Latest news with #JulieMasino
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2 days ago
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Jim Cramer on Cracker Barrel (CBRL): 'This is a True Turnaround Story With a Great CEO'
We recently published a list of . In this article, we are going to take a look at where Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) stands against other stocks that Jim Cramer discusses. Cramer was bullish on Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) as he said: 'I've been following this folksy off-highway restaurant/retail chain for a little over a year, and I started pounding the table on the stock last July after speaking to CEO Julie Masino, who I think is orchestrating just one heck of a turnaround… The stock rolled over, especially after Liberation Day, at its April lows, it came all the way back down to 33 bucks. Now, I told you that was an incredible buying opportunity. I hope you took my advice because Cracker Barrel's now up 38% since I last recommended it in April, climbing back to the mid-50s even after it got hit today. So this has been a big winner for us. Close-up of items from the restaurant apparel and toys in a vibrant display. Cracker Barrel (NASDAQ:CBRL) runs restaurants that serve all-day meals and include gift shops offering home goods, seasonal items, apparel, toys, and packaged food. The company provides dine-in, pick-up, and delivery options. Overall, CBRL ranks 6th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of CBRL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
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4 days ago
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CBRL Q1 Earnings Call: Profit Beats Offset Flat Sales, Transformation Plan Progresses
Restaurant company Cracker Barrel (NASDAQ:CBRL) met Wall Street's revenue expectations in Q1 CY2025, with sales flat year on year at $821.1 million. Its non-GAAP profit of $0.58 per share was significantly above analysts' consensus estimates. Is now the time to buy CBRL? Find out in our full research report (it's free). Revenue: $821.1 million (flat year on year) Adjusted EPS: $0.58 vs analyst estimates of $0.21 (significant beat) EBITDA guidance for the full year is $220 million at the midpoint, above analyst estimates of $212.6 million Adjusted EBITDA Margin: 5.9% Locations: 728 at quarter end, up from 721 in the same quarter last year Same-Store Sales rose 1% year on year (-1.5% in the same quarter last year) Market Capitalization: $1.29 billion Cracker Barrel's first quarter results reflected continued efforts to transform its core business and drive operational improvements, as discussed by CEO Julie Masino. Management highlighted that, despite a slow start to the quarter due to weather and consumer uncertainty, the company was able to generate positive comparable restaurant sales and improve productivity through back-of-house optimization. The introduction of new menu items, such as expanded pancake flavors and spring shrimp promotions, played a role in maintaining guest engagement. CFO Craig Pommells emphasized that labor productivity gains and disciplined expense management, particularly in general and administrative costs, helped offset commodity cost pressures—especially from higher beef, egg, and pork prices. Masino described the quarter as a 'test and learn' period, reiterating that some benefits from operational changes are only just beginning to materialize. Looking forward, management's guidance is underpinned by further rollout of transformation initiatives, continued investment in marketing, and adjustments to mitigate upcoming tariff impacts on retail goods sourced from China. CEO Julie Masino pointed to the upcoming launch of brand refinements and the return of Campfire Meals as critical initiatives for driving guest engagement and sales in the near term. The company is leaning into data-driven personalization and AI-driven tools to enhance loyalty program effectiveness and operational efficiency. CFO Craig Pommells stated that ongoing productivity improvements and cost savings from back-of-house initiatives are expected to support margins, while acknowledging that the company is still assessing the full-year impact of tariffs and evolving its retail strategy to offset these headwinds. Management plans to provide further detail on mitigation efforts and fiscal 2026 guidance in the next update. Management attributed the quarter's performance to operational improvements, new culinary offerings, and early results from the transformation plan, while noting ongoing challenges from commodity costs and tariffs. Operational changes underway: The company completed phase one of its back-of-house optimization initiative, focusing on process simplification to improve food quality, employee satisfaction, and operational efficiency. Early feedback from team members was positive, and labor productivity gains contributed to lower labor costs as a percentage of revenue. Menu innovation supports engagement: Spring promotions introduced new shrimp dishes and expanded the pancake platform, aligning with the 'barbell' pricing strategy that aims to attract both value- and premium-seeking guests. Management credited these menu additions with maintaining guest interest and supporting sales mix. Loyalty program drives sales: Cracker Barrel Rewards surpassed its internal target with over 8 million members and now accounts for more than one-third of tracked sales. Advanced personalization, powered by AI, is being tested and has delivered a mid-single-digit lift in average revenue per member within pilot groups. Retail strategy under review: Tariffs on goods sourced from China prompted the company to accelerate retail strategy changes, including SKU rationalization, fewer seasonal themes, and refined promotional timing. Negotiations with vendors and alternate sourcing are ongoing to mitigate tariff-related cost pressures. Expense management delivers margin benefit: Tight control over general and administrative expenses in the quarter, along with shifts in discretionary spending, supported profitability despite commodity inflation and higher advertising costs. Management noted that some deferred expenses will shift into future quarters as investment in brand and operational transformation continues. Cracker Barrel's outlook is shaped by continued transformation initiatives, tariff mitigation, and a focus on operational efficiencies to support profitability amid a changing consumer and cost environment. Transformation plan progression: Management expects additional benefits from ongoing back-of-house optimization, including broader adoption of streamlined processes and equipment upgrades in future phases. These changes are intended to permanently improve labor productivity and food consistency, with more impact expected in the coming quarters. Tariff mitigation and retail adjustments: The company is accelerating SKU rationalization and adjusting promotional strategies in its retail business to offset the effects of tariffs on China-sourced goods. Management cautioned that the full impact of tariffs will depend on inventory turnover and ongoing negotiations with vendors, with more clarity expected next quarter. Marketing and brand refinement investments: Cracker Barrel is increasing marketing spend to support the return of Campfire Meals and the launch of its brand refinement initiative. These efforts, along with expanded loyalty program personalization, are designed to drive guest traffic and frequency, though management acknowledged that changing consumer behavior and macroeconomic uncertainty remain risks. In the coming quarters, the StockStory team will focus on (1) the effectiveness of brand refinement initiatives and the return of Campfire Meals in driving guest traffic and frequency, (2) the company's ability to offset tariff-related retail cost pressures through SKU rationalization and vendor negotiations, and (3) the sustained impact of back-of-house optimization on labor costs and operational consistency. Progress in these areas will be key indicators of transformation plan execution. Cracker Barrel currently trades at a forward P/E ratio of 20.4×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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5 days ago
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Cracker Barrel Q3 Restaurant Sales Sizzle, Ups Annual EBITDA Outlook
Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL), on Thursday, reported third-quarter adjusted earnings per share of 58 cents, beating the street view of 32 cents. Quarterly sales of $821.1 million, up 0.5% year over year (Y/Y), missed the analyst consensus estimate of $824.30 million. Restaurant sales accounted for 82.7% of the total revenue, whereas retail accounted for 17.3%. Comparable store restaurant sales increased 1.0% Y/Y, with menu pricing increases of 4.9%. Comparable store retail sales fell 3.8% Y/ EBITDA was $48.1 million, a 0.4% Y/Y increase. Adjusted EBITDA margin remained flat Y/Y at 5.9%. Cracker Barrel President and Chief Executive Officer Julie Masino said "Our third quarter performance exceeded our expectations and represents the fourth consecutive quarter of positive comparable store restaurant sales growth." As of the third quarter-end, cash and cash equivalent stood at $9.8 million. The company's quarterly dividend of 25 cents per share is payable on August 13 to shareholders of record as of July 18, 2025. Cracker Barrel reaffirmed the fiscal year 2025 total revenue outlook of $3.45 billion – $3.50 billion (estimate: $3.47 billion) and raised the adjusted EBITDA outlook to $215 million-$225 million versus the previous outlook of $210 million to $220 million. It expects commodity inflation in the mid 2% range, Hourly wage inflation in the mid 2%, and Capital expenditures of $160 million to $170 million (vs. previous outlook of $160 million to $180 million). Price Action: CBRL shares are trading lower by 3.08% to $55.99 at last check Thursday. Read Next:Photo by Jonathan Weiss via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? CRACKER BARREL OLD (CBRL): Free Stock Analysis Report This article Cracker Barrel Q3 Restaurant Sales Sizzle, Ups Annual EBITDA Outlook originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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5 days ago
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Cracker Barrel (NASDAQ:CBRL) Posts Q1 Sales In Line With Estimates
Restaurant company Cracker Barrel (NASDAQ:CBRL) met Wall Street's revenue expectations in Q1 CY2025, but sales were flat year on year at $821.1 million. The company's outlook for the full year was close to analysts' estimates with revenue guided to $3.48 billion at the midpoint. Its non-GAAP profit of $0.58 per share was significantly above analysts' consensus estimates. Is now the time to buy Cracker Barrel? Find out in our full research report. Revenue: $821.1 million vs analyst estimates of $824.5 million (flat year on year, in line) Adjusted EPS: $0.58 vs analyst estimates of $0.21 (significant beat) Adjusted EBITDA: $48.12 million vs analyst estimates of $41.1 million (5.9% margin, 17.1% beat) The company reconfirmed its revenue guidance for the full year of $3.48 billion at the midpoint EBITDA guidance for the full year is $220 million at the midpoint, above analyst estimates of $212.6 million Operating Margin: 1.8%, up from -2.4% in the same quarter last year Free Cash Flow was -$13.24 million, down from $7.83 million in the same quarter last year Locations: 728 at quarter end, up from 721 in the same quarter last year Same-Store Sales rose 1% year on year (-1.5% in the same quarter last year) Market Capitalization: $1.29 billion Commenting on the third quarter results, Cracker Barrel President and Chief Executive Officer Julie Masino said, "Our third quarter performance exceeded our expectations and represents the fourth consecutive quarter of positive comparable store restaurant sales growth. We remain focused on executing our transformation plan and believe we are well-positioned to deliver a strong finish to the fiscal year." 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. A company's long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. With $3.51 billion in revenue over the past 12 months, Cracker Barrel is one of the larger restaurant chains in the industry and benefits from a well-known brand that influences consumer purchasing decisions. However, its scale is a double-edged sword because it's harder to find incremental growth when your existing restaurant banners have penetrated most of the market. To expand meaningfully, Cracker Barrel likely needs to tweak its prices, start new chains, or enter new markets. As you can see below, Cracker Barrel grew its sales at a weak 2.1% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) as its restaurant footprint remained unchanged and it barely increased sales at existing, established dining locations. This quarter, Cracker Barrel's $821.1 million of revenue was flat year on year and in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a slight deceleration versus the last six years. This projection doesn't excite us and suggests its menu offerings will face some demand challenges. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. A restaurant chain's total number of dining locations influences how much it can sell and how quickly revenue can grow. Cracker Barrel operated 728 locations in the latest quarter, and over the last two years, has kept its restaurant count flat while other restaurant businesses have opted for growth. When a chain doesn't open many new restaurants, it usually means there's stable demand for its meals and it's focused on improving operational efficiency to increase profitability. A company's restaurant base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it's prudent to close some locations and use the money in other ways. Same-store sales provides a deeper understanding of this issue because it measures organic growth at restaurants open for at least a year. Cracker Barrel's demand within its existing dining locations has been relatively stable over the last two years but was below most restaurant chains. On average, the company's same-store sales have grown by 1.3% per year. Given its flat restaurant base over the same period, this performance stems from a mixture of higher prices and increased foot traffic at existing locations. In the latest quarter, Cracker Barrel's same-store sales rose 1% year on year. This performance was more or less in line with its historical levels. We were impressed by how significantly Cracker Barrel blew past analysts' EPS and EBITDA expectations this quarter. We were also excited its full-year EBITDA guidance outperformed Wall Street's estimates. On the other hand, its same-store sales slightly missed, but we still think this was a solid quarter with some key areas of upside. The stock traded up 3% to $59.50 immediately following the results. Cracker Barrel put up rock-solid earnings, but one quarter doesn't necessarily make the stock a buy. Let's see if this is a good investment. When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
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5 days ago
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CRACKER BARREL REPORTS THIRD QUARTER FISCAL 2025 RESULTS AND UPDATES OUTLOOK
Company increases expectation for fiscal 2025 adjusted EBITDA1 to between $215 million and $225 million2 LEBANON, Tenn., June 5, 2025 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today reported its financial results for the third quarter of fiscal 2025 ended May 2, 2025. Third Quarter Fiscal 2025 Highlights Third quarter total revenue was $821.1 million. Compared to the prior year third quarter, total revenue increased 0.5%. Comparable store restaurant sales increased 1.0% over the prior year quarter, and comparable store retail sales decreased 3.8%. GAAP earnings per diluted share were $0.56, and adjusted1 earnings per diluted share were $0.58. GAAP net income for the third quarter was $12.6 million compared to the prior year quarter GAAP net income (loss) of ($9.2) million. Adjusted EBITDA1 was $48.1 million, a 0.4% increase compared to the prior year quarter adjusted EBITDA1 of $47.9 million. Commenting on the third quarter results, Cracker Barrel President and Chief Executive Officer Julie Masino said, "Our third quarter performance exceeded our expectations and represents the fourth consecutive quarter of positive comparable store restaurant sales growth. We remain focused on executing our transformation plan and believe we are well-positioned to deliver a strong finish to the fiscal year." Third Quarter Fiscal 2025 ResultsRevenue The Company reported total revenue of $821.1 million for the third quarter of fiscal 2025, representing an increase of 0.5% compared to the third quarter of fiscal 2024. Cracker Barrel comparable store restaurant sales increased 1.0%, including total menu pricing increases of 4.9%. Comparable store retail sales decreased 3.8% from the prior year quarter. Net Income, EBITDA, and Earnings per Diluted ShareGAAP net income for the third quarter was $12.6 million, or 1.5% of total revenue, compared to prior year quarter GAAP net income (loss) of ($9.2) million, or (1.1%) of total revenue. Adjusted EBITDA1 was $48.1 million, or 5.9% of total revenue, a 0.4% increase compared to the prior year quarter adjusted EBITDA1 of $47.9 million, or 5.9% of total revenue. GAAP earnings per diluted share for the third quarter were $0.56 compared to the prior year quarter GAAP earnings (loss) per diluted share of ($0.41). Adjusted1 earnings per diluted share were $0.58 compared to the prior year quarter adjusted1 earnings per diluted share of $0.88. Quarterly Dividend DeclarationThe Company announced that its Board of Directors declared a quarterly dividend of $0.25 per share of the Company's common stock. The quarterly dividend is payable on August 13, 2025 to shareholders of record as of July 18, 2025. Fiscal 2025 OutlookThe Company updated its outlook and expects the following for fiscal 2025: Total revenue of $3.45 billion to $3.50 billion (no change vs. previous outlook) Adjusted EBITDA1 of $215 million to $225 million2 (vs. previous outlook of $210 million to $220 million2) Commodity inflation in the mid 2% range compared to the prior year (vs. previous outlook of 2% to 3%) Hourly wage inflation in the mid 2% range compared to the prior year (vs. previous outlook of approximately 3%) Capital expenditures of $160 million to $170 million (vs. previous outlook of $160 million to $180 million) 1 new Cracker Barrel store, which has already opened (vs. previous outlook of 1 to 2) 4 new Maple Street Biscuit Company units, which have already opened (no change vs. previous outlook) 1 Adjusted net income, adjusted EBITDA, and adjusted earnings per diluted share are non-GAAP financial measures. For definitions of these non-GAAP measures and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures, please refer to the Reconciliation of GAAP-Basis Operating Results to Non-GAAP Operating Results section of this release. 2 The Company has determined to provide guidance focused on adjusted EBITDA because the Company believes it will be more useful to investors to evaluate the Company's performance prior to the impact of depreciation (given the expected increase in investments and the resulting higher expected depreciation expense), taxes, impairment charges, and other items that management believes are not reflective of the Company's current operations. The Company is not able to reconcile the forward-looking estimate of adjusted EBITDA set forth above to a forward-looking estimate of net income, the most directly comparable estimated measure calculated in accordance with GAAP, without unreasonable efforts because the Company is unable to predict, forecast or determine the probable significance of certain items impacting these estimates, including interest expense, taxes, impairment charges and share-based compensation, with a reasonable degree of accuracy. Accordingly, the most directly comparable forward-looking GAAP estimate is not provided. Fiscal 2025 Third Quarter Conference CallAs previously announced, the live broadcast of Cracker Barrel's quarterly conference call will be available to the public online at today beginning at 11:00 a.m. (ET). The online replay will be available at 2:00 p.m. (ET) and continue through June 19, 2025. About Cracker Barrel Old Country Store®Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) is on a mission to bring craveable, delicious homestyle food and unique retail products to all guests while serving up memorable, distinctive experiences that make everyone feel welcome. Established in 1969 in Lebanon, Tenn., Cracker Barrel and its affiliates operate approximately 660 company-owned Cracker Barrel Old Country Store® locations in 43 states and own the fast-casual Maple Street Biscuit Company. For more information about the company, visit CBRL-F Except for specific historical information, certain of the matters discussed in this press release may express or imply projections of items such as revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These and similar statements regarding events or results that the Company expects will or may occur in the future are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual results and performance of the Company to differ materially from those expressed or implied by such forward-looking statements. All forward-looking information is provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these risks, uncertainties and other factors. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "trends," "assumptions," "target," "guidance," "outlook," "opportunity," "future," "plans," "goals," "objectives," "expectations," "near-term," "long-term," "projection," "may," "will," "would," "could," "expect," "intend," "estimate," "anticipate," "believe," "potential," "regular," "should," "projects," "forecasts," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. The Company believes that the assumptions underlying any forward-looking statements are reasonable; however, any of the assumptions could be inaccurate, and therefore, actual results may differ materially from those projected in or implied by the forward-looking statements. In addition to the risks of ordinary business operations, factors and risks that may result in actual results differing from this forward-looking information include, but are not limited to risks and uncertainties associated with inflationary conditions with respect to the price of commodities, ingredients, transportation, distribution and labor; disruptions to the Company's restaurant or retail supply chain; effects of changes in international, national, regional and local economic and market conditions (such as the imposition of trade barriers or other changes in trade policy) on our business; the Company's ability to manage retail inventory and merchandise mix; the Company's ability to sustain or the effects of plans intended to improve operational or marketing execution and performance, including the Company's strategic transformation plan; the effects of increased competition at the Company's locations on sales and on labor recruiting, cost, and retention; consumer behavior based on negative publicity or changes in consumer health or dietary trends or safety aspects of the Company's food or products or those of the restaurant industry in general, including concerns about outbreaks of infectious disease as well as the possible effects of such events on the price or availability of ingredients used in our restaurants; the effects of the Company's indebtedness and associated restrictions on the Company's financial and operating flexibility and ability to execute or pursue its operating plans and objectives; changes in interest rates, increases in borrowed capital or capital market conditions affecting the Company's financing costs and ability to refinance its indebtedness, in whole or in part; the Company's reliance on a single distribution facility and certain significant vendors, particularly for foreign-sourced retail products; information technology disruptions and data privacy and information security breaches, whether as a result of infrastructure failures, employee or vendor errors or actions of third parties; the Company's compliance with privacy and data protection laws; changes in or implementation of additional governmental or regulatory rules, regulations and interpretations affecting tax, health and safety, animal welfare, pensions, insurance or other undeterminable areas; the actual results of pending, future or threatened litigation or governmental investigations; or the Company's ability to manage the impact of negative social media attention and the costs and effects of negative publicity; the impact of activist shareholders; the Company's ability to achieve aspirations, goals and projections related to its environmental, social and governance initiatives; the Company's ability to enter successfully into new geographic markets that may be less familiar to it; changes in land, building materials and construction costs; the availability and cost of suitable sites for restaurant development and the Company's ability to identify those sites; the Company's ability to retain key personnel; the ability of and cost to the Company to recruit, train, and retain qualified hourly and management employees; uncertain performance of acquired businesses, strategic investments and other initiatives that the Company may pursue from time to time; the effects of business trends on the outlook for individual restaurant locations and the effect on the carrying value of those locations; general or regional economic weakness, business and societal conditions and the weather impact on sales and customer travel; discretionary income or personal expenditure activity of the Company's customers; implementation of new or changes in interpretation of existing accounting principles generally accepted in the United States of America ("GAAP"); and other factors described from time to time in the Company's filings with the Securities and Exchange Commission, press releases, and other communications. Any forward-looking statement made by the Company herein, or elsewhere, speaks only as of the date on which made. The Company expressly disclaims any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. CRACKER BARREL OLD COUNTRY STORE, INC. CONDENSED CONSOLIDATED INCOME STATEMENT (Unaudited) (In thousands, except share and per share amounts, percentages and ratios) Third Quarter EndedNine Months Ended5/2/25 4/26/24 PercentageChange5/2/25 4/26/24 PercentageChange Total revenue $821,147 $817,135 0 %$2,615,675 $2,576,375 2 % Cost of goods sold (exclusive of depreciation & rent) 247,280 245,070 1816,013 815,480 0 Labor and other related expenses 304,781 308,791 (1)938,342 936,434 0 Other store operating expenses 207,486 200,390 4639,059 618,131 3 General and administrative expenses 46,025 54,524 (16)167,341 155,795 7 Impairment and store closing costs 718 22,942 (97)3,869 22,942 (83) Goodwill impairment 0 4,690 (100)0 4,690 (100) Operating income (loss) 14,857 (19,272) 17751,051 22,903 123 Interest expense 4,984 5,187 (4)15,784 15,192 4 Income (loss) before income taxes 9,873 (24,459) 14035,267 7,711 357 Income tax benefit (2,701) (15,260) 82(4,358) (15,080) 71 Net income (loss) $12,574 ($9,199) 237$39,625 $22,791 74 Earnings (loss) per share – basic: $0.56 ($0.41) 237$1.78 $1.03 73 Earnings (loss) per share – diluted: $0.56 ($0.41) 237$1.77 $1.02 74 Weighted average shares: Basic 22,264,782 22,201,964 022,246,936 22,188,191 0 Diluted 22,459,281 22,201,964 122,435,317 22,307,646 1 Ratio AnalysisTotal revenue: Restaurant 82.7 % 82.2 % 80.8 % 80.1 % Retail 17.3 17.8 19.2 19.9Total revenue 100.0 100.0 100.0 100.0Cost of goods sold (exclusive of depreciation & rent) 30.1 30.0 31.2 31.7Labor and other related expenses 37.1 37.8 35.9 36.3Other store operating expenses 25.3 24.5 24.4 24.0General and administrative expenses 5.6 6.7 6.4 6.0Impairment and store closing costs 0.1 2.8 0.1 0.9Goodwill impairment 0.0 0.6 0.0 0.2Operating income (loss) 1.8 (2.4) 2.0 0.9Interest expense 0.6 0.6 0.7 0.6Income (loss) before income taxes 1.2 (3.0) 1.3 0.3Income tax benefit (0.3) (1.9) (0.2) (0.6)Net income (loss) 1.5 % (1.1 %) 1.5 % 0.9 % CRACKER BARREL OLD COUNTRY STORE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited and in thousands, except share amounts) 5/2/254/26/24 Assets Cash and cash equivalents $9,814$11,852 Accounts receivable 37,43934,847 Inventories 168,695175,278 Prepaid expenses and other current assets 60,87757,026 Property and equipment, net 971,021944,859 Operating lease right-of-use assets, net 822,269860,879 Intangible assets 24,36924,480 Other assets 44,56547,872 Total assets $2,139,049$2,157,093 Liabilities and Shareholders' Equity Accounts payable $121,117$137,672 Other current liabilities 301,916308,535 Long-term debt 489,410472,216 Long-term operating lease liabilities 653,060681,272 Other long-term obligations 104,235130,841 Shareholders' equity, net 469,311426,557 Total liabilities and shareholders' equity $2,139,049$2,157,093 Common shares issued and outstanding 22,266,95122,202,296 CRACKER BARREL OLD COUNTRY STORE, INC. CONDENSED CONSOLIDATED CASH FLOW STATEMENT (Unaudited and in thousands) Nine Months Ended5/2/254/26/24 Cash flows from operating activities: Net income $39,625$22,791 Depreciation and amortization 90,37982,765 Amortization of debt issuance costs 1,3291,312 Loss on disposition of property and equipment 6,2498,860 Impairment 3,58117,448 Goodwill impairment 04,690 Share-based compensation 8,0569,189 Noncash lease expense 45,56045,050 Amortization of asset recognized from gain on sale and leaseback transaction 9,5519,551 Decrease in inventories 12,26314,086 Decrease in accounts payable (41,171)(27,812) Net changes in other assets and liabilities (58,745)(88,474) Net cash provided by operating activities 116,67799,456 Cash flows from investing activities: Purchase of property and equipment, net of insurance recoveries (113,214)(80,081) Proceeds from sale of property and equipment 1,829131 Net cash used in investing activities (111,385)(79,950) Cash flows from financing activities: Net proceeds from/principal payments on long-term debt 11,42556,000 Taxes withheld from issuance of share-based compensation awards (1,428)(1,597) Dividends on common stock (17,510)(87,204) Net cash used in financing activities (7,513)(32,801) Net decrease in cash and cash equivalents (2,221)(13,295) Cash and cash equivalents, beginning of period 12,03525,147 Cash and cash equivalents, end of period $9,814$11,852 Third Quarter Ended 5/2/254/26/24Net change in company-owned units during quarter: Cracker Barrel 1(4) Maple Street Biscuit Company 10Company-owned units in operation at end of quarter: Cracker Barrel 658658 Maple Street Biscuit Company 7063Third Quarter EndedNine Months Ended5/2/254/26/245/2/254/26/24 Total revenue*: (In thousands) Restaurant $661,945$654,410$2,061,681$2,013,609 Retail 141,695145,430502,052512,981 Total revenue $803,640$799,840$2,563,733$2,526,590 Cost of goods sold* (exclusive of depreciation and rent): (In thousands) Restaurant $173,431$169,373$546,757$540,553 Retail 69,34671,432256,015262,430 Total cost of goods sold $242,777$240,805$802,772$802,983 Average unit volume*: (In thousands) Restaurant $1,006.0$994.6$3,134.8$3,049.4 Retail 215.3221.0763.4776.8 Total $1,221.3$1,215.6$3,898.2$3,826.2 Operating weeks*: 8,5548,55425,64925,753Note*: This information is for Cracker Barrel stores only and excludes Maple Street Biscuit Company CRACKER BARREL OLD COUNTRY STORE, of GAAP-Basis Operating Results to Non-GAAP Operating Results(Unaudited and in thousands, except per share amounts) Adjusted Net Income and Earnings Per ShareIn the accompanying press release, the Company makes reference to its third quarter fiscal 2024 and fiscal 2025 adjusted net income and earnings per share. The Company defines adjusted net income as net income, calculated in accordance with GAAP, excluding, to the extent the following items occurred during the periods presented: (i) impairment charges, and, for periods prior to the second quarter of fiscal 2025, store closing costs, (ii) expenses related to the proxy contest in connection with the Company's 2024 annual meeting of shareholders, (iii) expenses related to the Company's CEO transition, (iv) expenses associated with the Company's strategic transformation initiative, (v) a corporate restructuring charge, (vi) an employee benefits policy change, (vii) goodwill impairment charges, and (viii) the related tax impacts of the foregoing. The Company believes excluding these items from its financial results provides investors with an enhanced understanding of the Company's financial results and enhances comparability across periods. The Company calculates adjusted net income margin by dividing adjusted net income by consolidated GAAP revenue. This information is not