Let’s dig into the relative performance of Cracker Barrel (NASDAQ:CBRL) and its peers as we unravel the now-completed Q2 sit-down dining earnings season.
Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.
The 13 sit-down dining stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.6%.
In light of this news, share prices of the companies have held steady as they are up 4.9% on average since the latest earnings results.
Cracker Barrel (NASDAQ:CBRL)
Known for its country-themed food and merchandise, Cracker Barrel (NASDAQ:CBRL) is a beloved American restaurant and retail chain that celebrates the warmth and charm of Southern hospitality.
Cracker Barrel reported revenues of $894.4 million, up 6.9% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ EBITDA estimates and a miss of analysts’ EPS estimates.
Commenting on the fourth quarter and full year results, Cracker Barrel President and Chief Executive Officer Julie Masino said, "Our teams are highly engaged and intently focused on executing our strategic transformation and our day-to-day business at a high level. We are already making great progress and are encouraged by the initial results of key initiatives such as operational excellence and the guest experience, optimized pricing, and our remodel program. Although there is much work to be done, I am both excited and confident in our future. "
Cracker Barrel Total Revenue
Interestingly, the stock is up 49.2% since reporting and currently trades at $62.05.
Founded by Norman Brinker in Dallas, Texas, Brinker International (NYSE:EAT) is a casual restaurant chain that operates under the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.
Brinker International reported revenues of $1.14 billion, up 12.5% year on year, outperforming analysts’ expectations by 3.4%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ same-store sales estimates.
Brinker International Total Revenue
Brinker International pulled off the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 58% since reporting. It currently trades at $153.66.
Open around the clock, Denny’s (NASDAQ:DENN) is a chain of diner restaurants serving breakfast and traditional American fare.
Denny's reported revenues of $111.8 million, down 2.1% year on year, falling short of analysts’ expectations by 3.2%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a miss of analysts’ EPS estimates.
As expected, the stock is down 3.6% since the results and currently trades at $6.39.
Started in 1968 as the famous seafood joint, Red Lobster, Darden (NYSE:DRI) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.
Darden reported revenues of $2.89 billion, up 6% year on year. This number topped analysts’ expectations by 0.7%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ same-store sales estimates and full-year revenue guidance slightly topping analysts’ expectations.
The stock is up 17.6% since reporting and currently trades at $187.88.
Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory (NASDAQ:CAKE) is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands.
The Cheesecake Factory reported revenues of $865.5 million, up 4.2% year on year. This result was in line with analysts’ expectations. It was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
The stock is up 20.9% since reporting and currently trades at $51.79.
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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