Cracker Barrel (NASDAQ:) Old Country Store, Inc. (CBRL) reported its fiscal 2024 fourth-quarter earnings on August 2, 2024, highlighting a year of strategic transformation and operational improvements as the company celebrated its 55th anniversary. CEO Julie Masino announced that total revenue was $894.4 million, a 6.9% increase from the previous year, and adjusted EBITDA was $57.4 million.
The company outlined its plans for fiscal 2025, including 25 to 30 store remodels, the opening of new Cracker Barrel and Maple Street locations, and a projected revenue of $3.4 billion to $3.5 billion.
Key Takeaways
- Total revenue for the quarter was $894.4 million, a 6.9% increase year-over-year.
- Adjusted EBITDA for the quarter decreased to $57.4 million.
- Comparable store restaurant sales slightly rose by 0.4%, while retail sales saw a 4.2% decrease.
- The company plans 25-30 store remodels and refreshes for fiscal 2025.
- The Cracker Barrel Rewards loyalty program reached 6 million members, boosting engagement and sales.
- Fiscal 2025 revenue is projected to be between $3.4 billion and $3.5 billion, with a 5% pricing increase.
- Two new Cracker Barrel locations and three to four Maple Street units are set to open.
- Capital expenditures for fiscal 2025 are expected to be between $160 million and $180 million.
Company Outlook
- Projected revenue for fiscal 2025 stands between $3.4 billion and $3.5 billion.
- Opening of two new Cracker Barrel stores and three to four new Maple Street units planned.
- Capital expenditures anticipated to be between $160 million and $180 million, mainly for maintenance, remodels, and IT initiatives.
- Commodity inflation expected to be 2% to 3%, with hourly restaurant wage inflation forecasted at 3% to 4%.
- Adjusted EBITDA for fiscal 2025 projected to be around $200 million to $215 million.
- A quarterly dividend of $0.25 is payable on November 13, 2024.
Bearish Highlights
- A decrease in adjusted EBITDA to $57.4 million in the fourth quarter.
- Retail sales decreased by 4.2%.
- Traffic for the quarter was approximately negative 4%.
- G&A expenses will be elevated due to strategic transformation investments.
Bullish Highlights
- Positive trends in guest satisfaction and operational metrics.
- The loyalty program has led to a 50% higher visit frequency among members.
- Strategic pricing initiatives are expected to maintain customer traffic despite the price hike.
- The company remains competitive, with pricing 8% to 12% below industry averages.
Misses
- The company experienced a slight decrease in…
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