Yahoo Finance Cracker Barrel (CBRL) to Post Q2 Earnings: What's in the Cards?
Cracker Barrel Old Country Store, Inc. CBRL is scheduled to report second-quarter fiscal 2023 results on Feb 28. In the last reported quarter, the company reported a negative earnings surprise of 22.1%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the fiscal second-quarter earnings per share (EPS) is pegged at $1.33, indicating a deterioration of 22.2% from $1.71 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $917.3 million. The projection suggests an increase of 6.4% from the year-ago quarter’s reported figure.
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
Let’s discuss the factors that are likely to get reflected in the quarter to be reported.
Factors at Play
Cracker Barrel's fiscal second-quarter performance is likely to have benefited from its off-premise business, technological enhancements and menu innovation efforts. During the previous quarter, the company stated that comparable store off-premise sales contributed 17.5% of the quarterly restaurant sales. Also, it remained elevated from 2019 levels. The company stated to have benefited from its catering business and third-party delivery. Also, it witnessed higher demand for its Thanksgiving heat-and-serve offerings. Given the emphasis on order-fulfillment improvements and expanded guest engagement (through its digital platform), the momentum is likely to have continued in the to-be-reported quarter.
Robust restaurant and retail sales and sequential improvements in traffic (on account of culinary and marketing initiatives) are likely to have aided the company’s fiscal second-quarter top line. We expect restaurant and retail sales to be $694.7 million and $219.1 million, up 6.4% and 3.2% year over year, respectively.
However, commodity and wage inflation and supply chain challenges are likely to have negatively impacted the company’s performance in the fiscal second quarter. Although the company has been strategically increasing prices to mitigate the impact of inflation, it expects commodity inflation to be 8-9% (with sequential moderation) and wage inflation of 5-6% in fiscal 2023. For second-quarter fiscal 2023, we expect the adjusted operating margin to be 4.6%, compared with 5.8% reported in the prior-year quarter. Also, the decline in traffic from pre-pandemic levels is a headwind.
What Our Model Says
Our proven model does not 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.
Earnings ESP: Cracker Barrel has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #4 (Sell).
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail-Wholesale space that investors may consider, as our model shows that these also have the right combination of elements to post an earnings beat:
Dine Brands Global, Inc. DIN has an Earnings ESP of +4.28% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Dine Brands have declined 6.9% in the past year. DIN’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 10.6%, on average.
Casey's General Stores, Inc. CASY has an Earnings ESP of +14.04% and a Zacks Rank #3.
Shares of Casey's have gained 13.1% in the past year. CASY’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 7.2%.
Shake Shack Inc. SHAK currently has an Earnings ESP of +1.63% and a Zacks Rank #3.
Shares of Shake Shack have declined 24.3% in the past year. SHAK’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 39.8%, on average.
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Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report
DINE BRANDS GLOBAL, INC. (DIN) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Shake Shack, Inc. (SHAK) : Free Stock Analysis Report
