Cracker Barrel's Modest Sales Growth Amid Rising Costs, Sets Optimistic Revenue Outlook
Portfolio Pulse from Anusuya Lahiri
Cracker Barrel Old Country Store Inc (NASDAQ:CBRL) reported a slight increase in Q2 fiscal 2024 revenues to $935.4 million, up 0.2% Y/Y, surpassing consensus estimates. Comparable store restaurant sales rose by 1.2%, while retail sales dropped by 5.3%. Adjusted operating income and EPS both saw declines due to higher labor costs, but the company remains optimistic, raising its FY24 revenue outlook to $3.5 billion - $3.6 billion. Shares fell by 0.89% to $71.68.
February 27, 2024 | 4:53 pm
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Cracker Barrel reported modest revenue growth and a positive revision in FY24 revenue outlook, despite facing higher labor costs and a decline in adjusted operating income and EPS.
The slight revenue growth and optimistic revenue outlook for FY24 suggest a positive trajectory for Cracker Barrel. However, the impact of higher labor costs and the decline in adjusted operating income and EPS, coupled with a slight decrease in share price, indicate mixed signals for short-term stock performance. The company's efforts to manage inflation and wage pressures while expanding its store count could be seen as positive, but the immediate market reaction was slightly negative, reflecting a cautious optimism among investors.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100