Cracker Barrel is a well-known restaurant chain in the United States. Named after the traditional country store, Cracker Barrel offers a unique dining experience that combines homestyle cooking with a charming old-fashioned atmosphere. With its rustic decor and friendly service, Cracker Barrel has become a popular destination for families, travelers, and those seeking a taste of Southern hospitality. Looking ahead to 2023, Cracker Barrel has several exciting plans in store for its customers. One of the main focuses for the company is to continue expanding its reach across the country. With over 660 locations currently operating, Cracker Barrel aims to open new restaurants in strategic locations to cater to the growing demand for its comforting cuisine.
With over 660 locations currently operating, Cracker Barrel aims to open new restaurants in strategic locations to cater to the growing demand for its comforting cuisine. In addition to expansion, Cracker Barrel is also committed to enhancing the dining experience for its guests. The company plans to invest in technology to streamline operations and improve service efficiency.
CRACKER BARREL REPORTS FOURTH QUARTER FISCAL 2023 RESULTS
LEBANON, Tenn. , Sept. 13, 2023 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today reported its financial results for the fourth quarter of fiscal 2023 ended July 28, 2023 .
Fourth Quarter Fiscal 2023 Highlights
- The Company reported fourth quarter total revenue of $836.7 million . Compared to the prior year fourth quarter, total revenue increased 0.8%.
- Comparable store restaurant sales increased 2.4%, while comparable store retail sales decreased 6.8%.
Commenting on the fourth quarter and full year results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, "This fiscal year underscored the resiliency of our teams amid continued challenges, and I'm proud of all we accomplished. We made significant progress on key initiatives including catering, our loyalty program, and cost savings, and we generated strong cash flow that allowed us to return more than $133 million to our shareholders in the form of dividends and share repurchases while maintaining a strong balance sheet.
"Although there was much to celebrate in fiscal 2023, our Q4 topline performance fell short of our expectations. We have taken and will continue to take numerous actions to improve our traffic performance on the marketing and operational front which we believe will be effective, particularly as we enter our important holiday season. We will also launch our much-anticipated loyalty program, Cracker Barrel Rewards, in the next few weeks.
"Despite our recent traffic challenges, we remain confident that our continued focus on our strategic priorities, including delivering an exceptional guest experience, emphasizing and protecting our strong value proposition, accelerating frequency among key growth segments, and enhancing our business model will improve performance in the near term and deliver value creation over the long term."
Fourth Quarter Fiscal 2023 Results
Revenue
The Company reported total revenue of $836.7 million for the fourth quarter of fiscal 2023, representing an increase of 0.8% compared to the fourth quarter of fiscal 2022.Cracker Barrel comparable store restaurant sales increased 2.4%, including total menu pricing increases of 8.7%. Comparable store retail sales decreased 6.8% from the prior year quarter.
Operating Income
GAAP operating income for the fourth quarter was $41.2 million , or 4.9% of total revenue, compared to $33.0 million , or 4.0% of total revenue, in the prior year quarter. Excluding the approximately $3.2 million in non-cash amortization related to the gains on the previously disclosed sale and leaseback transactions, adjusted 1 operating income for the fourth quarter was $44.4 million , or 5.3% of total revenue, compared to $36.2 million , or 4.4%, of total revenue in the prior year quarter.The increase in the Company's GAAP and adjusted 1 operating income as a percentage of total revenue versus the prior year quarter is primarily the result of lower cost of goods sold and other operating expenses, partially offset by higher labor and related expenses and general and administrative expenses in the current year quarter.
Net Income, EBITDA, and Earnings per Diluted Share
GAAP net income for the fourth quarter was $37 .5 million, or 4.5% of total revenue. This represented a 12.3% increase compared to prior year quarter GAAP net income of $33.4 million , or 4.0% of total revenue. EBITDA 1 was $72.1 million , or 8.6% of total revenue, a 15.5% increase compared to the prior year quarter EBITDA 1 of $62 .4 million, or 7.5% of total revenue.GAAP earnings per diluted share for the fourth quarter were $1.68 , a 14.3% increase compared to the prior year quarter GAAP earnings per diluted share of $1.47 . Adjusted 1 earnings per diluted share were $1.79 , a 14.0% increase compared to the prior year quarter adjusted 1 earnings per diluted share of $1.57 .
Quarterly Dividend Declaration
The Company announced that its Board of Directors declared a quarterly dividend of $1.30 per share on the Company's common stock. The quarterly dividend is payable on November 7, 2023 to shareholders of record as of October 20, 2023 .Fiscal 2023 Results
Revenue
The Company reported total revenue of $3.44 billion for fiscal 2023, representing an increase of 5.4% compared to fiscal 2022. Comparable store restaurant sales for fiscal 2023 increased 6.3% compared to fiscal 2022. Comparable store retail sales for fiscal 2023 decreased 0.4% compared to fiscal 2022.Operating Income
GAAP operating income in fiscal 2023 was $120.6 million , or 3.5% of total revenue, compared to $153.0 million , or 4.7% of total revenue, in the prior year. Excluding the approximately $12.7 million in non-cash amortization related to the gains on the previously disclosed sale and leaseback transactions, approximately $13.9 million dollars in impairment charges and store closure costs incurred in the third quarter, and approximately $3.2 million in proxy contest and settlement expenses incurred in the first quarter, adjusted 1 operating income for fiscal 2023 was $150.4 million , or 4.4% of total revenue, compared to adjusted 1 operating income of $165.7 million , or 5.1% of total revenue, in the prior year.The decline in the Company's GAAP operating income as a percentage of total revenue versus the prior year is primarily the result of higher cost of goods sold, general and administrative expenses, and impairment charges and store closure expenses in the current year.
The decrease in the Company's adjusted 1 operating income as a percentage of total revenue versus the prior year is primarily the result of higher cost of goods sold and general and administrative expenses in the current year.
Net Income, EBITDA and Earnings per Diluted Share
GAAP net income for fiscal 2023 was $99.1 million , or 2.9% of total revenue compared to prior year GAAP net income of $131.9 million , or 4.0% of total revenue. Adjusted EBITDA 1 was $254.9 million , or 7.4% of total revenue, a 5.3% decrease compared to the prior year EBITDA 1 of $269.3 million , or 8.2% of total revenue.GAAP earnings per diluted share for fiscal 2023 were $4.45 , a 21.5% decrease compared to the prior year GAAP earnings per diluted share of $5.67 . Adjusted 1 earnings per diluted share were $5.47 , a 10.2% decrease compared to the prior year adjusted 1 earnings per diluted share of $6.09 .
Fiscal 2024 First Quarter Outlook
The Company provided the following outlook for its first quarter:
- Total revenue of $800 million to $850 million
- 1 to 2 new Cracker Barrel stores and 4 to 5 new Maple Street Biscuit Company units
- Commodity deflation of 1% to 2%
- Wage inflation of 4% to 5%
- GAAP operating income margin of 1.55% to 2.55% and adjusted 1 operating income margin of 2.25% to 3.25%, which contemplates the amortization of the asset recognized from the gains on sale and leaseback transactions, certain expenses related to the CEO transition, and a corporate restructuring charge
- Capital expenditures of $27 million to $32 million
The Company reminds investors that its outlook reflects a number of assumptions, many of which are outside the Company's control. In particular, uncertainties created by macroeconomic conditions, such as ongoing inflation, low consumer confidence and high interest rates may adversely affect consumer behavior and cause actual results to differ materially from those expected.
1 For Non-GAAP reconciliations, please refer to the Reconciliation of GAAP-Basis Operating Results to Non-GAAP Operating Results section of this release.
Fiscal 2023 Fourth Quarter Conference Call
As previously announced, the live broadcast of Cracker Barrel's quarterly conference call will be available to the public online at investor.crackerbarrel.com today beginning at 11:00 a.m. (ET) . The online replay will be available at 2:00 p.m. (ET) and continue through September 27, 2023 .
About Cracker Barrel Old Country Store ®
Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) provides a caring and friendly home-away-from-home experience while offering guests high-quality homestyle food to enjoy in-store or to-go and unique shopping — all at a fair price. Established in 1969 in Lebanon, Tenn. , Cracker Barrel and its affiliates operate over 660 company-owned Cracker Barrel Old Country Store® locations in 45 states and own the fast-casual Maple Street Biscuit Company. For more information about the Company, visit crackerbarrel.com.
