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Cracker Barrel (CBRL) Gears Up for Q4 Earnings: What to Expect?

Cracker Barrel Old Country Store, Inc. CBRL is scheduled to report its fourth-quarter fiscal 2022 results on Sep 27. In the last reported quarter, the company delivered an earnings surprise of 6.6%.

The Trend in Estimate Revision

The Zacks Consensus Estimate for the fiscal fourth-quarter earnings per share is pegged at $1.41, indicating a 37.3% decline from the $2.25 reported in the year-ago quarter. For revenues, the consensus mark is pegged at $844.4 million. The projection suggests an increase of 7.6% from the year-ago quarter’s reported figure.

Let’s discuss the factors that are likely to get reflected in the quarter to be reported.

Factors at Play

Cracker Barrel's fiscal fourth-quarter top line is likely to have benefited from robust off-premise business, sales building efforts and sequential improvements in traffic. These, and an emphasis on the roll-out of new point-of-sale systems, covering food and labor management systems, are likely to have aided the company’s performance in the to-be-reported quarter. The Zacks Consensus Estimate for restaurant revenues is pegged at $676 million, up 10.8% year over year.

However, higher labor costs due to increased wages are likely to have kept profit under pressure. The company is apprehensive regarding incurring inflationary costs. Meanwhile, management is making significant investments to support training, the launch of several initiatives, and value testing. Although these moves are expected to have driven CBRL’s top-line growth during fiscal fourth-quarter 2022, initial investments might dent margins.

For the fiscal fourth quarter, the company anticipates commodity inflation and wage inflation to be approximately 16-18% and 8-10%, respectively. It expects capital expenditures at approximately $30 million for the quarter to be reported.

Cracker Barrel Old Country Store, Inc. Price and EPS Surprise

Cracker Barrel Old Country Store, Inc. Price and EPS Surprise
Cracker Barrel Old Country Store, Inc. Price and EPS Surprise

Cracker Barrel Old Country Store, Inc. price-eps-surprise | Cracker Barrel Old Country Store, Inc. Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Cracker Barrel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Cracker Barrel has an Earnings ESP of 0.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some companies in the Retail-Wholesale space, which, per our model, have the right combination of elements to post an earnings beat in the upcoming releases:

The Kroger Co. KR currently has an Earnings ESP of +0.21% and a Zacks Rank #2.

Shares of Kroger have increased 12.8% in the past year. KR’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 15.7%, on average.

Chipotle Mexican Grill, Inc. CMG has an Earnings ESP of +1.63% and a Zacks Rank #3.

Shares of Chipotle have declined 14% in the past year. CMG’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 6.2%, on average.

Restaurant Brands International Inc. QSR currently has an Earnings ESP of +0.78% and a Zacks Rank #3.

Shares of Restaurant Brands have declined 8.5% in the past year. QSR’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 6.1%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report
 
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
 
The Kroger Co. (KR) : Free Stock Analysis Report
 
Restaurant Brands International Inc. (QSR) : Free Stock Analysis Report
 
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