Cracker Barrel Reports Strong Earnings Beat, Stock Surges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Financial Recovery: Cracker Barrel reported a total revenue decline of 2.9% for the quarter ending May 1, yet achieved an adjusted EBITDA of $40.3 million, significantly exceeding the consensus estimate of $22.4 million, indicating a turnaround in performance compared to previous quarters.
- Sales Data Exceeds Expectations: Although comparable restaurant sales fell by 2.6% and comparable retail sales dropped by 1.8%, both figures outperformed the market's anticipated decline of 5.4%, demonstrating the company's resilience in maintaining market competitiveness amid challenges.
- Stable Debt Structure: At the end of the quarter, Cracker Barrel's total debt stood at $486.6 million, comprising $149.9 million in short-term debt and $336.8 million in long-term debt, with no outstanding borrowings on its credit facility, reflecting a solid financial position.
- Optimistic Future Outlook: The company expects total revenue for the year to range between $3.27 billion and $3.30 billion, surpassing previous estimates, while adjusted EBITDA guidance has been raised from $85 million to $100 million to a new range of $120 million to $125 million, showcasing management's confidence in future growth.
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Analyst Views on CBRL
Wall Street analysts forecast CBRL stock price to fall
8 Analyst Rating
1 Buy
4 Hold
3 Sell
Hold
Current: 34.210
Low
20.00
Averages
28.86
High
45.00
Current: 34.210
Low
20.00
Averages
28.86
High
45.00
About CBRL
Cracker Barrel Old Country Store, Inc. is engaged in the operation and development of the Cracker Barrel Old Country Store concept (Cracker Barrel). It operates approximately 660 company-owned Cracker Barrel Old Country Store locations in 43 states and 68 Maple Street Biscuit Company stores in 10 states. The Company’s format of its stores consists of a trademarked rustic old country-store design offering a full-service restaurant menu that features home-style country food and a wide variety of decorative and functional items such as rocking chairs, holiday and seasonal gifts, toys, apparel, cookware and foods. Its breakfast items include juices, eggs, pancakes, meats, grits, and a variety of biscuit specialties, such as gravy and biscuits and country ham and biscuits. Its Lunch and dinner items include fried and grilled chicken, chicken and dumplings, meatloaf, country fried steak, pork chops, fish, country fried shrimp, steak, vegetable plates, sandwiches and salads.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cracker Barrel Set to Announce Q3 Earnings on June 9th
- Earnings Announcement: Cracker Barrel (CBRL) is set to release its Q3 earnings on June 9th after market close, with a consensus EPS estimate of -$0.48, reflecting a significant year-over-year decline of 182.8%, indicating substantial profitability challenges.
- Revenue Decline Forecast: Analysts project revenue to reach $776.69 million, down 5.4% year-over-year, highlighting the sales difficulties the company faces in the current economic climate, which could impact investor confidence moving forward.
- Historical Performance Review: Over the past two years, Cracker Barrel has beaten EPS estimates 63% of the time and revenue estimates 50% of the time, although the current expectations indicate a notable downturn, which may affect stock performance.
- Forecast Revision Trends: In the last three months, EPS estimates have seen three upward revisions with no downward adjustments, and revenue estimates have also experienced three upward revisions, suggesting cautious optimism from analysts regarding the company's future performance, yet overall market sentiment remains negative.
See More
Wall Street Volatility: Cracker Barrel Shines Amid Market Swings
- Market Volatility: Major Wall Street indices experienced significant fluctuations, with the Nasdaq dropping as much as 3.5% before closing down 0.9%, indicating instability that could undermine investor confidence.
- Cracker Barrel's Strong Performance: Cracker Barrel Old Country Store surged in after-hours trading following a quarterly earnings beat that highlighted a notable turnaround, potentially enhancing the company's reputation and attracting more investor interest.
- Innovative Industrial Properties Financing Plan: Innovative Industrial Properties announced a $250 million offering of exchangeable senior notes, and while shares slipped in extended trading, this financing initiative could provide essential capital for future expansion.
- Executive Changes: Grocery Outlet appointed Ian Ferry as CFO, succeeding retiring Chris Miller, and this leadership transition is expected to help stabilize the company during strategic adjustments, although market confidence in its recovery remains low.
See More
Cracker Barrel Reports Strong Earnings Beat, Stock Surges
- Financial Recovery: Cracker Barrel reported a total revenue decline of 2.9% for the quarter ending May 1, yet achieved an adjusted EBITDA of $40.3 million, significantly exceeding the consensus estimate of $22.4 million, indicating a turnaround in performance compared to previous quarters.
- Sales Data Exceeds Expectations: Although comparable restaurant sales fell by 2.6% and comparable retail sales dropped by 1.8%, both figures outperformed the market's anticipated decline of 5.4%, demonstrating the company's resilience in maintaining market competitiveness amid challenges.
