Cracker Barrel Old Country Store saw a significant increase in sales and earnings during the fiscal fourth quarter. The rise can be attributed to higher menu prices and reduced costs.
Impressive Financial Performance
In the quarter ended July 28, the restaurant chain recorded a profit of $37.5 million, or $1.68 per share, compared to $33.4 million, or $1.47 per share, in the same quarter last year. After adjusting for one-time items, adjusted earnings reached $1.79 per share, surpassing analysts’ expectations of $1.61 per share.
Although revenue slightly missed analyst forecasts at $836.7 million, compared to an expected $841.6 million, it still showed growth from the year-ago period of $830.4 million.
Strong Restaurant Sales and Decline in Retail Sales
Cracker Barrel experienced a 2.4% increase in comparable restaurant sales for the quarter. This growth was primarily driven by an 8.7% surge in menu prices. However, comparable retail sales at their attached Old Country Stores declined by 6.8%.
Favorable Cost Dynamics
During the quarter, costs of goods sold and other operating expenses decreased, contributing to the company’s favorable financial performance. However, higher labor and overhead costs partially offset these savings.
In conclusion, Cracker Barrel Old Country Store’s sales and earnings have shown remarkable growth in the fiscal fourth quarter, primarily due to higher menu prices and cost reductions. Despite a slight miss on revenue forecasts, the company remains on a positive trajectory.
