MW Cracker Barrel's stock bounces off 3-year low after profit beats expectations, while revenue misses amid 'recent traffic challenges'
Shares of Cracker Barrel Old Country Store Inc. $(CBRL)$ bounced 1.0% off a more than three-year low in premarket trading Wednesday, after the family restaurant chain reported fiscal fourth-quarter profit that beat expectations by revenue that missed amid "recent traffic challenges." Net income for the quarter to July 28 rose to $37.5 million, or $1.68 a share, from $33.4 million, or $1.47 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.79 beat the FactSet consensus of $1.61. Revenue grew 0.8% to $836.7 million, below the FactSet consensus of $841.6 million. Same-restaurant sales rose 2.4%, but missed the FacSet consensus of 3.1% growth, while same-store retail sales fell 6.8% but beat expectations of an 8.1% decline. For the first quarter, the company expects revenue of $800 million to $850 million, compared with the FactSet consensus of $842 million. The company's traffic challenges followed a consumer backlash for its diversity, equity and inclusion campaign. Chief Executive Susan Cochran also announced in July her plan to retire after 12 years in the role, effective Nov. 1. The stock, which closed Tuesday at its lowest price since April 3, 2020, has tumbled 20.9% over the past three months while the S&P 500 has gained 2.1%.
-Tomi Kilgore
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September 13, 2023 08:38 ET (12:38 GMT)
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