LEBANON, Tenn. - Cracker Barrel (NASDAQ:CBRL) Old Country Store, Inc. (NASDAQ:CBRL) reported a modest increase in its second quarter fiscal 2024 revenue, surpassing analyst expectations and providing an optimistic revenue outlook for the full year.
The renowned restaurant and retail chain announced a second quarter revenue of $935.4 million, a slight 0.2% rise from the previous year and notably higher than the consensus estimate of $917.33 million. Adjusted earnings per share (EPS) remained steady at $1.37, aligning with analyst projections.
The company's stock price responded positively to the news, inching up by 0.95%. This uptick reflects investor confidence bolstered by the company's in-line earnings, revenue beat, and encouraging guidance for the fiscal year 2024.
Cracker Barrel's second quarter performance showcased a mixed picture, with comparable store restaurant sales growing by 1.2%, attributed to a total menu pricing increase of 4.8%.
However, comparable store retail sales saw a decline of 5.3%. Despite these mixed results, the company's focus on labor investments, advertising, and enhancing the guest experience helped improve traffic trends during the quarter, according to President and CEO Julie Masino.
In terms of profitability, GAAP operating income was reported at $30.8 million, or 3.3% of total revenue, while adjusted operating income reached $35.9 million, or 3.8% of total revenue. Both figures saw a decrease from the prior year's second quarter, primarily due to higher labor and related expenses, and other operating expenses, partially offset by a lower cost of goods sold.
The company's net income also experienced a downturn, with GAAP net income at $26.5 million, marking a 13.0% decrease from the previous year, and adjusted net income at $30.5 million, a 7.4% decrease. Adjusted EBITDA followed suit with a 5.9% decline to $63.7 million.
Looking ahead, Cracker Barrel provided a full-year revenue forecast ranging between $3.5 billion and $3.6 billion, which is at the high end of the analyst consensus of $3.5 billion. The company also plans to open two new Cracker Barrel stores and 9 to 11 new Maple Street Biscuit Company units.
CEO Julie Masino commented on the results, "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."
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