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Cracker Barrel (CBRL) to Report Q1 Earnings: What's in Store?
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Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) is scheduled to report its first-quarter fiscal 2023 results on Dec 2. In the last reported quarter, the company delivered an earnings surprise of 13.8%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for fiscal first-quarter earnings per share is pegged at $1.30, indicating a 14.5% decline from $1.52 per share reported in the year-ago quarter. For revenues, the consensus mark is pegged at $836.4 million. The projection suggests an increase of 6.6% from the year-ago quarter’s reported figure.
Let’s discuss the factors that are likely to get reflected in the quarter to be reported.
Factors at Play
Cracker Barrel's fiscal first-quarter top line is likely to have been driven by robust off-premise business, sales-building efforts and improvements in traffic. Robust restaurant and retail sales are likely to have aided the top line. We expect restaurant and retail sales to be $658.7 million and $174.5 million, up 7% and 3% year over year, respectively.
However, higher labor costs due to increased wages and inflationary costs have been denting profit margins. Meanwhile, management is making significant investments to support training, launch several initiatives and for value testing. Although these moves are expected to have driven CBRL’s top-line growth during fiscal first-quarter 2023, initial investments might have dented margins.
In fiscal 2023, the company anticipates commodity inflation of approximately 8% (with sequential moderation) and wage inflation of approximately 5%. For first-quarter fiscal 2023, we expect adjusted operating margin to be 4.4%, compared with 5.9% reported in the prior-year quarter.
Cracker Barrel Old Country Store, Inc. Price and EPS Surprise
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.
Here are some companies in the Retail-Wholesale space, which, per our model, have the right combination of elements to post an earnings beat in the upcoming releases:
The Kroger Co. (KR - Free Report) currently has an Earnings ESP of +1.95% and a Zacks Rank #3.
Shares of Kroger have increased 15.3% in the past year. KR’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 15.7%, on average.
Brinker International, Inc. (EAT - Free Report) has an Earnings ESP of +0.74% and a Zacks Rank #3.
Shares of Brinker have declined 0.8% in the past year. EAT has a trailing four-quarter earnings surprise of 9.7%, on average.
Dollar General Corporation (DG - Free Report) currently has an Earnings ESP of +1.58% and a Zacks Rank #2.
Shares of Dollar General have increased 12.4% in the past year. DG’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 2.2%, on average.
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Cracker Barrel (CBRL) to Report Q1 Earnings: What's in Store?
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) is scheduled to report its first-quarter fiscal 2023 results on Dec 2. In the last reported quarter, the company delivered an earnings surprise of 13.8%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for fiscal first-quarter earnings per share is pegged at $1.30, indicating a 14.5% decline from $1.52 per share reported in the year-ago quarter. For revenues, the consensus mark is pegged at $836.4 million. The projection suggests an increase of 6.6% from the year-ago quarter’s reported figure.
Let’s discuss the factors that are likely to get reflected in the quarter to be reported.
Factors at Play
Cracker Barrel's fiscal first-quarter top line is likely to have been driven by robust off-premise business, sales-building efforts and improvements in traffic. Robust restaurant and retail sales are likely to have aided the top line. We expect restaurant and retail sales to be $658.7 million and $174.5 million, up 7% and 3% year over year, respectively.
However, higher labor costs due to increased wages and inflationary costs have been denting profit margins. Meanwhile, management is making significant investments to support training, launch several initiatives and for value testing. Although these moves are expected to have driven CBRL’s top-line growth during fiscal first-quarter 2023, initial investments might have dented margins.
In fiscal 2023, the company anticipates commodity inflation of approximately 8% (with sequential moderation) and wage inflation of approximately 5%. For first-quarter fiscal 2023, we expect adjusted operating margin to be 4.4%, compared with 5.9% reported in the prior-year quarter.
Cracker Barrel Old Country Store, Inc. Price and EPS Surprise
Cracker Barrel Old Country Store, Inc. price-eps-surprise | Cracker Barrel Old Country Store, Inc. Quote
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 0.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some companies in the Retail-Wholesale space, which, per our model, have the right combination of elements to post an earnings beat in the upcoming releases:
The Kroger Co. (KR - Free Report) currently has an Earnings ESP of +1.95% and a Zacks Rank #3.
Shares of Kroger have increased 15.3% in the past year. KR’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 15.7%, on average.
Brinker International, Inc. (EAT - Free Report) has an Earnings ESP of +0.74% and a Zacks Rank #3.
Shares of Brinker have declined 0.8% in the past year. EAT has a trailing four-quarter earnings surprise of 9.7%, on average.
Dollar General Corporation (DG - Free Report) currently has an Earnings ESP of +1.58% and a Zacks Rank #2.
Shares of Dollar General have increased 12.4% in the past year. DG’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 2.2%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.