CRACKER BARREL REPORTS SECOND QUARTER FISCAL 2024 RESULTS

by

in

Board declares $1.30 quarterly dividend per share

LEBANON, Tenn., Feb. 27, 2024 /PRNewswire/ — 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 Highlights

The Company reported second quarter total revenue of $935.4 million. Compared to the prior year second quarter, total revenue increased 0.2%.

Comparable store restaurant sales increased 1.2%, while comparable store retail sales decreased 5.3%.

GAAP operating income for the second quarter was $30.8 million, or 3.3% of total revenue, and adjusted1 operating income was $35.9 million, or 3.8% of total revenue.
GAAP earnings per diluted share were $1.19, and adjusted1 earnings per diluted share were $1.37.
GAAP net income for the second quarter was $26.5 million, or 2.8% of total revenue, and adjusted EBITDA1 was $63.7 million, or 6.8% of total revenue.

Commenting on the second quarter results, Cracker Barrel President and Chief Executive Officer Julie Masino said, “While margins remain pressured, we were encouraged by the improvement in our traffic trend during the quarter, which we believe was supported by our investments in labor and advertising and our focus on the guest experience. Additionally, we continued to make progress on the development of our strategic transformation, and our teams are engaged in our efforts to improve our relevancy, deliver food and an experience that our guests love, and grow profitability.”

Second Quarter Fiscal 2024 Results 
Revenue
The Company reported total revenue of $935.4 million for the second quarter of fiscal 2024, representing an increase of 0.2% compared to the second quarter of fiscal 2023.

Cracker Barrel comparable store restaurant sales increased 1.2%, including total menu pricing increases of 4.8%. Comparable store retail sales decreased 5.3% from the prior year quarter. 

Operating Income
GAAP operating income for the second quarter was $30.8 million, or 3.3% of total revenue, compared to $39.0 million, or 4.2% of total revenue, in the prior year quarter. Adjusted1 operating income for the second quarter was $35.9 million, or 3.8% of total revenue, compared to $42.2 million, or 4.5%, of total revenue in the prior year quarter.

The decrease in the Company’s GAAP operating income as a percentage of total revenue versus the prior year quarter is 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.

The decrease in the Company’s adjusted1 operating income as a percentage of total revenue versus the prior year quarter is primarily the result of higher labor and related expenses and higher other operating expenses, partially offset by lower cost of goods sold in the current year quarter.

Net Income, EBITDA, and Earnings per Diluted Share 
GAAP net income for the second quarter was $26.5 million, or 2.8% of total revenue. This represented a 13.0% decrease compared to prior year quarter GAAP net income of $30.5 million, or 3.3% of total revenue. Adjusted1 net income for the second quarter was $30.5 million, or 3.3% of total revenue. This represented a 7.4% decrease compared to prior year quarter adjusted1 net income of $32.9 million, or 3.5% of total revenue.

Adjusted EBITDA1 was $63.7 million, or 6.8% of total revenue, a 5.9% decrease compared to the prior year quarter adjusted EBITDA1 of $67.7 million, or 7.3% of total revenue.

GAAP earnings per diluted share for the second quarter were $1.19, a 13.1% decrease compared to the prior year quarter GAAP earnings per diluted share of $1.37. Adjusted1 earnings per diluted share were $1.37, a 7.5% decrease compared to the prior year quarter adjusted1 earnings per diluted share of $1.48.

Quarterly Dividend Declaration
The Company announced that its Board of Directors declared a quarterly dividend of $1.30 per share on the Company’s common stock. The quarterly dividend is payable on May 7, 2024 to shareholders of record as of April 12, 2024.

Fiscal 2024 Outlook
The Company provided the following update to its fiscal 2024 outlook:

Total revenue of $3.5 billion to $3.6 billion
Two new Cracker Barrel stores and 9 to 11 new Maple Street Biscuit Company units
Commodity inflation of 0% to 2%
Hourly wage inflation of approximately 5%
GAAP operating income of $95 million to $105 million and adjusted1 operating income of $125 million to $135 million, which includes the impact from the 53rd week in the fiscal 2024 year and reflects the expectation that third quarter adjusted1 operating income will be meaningfully below prior year and fourth quarter adjusted1 operating income will be above prior year.
Capital expenditures of $120 million to $135 million

The Company reminds investors that its outlook reflects a number of assumptions, many of which are outside the Company’s control.  In particular, uncertainties created by macroeconomic conditions, such as ongoing inflation, low consumer confidence and high interest rates may adversely affect consumer behavior and cause actual results to differ materially from those expected.

1 For Non-GAAP reconciliations, please refer to the Reconciliation of GAAP-Basis Operating Results to Non-GAAP Operating Results section of this release.

Fiscal 2024 Second Quarter Conference Call
As previously announced, the live broadcast of Cracker Barrel’s quarterly conference call will be available to the public online at investor.crackerbarrel.com today beginning at 11:00 a.m. (ET). The online replay will be available at 2:00 p.m. (ET) and continue through March 12, 2024.

About Cracker Barrel Old Country Store®
Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) provides a caring and friendly home-away-from-home experience while offering guests high-quality homestyle food to enjoy in-store or to-go and unique shopping — all at a fair price. Established in 1969 in Lebanon, Tenn., Cracker Barrel and its affiliates operate over 660 company-owned Cracker Barrel Old Country Store® locations in 45 states and own the fast-casual Maple Street Biscuit Company. For more information about the Company, visit crackerbarrel.com.

