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Cracker Barrel Q4 Earnings & Revenues Lag, Stock Down
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Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) posted fourth-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The company’s earnings also declined year over year. Following the results, the company’s shares lost 1.1% on Thursday.
Cracker Barrel is facing several challenges due to broader economic conditions. Persistent inflation, weak consumer confidence and rising interest rates are likely to adversely impact customer spending habits.
Earnings & Revenues of CBRL
In fourth-quarter fiscal 2024, the company reported adjusted earnings per share (EPS) of 98 cents, which missed the Zacks Consensus Estimate of $1.17. In the prior-year quarter, it reported adjusted EPS of $1.68.
Quarterly revenues of $894.4 million missed the consensus mark of $899 million. However, the top line increased 6.9% year over year. The metric gained from an additional $62.8 million of revenues from the 53rd week and increased comparable-store restaurant sales.
Cracker Barrel Old Country Store, Inc. Price, Consensus and EPS Surprise
Comparable-store restaurant sales inched up 0.4% in the reported quarter compared with the same period in the fiscal 2023. Comparable-store retail sales declined 4.2% year over year. In the quarter, menu pricing increases came in at 4.2% year over year.
Operating Highlights
In the fiscal fourth quarter, the cost of goods sold (excluding depreciation and rent) came in at $272.2 million, which was down 6% year over year. As a percentage of total revenues, the cost of goods sold (excluding depreciation and rent) fell 70 basis points year over year to 30.1%. Per our model, the metric was anticipated at 31.3%.
General and administrative expenses totaled $51.3 million, which was up 36% year over year. Our projection for the metric was $53 million.
Adjusted net income in the fiscal fourth quarter came in at $22 million compared with $37.5 million reported in the year-ago quarter. Our projection for the metric was $27.6 million.
Balance Sheet of CBRL
As of Aug. 2, 2024, cash and cash equivalents were $12 million compared with $25.1 million as of July 28, 2023.
Inventory at the fiscal fourth-quarter end reached $181 million compared with $189.4 million reported in the prior-year period.
Long-term debt as of Aug. 2, 2024, was $476.6 million compared with $414.9 million as of July 28, 2023.
CBRL declared a cash dividend of 25 cents per share. The dividend will be paid out on Nov. 13, 2024, to its shareholders on record as of Oct. 18.
2025 Guidance
For fiscal 2025, the company expects revenues in the range of $3.4-$3.5 billion compared with the fiscal 2024’s reported figure of $3.47 billion. Adjusted EBITDA is anticipated to be between $200 million and $215 million.
Management projects commodity inflation to be in the range of 2% to 3% compared with the prior year. Hourly wage inflation is suggested to be 3% to 4% year over year.
Coming to store openings, CBRL aims to open three to four new Maple Street Biscuit company units and two new Cracker Barrel stores. Capital expenditures are envisioned in the range of $160-$180 million.
Zacks Rank & Other Key Picks
Cracker Barrel currently has a Zacks Rank #2 (Buy).
Here are some other top-ranked stocks from the Zacks Retail-Wholesale sector.
ANF has a trailing four-quarter earnings surprise of 28%, on average. The stock has surged 164.5% in the past year. The Zacks Consensus Estimate for ANF’s fiscal 2024 sales and earnings per share (EPS) indicates growth of 13.1% and 63.4%, respectively, from the year-ago period’s levels.
Boot Barn Holdings, Inc. (BOOT - Free Report) currently sports a Zacks Rank of 1. BOOT has a trailing four-quarter earnings surprise of 7.1%, on average. The stock has gained 80.6% in the past year. The consensus estimates for BOOT’s fiscal 2025 sales and EPS indicate growth of 11.6% and 10.7%, respectively, from the year-ago period’s levels.
Sprouts Farmers Market, Inc. (SFM - Free Report) currently sports a Zacks Rank of 1. SFM has a trailing four-quarter earnings surprise of 12%, on average. The stock has risen 161.7% in the past year. The Zacks Consensus Estimate for SFM’s 2024 sales and EPS indicates a rise of 9.6% and 18.7%, respectively, from the year-ago period’s levels.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
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Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) posted fourth-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The company’s earnings also declined year over year. Following the results, the company’s shares lost 1.1% on Thursday.
