Barrel Stock Plummets as Cracker Barrel Misses Expectations.- Investors in Cracker Barrel Old Country Store (CBRL) were left disappointed on Tuesday as the restaurant chain failed to meet revenue and earnings expectations for its fiscal third quarter, resulting in a decline in Barrel stock.
For the quarter, Cracker Barrel reported earnings of $1.21 per share on revenue of $832.7 million. However, analysts surveyed by FactSet had anticipated earnings of $1.34 per share on revenue of $845.7 million.
Chief Executive Sandra Cochran expressed her thoughts on the results, stating, “Our third-quarter results showcased solid growth in comparable-store restaurant sales, which rose by 7.4% compared to the previous year.” However, she acknowledged that these figures fell below expectations due to a decline in casual dining traffic towards the end of the quarter.
The company also disclosed that operating income for the quarter amounted to $16.8 million, marking a significant decline from the same period the previous year, where it had posted $30.5 million.
Cracker Barrel attributed this decrease in operating income primarily to impairment charges, expenses related to store closures, higher general and administrative expenses, and increased costs of retail goods.
Additionally, Cracker Barrel’s outlook for the fourth quarter failed to impress investors. The company anticipates total revenue growth ranging between 1% and 3% compared to the previous year. This projection implies fourth-quarter revenue falling below analysts’ estimated figure of $886.8 million.
As a result of these disappointing results and outlook, shares of Cracker Barrel fell 4.1% on Tuesday, closing at $93.33. Year-to-date, the stock has experienced a decline of 1.5%.
Investors will be closely monitoring the restaurant chain’s future performance and initiatives to boost traffic and improve financial results in the upcoming quarters, as Cracker Barrel aims to regain investor confidence and drive positive growth in Barrel stock.