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Cracker Barrel Posts Q1 Financial Results

12/07/2020

Cracker Barrel and Old Country Store (CBRL) posted financial results for the first quarter of fiscal 2021 ended October 30th 2020. This chain can be regarded as a bellwether for the casual dining segment of the restaurant sector. For the period, net income was $170.7 million on total revenue of $646.5 million.  Comparable figures for the first quarter of fiscal 2020 ended November 1st 2019 were net income of $43.2 million on total revenue of $749.0 million.  EPS advanced from $1.79 for the first quarter of fiscal 2020 to $7.18 for the most recent quarter. Restaurant sales represented 79.5 percent of total revenue for the quarter.

 

At the end of the first quarter of FY2021 the company operated 663 Cracker Barrel stores and 35 Maple Street Biscuit Company locations in 45 states.

 

The company recorded a comparable same-restaurant sales decline of 16.4 percent compared to the first quarter of fiscal 2019.  The most recent quarter was an improvement on the fourth quarter ended July 31st, 2020 during which same-restaurant sales declined by 39.2 percent. 

 

In commenting on first quarter results, Sandra B. Cochran, President and CEO stated, "I am pleased with the significant improvement we saw in both first quarter comparable store, restaurant and retail sales compared to the previous quarter and I believe these results reflect the effectiveness of our strategy and the strength of our brand.  However, given the recent nationwide resurgences of COVID-19 and the resulting restrictions that have been imposed in many of our communities, our outlook remains cautious".  She concluded, "while we anticipate headwinds in the coming months, I am confident that we have ample liquidity and the right plans in place to successfully navigate through an uncertain environment". 

 

Despite this optimistic tone Management did not provide forward guidance Cracker Barrel has a market capitalization of $3.43 billion and CBRL has traded over a 52-week period in a range of $53.61 to $170.1 with a 50-day moving average of $127.69.  Twelve-month trailing operating margin was 2.4 percent and profit margin -1.3 percent.  Return on assets over the past twelve months was 1.9 percent and the return on equity -6.4 percent.  On December 3rd, CBRL closed at $144.58 up 2.1 percent.