Cracker Barrel Battles Inflation, Eyes Expansion Amid Q4 Earnings Miss

Cracker Barrel Old Country Store, Inc. CBRL reported fourth-quarter adjusted earnings per share of 98 cents, missing the street view of $1.10. Quarterly sales of $894.39 million (+6.9%), missing the analyst consensus of $897.22 million.

For the fourth quarter of fiscal 2024, total revenue includes a $62.8 million boost from the 53rd week.

Cracker Barrel’s comparable store restaurant sales rose by 0.4%, driven by total menu price increases of 4.2%.

However, comparable store retail sales fell by 4.2% compared to the same quarter last year.

Adjusted EBITDA was $57.4 million, or 6.4% of total revenue versus $70.4 million, or 8.4% of total revenue in the same period a year earlier.

The company announced that it has approved a quarterly dividend of $0.25 per share on its common stock. This dividend will be payable on November 13 to shareholders recorded as of October 18.

Outlook: Cracker Barrel projects FY25 total revenue between $3.4 billion and $3.5 billion, compared to the $3.474 billion estimate.

Cracker Barrel plans to open two new stores and three to four new Maple Street Biscuit Company units.

The company anticipates commodity inflation of 2% to 3% and hourly wage inflation of 3% to 4% compared to the previous year. It projects adjusted EBITDA between $200 million and $215 million, with capital expenditures ranging from $160 million to $180 million.

Price Action: CBRL shares are trading lower by 0.67% to $41.28 at last check Thursday.

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