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Cracker Barrel Q3 Earnings Surpass Estimates, Revenues Miss
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Key Takeaways
CBRL posted Q3 EPS of $0.58, beating estimates but down 34.1% from the prior-year quarter.
Revenues rose 0.5% to $821.1M, missing forecasts as retail comps fell 3.8% year over year.
Shares dropped 7.2% as investors reacted to weak traffic trends and macroeconomic uncertainty.
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) posted third-quarter fiscal 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line increased year over year, while the bottom line fell from the prior-year quarter’s reported figure.
Following the results, the company’s shares declined 7.2% yesterday during trading hours. Negative investor sentiments were witnessed as the company cited concerns over softer traffic trends and macroeconomic uncertainty.
Earnings & Revenues of CBRL
For third-quarter fiscal 2025, the company reported adjusted earnings per share (EPS) of 58 cents, beating the Zacks Consensus Estimate of 17 cents. The company’s earnings declined 34.1% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Cracker Barrel Old Country Store, Inc. Price, Consensus and EPS Surprise
Quarterly revenues of $821.1 million missed the consensus mark of $827 million. The top line increased 0.5% year over year.
CBRL’s Comps Details
Comparable-store restaurant sales increased 1% in the reported quarter compared with the same period in fiscal 2024. Comparable-store retail sales decreased 3.8% year over year. In the quarter, menu pricing increases were 4.9% year over year. Our model predicted comparable-store restaurant sales growth of 1.8%.
Operating Highlights of CBRL
In the fiscal third quarter, the cost of goods sold (excluding depreciation and rent) was $247.3 million, which was up 1% year over year. As a percentage of total revenues, the cost of goods sold (excluding depreciation and rent) increased 10 basis points year over year to 30.1%. Per our model, the metric was anticipated at 30.5%.
General and administrative expenses totaled $46 million, down 16% year over year. Our prediction for the metric was $53.9 million.
Adjusted net income in the fiscal third quarter amounted to $13.1 million compared with $19.6 million reported in the year-ago quarter. Our prediction for the metric was $5 million.
Balance Sheet of CBRL
As of May 2, 2025, cash and cash equivalents were $9.8 million compared with $11.9 million as of April 26, 2024.
Inventory at the fiscal third-quarter end reached $168.9 million, down 3.8% year over year.
Long-term debt as of May 2, 2025, was $489.4 million compared with $472.2 million as of April 26, 2024.
CBRL declared a cash dividend of 25 cents per share. The dividend will be paid out on Aug. 13, 2025, to its shareholders on record as of July 18.
CBRL’s 2025 Guidance
For fiscal 2025, the company expects revenues in the range of $3.45-$3.5 billion. Adjusted EBITDA is anticipated to be between $215 million and $225 million, up from the earlier projection of $210 million to $220 million.
Management continues to expect commodity inflation to be in the mid-2% range compared with the prior expectation of 2% to 3%. Hourly wage inflation is anticipated to be in the mid-2% range compared with the prior estimate of 3%.
Capital expenditures are envisioned in the range of $160-$170 million.
CBRL’s Zacks Rank & Key Picks
Cracker Barrel currently has a Zacks Rank #3 (Hold).
BJ's Restaurants delivered a trailing four-quarter earnings surprise of negative 101.2%, on average. The stock has inched up 24.6% in the year-to-date period. The Zacks Consensus Estimate for BJ's Restaurants’ 2025 sales and EPS implies growth of 3.1% and 21.1%, respectively, from the year-ago levels.
Wingstop presently has a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 6.1%, on average. The stock has gained 30.7% in the year-to-date period.
The Zacks Consensus Estimate for Wingstop’s 2025 sales and EPS indicates an increase of 16.8% and 6.6%, respectively, from the year-ago levels.
Brinker currently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 24.5%, on average. The stock has increased 28% in the year-to-date period.
