Cracker Barrel to Post Q2 Earnings: What's in Store for the Stock?

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].