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, transportation, distribution and labor; disruptions to the Company's restaurant or retail supply chain; the COVID-19 pandemic, including the duration of the COVID-19 pandemic and its ultimate impact on the Company's business the Company's ability to identify, acquire and sell successful new lines of retail merchandise and new menu items at its restaurants; the Company's ability to sustain or the effects of plans intended to improve operational or marketing execution and performance; 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 the Company's 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 limited distribution facilities and certain significant vendors; information technology-related incidents, including data privacy and information security breaches, whether as a result of infrastructure failures, employee or vendor errors, or actions of third parties; changes in or implementation of additional governmental or regulatory rules, regulations and interpretations affecting tax, wage and hour matters, health and safety, animal welfare, pensions, insurance or other undeterminable areas; the effects of plans intended to promote or protect our brands and products; the actual results of pending, future or threatened litigation or governmental investigations and the costs and effects of negative publicity or the Company's ability to manage the impact of social media associated with these activities; the impact of activist shareholders; 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; economic or psychological effects of natural disasters or other unforeseen events such as terrorist acts, social unrest or war and the military or government responses to such events; changes in foreign exchange rates affecting the Company's future retail inventory purchases; workers' compensation, group health and utility price changes; 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 our filings with the Securities and Exchange Commission, press releases, and other communications. Any forward-looking statement made by us herein, or elsewhere, speaks only as of the date on which made. We expressly disclaim any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our 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
(In thousands, except share and per share amounts, percentages and ratios)
This could involve the introduction of digital ordering systems, online reservations, and other innovations that simplify the overall dining process. Furthermore, Cracker Barrel is dedicated to offering a diverse menu with high-quality, wholesome ingredients. The restaurant prides itself on serving classic Southern dishes such as country fried steak, biscuits and gravy, and fried chicken. However, the brand is also aware of changing consumer preferences and dietary needs. As a result, Cracker Barrel will likely introduce new menu items that cater to different tastes, including vegetarian and healthier options. Cracker Barrel also values community involvement and plans to maintain its commitment to giving back. The company regularly supports charities and organizations dedicated to making a positive impact in local communities. Through partnerships and initiatives, Cracker Barrel hopes to continue fostering a sense of belonging and support for its customers and employees alike. In conclusion, Cracker Barrel has exciting plans for the year 2023. With its focus on expansion, technological advancements, menu diversification, and community involvement, the company aims to provide an even better experience for its loyal customers. Whether it's a hearty breakfast, a comforting lunch, or a relaxed dinner, Cracker Barrel remains dedicated to serving delicious food with a side of Southern hospitality..
Reviews for "The Evolution of Cracker Barrel's Homestyle Cooking in 2023"
1. John Smith - 2 stars - The food at Cracker Barrel was mediocre at best. I ordered the crispy chicken tenders and they were dry and tasteless. The mashed potatoes were lumpy and the green beans were overcooked. The service was also very slow, with our waitress forgetting about our table multiple times. Overall, I was highly disappointed with my experience at Cracker Barrel and would not recommend it.
2. Jane Doe - 1 star - Cracker Barrel was a complete letdown. The restaurant was extremely crowded and noisy, making it difficult to have a conversation. The wait time for a table was over 45 minutes, even though there were empty tables available. Once we finally got seated, the food took forever to arrive and when it did, it was barely warm. The quality of the food was subpar, and the prices were too high for what we received. I will not be returning to Cracker Barrel in the future.
3. Mike Johnson - 2 stars - I had heard good things about Cracker Barrel, so I decided to give it a try. Unfortunately, it did not live up to the hype. The menu was limited, and the choices were not very appealing. I settled for the chicken fried steak, but it was dry and overcooked. The atmosphere of the restaurant was also disappointing, with outdated decor and uncomfortable seating. Overall, I was not impressed with Cracker Barrel and would not choose to dine there again.
Cracker Barrel's Investment in Technology for 2023: Improving the Customer Experience