Cracker Barrel (ticker: CBRL) reported better-than-expected adjusted earnings of $1.79 per share for the fiscal fourth quarter, surpassing Wall Street's estimate of $1.61, according to FactSet. The company's sales for the quarter reached $836.7 million, showing growth from the previous year, but falling short of analysts' forecast of $842 million. While same-store restaurant sales increased by 2.4% due to higher menu prices, same-store retail sales experienced a decline of 6.8% compared to the same quarter last year.
As a result, shares of Cracker Barrel rose by 3.7% on Wednesday. However, the stock has seen a 19% drop so far this year.
CEO Sandra Cochran expressed confidence in the company's ability to improve its traffic performance through various marketing and operational measures, especially as the important holiday season approaches. Despite recent challenges in generating traffic, Cochran affirmed that Cracker Barrel's strategic focus would lead to short-term improvement and long-term value creation.
Looking ahead, Cracker Barrel provided its fiscal first-quarter outlook, projecting a total revenue range of $800 million to $850 million, in line with analysts' estimate of $849 million. Additionally, the company expects commodity deflation of 1% to 2% and wage inflation of 4% to 5%.