Cracker Barrel Q3 Earnings Miss Estimates; Warns On Inflationary Pressures

Cracker Barrel Old Country Store Inc CBRL reported third-quarter FY22 sales growth of 11% year-on-year to $790.2 million, missing the consensus of $795.52 million.
Comparable store retail sales increased 9.7%, and comparable store restaurant sales grew 10.9%.
General and administrative expenses increased 8% Y/Y to $40.2 million. The operating margin was 3.9%, and operating income for the quarter fell 42% to $30.5 million.
Cracker Barrel held $24.8 million in cash and equivalents as of April 29, 2022.
Adjusted EPS of $1.29 missed the analyst consensus of $1.35.
Dividend: Cracker Barrel's Board of Directors declared a regular quarterly dividend of $1.30 per share, payable on August 5, 2022, to shareholders of record as of July 15, 2022.
Buyback: CBRL Board approved a new share repurchase program of up to $200 million of common stock, which replaced the remaining portion under the prior authorization.
"A challenging macro environment, including deteriorating consumer sentiment and high inflationary pressures, impacted both our top and bottom lines in the third quarter," said CEO Sandra B. Cochran.
Outlook: Cracker Barrel expects the near-term consumer environment to remain challenged due to high inflation and lower consumer confidence, especially for the age sixty-five-plus consumer group.
For Q4, CBRL expects operating margins to be adversely impacted by commodity, wage, and other operating expenses inflation.
The company anticipates Q4 revenue to be approximately 8.0% above the prior year and adjusted operating income margin to be 4.0% - 4.5%.
Price Action: CBRL shares are trading lower by 2.35% at $99.50 on the last check Tuesday.

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