Cracker Barrel is facing several challenges due to broader economic conditions. Persistent inflation, weak consumer confidence and rising interest rates are likely to adversely impact customer spending habits.
Earnings & Revenues of CBRL
In fourth-quarter fiscal 2024, the company reported adjusted earnings per share (EPS) of 98 cents, which missed the Zacks Consensus Estimate of $1.17. In the prior-year quarter, it reported adjusted EPS of $1.68.
Quarterly revenues of $894.4 million missed the consensus mark of $899 million. However, the top line increased 6.9% year over year. The metric gained from an additional $62.8 million of revenues from the 53rd week and increased comparable-store restaurant sales.
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 up 0.4% in the reported quarter compared with the same period in the fiscal 2023. Comparable-store retail sales declined 4.2% year over year. In the quarter, menu pricing increases came in at 4.2% year over year.
Operating Highlights
In the fiscal fourth quarter, the cost of goods sold (excluding depreciation and rent) came in at $272.2 million, which was down 6% year over year. As a percentage of total revenues, the cost of goods sold (excluding depreciation and rent) fell 70 basis points year over year to 30.1%. Per our model, the metric was anticipated at 31.3%.
General and administrative expenses totaled $51.3 million, which was up 36% year over year. Our projection for the metric was $53 million.
Adjusted net income in the fiscal fourth quarter came in at $22 million compared with $37.5 million reported in the year-ago quarter. Our projection for the metric was $27.6 million.
Balance Sheet of CBRL
As of Aug. 2, 2024, cash and cash equivalents were $12 million compared with $25.1 million as of July 28, 2023.
Inventory at the fiscal fourth-quarter end reached $181 million compared with $189.4 million reported in the prior-year period.
Long-term debt as of Aug. 2, 2024, was $476.6 million compared with $414.9 million as of July 28, 2023.
CBRL declared a cash dividend of 25 cents per share. The dividend will be paid out on Nov. 13, 2024, to its shareholders on record as of Oct. 18.
2025 Guidance
For fiscal 2025, the company expects revenues in the range of $3.4-$3.5 billion compared with the fiscal 2024’s reported figure of $3.47 billion. Adjusted EBITDA is anticipated to be between $200 million and $215 million.
Management projects commodity inflation to be in the range of 2% to 3% compared with the prior year. Hourly wage inflation is suggested to be 3% to 4% year over year.
Coming to store openings, CBRL aims to open three to four new Maple Street Biscuit company units and two new Cracker Barrel stores. Capital expenditures are envisioned in the range of $160-$180 million.
Zacks Rank & Other Key Picks
Cracker Barrel currently has a Zacks Rank #2 (Buy).
Here are some other top-ranked stocks from the Zacks Retail-Wholesale sector.
Abercrombie & Fitch Co. (ANF - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ANF has a trailing four-quarter earnings surprise of 28%, on average. The stock has surged 164.5% in the past year. The Zacks Consensus Estimate for ANF’s fiscal 2024 sales and earnings per share (EPS) indicates growth of 13.1% and 63.4%, respectively, from the year-ago period’s levels.
Boot Barn Holdings, Inc. (BOOT - Free Report) currently sports a Zacks Rank of 1. BOOT has a trailing four-quarter earnings surprise of 7.1%, on average. The stock has gained 80.6% in the past year. The consensus estimates for BOOT’s fiscal 2025 sales and EPS indicate growth of 11.6% and 10.7%, respectively, from the year-ago period’s levels.
Sprouts Farmers Market, Inc. (SFM - Free Report) currently sports a Zacks Rank of 1. SFM has a trailing four-quarter earnings surprise of 12%, on average. The stock has risen 161.7% in the past year. The Zacks Consensus Estimate for SFM’s 2024 sales and EPS indicates a rise of 9.6% and 18.7%, respectively, from the year-ago period’s levels.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »