CBRL - Cracker Barrel: A Better Q1 But Still No Margin Of Safety

• Cracker Barrel released its fiscal Q1-22 results last week, reporting 21% revenue growth on a year-over-year basis and mid-single-digit growth relative to FY2020 levels.
• Despite dine-in traffic increasing, the company has maintained strong off-premise sales, with off-premise coming in at 20% of restaurant sales, which should be bolstered further by virtual brands.
• However, the company has not been immune to inflationary pressures, with commodity inflation up 30 basis points year-over-year, and this is expected to continue into FY2022.
• At ~16x FY2022 earnings estimates with a ~4.0% yield, Cracker Barrel is becoming a value play, but I still see better opportunities elsewhere in the market.

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