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Cracker Barrel (CBRL) to Post Q1 Earnings: What's in Store?
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Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) is scheduled to report first-quarter fiscal 2024 results on Nov 30. In the last reported quarter, CBRL reported an earnings surprise of 6.6%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the fiscal first-quarter earnings per share (EPS) is pegged at 78 cents, indicating a deterioration of 21.2% from 99 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $826.2 million. The metric suggests a decline of 1.6% from the year-ago quarter’s reported figure.
Cracker Barrel Old Country Store, Inc. Price and EPS Surprise
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 first-quarter top line is likely to have reflected strong comparable store restaurant sales growth on the back of average menu price rise, product innovation initiatives and strategic expansion plans. This and the launch of its Cracker Barrel Rewards loyalty program are likely to have aided the company’s performance in the to-be-reported quarter. For the first quarter of fiscal 2024, the company expects revenues in the range of $800-$850 million.
Per our model, retail sales (including MSBC) in the fiscal first quarter are expected to rise 0.6% year over year to $178.4 million.
The emphasis on marketing and more pointed value messaging (particularly around lunch and dinner dayparts) coupled with the launch of a new physical menu format is likely to have boosted consumer appeal and driven check in the fiscal first quarter. Our model predicts the fiscal first quarter adjusted operating margin at 3.1%.
Softer restaurant traffic and macroeconomic pressures will likely impact the company’s performance in the to-be-reported quarter. In the first quarter of fiscal 2024, the company anticipates wage inflation to be approximately 4-5% year over year.
For first-quarter fiscal 2024, our model predicts Labor and Other Related Expenses to rise 4% year over year to $303.5 million. Also, we expect adjusted store operating expenses to increase 0.1% year over year to $767.5 million.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Cracker Barrel this time. 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 -7.99%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Costco (COST - Free Report) currently has an Earnings ESP of +5.23% and a Zacks Rank of 3.
Shares of COST have gained 11.4% in the past year. COST’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 2.1%.
Chuy's Holdings, Inc. (CHUY - Free Report) has an Earnings ESP of +0.44% and a Zacks Rank #3.
The company’s shares have increased 13.5% in the past year. CHUY’s earnings beat estimates in all of the trailing four quarters, the average surprise being 24.8%.
McDonald's Corporation (MCD - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank #3.
The company's shares have gained 3.5% in the past year. MCD’s earnings beat estimates in all of the trailing four quarters, the average surprise being 10%.
Image: Shutterstock
Cracker Barrel (CBRL) to Post Q1 Earnings: What's in Store?
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) is scheduled to report first-quarter fiscal 2024 results on Nov 30. In the last reported quarter, CBRL reported an earnings surprise of 6.6%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the fiscal first-quarter earnings per share (EPS) is pegged at 78 cents, indicating a deterioration of 21.2% from 99 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $826.2 million. The metric suggests a decline of 1.6% from the year-ago quarter’s reported figure.
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
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 first-quarter top line is likely to have reflected strong comparable store restaurant sales growth on the back of average menu price rise, product innovation initiatives and strategic expansion plans. This and the launch of its Cracker Barrel Rewards loyalty program are likely to have aided the company’s performance in the to-be-reported quarter. For the first quarter of fiscal 2024, the company expects revenues in the range of $800-$850 million.
Per our model, retail sales (including MSBC) in the fiscal first quarter are expected to rise 0.6% year over year to $178.4 million.
The emphasis on marketing and more pointed value messaging (particularly around lunch and dinner dayparts) coupled with the launch of a new physical menu format is likely to have boosted consumer appeal and driven check in the fiscal first quarter. Our model predicts the fiscal first quarter adjusted operating margin at 3.1%.
Softer restaurant traffic and macroeconomic pressures will likely impact the company’s performance in the to-be-reported quarter. In the first quarter of fiscal 2024, the company anticipates wage inflation to be approximately 4-5% year over year.
For first-quarter fiscal 2024, our model predicts Labor and Other Related Expenses to rise 4% year over year to $303.5 million. Also, we expect adjusted store operating expenses to increase 0.1% year over year to $767.5 million.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Cracker Barrel this time. 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 -7.99%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Costco (COST - Free Report) currently has an Earnings ESP of +5.23% and a Zacks Rank of 3.
Shares of COST have gained 11.4% in the past year. COST’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 2.1%.
Chuy's Holdings, Inc. (CHUY - Free Report) has an Earnings ESP of +0.44% and a Zacks Rank #3.
The company’s shares have increased 13.5% in the past year. CHUY’s earnings beat estimates in all of the trailing four quarters, the average surprise being 24.8%.
McDonald's Corporation (MCD - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank #3.
The company's shares have gained 3.5% in the past year. MCD’s earnings beat estimates in all of the trailing four quarters, the average surprise being 10%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.