We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Cracker Barrel (CBRL) Down 5% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Cracker Barrel Old Country Store (CBRL - Free Report) . Shares have lost about 5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cracker Barrel due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Cracker Barrel’s Q4 Earnings Top, Revenues Miss Estimates
Cracker Barrel delivered fourth-quarter fiscal 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. Both top and bottom lines increased year over year.
Earnings & Revenues
In fourth-quarter fiscal 2023, the company reported adjusted earnings per share (EPS) of $1.79, beating the Zacks Consensus Estimate of $1.68. In the prior-year quarter, it reported adjusted EPS of $1.57.
Quarterly revenues of $836.7 million missed the consensus mark of $843 million. The top line inched up 0.8% year over year. Cracker Barrel benefited from strong comparable store restaurant sales growth and menu innovation.
Comps Details
Comparable store restaurant sales rose 2.4% in the reported quarter compared with the same period in fiscal 2022. The upside was primarily backed by an 8.7% average menu price rise. Comparable store retail sales declined 6.8% year over year.
Operating Highlights
During the fiscal fourth quarter, the of goods sold (excluding depreciation and rent) came in at $257.3 million, down 6% year over year. As a percentage of total revenues, the cost of goods sold (excluding depreciation and rent) fell 210 basis points (bps) year over year to 30.8%. General and administrative expenses totaled $37.6 million, up from $32.9 million reported in the prior-year quarter.
Adjusted operating income in the fiscal fourth quarter totaled $44.4 million, up from $36.2 million in the year-ago quarter. Adjusted operating margin was 5.3%, up 90 bps from the prior-year quarter’s levels. The upside was mainly due to a decline in the cost of goods sold and other operating expenses. This was marginally overshadowed by higher labor and related expenditures, and general and administrative costs.
Balance Sheet
As of Jul 28, 2023, cash and cash equivalents were $25.1 million, down from $45.1 million as of Jul 29, 2023. Inventory at fiscal fourth-quarter end reached $189.4 million, down from $213.2 million at the end of fourth-quarter fiscal 2023. Long-term debt was $414.9 million compared with $423.2 million at the end of the previous quarter.
Cracker Barrel declared a cash dividend of $1.30 per share. The dividend will be paid out on Nov 7, 2023, to shareholders on record as of Oct 20, 2023.
Q1 Guidance
For first-quarter fiscal 2024, the company expects revenues in the range of $800-$850 million. Adjusted operating income margin is anticipated to be between 2.25% and 3.25%.
Management projects commodity deflation in the 1-2% band. Wage inflation is suggested to be between 4% and 5%.
Coming to store openings, the company aims to open one-two new Cracker Barrel units and four-five new Maple Street Biscuit company units during the fiscal first quarter. Capital expenditures during the quarter are envisioned in the range of $27-$32 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -32.85% due to these changes.
VGM Scores
At this time, Cracker Barrel has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Cracker Barrel has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Cracker Barrel (CBRL) Down 5% Since Last Earnings Report?
A month has gone by since the last earnings report for Cracker Barrel Old Country Store (CBRL - Free Report) . Shares have lost about 5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cracker Barrel due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Cracker Barrel’s Q4 Earnings Top, Revenues Miss Estimates
Cracker Barrel delivered fourth-quarter fiscal 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. Both top and bottom lines increased year over year.
Earnings & Revenues
In fourth-quarter fiscal 2023, the company reported adjusted earnings per share (EPS) of $1.79, beating the Zacks Consensus Estimate of $1.68. In the prior-year quarter, it reported adjusted EPS of $1.57.
Quarterly revenues of $836.7 million missed the consensus mark of $843 million. The top line inched up 0.8% year over year. Cracker Barrel benefited from strong comparable store restaurant sales growth and menu innovation.
Comps Details
Comparable store restaurant sales rose 2.4% in the reported quarter compared with the same period in fiscal 2022. The upside was primarily backed by an 8.7% average menu price rise. Comparable store retail sales declined 6.8% year over year.
Operating Highlights
During the fiscal fourth quarter, the of goods sold (excluding depreciation and rent) came in at $257.3 million, down 6% year over year. As a percentage of total revenues, the cost of goods sold (excluding depreciation and rent) fell 210 basis points (bps) year over year to 30.8%. General and administrative expenses totaled $37.6 million, up from $32.9 million reported in the prior-year quarter.
Adjusted operating income in the fiscal fourth quarter totaled $44.4 million, up from $36.2 million in the year-ago quarter. Adjusted operating margin was 5.3%, up 90 bps from the prior-year quarter’s levels. The upside was mainly due to a decline in the cost of goods sold and other operating expenses. This was marginally overshadowed by higher labor and related expenditures, and general and administrative costs.
Balance Sheet
As of Jul 28, 2023, cash and cash equivalents were $25.1 million, down from $45.1 million as of Jul 29, 2023. Inventory at fiscal fourth-quarter end reached $189.4 million, down from $213.2 million at the end of fourth-quarter fiscal 2023. Long-term debt was $414.9 million compared with $423.2 million at the end of the previous quarter.
Cracker Barrel declared a cash dividend of $1.30 per share. The dividend will be paid out on Nov 7, 2023, to shareholders on record as of Oct 20, 2023.
Q1 Guidance
For first-quarter fiscal 2024, the company expects revenues in the range of $800-$850 million. Adjusted operating income margin is anticipated to be between 2.25% and 3.25%.
Management projects commodity deflation in the 1-2% band. Wage inflation is suggested to be between 4% and 5%.
Coming to store openings, the company aims to open one-two new Cracker Barrel units and four-five new Maple Street Biscuit company units during the fiscal first quarter. Capital expenditures during the quarter are envisioned in the range of $27-$32 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -32.85% due to these changes.
VGM Scores
At this time, Cracker Barrel has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Cracker Barrel has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.