Cracker Barrel Old Country Store, Inc. ( CBRL Quick Quote CBRL - Free Report) is scheduled to report third-quarter fiscal 2023 results on Jun 6. In the last reported quarter, CBRL reported an earnings surprise of 11.3%. The Trend in Estimate Revision
The Zacks Consensus Estimate for the fiscal third-quarter earnings per share is pegged at $1.33, indicating growth of 1.3% from $1.29 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $845.1 million. The projection suggests an increase of 7% from the year-ago quarter’s reported figure.
Let’s check out the factors likely to have influenced CBRL’s performance in the quarter to be reported.
Factors at Play
Cracker Barrel's fiscal third-quarter performance is likely to have benefited from its off-premise business model, bundled holiday offerings and optimized marketing strategy. Also, improvement in guest visitation backed by strong value proposition is likely to have aided CBRL.
During the previous quarter, management stated that comparable store off-premise sales contributed 23% of quarterly restaurant sales. Catering business and third-party delivery performed well. Also, it reported strong demand in its Easter bundled offerings. Backed by order-fulfillment improvements and expanded guest engagement (through its digital platform), the momentum is likely to have continued in the to-be-reported quarter. Robust restaurant and retail sales, thanks to strong demand (for seasonal assortments) and cross-generational appeal, are likely to have aided the company’s fiscal third-quarter top line. We expect restaurant and retail sales to be $662.3 million and $219.1 million, up 6.8% and 4.5% year over year, respectively. However, inflationary pressures (in the areas of utilities and maintenance) and supply-chain challenges are likely to have negatively impacted Cracker Barrel’s performance in the quarter under review. Although CBRL has been strategically increasing prices to mitigate the impact of inflation, it expects commodity inflation to be in mid-single digit. For third-quarter fiscal 2023, our model predicts cost of goods sold to rise 7.8% year over year to $269.5 million. Also, we expect adjusted store operating expenses to increase 7.1% year over year to $767.3 million. What Our Model Says
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. Earnings ESP: Cracker Barrel has an Earnings ESP of +3.76%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Zacks Rank: Cracker Barrel has a Zacks Rank #4 (Sell). Stocks Poised to Beat Earnings Estimates
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