Cracker Barrel(CBRL) - 2025 Q1 - Quarterly Results

Preliminary Q1 FY2025 Results and FY2025 Outlook The company reported strong preliminary Q1 FY2025 financial results, including increased revenue and adjusted EBITDA, and reaffirmed its positive full-year fiscal 2025 guidance Preliminary Q1 FY2025 Financial Highlights Cracker Barrel reported preliminary Q1 FY2025 total revenue of approximately $845.1 million, a 2.6% increase year-over-year, driven by a 2.9% rise in comparable store restaurant sales which outperformed the casual dining industry index. However, comparable store retail sales declined by 1.6%. The company expects GAAP EPS of $0.22 and adjusted EPS of $0.45, with adjusted EBITDA growing 4.3% to $45.8 million Preliminary Q1 FY2025 Financial Highlights | Metric | Value | YoY Change/Comment | | :--- | :--- | :--- | | Total Revenue | ~$845.1 million | +2.6% | | Comparable Restaurant Sales | +2.9% | Outperformed Casual Dining Index by 290 bps | | Comparable Retail Sales | -1.6% | N/A | | GAAP Net Income | ~$4.8 million | -11.2% (vs. $5.46M in Q1 FY24) | | Adjusted EBITDA | ~$45.8 million | +4.3% | | GAAP EPS (diluted) | ~$0.22 | -12.0% (vs. $0.25 in Q1 FY24) | | Adjusted EPS (diluted) | ~$0.45 | +12.5% (vs. $0.40 in Q1 FY24) | Management Commentary CEO Julie Masino stated that the fiscal year began strongly, with financial results meeting expectations and comparable store sales and traffic outperforming the casual dining industry. She expressed confidence that the company's strategic transformation plan is gaining momentum and is on the right path to drive growth and shareholder value - The company's strategic transformation plan is showing early positive results, contributing to a strong start to the fiscal year[4] - Comparable store sales and traffic results outperformed the Casual Dining industry, indicating positive momentum[4] - Management is confident that current strategic initiatives will drive growth and create significant shareholder value[4] Fiscal 2025 Outlook The company reaffirmed its full-year fiscal 2025 guidance, expecting total revenue between $3.4 billion and $3.5 billion and adjusted EBITDA of $200 million to $215 million. The outlook includes plans for new store openings, anticipated commodity and wage inflation, and capital expenditures of $160 million to $180 million Reaffirmed Fiscal 2025 Outlook | Metric | Guidance | | :--- | :--- | | Total Revenue | $3.4 billion to $3.5 billion | | New Stores | 2 Cracker Barrel, 3-4 Maple Street Biscuit Co. | | Commodity Inflation | 2% to 3% | | Hourly Wage Inflation | 3% to 4% | | Adjusted EBITDA | $200 million to $215 million | | Capital Expenditures | $160 million to $180 million | - The company's outlook is subject to risks from macroeconomic conditions such as ongoing inflation, low consumer confidence, and high interest rates[5] Reconciliation of GAAP to Non-GAAP Financial Measures This section reconciles GAAP financial metrics to non-GAAP measures like Adjusted Net Income and Adjusted EBITDA, providing a clearer view of operational performance Adjusted Net Income and Earnings Per Share The company provides a reconciliation of GAAP Net Income to Adjusted Net Income. For Q1 FY2025, GAAP Net Income of $4.8 million was adjusted for items such as strategic transformation expenses ($3.3M) and proxy contest costs ($3.0M), resulting in an Adjusted Net Income of $10.2 million. This translates to a GAAP diluted EPS of $0.22 and an Adjusted diluted EPS of $0.45 - Adjusted Net Income is calculated by excluding specific items from GAAP Net Income, such as impairment charges, proxy contest expenses, CEO transition costs, and strategic transformation initiative expenses, to provide investors with an enhanced understanding of financial results and comparability[11] Q1 Net Income & EPS Reconciliation (GAAP vs. Adjusted) | Metric (in thousands, except per share) | Q1 FY2025 (preliminary) | Q1 FY2024 | | :--- | :--- | :--- | | GAAP Net Income | $4,844 | $5,456 | | Adjusted Net Income | $10,165 | $8,837 | | GAAP Diluted EPS | $0.22 | $0.25 | | Adjusted Diluted EPS | $0.45 | $0.40 | EBITDA and Adjusted EBITDA The report details the calculation of EBITDA and Adjusted EBITDA from GAAP Net Income. For Q1 FY2025, GAAP Net Income of $4.8 million was reconciled to an Adjusted EBITDA of $45.8 million by adding back depreciation, interest, taxes, and other specific expenses. This represents a 4.3% year-over-year increase from the prior year's Adjusted EBITDA of $43.9 million - Adjusted EBITDA is presented to provide an enhanced understanding of operating performance and debt leverage metrics. It is calculated by taking GAAP Net Income and adding back depreciation, amortization, interest, taxes, and other specific items like share-based compensation and strategic initiative expenses[13] Q1 EBITDA Reconciliation (in thousands) | Metric | Q1 FY2025 (preliminary) | Q1 FY2024 | | :--- | :--- | :--- | | GAAP Net Income | $4,844 | $5,456 | | EBITDA | $36,225 | $38,082 | | Adjusted EBITDA | $45,806 | $43,897 | | Adjusted EBITDA Margin | 5.4% | 5.3% | Forward-Looking Statements This section outlines the inherent risks and uncertainties associated with forward-looking projections, emphasizing that actual results may differ materially - The press release contains forward-looking statements concerning projections, plans, and future economic performance, which are subject to risks and uncertainties that could cause actual results to differ materially[10] - Identified risks include inflation, supply chain disruptions, competition, changes in consumer behavior, and interest rate changes[10] - The preliminary financial information presented is unaudited and subject to change as the company completes its financial close procedures[10]