Shares of Cracker Barrel Old Country Store Inc (NASDAQ:CBRL) are up 8.4% at $46.40 at last glance, after Truist Securities upgraded the stock to "buy" from "hold," with a price-target hike to $55 from $51. The bull note follows last week's fiscal second-quarter earnings report, which featured better-than-expected earnings and revenue, same-store sales growth of 4.7%, and a raised forecast. The restaurant chain also announced a $700 million reinvention plan spanning three years, which will include large menu ...

Coffee Industry - Coffee prices have reached record highs, with futures prices more than doubling over the past 12 months and surpassing $4 per pound for the first time last month [6] - A dry spell in Brazil has significantly impacted crop yields, contributing to the rising prices [6] - Coffee Labs Roasters signed a new purchase order at approximately $5 per bag, up from a previous deal of about $4 per bag [2] Egg Industry - The price of eggs in the U.S. has increased by 53% year over year, with a 15% spike from December to January [4] - The avian flu outbreak has led to the culling of millions of hens, exacerbating supply issues [5] - The U.S. Department of Justice is investigating potential antitrust practices in the egg industry [5] Consumer Behavior - Rising prices of coffee and eggs are causing consumers to change their purchasing habits, with many opting to skip breakfast or replace it with cheaper alternatives [9][10] - A survey indicated that consumer sentiment has turned negative for the first time since June 2024, with expectations of worsening inflation [7] Restaurant Industry - Dine Brands, the parent company of IHOP, has seen its stock decline over 13% this year, with a disappointing outlook for 2025 due to rising costs primarily driven by egg prices [11][12] - Waffle House and Denny's have implemented surcharges for menu items containing eggs, while McDonald's has not raised prices [13] - Restaurant stocks offering breakfast items have underperformed the market, with Denny's stock down over 55% and Cracker Barrel down 38% over the past year [14] Trade and Tariffs - Proposed tariffs on coffee could further increase prices, particularly for decaffeinated coffee that involves cross-border processing between the U.S., Mexico, and Canada [15][16] - There is uncertainty regarding the impact of these tariffs on decaf coffee, with industry experts seeking more clarity [17]

Cracker Barrel Old Country Store, Inc. (CBRL) posted second-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate for the second straight quarter. Both top and bottom lines increased from the prior-year quarter’s figure. Investor sentiments were also boosted after the company raised its fiscal 2025 guidance. Following the results, the company’s shares increased 7.6% yesterday during trading hours.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. ...

Call Start: 11:00 January 1, 0000 12:02 PM ET Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) Q2 2025 Earnings Conference Call March 6, 2025 11:00 AM ET Company Participants Adam Hanan - Director of Investor Relations Julie Masino - President and CEO Craig Pommells - SVP and CFO Conference Call Participants Jeff Farmer - Gordon Haskett Research Advisors Todd Brooks - The Benchmark Company Katherine Griffin - Bank of America Alton Stump - Loop Capital Markets Andrew Wolf - CL King Jon Tower - Citigroup ...

Shares of restaurant chain Cracker Barrel (CBRL 7.59%) have been steadily sliding downwards since early 2021. And on Wednesday, the stock was trading close to its lowest price in over a decade. But the company released results for its fiscal 2025 second quarter on Thursday morning and raised its guidance. And that's why Cracker Barrel stock is bouncing back after years of declines, up by as much as 27% early in Thursday's session and up by about 8% as of 12:15 p.m. ET.Cracker Barrel finds its footingSometim ...