- Stable Debt Structure: At the end of the quarter, Cracker Barrel's total debt stood at $486.6 million, comprising $149.9 million in short-term debt and $336.8 million in long-term debt, with no outstanding borrowings on its credit facility, reflecting a solid financial position.
- Optimistic Future Outlook: The company expects total revenue for the year to range between $3.27 billion and $3.30 billion, surpassing previous estimates, while adjusted EBITDA guidance has been raised from $85 million to $100 million to a new range of $120 million to $125 million, showcasing management's confidence in future growth.
See More
Cracker Barrel Exceeds Expectations in Q3 Financial Results
- Revenue Growth: Cracker Barrel reported third-quarter revenue of $797,367, a 3% year-over-year decline, yet reflects the company's successful initiatives in operational improvement and guest experience, which are expected to drive future revenue growth.
- Significant Net Income Increase: The company achieved a GAAP net income of $42,811 in Q3, up 240% from $12,574 in the same period last year, indicating successful cost control and operational efficiency, thereby boosting investor confidence.
- Adjusted EBITDA Performance: Adjusted EBITDA stood at $40,305, down from $48,117 year-over-year, yet the company remains focused on enhancing long-term profitability, which is expected to lay a solid foundation for future financial stability.
- Optimistic Future Outlook: Cracker Barrel has updated its fiscal 2026 guidance, emphasizing the continued growth potential of adjusted EBITDA, reflecting the company's confidence in future market demand, which is likely to attract more investor interest.
See More
Cracker Barrel Q3 Earnings Exceed Expectations
- Earnings Beat: Cracker Barrel reported a Q3 Non-GAAP EPS of $0.29, surpassing expectations by $0.77, indicating a strong rebound in profitability that may attract more investor interest.
- Revenue Performance: The company generated $797.4 million in revenue for Q3, a 2.9% year-over-year decline, yet it exceeded market expectations by $20.71 million, suggesting sustained market demand despite challenges.
- Upward Guidance: Cracker Barrel raised its full-year revenue outlook to between $3.27 billion and $3.30 billion, up from the previous range of $3.24 billion to $3.27 billion, reflecting management's confidence in future performance and improving market conditions.
- Cost Control Improvements: The company anticipates commodity and hourly wage inflation to remain in the low 2% range, lower than previous forecasts, demonstrating effective cost control measures that could enhance profit margins.
See More
Investors Take Profits, Tech Stocks Pull Back
- Market Pullback Reasons: Stocks are retreating as investors take profits in technology and AI infrastructure stocks, particularly after the S&P 500 rose about 1% shortly after the open before reversing, indicating market fragility.
- Investment Strategy Adjustment: To prepare for the upcoming SpaceX IPO, investors are freeing up capital, prompting us to trim positions in Goldman Sachs and Qnity Electronics on Monday to lock in substantial gains, reflecting market sensitivity to new supply.
- Dividend Adjustment Impact: FedEx announced a 5% increase in its annual dividend, but due to a one-time adjustment related to the FedEx Freight spin-off, the new quarterly payment is $1.22 per share, down from $1.45 in April, although the yield remains around 1.5%, demonstrating the company's commitment to shareholder returns.
- Economic Data Focus: The most significant economic readout this week is the May consumer price index, expected to rise 0.5% month-over-month and 4.2% year-over-year, with the core index projected to increase 2.9% year-over-year, which will influence market expectations regarding the Fed's future rate hikes, especially following a strong jobs report.
See More
Cracker Barrel Set to Announce Q3 Earnings on June 9th
- Earnings Announcement: Cracker Barrel (CBRL) is set to release its Q3 earnings on June 9th after market close, with a consensus EPS estimate of -$0.48, reflecting a significant year-over-year decline of 182.8%, indicating substantial profitability challenges.
- Revenue Decline Forecast: Analysts project revenue to reach $776.69 million, down 5.4% year-over-year, highlighting the sales difficulties the company faces in the current economic climate, which could impact investor confidence moving forward.
- Historical Performance Review: Over the past two years, Cracker Barrel has beaten EPS estimates 63% of the time and revenue estimates 50% of the time, although the current expectations indicate a notable downturn, which may affect stock performance.
- Forecast Revision Trends: In the last three months, EPS estimates have seen three upward revisions with no downward adjustments, and revenue estimates have also experienced three upward revisions, suggesting cautious optimism from analysts regarding the company's future performance, yet overall market sentiment remains negative.
See More
Wall Street Volatility: Cracker Barrel Shines Amid Market Swings
- Market Volatility: Major Wall Street indices experienced significant fluctuations, with the Nasdaq dropping as much as 3.5% before closing down 0.9%, indicating instability that could undermine investor confidence.
