LEBANON, Tenn., Sept. 19, 2024 /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 2024 ended August 2, 2024. In 2024, the fourth quarter and fiscal year included an additional operating week ("53rd week") compared to fiscal 2023.
Fourth Quarter Fiscal 2024 Highlights
The Company reported total revenue of $894.4 million for the fourth quarter of fiscal 2024, representing an increase of 6.9% compared to prior year quarter total revenue of $836.7 million. Total revenue for the fourth quarter of fiscal 2024 includes a benefit of $62.8 million related to the 53rd week.
Comparable store restaurant sales increased 0.4% over the prior year quarter while comparable store retail sales decreased 4.2%.
GAAP earnings per diluted share were $0.81, and adjusted1 earnings per diluted share were $0.98. GAAP earnings per diluted share and adjusted earnings per diluted share in the current year quarter include a benefit of $0.25 related to the 53rd week.
GAAP net income for the fourth quarter was $18.1 million, or 2.0% of total revenue, and adjusted EBITDA1 was $57.4 million, or 6.4% of total revenue. GAAP net income and adjusted EBITDA1 include a benefit of $5.5 million and $5.8 million related to the 53rd week, respectively.
Commenting on the fourth quarter and full year results, Cracker Barrel President and Chief Executive Officer Julie Masino said, "Our teams are highly engaged and intently focused on executing our strategic transformation and our day-to-day business at a high level. We are already making great progress and are encouraged by the initial results of key initiatives such as operational excellence and the guest experience, optimized pricing, and our remodel program. Although there is much work to be done, I am both excited and confident in our future."
Fourth Quarter Fiscal 2024 ResultsRevenueThe Company reported total revenue of $894.4 million for the fourth quarter of fiscal 2024, representing an increase of 6.9% compared to prior year quarter total revenue of $836.7 million. Total revenue for the fourth quarter of fiscal 2024 includes a benefit of $62.8 million related to the 53rd week.
Cracker Barrel comparable store restaurant sales increased 0.4%, including total menu pricing increases of 4.2%. Comparable store retail sales decreased 4.2% from the prior year quarter.
Net Income, EBITDA, and Earnings per Diluted ShareGAAP net income for the fourth quarter was $18.1 million, or 2.0% of total revenue, as compared to prior year fourth quarter GAAP net income of $37.5 million, or 4.5% of total revenue. Adjusted1 net income for the fourth quarter was $22.0 million, or 2.5% of total revenue, as compared to prior year quarter adjusted1 net income of $37.5 million, or 4.5% of total revenue. GAAP and adjusted net income in the current year quarter include a benefit of $5.5 million related to the 53rd week.
Adjusted EBITDA1 was $57.4 million, or 6.4% of total revenue, as compared to prior year quarter adjusted EBITDA1 of $70.4 million, or 8.4% of total revenue. Adjusted EBITDA1 in the current year quarter includes a benefit of $5.8 million related to the 53rd week.
GAAP earnings per diluted share for the fourth quarter were $0.81, as compared to prior year fourth quarter GAAP earnings per diluted share of $1.68. Adjusted1 earnings per diluted share were $0.98, a 42% decrease compared to the prior year quarter adjusted1 earnings per diluted share of $1.68. GAAP and adjusted1 earnings per diluted share in the current year quarter include a benefit of $0.25 related to the 53rd week.
Quarterly Dividend DeclarationThe Company announced that its Board of Directors declared a quarterly dividend of $0.25 per share on the Company's common stock. The quarterly dividend is payable on November 13, 2024 to shareholders of record as of October 18, 2024.
Fiscal 2024 ResultsRevenue The Company reported total revenue of $3.47 billion for fiscal 2024, representing an increase of 0.8% compared to fiscal 2023 total revenue of $3.44 billion. Total revenue in fiscal 2024 includes a benefit of $62.8 million related to the 53rd week.
Cracker Barrel comparable store restaurant sales decreased 0.1%, including total menu pricing increases of 4.9%. Comparable store retail sales decreased 5.5% from the prior year.
Net Income, EBITDA, and Earnings per Diluted ShareGAAP net income for fiscal 2024 was $40.9 million, or 1.2% of total revenue, as compared to prior year GAAP net income of $99.1 million, or 2.9% of total revenue. Adjusted1 net income for the fiscal year was $78.5 million, or 2.3% of total revenue, as compared to prior year adjusted1 net income of $112.1 million, or 3.3% of total revenue. Adjusted1 net income in fiscal 2024 includes a benefit of $5.5 million related to the 53rd week.
Adjusted EBITDA1 was $211.6 million, or 6.1% of total revenue, as compared to prior year adjusted EBITDA1 of $251.2 million, or 7.3% of total revenue. Adjusted EBITDA1 in the current year includes a benefit of $5.8 million related to the 53rd week.
GAAP earnings per diluted share for fiscal 2024 were $1.83, as compared to prior year GAAP earnings per diluted share of $4.45. Adjusted1 earnings per diluted share were $3.52, a 30% decrease compared to prior year adjusted1 earnings per diluted share of $5.04. GAAP and adjusted1 earnings per diluted share in the current year include a benefit of $0.25 related to the 53rd week.
Fiscal 2025 OutlookThe Company provided the following outlook for fiscal 2025:
Total revenue of $3.4 billion to $3.5 billion
2 new Cracker Barrel stores and 3 to 4 new Maple Street Biscuit Company units
Commodity inflation of 2% to 3% compared to the prior year
Hourly wage inflation of 3% to 4% compared to the prior year
Adjusted EBITDA1 of $200 million to $215 million
Capital expenditures of $160 million to $180 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 Adjusted net income, adjusted EBITDA and adjusted earnings per diluted share, as well as the 53rd week impact of these items, 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 provides 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, closure and 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, closure and 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 2024 Fourth Quarter Conference CallAs 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 October 3, 2024.
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 44 states and own the fast-casual Maple Street Biscuit Company. For more information about the company, visit www.crackerbarrel.com.
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; 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; 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)
Fourth Quarter Ended
Twelve Months Ended
8/2/2024
7/28/2023
PercentageChange
8/2/2024
7/28/2023
Percentage Change
Total revenue
$894,387
$836,732
7 %
$3,470,762
$3,442,808
1 %
Cost of goods sold (exclusive of depreciation & rent)
272,151
257,331
6
1,087,631
1,127,617
(4)
Labor and other related expenses
335,121
305,111
10
1,271,555
1,208,669
5
Other store operating expenses
213,632
195,368
9
831,763
797,815
4
General and administrative expenses
51,267
37,576
36
207,062
174,091
19
Impairment and store closing costs
0
109
(100)
22,942
13,999
64
Goodwill impairment
0
0
4,690
0
Operating income
22,216
41,237
(46)
45,119
120,617
(63)
Interest expense
5,741
4,530
27
20,933
17,006
23
Income before income taxes
16,475
36,707
(55)
24,186
103,611
(77)
Provision for income taxes (income tax benefit)
(1,664)
(755)
(120)
(16,744)
4,561
(467)
Net income
$18,139
$37,462
(52)
$40,930
$99,050
(59)
Earnings per share – Basic:
$0.82
$1.69
(51)
$1.84
$4.47
(59)
Earnings per share – Diluted:
$0.81
$1.68
(52)
$1.83
$4.45
(59)
Weighted average shares:
Basic
22,202,464
22,152,445
0
22,191,961
22,167,875
0
Diluted
22,354,013
22,262,598
0
22,319,894
22,265,399
0
Ratio Analysis
Total revenue:
Restaurant
81.8 %
81.2 %