Revenue Performance - Total revenue for the second quarter of 2025 increased by 1.5% compared to the same period in the prior year, while revenue for the first six months increased by 2.0%[88] - Total revenue for the second quarter of 2025 was $949,439, an increase of 1.1% from $935,401 in the same period of 2024[1] - Comparable restaurant sales increased by 4.7% in the second quarter of 2025, driven by an average check increase of 7.4%[1][2] - Retail sales decreased by 2.8% in the first six months of 2025, primarily due to a decline in guest traffic[2][3] Cost and Expenses - Cost of goods sold as a percentage of total revenue decreased from 33.7% in Q2 2024 to 32.6% in Q2 2025[84] - Cost of Goods Sold (COGS) for restaurants decreased to 27.1% of restaurant revenue in the second quarter of 2025, down from 28.2% in the prior year[1][4] - Labor and other related expenses as a percentage of total revenue remained relatively stable, decreasing slightly from 34.5% in Q2 2024 to 34.4% in Q2 2025[84] - Labor and related expenses accounted for 34.4% of total revenue in the second quarter of 2025, a slight decrease from 34.5% in the same period of 2024[1][5] - General and administrative expenses increased to 6.5% of total revenue in the second quarter of 2025, up from 5.6% in the prior year, due to higher professional fees[1][6] Operating Performance - Operating income for the second quarter of 2025 was 3.1% of total revenue, compared to 3.3% in the same quarter of the previous year[84] - The effective tax rate for the second quarter of 2025 was 8.0%, compared to a benefit of (3.3)% in the same period of 2024[1][7] - The company recorded impairment charges of $2,163 in the second quarter of 2025 due to the deterioration in operating performance at certain locations[1][8] - Interest expense for the second quarter of 2025 was $4,978, remaining relatively constant compared to $5,067 in the same period of 2024[1][9] Strategic Initiatives - The company plans to complete 25-30 store remodels and refreshes in 2025 to enhance the guest experience[79] - The strategic transformation plan focuses on five pillars, including refining the brand and enhancing the menu to drive profitability[78] - Comparable store restaurant sales metrics are used to evaluate sales growth, excluding new store openings and sales related to MSBC[82] - The average check per guest is monitored to identify trends in guest preferences and the effectiveness of menu changes[83] Financial Outlook - The company anticipates challenges in the macroeconomic outlook, including inflation and high consumer debt levels, but remains focused on long-term growth[78] - The company expects commodity inflation to be approximately 2% to 3% in 2025[1][10] Cash Flow and Capital Expenditures - Cash generated from operations for the first six months of 2025 was $93,693, an increase of 51.3% compared to $61,879 in the same period of 2024[113] - Capital expenditures for the first six months of 2025 were $76,986, up 50.5% from $51,080 in the prior year, primarily for maintenance and remodel initiatives[114] - The company expects to increase capital expenditures to approximately $600,000 to $700,000 from 2025 to 2027, with $160,000 to $180,000 planned for 2025[115] Debt and Financing - As of January 31, 2025, the company had $491,996 available for borrowing under the 2022 Revolving Credit Facility after outstanding borrowings of $174,000[117] - The company has a $700,000 revolving credit facility with an option to increase by $200,000, which is subject to financial covenants[116] - A one-percentage point change in the $174,000 outstanding borrowings would impact pre-tax annualized interest costs by approximately $1,759[133] - The company issued $300,000 of 0.625% Convertible Senior Notes, maturing on June 15, 2026[119] - The company remains in compliance with the financial covenants of the 2022 Revolving Credit Facility as of January 31, 2025[118] Store Operations - As of January 31, 2025, the company operated 657 Cracker Barrel stores and 69 Maple Street Biscuit Company locations, totaling 726 units[72][87] - Negative working capital was $173,982 as of January 31, 2025, slightly improved from $175,993 on August 2, 2024[124]

Core Insights - Cracker Barrel Old Country Store (CBRL) reported revenue of $949.44 million for the quarter ended January 2025, reflecting a 1.5% increase year-over-year and a surprise of +0.80% over the Zacks Consensus Estimate of $941.93 million [1] - The earnings per share (EPS) for the quarter was $1.38, up from $1.37 in the same quarter last year, with a significant surprise of +36.63% compared to the consensus EPS estimate of $1.01 [1] Financial Performance Metrics - Comparable-store sales for the restaurant segment increased by 4.7%, outperforming the four-analyst average estimate of 2.2% [4] - Comparable-store sales for the retail segment showed a slight increase of 0.2%, compared to the average estimate of -0.9% from four analysts [4] - Company-owned units totaled 657, slightly below the three-analyst average estimate of 659 [4] - Retail revenues were reported at $198.76 million, which is a decrease of 2.8% year-over-year and below the average estimate of $203.12 million [4] - Restaurant revenues reached $733.30 million, reflecting a 2.7% year-over-year increase, but also fell short of the average estimate of $738.81 million [4] Stock Performance - Over the past month, Cracker Barrel's shares have returned -32.8%, contrasting with the Zacks S&P 500 composite's -3.5% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Performance - Total revenue for Q2 fiscal 2025 was $949.4 million, a 1.5% increase compared to Q2 fiscal 2024[5] - GAAP net income for Q2 was $22.2 million, a 16.3% decrease from $26.5 million in the prior year quarter[6] - Adjusted EBITDA for Q2 was $74.6 million, reflecting a 19.6% increase from $62.4 million in the prior year quarter[6] - Adjusted earnings per diluted share were $1.38, a 9.5% increase compared to $1.26 in the prior year quarter[7] - Total revenue for the second quarter ended January 31, 2025, was $949,439,000, representing a 2% increase compared to $935,401,000 for the same period last year[17] - Net income decreased by 16% to $22,207,000 for the second quarter, down from $26,534,000 in the prior year[17] - Earnings per share (EPS) on a diluted basis was $0.99, a decrease of 17% from $1.19 in the same quarter last year[17] - Operating income for the second quarter was $29,123,000, down 5% from $30,762,000 in the previous year[17] - Adjusted net income for the second quarter was $30,921 thousand, representing a 10.0% increase from $28,067 thousand in the prior year[25] - EBITDA for the second quarter was $59,357 thousand, with an EBITDA margin of 6.3%[27] - Adjusted EBITDA for the second quarter was $74,628 thousand, reflecting a margin of 7.9%[27] Revenue Guidance - The company expects fiscal 2025 total revenue to be between $3.45 billion and $3.50 billion, up from the previous outlook of $3.4 billion to $3.5 billion[11] - Adjusted EBITDA guidance for fiscal 2025 is now set at $210 million to $220 million, increased from the previous range of $200 million to $215 million[11] Store Operations - Comparable store restaurant sales increased by 4.7%, driven by total menu pricing increases of 6.0%[5] - The company plans to open 1 to 2 new Cracker Barrel stores, revised from the previous outlook of 2 stores[11] - The company-owned units for Cracker Barrel decreased by 1 unit to 657, while Maple Street Biscuit Company units increased to 69 from 63[23] Costs and Expenses - The company anticipates commodity inflation of 2% to 3% compared to the prior year, with hourly wage inflation around 3%[11] - Total cost of goods sold for the second quarter was $305,465,000, a decrease of 2% from $310,522,000 in the prior year[23] - The company incurred $5,263 thousand in proxy contest expenses during the second quarter[27] - Strategic transformation initiative expenses amounted to $3,965 thousand in the second quarter[27] Cash and Assets - Cash and cash equivalents at the end of the period were $10,346,000, down from $12,602,000 at the end of the previous year[20] - The company reported a net cash provided by operating activities of $93,693,000 for the six months ended January 31, 2025, compared to $61,879,000 for the same period last year[21] - Total assets decreased to $2,149,557,000 from $2,185,059,000 year-over-year[20] Dividends - The quarterly dividend declared is $0.25 per share, payable on May 14, 2025[8] Financial Reporting Changes - The company plans to enhance comparability of its financial measures by no longer adjusting for store closing costs starting from the second quarter of fiscal 2025[26]