- Cracker Barrel's Strong Performance: Cracker Barrel Old Country Store surged in after-hours trading following a quarterly earnings beat that highlighted a notable turnaround, potentially enhancing the company's reputation and attracting more investor interest.
- Innovative Industrial Properties Financing Plan: Innovative Industrial Properties announced a $250 million offering of exchangeable senior notes, and while shares slipped in extended trading, this financing initiative could provide essential capital for future expansion.
- Executive Changes: Grocery Outlet appointed Ian Ferry as CFO, succeeding retiring Chris Miller, and this leadership transition is expected to help stabilize the company during strategic adjustments, although market confidence in its recovery remains low.
See More
Cracker Barrel Reports Strong Earnings Beat, Stock Surges
- Financial Recovery: Cracker Barrel reported a total revenue decline of 2.9% for the quarter ending May 1, yet achieved an adjusted EBITDA of $40.3 million, significantly exceeding the consensus estimate of $22.4 million, indicating a turnaround in performance compared to previous quarters.
- Sales Data Exceeds Expectations: Although comparable restaurant sales fell by 2.6% and comparable retail sales dropped by 1.8%, both figures outperformed the market's anticipated decline of 5.4%, demonstrating the company's resilience in maintaining market competitiveness amid challenges.
- Stable Debt Structure: At the end of the quarter, Cracker Barrel's total debt stood at $486.6 million, comprising $149.9 million in short-term debt and $336.8 million in long-term debt, with no outstanding borrowings on its credit facility, reflecting a solid financial position.
- Optimistic Future Outlook: The company expects total revenue for the year to range between $3.27 billion and $3.30 billion, surpassing previous estimates, while adjusted EBITDA guidance has been raised from $85 million to $100 million to a new range of $120 million to $125 million, showcasing management's confidence in future growth.
See More
Cracker Barrel Exceeds Expectations in Q3 Financial Results
- Revenue Growth: Cracker Barrel reported third-quarter revenue of $797,367, a 3% year-over-year decline, yet reflects the company's successful initiatives in operational improvement and guest experience, which are expected to drive future revenue growth.
- Significant Net Income Increase: The company achieved a GAAP net income of $42,811 in Q3, up 240% from $12,574 in the same period last year, indicating successful cost control and operational efficiency, thereby boosting investor confidence.
- Adjusted EBITDA Performance: Adjusted EBITDA stood at $40,305, down from $48,117 year-over-year, yet the company remains focused on enhancing long-term profitability, which is expected to lay a solid foundation for future financial stability.
- Optimistic Future Outlook: Cracker Barrel has updated its fiscal 2026 guidance, emphasizing the continued growth potential of adjusted EBITDA, reflecting the company's confidence in future market demand, which is likely to attract more investor interest.
See More
Cracker Barrel Q3 Earnings Exceed Expectations
- Earnings Beat: Cracker Barrel reported a Q3 Non-GAAP EPS of $0.29, surpassing expectations by $0.77, indicating a strong rebound in profitability that may attract more investor interest.
- Revenue Performance: The company generated $797.4 million in revenue for Q3, a 2.9% year-over-year decline, yet it exceeded market expectations by $20.71 million, suggesting sustained market demand despite challenges.
- Upward Guidance: Cracker Barrel raised its full-year revenue outlook to between $3.27 billion and $3.30 billion, up from the previous range of $3.24 billion to $3.27 billion, reflecting management's confidence in future performance and improving market conditions.
- Cost Control Improvements: The company anticipates commodity and hourly wage inflation to remain in the low 2% range, lower than previous forecasts, demonstrating effective cost control measures that could enhance profit margins.
See More
Investors Take Profits, Tech Stocks Pull Back
- Market Pullback Reasons: Stocks are retreating as investors take profits in technology and AI infrastructure stocks, particularly after the S&P 500 rose about 1% shortly after the open before reversing, indicating market fragility.
- Investment Strategy Adjustment: To prepare for the upcoming SpaceX IPO, investors are freeing up capital, prompting us to trim positions in Goldman Sachs and Qnity Electronics on Monday to lock in substantial gains, reflecting market sensitivity to new supply.
- Dividend Adjustment Impact: FedEx announced a 5% increase in its annual dividend, but due to a one-time adjustment related to the FedEx Freight spin-off, the new quarterly payment is $1.22 per share, down from $1.45 in April, although the yield remains around 1.5%, demonstrating the company's commitment to shareholder returns.
- Economic Data Focus: The most significant economic readout this week is the May consumer price index, expected to rise 0.5% month-over-month and 4.2% year-over-year, with the core index projected to increase 2.9% year-over-year, which will influence market expectations regarding the Fed's future rate hikes, especially following a strong jobs report.
See More
