CBRL - Cracker Barrel Old Country Store slides after warning of recent traffic declines

2023-06-06 08:45:39 ET

Cracker Barrel Old Country Store ( CBL ) fell sharply in early trading on Tuesday after falling short of consensus estimates with its FQ3 earnings report . Notably, the restaurant operator pointed to casual dining traffic declines that occurred toward the end of the quarter.

Comparable store restaurant sales increased 7.4%, including total menu pricing growth of approximately 8.8%. Comparable store retail sales decreased 4.6%.

Adjusted operating income for FQ3 was 4.1% of total revenue vs 4.3% a year ago. The decline was primarily due to impairment charges and store closure expenses, higher general and administrative expenses, and higher cost of retail goods sold in the current year quarter.

Adjusted EBITDA was up 1.2% year-over-year to $60.3M.

Looking ahead, Cracker Barrel ( NASDAQ: CBRL ) sees Q4 revenue growth of +1% to +3% yr/yr to ~$839M to $887M vs. the consensus mark of $886.8M. The company also anticipates sustainable cost savings and business model improvements that are expected to contribute approximately $30M to FY23 profitability with further gains in FY24.

Shares of Cracker Barrel Old Country Store ( CBRL ) dropped 8.66% in premarket action on Tuesday to $88.87 and are swapping hands at the lowest level of the year.

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