Core Viewpoint - Cracker Barrel Old Country Store, Inc. (CBRL) is set to report its second-quarter fiscal 2025 results on March 6, with expectations of a significant decline in earnings per share (EPS) compared to the previous year, while revenues are projected to show a slight increase [1][2]. Financial Estimates - The Zacks Consensus Estimate for CBRL's fiscal second-quarter EPS is $1, reflecting a 27% decrease from $1.37 in the same quarter last year [2]. - Revenue estimates are set at $0.9 billion, indicating a 0.6% increase from the prior year's figure [2]. Factors Influencing Performance - The company's performance is expected to benefit from ongoing menu innovation and operational improvements, which are likely to enhance customer engagement [3]. - Store remodels and refreshes are anticipated to improve the overall dining experience, contributing to increased traffic and sales momentum [3]. Off-Premise Business Growth - The expansion of Cracker Barrel's off-premise business, including takeout and delivery services, is expected to positively impact second-quarter revenues [4]. - Digital initiatives, such as the Cracker Barrel Rewards program, are likely to enhance customer loyalty and drive incremental sales [4]. Retail Segment Challenges - The retail segment may face challenges, particularly in categories like decor and toys, which could offset gains in kitchen food and bed & bath products [5]. - Retail revenues are predicted to decline by 1.7% year over year to $200.9 million [5]. Cost Pressures - The company is navigating cost pressures, especially in key commodities like dairy, beef, and pork, which may affect margins [6]. - Inflationary trends and food cost volatility are expected to weigh on profitability, with adjusted EBITDA projected to fall 4.1% year over year to $59.9 million [6]. Earnings Prediction - Current models do not predict an earnings beat for Cracker Barrel, as the company has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [7][8].

Core Viewpoint - Analysts expect Cracker Barrel Old Country Store (CBRL) to report quarterly earnings of $1 per share, reflecting a year-over-year decline of 27% with revenues projected at $941.1 million, a slight increase of 0.6% from the previous year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate for the upcoming quarter has not changed over the past 30 days, indicating stability in analysts' projections [1] - Analysts predict 'Revenues- Retail' to be $202.77 million, showing a decrease of 0.9% from the prior-year quarter [4] - The consensus estimate for 'Revenues- Restaurant' is $738.36 million, indicating an increase of 3.4% from the prior-year quarter [4] Group 2: Store Metrics and Market Performance - The estimated total number of stores at the end of the period is projected to be 728, up from 725 a year ago [4] - Over the past month, Cracker Barrel shares have declined by 30.3%, contrasting with the Zacks S&P 500 composite's decline of 1.3% [5] - Based on its Zacks Rank 4 (Sell), CBRL is expected to underperform the overall market in the near future [5]