Why Is American Restaurant Chain Cracker Barrel Old Country Stock Falling Today?

Cracker Barrel Old Country Store Inc CBRL reported Q1 FY24 revenues of $823.8 million, down 1.9% Y/Y, missing the consensus of $826.21 million, compared with the management guidance of $800 million-$850 million.

Cracker Barrel comparable store restaurant sales decreased 0.5%, including total menu pricing increases of 6.8%. Comparable store retail sales fell 8.1% from the prior-year quarter.  

Adjusted operating income was $19 million, or 2.3% of total revenue, compared to $30.0 million, or 3.6%, a year ago, primarily the result of higher labor and related expenses, higher other operating expenses, and higher general and administrative expenses, partially offset by lower cost of goods sold in the current year quarter.

Adjusted EPS of $0.51, a 48% decrease from $0.99 a year ago, missing the consensus of $0.75.

Adjusted EBITDA was $45.7 million, or 5.5% of total revenue, a 16.6% decrease compared to the prior year's quarter Adjusted EBITDA of $54.8 million, or 6.5% of total revenue.

Outlook: Cracker Barrel expects FY24 revenue of $3.4 billion to $3.5 billion versus the consensus of $3.5 billion.

The company expects two new Cracker Barrel stores and 9 to 11 new Maple Street Biscuit Company units.

It sees commodity inflation in the low-single digits and hourly wage inflation in the mid-single digits.

Price Action: CBRL shares are down 5.47% at $71.01 on the last check Thursday.