Cracker Barrel Old Country Store, Inc. (CBRL) reported second-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top increased year over year while the bottom line declined from the prior-year quarter figure.Following the results, shares of the company dropped 3% during trading hours on Feb 27. Negative investor sentiments were witnessed as management stated issues related to margin pressures stemming from labor cost inflation. The company expects ongoing margi ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $935.4 million, with restaurant revenues increasing by 1.8% to $730.7 million and retail revenues decreasing by 5.2% to $204.7 million compared to the prior year quarter [35] - Comparable store restaurant sales increased by 1.2% over the prior year [10] - Adjusted operating income for the quarter was $35.9 million, or 3.8% of revenue, while GAAP operating income was $30.8 million [15][41] - GAAP earnings per diluted share were $1.19, and adjusted earnings per diluted share were $1.37 [41] - Traffic was negative 4% for the quarter, but there was a 300 basis point improvement in traffic trends in Q2 compared to Q1 [4][96] Business Line Data and Key Metrics Changes - Off-premise sales accounted for approximately 23.7% of restaurant sales, with a focus on Heat n' Serve offerings and catering, which have the lowest margins [11] - Retail comparable store sales decreased by 5.3%, with declines across most categories, particularly toys, food, and decor [37] - Retail cost of goods sold was 53.2% of retail sales, down from 54% in the prior year quarter, indicating improved initial margins [38] Market Data and Key Metrics Changes - The company expects commodity inflation of approximately 0% to 2% and hourly restaurant wage inflation of approximately 5% for fiscal 2024 [19] - The retail business remains challenged due to pressures in the broader retail industry, leading to a highly promotional environment [33] Company Strategy and Development Direction - The company is focusing on three critical imperatives: driving relevancy, delivering food and experiences that guests love, and growing profitability [21] - A brand repositioning initiative is underway, which includes a full review of brand strategy and identity [66] - The company is testing changes to decor and menu items to enhance guest experience and drive traffic [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving profitability despite anticipated continued margin pressure in the near term, particularly in Q3 [4][18] - The company is encouraged by the resiliency of consumers and improvement in guest sentiment, but acknowledges ongoing industry headwinds [18] - Management highlighted the importance of value in their pricing strategy and the launch of new value-oriented menu items [106] Other Important Information - The company plans to return capital to shareholders while maintaining a conservative balance sheet, with a quarterly dividend of $1.30 declared [42][17] - Capital expenditures for the quarter were $26.4 million, with total debt at $452.3 million [42] Q&A Session Summary Question: Can you elaborate on the loyalty customer sales mix at Thanksgiving and how promotions are integrated into the loyalty program? - Management noted that loyalty members accounted for nearly 50% of Thanksgiving heat and serve sales, driven by direct engagement [68] Question: What is the expected advertising spend as a percent of sales for FY2024? - Management indicated that advertising is expected to be in the mid to low 3% range, reflecting a test and learn approach to marketing [63] Question: How sustainable is the recent growth in labor costs per store? - Management acknowledged that while wage inflation is moderating, investments in labor are crucial for improving guest experience [60] Question: What are the key metrics correlated with same-store sales growth? - Management emphasized focusing on critical metrics that drive traffic performance rather than a wide array of metrics [73] Question: What is the company's perspective on store closures as part of the strategic process? - Management stated that they regularly evaluate the store portfolio and do not have many stores that are cash flow negative [89] Question: How did the early dinner deals menu perform? - Management expressed optimism about the early dinner deals menu, which was launched system-wide due to its operational ease and appeal to price-conscious guests [87] Question: What changes in customer behavior were observed in the quarter? - Management noted growth in the 25 to 44 age cohort and the 65-plus cohort, indicating improved guest experience scores [120]

Cracker Barrel Old Country Store (CBRL) reported $935.4 million in revenue for the quarter ended January 2024, representing a year-over-year increase of 0.2%. EPS of $1.37 for the same period compares to $1.48 a year ago.The reported revenue represents a surprise of +2.14% over the Zacks Consensus Estimate of $915.84 million. With the consensus EPS estimate being $1.29, the EPS surprise was +6.20%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 OR Cracker Barrel Old Country Store, Inc. (Exact name of registrant as specified in its charter) Registrant's telephone number, including area code: (615) 444-5533 CBRL The Nasdaq Stock Market LLC (Nasdaq Global Select Market) Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large ac ...

Investor Contact: Adam Hanan (615) 443-9887 Media Contact: Heidi Pearce (615) 235-4135 Exhibit 99.1 POST OFFICE BOX 787 LEBANON, TENNESSEE 3708B-0787 CRACKER BARREL REPORTS SECOND QUARTER FISCAL 2024 RESULTS Board declares $1.30 quarterly dividend per share LEBANON, Tenn. – February 27, 2024 – Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today reported its financial results for the second quarter of fiscal 2024 ended January 26, 2024. Second Quarter Fiscal 2024 H ...

Wall Street analysts expect Cracker Barrel Old Country Store (CBRL) to post quarterly earnings of $1.29 per share in its upcoming report, which indicates a year-over-year decline of 12.8%. Revenues are expected to be $915.84 million, down 1.9% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Before a company reveals its earnings, ...

Cracker Barrel Old Country Store, Inc. (CBRL) is slated to report its second-quarter fiscal 2024 results on Feb 27 before the opening bell.In the last reported quarter, the company’s earnings and revenues missed the Zacks Consensus Estimate by 34.6% and 0.3%, respectively. Also, the top and the bottom lines declined on a year-over-year basis by 1.9% and 48.5%, respectively.CBRL’s earnings surpassed expectations in two out of the trailing four quarters and missed on the other two occasions, the average negat ...

U.S. restaurant businesses thrived in 2023 after an impressive turnaround in 2022. Sales at U.S. restaurants were not impacted much despite severe inflationary pressure. The momentum is likely to continue in 2024.Restaurant sales increased for the 11th successive month in January. The Department of Commerce's latest report indicates sustained growth, with sales at U.S. bars and restaurants reaching $95.1 billion in January, marking a 0.7% increase from December.Year over year, spending on restaurants and ba ...

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