CBRL - Why Cracker Barrel Stock Crumbled on Friday
Shares of restaurant company Cracker Barrel Old Country Store (NASDAQ: CBRL) crumbled on Friday after the company reported financial results for the first quarter of its fiscal 2023 and lowered expectations for the rest of the year. As of 11:30 a.m. ET, Cracker Barrel stock was down 11%.
Cracker Barrel is a tale of two lines: the top and bottom. On the top line, things look OK. Q1 revenue came in at almost $840 million, which was up 7% year over year. But the gain was almost entirely due to a 7.8% increase in menu prices.
The bottom line is a different story. Like most restaurants , Cracker Barrel's profit margins are thin in the best of times. However, the company's operating income plunged 45% year over year to $23.6 million, largely due to inflationary pressures on its expenses.
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Why Cracker Barrel Stock Crumbled on Friday