The Zacks Consensus Estimate for Brinker’s 2025 sales and EPS indicates growth of 20.9% and 113.7%, respectively, from the year-ago period’s levels.
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Cracker Barrel Q3 Earnings Surpass Estimates, Revenues Miss
Key Takeaways
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) posted third-quarter fiscal 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line increased year over year, while the bottom line fell from the prior-year quarter’s reported figure.
Following the results, the company’s shares declined 7.2% yesterday during trading hours. Negative investor sentiments were witnessed as the company cited concerns over softer traffic trends and macroeconomic uncertainty.
Earnings & Revenues of CBRL
For third-quarter fiscal 2025, the company reported adjusted earnings per share (EPS) of 58 cents, beating the Zacks Consensus Estimate of 17 cents. The company’s earnings declined 34.1% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
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
Quarterly revenues of $821.1 million missed the consensus mark of $827 million. The top line increased 0.5% year over year.
CBRL’s Comps Details
Comparable-store restaurant sales increased 1% in the reported quarter compared with the same period in fiscal 2024. Comparable-store retail sales decreased 3.8% year over year. In the quarter, menu pricing increases were 4.9% year over year. Our model predicted comparable-store restaurant sales growth of 1.8%.
Operating Highlights of CBRL
In the fiscal third quarter, the cost of goods sold (excluding depreciation and rent) was $247.3 million, which was up 1% year over year. As a percentage of total revenues, the cost of goods sold (excluding depreciation and rent) increased 10 basis points year over year to 30.1%. Per our model, the metric was anticipated at 30.5%.
General and administrative expenses totaled $46 million, down 16% year over year. Our prediction for the metric was $53.9 million.
Adjusted net income in the fiscal third quarter amounted to $13.1 million compared with $19.6 million reported in the year-ago quarter. Our prediction for the metric was $5 million.
Balance Sheet of CBRL
As of May 2, 2025, cash and cash equivalents were $9.8 million compared with $11.9 million as of April 26, 2024.
Inventory at the fiscal third-quarter end reached $168.9 million, down 3.8% year over year.
Long-term debt as of May 2, 2025, was $489.4 million compared with $472.2 million as of April 26, 2024.
CBRL declared a cash dividend of 25 cents per share. The dividend will be paid out on Aug. 13, 2025, to its shareholders on record as of July 18.
CBRL’s 2025 Guidance
For fiscal 2025, the company expects revenues in the range of $3.45-$3.5 billion. Adjusted EBITDA is anticipated to be between $215 million and $225 million, up from the earlier projection of $210 million to $220 million.
Management continues to expect commodity inflation to be in the mid-2% range compared with the prior expectation of 2% to 3%. Hourly wage inflation is anticipated to be in the mid-2% range compared with the prior estimate of 3%.
Capital expenditures are envisioned in the range of $160-$170 million.
CBRL’s Zacks Rank & Key Picks
Cracker Barrel currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector are BJ's Restaurants, Inc. (BJRI - Free Report) , Wingstop Inc. (WING - Free Report) and Brinker International, Inc. (EAT - Free Report) .
BJ's Restaurants currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BJ's Restaurants delivered a trailing four-quarter earnings surprise of negative 101.2%, on average. The stock has inched up 24.6% in the year-to-date period. The Zacks Consensus Estimate for BJ's Restaurants’ 2025 sales and EPS implies growth of 3.1% and 21.1%, respectively, from the year-ago levels.
Wingstop presently has a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 6.1%, on average. The stock has gained 30.7% in the year-to-date period.
The Zacks Consensus Estimate for Wingstop’s 2025 sales and EPS indicates an increase of 16.8% and 6.6%, respectively, from the year-ago levels.
Brinker currently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 24.5%, on average. The stock has increased 28% in the year-to-date period.
The Zacks Consensus Estimate for Brinker’s 2025 sales and EPS indicates growth of 20.9% and 113.7%, respectively, from the year-ago period’s levels.