CBRL-F

Except for specific historical information, certain of the matters discussed in this press release may express or imply projections of items such as revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These and similar statements regarding events or results that the Company expects will or may occur in the future are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual results and performance of the Company to differ materially from those expressed or implied by such forward-looking statements. All forward-looking information is provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these risks, uncertainties and other factors. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “trends,” “assumptions,” “target,” “guidance,” “outlook,” “opportunity,” “future,” “plans,” “goals,” “objectives,” “expectations,” “near-term,” “long-term,” “projection,” “may,” “will,” “would,” “could,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “potential,” “regular,” “should,” “projects,” “forecasts,” or “continue” (or the negative or other derivatives of each of these terms) or similar terminology. The Company believes that the assumptions underlying any forward-looking statements are reasonable; however, any of the assumptions could be inaccurate, and therefore, actual results may differ materially from those projected in or implied by the forward-looking statements. In addition to the risks of ordinary business operations, factors and risks that may result in actual results differing from this forward-looking information include, but are not limited to risks and uncertainties associated with inflationary conditions with respect to the price of commodities, transportation, distribution and labor; disruptions to the Company’s restaurant or retail supply chain; the Company’s ability to identify, acquire and sell successful new lines of retail merchandise and new menu items at its restaurants; the Company’s ability to sustain or the effects of plans intended to improve operational or marketing execution and performance; the effects of increased competition at the Company’s locations on sales and on labor recruiting, cost, and retention; consumer behavior based on negative publicity or changes in consumer health or dietary trends or safety aspects of the Company’s food or products or those of the restaurant industry in general, including concerns about outbreaks of infectious disease, as well as the possible effects of such events on the price or availability of ingredients used in the Company’s restaurants; the effects of the Company’s indebtedness and associated restrictions on the Company’s financial and operating flexibility and ability to execute or pursue its operating plans and objectives; changes in interest rates, increases in borrowed capital or capital market conditions affecting the Company’s financing costs and ability to refinance its indebtedness, in whole or in part; the Company’s reliance on limited distribution facilities and certain significant vendors; information technology-related incidents, including data privacy and information security breaches, whether as a result of infrastructure failures, employee or vendor errors, or actions of third parties; changes in or implementation of additional governmental or regulatory rules, regulations and interpretations affecting tax, wage and hour matters, health and safety, animal welfare, pensions, insurance or other undeterminable areas; the effects of plans intended to promote or protect our brands and products; the actual results of pending, future or threatened litigation or governmental investigations and the costs and effects of negative publicity or the Company’s ability to manage the impact of social media associated with these activities; the impact of activist shareholders; the Company’s ability to enter successfully into new geographic markets that may be less familiar to it; changes in land, building materials and construction costs; the availability and cost of suitable sites for restaurant development and the Company’s ability to identify those sites; the Company’s ability to retain key personnel; the ability of and cost to the Company to recruit, train, and retain qualified hourly and management employees; uncertain performance of acquired businesses, strategic investments and other initiatives that the Company may pursue from time to time; the effects of business trends on the outlook for individual restaurant locations and the effect on the carrying value of those locations; general or regional economic weakness, business and societal conditions and the weather impact on sales and customer travel; discretionary income or personal expenditure activity of the Company’s customers; economic or psychological effects of natural disasters or other unforeseen events such as terrorist acts, social unrest or war and the military or government responses to such events; changes in foreign exchange rates affecting the Company’s future retail inventory purchases; workers’ compensation, group health and utility price changes; implementation of new or changes in interpretation of existing accounting principles generally accepted in the United States of America (“GAAP”); and other factors described from time to time in our filings with the Securities and Exchange Commission, press releases, and other communications. Any forward-looking statement made by us herein, or elsewhere, speaks only as of the date on which made. We expressly disclaim any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

 

CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED INCOME STATEMENT

(Unaudited)

(In thousands, except share and per share amounts, percentages and ratios) 

Second Quarter Ended

Six Months Ended

1/26/2024

1/27/2023

Percentage
Change

1/26/2024

1/27/2023

Percentage
Change

Total revenue

$935,401

$933,868

0 %

$1,759,240

$1,773,387

(1 %)

Cost of goods sold (exclusive of depreciation & rent)

314,851

326,555

(4)

570,410

608,095

(6)

Labor and other related expenses

323,196

313,967

3

627,643

605,675

4

Other store operating expenses

214,056

208,857

2

417,741

405,561

3

General and administrative expenses

52,536

45,518

15

101,271

91,466

11

Operating income

30,762

38,971

(21)

42,175

62,590

(33)

Interest expense

5,067

4,408

15

10,005

7,940

26

Income before income taxes

25,695

34,563

(26)

32,170

54,650

(41)

Provision for income taxes (income tax benefit)

(839)

4,072

(121)

180

7,030

(97)

Net income

$26,534

$30,491

(13)

$31,990

$47,620

(33)

Earnings per share – Basic:

$1.20

$1.38

(13)

$1.44

$2.15

(33)

Earnings per share – Diluted:

$1.19

$1.37

(13)

$1.44

$2.14

(33)

Weighted average shares:

    Basic

22,196,758

22,173,280

0

22,181,305

22,183,527

0

    Diluted

22,295,532

22,251,835

0

22,279,611

22,272,244

0

Ratio Analysis

Total revenue:

    Restaurant

78.1 %

76.9 %

79.1 %

77.8 %

    Retail

21.9

23.1

20.9

22.2

Full story available on Benzinga.com


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *