Education
About Us
Working with TipRanks
Follow Us
Cracker Barrel Old Country Store (CBRL)
NASDAQ:CBRL
Top Page
Cracker Barrel
(NASDAQ:CBRL)57Neutral
Positive Factors
Earnings
Cracker Barrel's robust 2Q beat reflects both strong holiday/catering sales and continued signs of improvement in restaurant level execution.
Menu Innovation
CBRL's recent menu innovation and improved service levels have enabled it to take significant price, while improving its traffic trajectory, consumer satisfaction scores (including value) and margins.
Negative Factors
Sourcing and Costs
33% of product sourcing for the Retail division comes from China, which could potentially cause the segment to experience margin pressure due to increased costs.
Cracker Barrel (CBRL) vs. S&P 500 (SPY)
Market Cap
$953.32M
Dividend Yield4.79%
Average Volume (3M)813.57K
Price to Earnings (P/E)26.7
Beta (1Y)0.83
Revenue Growth1.89%
EPS Growth-53.94%
CountryUS
Employees77,600
SectorConsumer Cyclical
Sector Strength53
IndustryRestaurants & Bars
Share Statistics
EPS (TTM)1.60
Shares Outstanding22,263,481
10 Day Avg. Volume1,107,647
30 Day Avg. Volume813,570
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.27
Price to Cash Flow (P/CF)2.40
P/FCF Ratio4.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$50.00Price Target Upside12.76% Upside
Rating ConsensusHold
Number of Analyst Covering6
Cracker Barrel Business Overview & Revenue Model
Company DescriptionCracker Barrel Old Country Store, Inc. (CBRL) is an American chain of combined restaurant and gift store establishments with a Southern country theme. Founded in 1969 and headquartered in Lebanon, Tennessee, the company operates over 600 locations across the United States. Cracker Barrel is renowned for its classic Southern cuisine, offering breakfast, lunch, and dinner menus that feature comfort food staples. In addition to its dining services, each location includes a gift shop selling country-themed merchandise, such as home decor, toys, and food products.
How the Company Makes MoneyCracker Barrel generates revenue primarily through its two main business segments: restaurant sales and retail sales. The majority of the company's income comes from its restaurant operations, which offer a range of Southern-inspired meals throughout the day. These restaurants attract a diverse clientele seeking a home-style dining experience. The retail segment contributes to the company's earnings by selling various products in its on-site gift shops. These items include apparel, toys, home furnishings, and specialty food items, which are often themed around the company's Southern country motif. Cracker Barrel's unique combination of dining and retail experiences allows it to capitalize on cross-selling opportunities, enhancing customer engagement and increasing average transaction values. Additionally, strategic location choices along highways and in tourist areas help maintain a steady stream of visitors.
Cracker Barrel Financial Statement Overview
Summary
Cracker Barrel demonstrates a stable financial position with moderate growth across its financial statements. The income statement reveals revenue growth but highlights pressure on margins and net income. The balance sheet shows significant leverage, which could be a risk factor. The cash flow statement is strong, with positive free cash flow growth, indicating good cash generation capabilities despite the challenges in profitability. Overall, the company is stable but should focus on improving profitability and managing its leverage to strengthen its financial health.Income Statement
Cracker Barrel's income statement shows moderate growth and profitability. The TTM (Trailing-Twelve-Months) gross profit margin is 45.02%, with a net profit margin of 1.03%. Revenue grew modestly by 1.02% from the previous annual report. However, the EBIT margin is low at 1.90%, and the EBITDA margin is 2.84%, indicating pressure on operating profitability. While there is revenue growth, the declining net income suggests challenges in controlling expenses.62
Positive
Balance Sheet
The balance sheet reflects a stable yet leveraged position. The debt-to-equity ratio is 2.68, indicating significant leverage which may pose risk in a volatile market. The return on equity (ROE) is 7.81%, which is modest. The equity ratio stands at 21.44%, showing that a significant portion of the company's assets is financed by equity, but there is room for improvement in capital structure management.55
Neutral
Cash Flow
Cracker Barrel's cash flow statement indicates a stable cash generation capability. The free cash flow grew by 15.23% in the TTM period, and the operating cash flow to net income ratio is 5.58, highlighting efficient cash conversion from net income. However, the free cash flow to net income ratio is 1.30, suggesting that while free cash flow is positive, there are opportunities to enhance cash flow management to improve liquidity.65
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.51B | 3.47B | 3.44B | 3.27B | 2.82B | 2.52B | Gross Profit |
| 942.23M | 1.11B | 1.11B | 1.07B | 973.06M | 817.86M | EBIT |
| 66.77M | 45.12M | 120.62M | 153.00M | 148.94M | 56.15M | EBITDA |
| 99.64M | 156.87M | 239.10M | 153.00M | 366.66M | 284.07M | Net Income Common Stockholders |
| 35.99M | 40.93M | 99.05M | 131.88M | 254.51M | 109.97M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 10.35M | 12.04M | 25.15M | 45.10M | 144.59M | 437.00M | Total Assets |
| 2.15B | 2.16B | 2.22B | 2.29B | 2.39B | 2.54B | Total Debt |
| 1.23B | 1.20B | 1.12B | 1.20B | 1.08B | 1.54B | Net Debt |
| 1.22B | 1.19B | 1.09B | 1.15B | 930.97M | 1.11B | Total Liabilities |
| 1.69B | 1.72B | 1.73B | 1.78B | 1.73B | 2.13B | Stockholders Equity |
| 460.92M | 440.15M | 483.82M | 511.48M | 663.63M | 418.39M |
| Cash Flow | Free Cash Flow | ||||
| 46.88M | 40.69M | 125.07M | 108.15M | 231.77M | -135.01M | Operating Cash Flow |
| 200.79M | 168.98M | 250.46M | 205.25M | 301.90M | 161.00M | Investing Cash Flow |
| -149.43M | -124.33M | -124.32M | -98.50M | 78.33M | -157.23M | Financing Cash Flow |
| -53.62M | -57.77M | -146.10M | -206.24M | -672.64M | 396.34M |
Cracker Barrel Technical Analysis
Neutral
44.34
Price Trends
53.65
Negative
51.55
Negative
46.96
Negative
Market Momentum
-3.51
Positive
38.76
Neutral
35.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBRL, the sentiment is Neutral. The current price of 44.34 is below the 20-day moving average (MA) of 46.25, below the 50-day MA of 53.65, and below the 200-day MA of 46.96, indicating a bearish trend. The MACD of -3.51 indicates Positive momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 35.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CBRL.
Cracker Barrel Risk Analysis
Cracker Barrel disclosed 35 risk factors in its most recent earnings report. Cracker Barrel reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cracker Barrel Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $22.90B | 22.32 | 50.93% | 2.83% | 5.14% | 5.30% | |
74 Outperform | $2.53B | 15.36 | 41.18% | 2.20% | 4.13% | 56.76% | |
73 Outperform | $6.23B | 24.36 | 2390.91% | ― | 13.67% | 69.41% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
57 Neutral | $953.32M | 26.72 | 7.80% | 4.79% | 1.89% | -53.94% | |
56 Neutral | $409.87M | 6.20 | -42.81% | 7.81% | -2.27% | 24.95% | |
41 Neutral | $78.95M | ― | 92.02% | ― | -4.19% | -266.52% |
* Consumer Cyclical Sector Average
Performance Comparison
CBRL
Cracker Barrel
44.34
-19.74
-30.81%
EAT
Brinker International
140.27
91.49
187.56%
DRI
Darden Restaurants
195.52
29.11
17.49%
DIN
Dine Brands Global
26.87
-18.63
-40.95%
RRGB
Red Robin Gourmet
4.57
-2.17
-32.20%
CAKE
Cheesecake Factory
49.00
13.75
39.01%
Cracker Barrel Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 10.05% | Next Earnings Date: Jun 10, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong revenue growth and enhanced profitability, driven by successful strategic initiatives and operational improvements. However, challenges such as retail revenue decline, negative traffic trends, and external macroeconomic pressures were noted. Despite these challenges, the company's confidence in its transformation strategy and ability to raise guidance for fiscal 2025 suggests a generally positive outlook.Highlights
Strong Revenue Growth
Second quarter total revenue reached $949.4 million, with a 2.7% increase in restaurant revenue to $750.5 million and a 4.7% growth in comparable store restaurant sales.
Improvement in Profitability
Adjusted EBITDA was $74.6 million or 7.9% of total revenue, compared to $62.4 million or 6.7% in the prior year quarter. This improvement was largely driven by off-premise and catering channels.
Positive Comparable Retail Sales
The company reported positive comparable store retail sales for the first time since the second quarter of fiscal 2023.
Operational and Guest Metrics Improvement
Key operational and guest metrics saw year-over-year improvements, including a 19 percentage point improvement in turnover and a 7% increase in value scores.
Strategic Transformation Progress
The company is making progress on its strategic transformation, with positive impacts from menu innovations and marketing efforts.
Lowlights
Retail Revenue Decline
Retail revenue decreased by 2.8% to $199 million despite positive comparable store retail sales.
Negative Traffic Trends
Traffic was down 2.7%, marked by a decline in catering and Heat n' Serve channels, although these trends were offset by profitability improvements.
External Challenges
The company faced challenges due to poor weather and macroeconomic uncertainties, impacting consumer sentiment and traffic.
Incremental Costs
The company expects $4 million in incremental egg costs due to supply issues and higher spot market prices.
Company Guidance
During the Cracker Barrel's second-quarter fiscal 2025 results call, the company reported total revenue of $949.4 million, with a comparable store restaurant sales growth of 4.7% and adjusted EBITDA of $74.6 million. The quarter saw a strategic focus on improving profitability, particularly in the catering and heat and serve channels, which contributed to the EBITDA exceeding expectations. This strong performance led to an increase in fiscal year 2025 EBITDA guidance. The company reported a 2.7% increase in restaurant revenue to $750.5 million, while retail revenue decreased by 2.8% to $199 million. Key metrics included a 6% increase in pricing, with off-premise sales comprising 23.2% of restaurant sales. Cost of goods sold decreased to 32.6% of total revenue, driven by menu pricing and reduced commodity inflation, while labor expenses improved by 70 basis points when adjusted for prior-year benefits. The company expects total fiscal 2025 revenue between $3.45 billion and $3.5 billion, with adjusted EBITDA projected between $210 million and $220 million.Cracker Barrel Corporate Events
Executive/Board Changes
Cracker Barrel Board Member Meg Crofton Resigns
Neutral
Feb 28, 2025
On February 26, 2025, Meg G. Crofton announced her resignation from the Board of Directors of Cracker Barrel Old Country Store, Inc., effective immediately, citing personal reasons. Her departure is not due to any disagreements with the company, and she expressed gratitude for her eight years of service, wishing the company continued success.
Business Operations and StrategyFinancial Disclosures
Cracker Barrel Highlights Strategy at 2025 ICR Conference
Positive
Jan 13, 2025
Cracker Barrel is actively engaging with the investment community during the 2025 ICR Conference, highlighting its strategic focus on menu innovation, brand evolution, and enhancing the guest experience. The company reported a positive financial outlook with a 2.6% revenue growth in Q1 and expects continued improvements in profitability and guest traffic through strategic investments and operational enhancements.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.