Cracker Barrel Old Country Store, Inc. CBRL posted second-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate for the second straight quarter. Both top and bottom lines increased from the prior-year quarter’s figure. Investor sentiments were also boosted after the company raised its fiscal 2025 guidance. Following the results, the company’s shares increased 7.6% yesterday during trading hours.

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President and CEO, Julie Masino, credited Cracker Barrel’s strong second-quarter performance to effective execution by its teams and strategic efforts to enhance profitability in off-premise channels during the busy holiday season. Masino noted that despite some recent challenges affecting the broader industry, the company’s results surpassed expectations.

Earnings & Revenues of CBRL

For second-quarter fiscal 2025, the company reported adjusted earnings per share of $1.38, which beat the Zacks Consensus Estimate of $1.01. The company’s earnings increased 9.5% year over year.

Quarterly revenues of $949.4 million beat the consensus mark of $942 million. The top line increased 1.5% year over year.

CBRL’s Comps Details

Comparable-store restaurant sales increased 4.7% in the reported quarter compared with the same period in fiscal 2024. Comparable-store retail sales inched up 0.2% year over year. In the quarter, menu pricing increases were 6% year over year. Our model predicted comparable-store restaurant growth of 1.2%.

Operating Highlights of CBRL

In the fiscal second quarter, the cost of goods sold (excluding depreciation and rent) was $309.8 million, which was down 2% year over year. As a percentage of total revenues, the cost of goods sold (excluding depreciation and rent) fell 110 basis points year over year to 32.6%. Per our model, the metric was anticipated at 31.9%. In the quarter, the restaurant cost of goods sold accounted for 27.1% of restaurant sales, down from 28.2% in the previous quarter. The 110-basis point decline was largely attributed to menu price adjustments.

General and administrative expenses totaled $61.7 million, which was up 17% year over year. Our prediction for the metric was $58.9 million.

Adjusted net income in the fiscal second quarter amounted to $30.9 million compared with $28.1 million reported in the year-ago quarter. Our prediction for the metric was $21.3 million.

Balance Sheet of CBRL

As of Jan. 31, 2025, cash and cash equivalents were $10.3 million compared with $12.6 million as of Jan. 26, 2024.

Inventory at the fiscal second-quarter end reached $173 million, up 0.2% year over year.

Long-term debt as of Jan. 31, 2025, was $471.5 million compared with $452.3 million as of Jan. 26, 2024.

CBRL declared a cash dividend of 25 cents per share. The dividend will be paid out on May 14, 2025, to its shareholders on record as of April 11.

CBRL’s 2025 Guidance

For fiscal 2025, the company expects revenues in the range of $3.45-$3.5 billion compared with the prior estimate of $3.4-$3.5 billion. Adjusted EBITDA is anticipated to be between $210 million and $220 million, up from the earlier projection of $200 million and $215 million.

Management continues to expect commodity inflation to be in the range of 2% to 3% compared with the prior year. Hourly wage inflation is anticipated to be 3% year over year compared with the prior estimate of 3% to 4%.

Coming to store openings, CBRL aims to open four new Maple Street Biscuit company units compared with the prior outlook of 3 to 4 stores openings. Capital expenditures are envisioned in the range of $160-$180 million.

CBRL’s Zacks Rank

Cracker Barrel currently has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

Restaurant Brands International, Inc. QSR reported fourth-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.

During the quarter, consolidated comps increased 2.5% year over year and net restaurants grew 3.4%. Global system-wide sales rose 5.6% year over year. QSR unveiled its long-term consolidated performance expectations from 2024 to 2028. It anticipates achieving more than 3% growth in comparable sales and at least 5% net restaurant increase.

McDonald's Corporation MCD reported fourth-quarter 2024 results, wherein earnings were in line with the Zacks Consensus Estimate but revenues missed the same. Both top and bottom lines decreased year over year. Its Accelerating-the-Arches strategy remains the right approach for expanding market share.

At company-operated restaurants, sales were $2.31 billion, down 7% year over year. Sales at franchise-operated restaurants amounted to $3.95 billion, which increased 2% year over year. The global comps increased 0.4% compared with 3.4% in the prior-year quarter. MCD’s comps increased after witnessing a decline in the preceding two quarters.

YUM! Brands, Inc. YUM reported fourth-quarter 2024 results, with adjusted earnings and total revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.

The company’s top-line performance reflected solid contributions from the KFC, Pizza Hut and Taco Bell divisions. YUM reported progress in the digital space, with digital sales rising approximately 15% and the digital mix surpassing 50%, moving closer to its long-term goal of 100% digital sales. Worldwide system sales, excluding foreign currency translation, grew 8% year over year, with Taco Bell increasing 14% and KFC rising 6%. The metric rose 3% year over year for Pizza Hut.

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