Cracker Barrel Old Country Store Inc (CBRL) Q1 2025 Earnings Call Highlights: Navigating Growth ...

In This Article:

  • Total Revenue: $845.1 million, up 2.6% from the prior year quarter.

  • Restaurant Revenue: Increased 3.4% to $683.3 million.

  • Retail Revenue: Decreased 0.8% to $161.8 million.

  • Comparable Store Restaurant Sales: Increased 2.9% over the prior year.

  • Off-Premise Sales: Approximately 18.4% of restaurant sales.

  • Cost of Goods Sold: 30.6% of total revenue, down from 31% in the prior quarter.

  • Restaurant Cost of Goods Sold: 26.1% of restaurant sales, down from 26.2% in the prior year quarter.

  • Retail Cost of Goods Sold: 49.7% of retail sales, down from 50.4% in the prior year quarter.

  • Labor and Related Expenses: 36.4% of revenue, decreased 60 basis points from the prior quarter.

  • Adjusted Earnings Per Diluted Share: $0.45.

  • Adjusted EBITDA: $45.8 million or 5.4% of total revenue.

  • Capital Expenditures: $38.9 million in the first quarter.

  • Total Debt: $527 million at quarter-end.

  • 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

  • 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.

  • 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.

  • The company's Cracker Barrel Rewards program is driving incremental sales and traffic, with over 6 million members showing higher spending and visit frequency.

  • Operational metrics have improved, including a 17 percentage point improvement in hourly turnover and enhanced guest satisfaction scores.

  • The company's strategic transformation plan is on track, with initiatives like menu enhancement and store remodels showing early positive results.

Negative Points

  • Retail revenues decreased by 0.8% compared to the prior year, with declines in decor and toys categories.

  • The company faced headwinds in the retail sector, which remains challenging due to discretionary spending cuts by consumers.

  • There was a $9.3 million headwind from atypical costs, including increased workers' compensation and general liability reserves, impacting adjusted EBITDA.

  • The company expects a $6 million unfavorable impact in Q2 related to the timing shift of gift card breakage.

  • Despite positive sales trends, the company anticipates elevated adjusted G&A expenses in fiscal 2025 due to strategic transformation investments and normalized incentive compensation.