#United States #Cracker Barrel #Lebanon #fiscal results #Maple Street

Cracker Barrel Reports Strong Second Quarter Fiscal 2025 Results

Revenue and Sales Performance
Cracker Barrel Old Country Store, Inc. released its financial results for the second quarter ending January 31, 2025, showcasing noteworthy growth in revenue and comparable store sales. The company's total revenue reached $949.4 million, marking a 1.5% increase compared to the same quarter last year. Comparatively, restaurant sales saw a rise of 4.7%, benefitting from a 6.0% increase in menu pricing, while comparable retail store sales climbed by 0.2%.

Earnings and Profitability Metrics
Despite an overall positive outcome, Cracker Barrel's net income for the quarter fell to $22.2 million, equating to a decrease of 16.3% year-over-year. This corresponds to diluted earnings per share of $0.99, down from $1.19 last year. Adjusted earnings, on the other hand, display a healthy performance with adjusted earnings per diluted share rising to $1.38, a 9.5% increase from the previous year.

CEO Insights on Performance
Julie Masino, the President and CEO of Cracker Barrel, remarked on the impressive results driven by robust team execution and enhancements in their off-premise business strategies during the holiday season. She expressed optimism regarding the company's financial outlook for the rest of fiscal 2025, despite facing a softening industry landscape recently.

Financial Outlook for Fiscal 2025
Cracker Barrel has adjusted its fiscal 2025 revenue guidance upward, now forecasting total revenue between $3.45 billion and $3.50 billion, a slight enhancement over the previous projection of $3.4 billion to $3.5 billion. The company also anticipates adjusted EBITDA in the range of $210 million to $220 million, revised from an earlier estimate of $200 million to $215 million. Additionally, commodity inflation is expected to hover around 2% to 3% year-over-year, while hourly wage inflation is anticipated to be approximately 3%.

Challenges Ahead
While the results reflect a solid operational backbone, Cracker Barrel acknowledges the macroeconomic pressures including inflation and low consumer confidence which continue to create uncertainties. The company's dependance on a single distribution facility and specific vendors, as well as recruitment and retention challenges, further complicate the outlook.

Quarterly Dividend Declaration
On a more favorable note, Cracker Barrel's Board of Directors has declared a quarterly dividend of $0.25 per share, payable on May 14, 2025, to shareholders who are on the record as of April 11, 2025.

Looking Forward
Looking ahead, Cracker Barrel aims to open 1 to 2 new Cracker Barrel stores and 4 new Maple Street Biscuit Company units within the fiscal year. The company continues to strategize its operational improvements and guest experiences, which it believes are essential for long-term growth and success. As the company adapts to evolving market challenges, its focus on quality service and homestyle offerings will remain a cornerstone of its mission.

Conclusion
In summary, while Cracker Barrel faced headwinds this quarter, their overall financial health and adjusted outlook demonstrate potential resilience in a recovering economy. Investors will be keenly watching how the company navigates these challenges while striving for enhanced profitability and customer satisfaction.