On September 19, 2024, Cracker Barrel Old Country Store Inc (CBRL, Financial) released its 8-K filing for the fourth quarter of fiscal 2024, ending August 2, 2024. Cracker Barrel operates hundreds of full-service restaurants throughout the United States, offering home-style country food and unique retail products.
Fourth Quarter Fiscal 2024 Highlights
Cracker Barrel reported total revenue of $894.4 million for the fourth quarter, a 6.9% increase compared to the prior year's $836.7 million. This figure includes a $62.8 million benefit from an additional operating week. The company's GAAP earnings per diluted share were $0.81, while adjusted earnings per diluted share stood at $0.98, both benefiting from the 53rd week.
Performance and Challenges
Despite the revenue increase, Cracker Barrel faced significant challenges. Comparable store restaurant sales increased by only 0.4%, while comparable store retail sales decreased by 4.2%. The company's GAAP net income for the fourth quarter was $18.1 million, or 2.0% of total revenue, down from $37.5 million, or 4.5% of total revenue, in the prior year. Adjusted EBITDA also decreased to $57.4 million from $70.4 million in the previous year.
Commenting on the results, Cracker Barrel President and CEO Julie Masino said, "Our teams are highly engaged and intently focused on executing our strategic transformation and our day-to-day business at a high level. We are already making great progress and are encouraged by the initial results of key initiatives such as operational excellence and the guest experience, optimized pricing, and our remodel program."
Financial Achievements
For the fiscal year 2024, Cracker Barrel reported total revenue of $3.47 billion, a 0.8% increase from $3.44 billion in fiscal 2023. However, GAAP net income for the fiscal year was $40.9 million, or 1.2% of total revenue, down from $99.1 million, or 2.9% of total revenue, in the previous year. Adjusted EBITDA for the fiscal year was $211.6 million, compared to $251.2 million in fiscal 2023.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | Change |
|---|---|---|---|
| Total Revenue | $894.4 million | $836.7 million | 6.9% |
| GAAP Net Income | $18.1 million | $37.5 million | -52% |
| Adjusted EBITDA | $57.4 million | $70.4 million | -18.5% |
| GAAP EPS (Diluted) | $0.81 | $1.68 | -52% |
| Adjusted EPS (Diluted) | $0.98 | $1.68 | -42% |
Analysis
Cracker Barrel's performance in the fourth quarter of fiscal 2024 highlights both achievements and challenges. The increase in total revenue, driven by the additional operating week, is a positive sign. However, the decline in net income and adjusted EBITDA indicates underlying challenges, such as increased costs and decreased retail sales. The company's strategic initiatives, including operational excellence and optimized pricing, will be crucial in addressing these challenges and driving future growth.
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Explore the complete 8-K earnings release (here) from Cracker Barrel Old Country Store Inc for further details.
