple represents a steep 26% discount relative to its Zacks Retail and Wholesale Sector.

Cracker Barrel Old Country Store carries a Style Score of a B for Value.

Zacks Investment Research
Image Source: Zacks Investment Research

Quarterly Estimates

A singular analyst has upped their quarterly earnings outlook over the last 60 days. Still, the Zacks Consensus EPS Estimate of $1.41 pencils in a 37% drop-off in earnings Y/Y.

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Image Source: Zacks Investment Research

However, the company’s top line looks to remain supercharged, with the Zacks Consensus Sales estimate of $844 million suggesting Y/Y revenue growth of a robust 7.6%.

Quarterly Performance & Market Reactions

CBRL has primarily reported bottom line results above expectations, exceeding the Zacks Consensus EPS Estimate in six of its last ten prints. Just in its latest quarter, the restaurant retailer penciled in a 6.6% EPS beat.

Revenue results have been primarily mixed; CBRL has registered five top-line beats over its last ten quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Further, it’s worth noting that shares have moved downwards following each of its last three quarterly prints.

Bottom Line

CBRL shares have displayed relative strength across several timeframes, indicating that buyers have defended the stock higher than most.

The company rocks a Style Score of a B for Value, and its forward earnings multiple resides nicely below its Zacks Sector average.

Earnings are forecasted to take a hit, but revenue looks to register solid Y/Y growth, most likely reflecting rising costs eating into margins.

Further, the company has primarily exceeded EPS estimates, but revenue results have been mixed over its last ten.

Heading into the release, Cracker Barrel Old Country Store (CBRL - Free Report) currently carries a Zacks Rank #2 (Buy).


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