Q3 2024 Cracker Barrel Old Country Store Inc Earnings Call Transcript
Key Points
- Cracker Barrel Old Country Store Inc (CBRL) reported total revenue of $817.1 million and adjusted EBITDA of $47.9 million, reflecting a 5.9% margin.
- The company saw solid improvements in key operational metrics such as guest satisfaction, speed, hourly turnover, and average skill level for key job roles.
- Hourly turnover improved by 10 percentage points, and seat-to-eat times improved by approximately 8%.
- Off-premise missing items scores improved by 18%, and the average skill level for key positions increased by 3%.
- The company managed food waste effectively and saw positive trends in operational discipline, which helped mitigate margin compression from lower traffic.
- Third-quarter results fell below expectations due to weaker than anticipated traffic, highlighting the need for strategic transformation.
- Comparable store restaurant sales decreased by 1.5%, and retail revenue decreased by 3.7% compared to the prior quarter.
- Labor and related expenses increased by 200 basis points to 37.8% of revenue, driven by investments in additional labor hours and hourly wage inflation.
- Other operating expenses increased by 90 basis points to 24.5% of revenue, primarily due to investments in advertising and higher depreciation.
- The company recorded store impairment charges and closure expenses of $22.9 million, including a $4.7 million goodwill impairment due to the decision to slow down Maple Street's unit growth.
Good day and welcome to the Cracker Barrel fiscal 2024 third-quarter conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Mr. Adam Hanan, Senior Manager of Investor Relations. Please go ahead, sir.
Thank you. Good morning and welcome to Cracker Barrel's third quarter fiscal 2024 conference call and webcast. This morning, we issued a press release announcing our third quarter results. In this press release and on this call, we will refer to non-GAAP financial measures such as adjusted EBITDA for the third quarter ended April 26, 2024. Please refer to the footnotes in our press release for further details about these measures.
The company believes that these measures provide investors with an enhanced understanding of the company's financial performance. This information is not intended to be considered in isolation or as a substitute for net income or earnings per share information prepared in accordance with GAAP
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
