In This Article:
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Total Revenue: $845.1 million, up 2.6% from the prior year quarter.
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Restaurant Revenue: Increased 3.4% to $683.3 million.
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Retail Revenue: Decreased 0.8% to $161.8 million.
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Comparable Store Restaurant Sales: Increased 2.9% over the prior year.
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Off-Premise Sales: Approximately 18.4% of restaurant sales.
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Cost of Goods Sold: 30.6% of total revenue, down from 31% in the prior quarter.
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Restaurant Cost of Goods Sold: 26.1% of restaurant sales, down from 26.2% in the prior year quarter.
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Retail Cost of Goods Sold: 49.7% of retail sales, down from 50.4% in the prior year quarter.
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Labor and Related Expenses: 36.4% of revenue, decreased 60 basis points from the prior quarter.
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Adjusted Earnings Per Diluted Share: $0.45.
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Adjusted EBITDA: $45.8 million or 5.4% of total revenue.
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Capital Expenditures: $38.9 million in the first quarter.
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Total Debt: $527 million at quarter-end.
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Quarterly Dividend: $0.25 per share.
Release Date: December 04, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cracker Barrel Old Country Store Inc (NASDAQ:CBRL) reported positive comparable store sales for the second consecutive quarter, outperforming the Black Box Casual Dining Industry by 290 basis points.
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New menu items, such as the Hashbrown Casserole Shepherd's Pie and Pot Roast, have been well-received by guests, contributing to improved traffic trends, particularly during dinner.
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The company's Cracker Barrel Rewards program is driving incremental sales and traffic, with over 6 million members showing higher spending and visit frequency.
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Operational metrics have improved, including a 17 percentage point improvement in hourly turnover and enhanced guest satisfaction scores.
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The company's strategic transformation plan is on track, with initiatives like menu enhancement and store remodels showing early positive results.
Negative Points
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Retail revenues decreased by 0.8% compared to the prior year, with declines in decor and toys categories.
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The company faced headwinds in the retail sector, which remains challenging due to discretionary spending cuts by consumers.
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There was a $9.3 million headwind from atypical costs, including increased workers' compensation and general liability reserves, impacting adjusted EBITDA.
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The company expects a $6 million unfavorable impact in Q2 related to the timing shift of gift card breakage.
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Despite positive sales trends, the company anticipates elevated adjusted G&A expenses in fiscal 2025 due to strategic transformation investments and normalized incentive compensation.