intended to be considered in isolation or as a substitute for net income or earnings per share information prepared in accordance with Quarter Ended Nine Months Ended5/2/25 Margin4/26/24 Margin5/2/25 Margin4/26/24 Margin Revenue $821,147 100 %$817,135 100 %$2,615,675 100 %$2,576,375 100 % GAAP net income $12,574 1.5($9,199) (1.1)$39,625 1.5$22,791 0.9 CEO transition expenses 0 0.03,465 0.40 0.08,574 0.3 Strategic transformation initiative expenses 0 0.06,590 0.87,263 0.311,546 0.4 Employee benefit adjustment 0 0.00 0.00 0.0(5,284) (0.2) Corporate restructuring charge 0 0.00 0.00 0.01,643 0.1 Proxy contest expenses 0 0.00 0.08,220 0.30 0.0 Impairment 718 0.117,448 2.13,581 0.117,448 0.7 Store closing costs 0 0.05,494 0.70 0.05,494 0.2 Goodwill impairment 0 0.04,690 0.60 0.04,690 0.2 Tax impacts of the foregoing (169) (0.0)(8,856) (1.1)(4,480) (0.2)(10,366) (0.4) Adjusted net income $13,123 1.6 %$19,632 2.4 %$54,209 2.1 %$56,536 2.2 % GAAP earnings (loss) per share - basic $0.56 ($0.41) $1.78$1.03 GAAP earnings (loss) per share - diluted $0.56 ($0.41) $1.77$1.02 Adjusted earnings per share - basic $0.59 $0.88 $2.44$2.55 Adjusted earnings per share - diluted $0.58 $0.88 $2.42$2.53 Weighted average shares - basic 22,264,782 22,201,964 22,246,93622,188,191 Weighted average shares - diluted 22,459,281 22,201,964 22,435,31722,307,646 CRACKER BARREL OLD COUNTRY STORE, of GAAP-Basis Operating Results to Non-GAAP Operating Results(Unaudited and in thousands) EBITDA/Adjusted EBITDAIn the accompanying press release and the below reconciliation tables, the Company makes reference to EBITDA and adjusted EBITDA. The Company defines EBITDA as net income, calculated in accordance with GAAP, excluding depreciation and amortization, interest expense and tax expense. The Company further adjusts EBITDA to exclude, to the extent the following items occurred during the periods presented: (i) expenses related to share-based compensation, (ii) impairment charges, and, for periods prior to the second quarter of fiscal 2025, store closing costs, (iii) the proxy contest in connection with the Company's 2024 annual meeting of shareholders, (iv) goodwill impairment charges, (v) expenses related to the Company's CEO transition, (vi) expenses associated with the Company's strategic transformation initiative, (vii) a corporate restructuring charge, and (viii) an employee benefits policy change. The Company calculates EBITDA and adjusted EBITDA margin by dividing EBITDA and adjusted EBITDA by consolidated GAAP revenue. The Company believes that presentation of EBITDA and adjusted EBITDA (together with related margin figures) provides investors with an enhanced understanding of the Company's operating performance and debt leverage metrics and enhances comparability with the Company's historical results, and that the presentation of this non-GAAP financial measure, when combined with the primary presentation of net income, is beneficial to an investor's complete understanding of the Company's operating performance. This information is not intended to be considered in isolation or as a substitute for net income or net income margin prepared in accordance with Quarter Ended 5/2/25 Margin Nine Months Ended5/2/25 Margin Revenue $821,147 100 %$2,615,675 100 % GAAP Net income 12,574 1.539,625 1.5 (+) Depreciation & amortization 30,991 3.890,379 3.5 (+) Interest expense 4,984 0.615,784 0.6 (+) Tax expense (tax benefit) (2,701) (0.3)(4,358) (0.2) EBITDA $45,848 5.6 %$141,430 5.4 % Adjustments (+) Share-based compensation, net 1,551 0.28,056 0.3 (+) Strategic transformation initiative expenses 0 0.07,263 0.3 (+) Impairment 718 0.13,581 0.1 (+) Proxy contest expenses 0 0.08,220 0.3 Adjusted EBITDA $48,117 5.9 %$168,550 6.4 %Third Quarter Ended 4/26/24 Margin Nine Months Ended4/26/24 Margin Revenue $817,135 100 %$2,576,375 100 % GAAP Net income (loss) (9,199) (1.1)22,791 0.9 (+) Depreciation & amortization 28,337 3.582,765 3.2 (+) Interest expense 5,187 0.615,192 0.6 (+) Tax expense (tax benefit) (15,260) (1.9)(15,080) (0.6) EBITDA 9,065 1.1 %$105,668 4.1 % Adjustments (+) Share-based compensation, net 1,187 0.14,475 0.2 (+) Strategic transformation initiative expenses 6,590 0.811,546 0.4 (+) Impairment 17,448 2.117,448 2.1 (+) Store closing costs 5,494 0.75,494 0.7 (+) Goodwill impairment 4,690 0.64,690 0.2 (+) CEO transition expenses 3,465 0.48,574 0.3 (+) Corporate restructuring charge 0 0.01,643 0.1 (-) Employee benefit adjustment 0 0.0(5,284) (0.2) Adjusted EBITDA $47,939 5.9 %$154,254 6.0 % Investor Contact: Adam Hanan(615) 443-9887 Media Contact: Heidi Pearce(615) 235-4135 View original content to download multimedia: SOURCE Cracker Barrel Old Country Store, Inc. 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