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Cracker Barrel (CBRL) Q1 Earnings & Revenues Miss Estimates
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Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) reported first-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top and the bottom line declined year over year. Following the results, shares of the company dropped 10.6% during trading hours on Nov 30.
Earnings & Revenues
In first-quarter fiscal 2024, the company reported adjusted earnings per share (EPS) of 51 cents, missing the Zacks Consensus Estimate of 78 cents. In the prior-year quarter, it reported adjusted EPS of 99 cents.
Quarterly revenues of $823.8 million missed the consensus mark of $831 million. The top line fell 1.9% year over year. The downside was primarily driven by weak consumer sentiments and lower restaurant traffic.
Cracker Barrel Old Country Store, Inc. Price, Consensus and EPS Surprise
Comparable store restaurant sales inched down 0.5% in the reported quarter compared with the same period in fiscal 2023. Comparable store retail sales declined 8.1% year over year. During the quarter, menu pricing increases came in at 6.8% year over year.
Operating Highlights
During the fiscal first quarter, the cost of goods sold (excluding depreciation and rent) came in at $255.6 million, down 9% year over year. As a percentage of total revenues, the cost of goods sold (excluding depreciation and rent) fell 250 basis points (bps) year over year to 31%. Per our model, the metric was anticipated at 33.3%.
General and administrative expenses totaled $48.7 million, up from $45.9 million reported in the prior-year quarter. Our projection for the metric was $44.8 million.
Adjusted operating income in the fiscal first quarter totaled $19 million, down from $30 million reported in the year-ago quarter. Our projection for the metric was $23.4 million.
Adjusted operating margin was 2.3%, down 130 bps from the prior-year quarter’s levels. The downside was mainly due to a rise in labor and related expenditures, other operating expenses and general and administrative costs. This was partially offset by the lower cost of goods sold.
Balance Sheet
As of Oct 27, 2023, cash and cash equivalents were $13.9 million, down from $38.7 million as of Oct 28, 2022.
Inventory at the fiscal first-quarter end reached $207.3 million compared with $231 million reported in the prior-year period.
Long-term debt was $475.3 million compared with $483.7 million in the year-ago period.
CBRL declared a cash dividend of $1.30 per share. The dividend will be paid out on Feb 13, 2024, to shareholders on record as of Jan 19, 2024.
2024 Guidance
For fiscal 2024, the company expects revenues in the range of $3.4-$3.5 billion. Adjusted operating income is anticipated to be between $130 and $150 million.
Management projects commodity inflation in the low-single digits. Hourly wage inflation is suggested to be in the mid-single digits
Coming to store openings, CBRL aims to open two new Cracker Barrel units and nine-11 new Maple Street Biscuit company units during the fiscal year. Capital expenditures during the quarter are envisioned in the range of $120-$135 million.
Zacks Rank & Other Key Picks
Cracker Barrel currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Retail-Wholesale sector include:
The Zacks Consensus Estimate for Wingstop’s 2024 sales and EPS suggests rises of 15.6% and 17.2%, respectively, from the year-ago period’s levels.
Brinker International, Inc. (EAT - Free Report) sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 223.6%, on average. Shares of EAT have increased 8.6% in the past year.
The Zacks Consensus Estimate for EAT’s fiscal 2024 sales and EPS indicates a 5.1% and a 26.2% rise, respectively, from the year-ago period’s levels.
FAT Brands Inc. (FAT - Free Report) currently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 36.6%, on average. The stock has declined 15.4% in the past year.
The Zacks Consensus Estimate for FAT Brands’ 2024 sales and EPS suggests an increase of 35.6% and 27.4%, respectively, from the year-ago period’s levels.
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Cracker Barrel (CBRL) Q1 Earnings & Revenues Miss Estimates
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) reported first-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top and the bottom line declined year over year. Following the results, shares of the company dropped 10.6% during trading hours on Nov 30.
Earnings & Revenues
In first-quarter fiscal 2024, the company reported adjusted earnings per share (EPS) of 51 cents, missing the Zacks Consensus Estimate of 78 cents. In the prior-year quarter, it reported adjusted EPS of 99 cents.
Quarterly revenues of $823.8 million missed the consensus mark of $831 million. The top line fell 1.9% year over year. The downside was primarily driven by weak consumer sentiments and lower restaurant traffic.
Cracker Barrel Old Country Store, Inc. Price, Consensus and EPS Surprise
Cracker Barrel Old Country Store, Inc. price-consensus-eps-surprise-chart | Cracker Barrel Old Country Store, Inc. Quote
Comps Details
Comparable store restaurant sales inched down 0.5% in the reported quarter compared with the same period in fiscal 2023. Comparable store retail sales declined 8.1% year over year. During the quarter, menu pricing increases came in at 6.8% year over year.
Operating Highlights
During the fiscal first quarter, the cost of goods sold (excluding depreciation and rent) came in at $255.6 million, down 9% year over year. As a percentage of total revenues, the cost of goods sold (excluding depreciation and rent) fell 250 basis points (bps) year over year to 31%. Per our model, the metric was anticipated at 33.3%.
General and administrative expenses totaled $48.7 million, up from $45.9 million reported in the prior-year quarter. Our projection for the metric was $44.8 million.
Adjusted operating income in the fiscal first quarter totaled $19 million, down from $30 million reported in the year-ago quarter. Our projection for the metric was $23.4 million.
Adjusted operating margin was 2.3%, down 130 bps from the prior-year quarter’s levels. The downside was mainly due to a rise in labor and related expenditures, other operating expenses and general and administrative costs. This was partially offset by the lower cost of goods sold.
Balance Sheet
As of Oct 27, 2023, cash and cash equivalents were $13.9 million, down from $38.7 million as of Oct 28, 2022.
Inventory at the fiscal first-quarter end reached $207.3 million compared with $231 million reported in the prior-year period.
Long-term debt was $475.3 million compared with $483.7 million in the year-ago period.
CBRL declared a cash dividend of $1.30 per share. The dividend will be paid out on Feb 13, 2024, to shareholders on record as of Jan 19, 2024.
2024 Guidance
For fiscal 2024, the company expects revenues in the range of $3.4-$3.5 billion. Adjusted operating income is anticipated to be between $130 and $150 million.
Management projects commodity inflation in the low-single digits. Hourly wage inflation is suggested to be in the mid-single digits
Coming to store openings, CBRL aims to open two new Cracker Barrel units and nine-11 new Maple Street Biscuit company units during the fiscal year. Capital expenditures during the quarter are envisioned in the range of $120-$135 million.
Zacks Rank & Other Key Picks
Cracker Barrel currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Retail-Wholesale sector include:
Wingstop Inc. (WING - Free Report) sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 28.9%, on average. The stock has surged 45.9% in the past year. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for Wingstop’s 2024 sales and EPS suggests rises of 15.6% and 17.2%, respectively, from the year-ago period’s levels.
Brinker International, Inc. (EAT - Free Report) sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 223.6%, on average. Shares of EAT have increased 8.6% in the past year.
The Zacks Consensus Estimate for EAT’s fiscal 2024 sales and EPS indicates a 5.1% and a 26.2% rise, respectively, from the year-ago period’s levels.
FAT Brands Inc. (FAT - Free Report) currently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 36.6%, on average. The stock has declined 15.4% in the past year.
The Zacks Consensus Estimate for FAT Brands’ 2024 sales and EPS suggests an increase of 35.6% and 27.4%, respectively, from the year-ago period’s levels.