Cracker Barrel (CBRL) to Report Third Quarter Profits: What’s in Store?

Cracker Barrel Old Country Store, Inc. CBRL is expected to release its third quarter fiscal 2021 results on May 25. In the last quarter, the company’s profits beat Zacks’ consensus estimate by 9.4%.

Q3 estimates

Zacks’ consensus estimate for third quarter net income is set at 7 cents. In the quarter of last year, the company reported an adjusted loss of $ 6.81 per share. The consensus mark for revenue stands at $ 658.4 million, which suggests growth of 52.2% from the prior year quarter.

Factors to note

Cracker Barrel’s fiscal performance in the third quarter likely benefited from robust off-site sales, sales strengthening efforts and expansion efforts. In addition, the company has focused on rejuvenating its menu, which is essential for growth. Additionally, improved sales and operating margin thanks to stimulus spending, pent-up demand, continued vaccinations and a decrease in the number of COVID-19 cases could have contributed to performance. The additional investments and ramp-up expenses associated with the continued deployment of key initiatives such as beer and wine, digital enhancements and menu innovation also bode well.

Additionally, Zacks’ consensus estimate for restaurant revenue is set at $ 540 million, which suggests growth of 51.7% from the year-ago quarter. Meanwhile, the consensus mark for retail revenue stands at $ 119 million, indicating a 65.3% improvement over the quarter last year.

However, dismal traffic from the pandemic likely weighed on the results. In the first and second quarters of fiscal 2021, same-store restaurant sales represented a traffic decrease of 18.3% and 24.2%, respectively.

What the Zacks model reveals

Our proven model does not conclusively predict a profit beating for Cracker Barrel this time around. The combination of a positive ESP benefits and a Zacks # 1 (strong buy), 2 (buy) or 3 (hold) rank increases the chances of a winning beat. But it is not the case here. You can discover the best stocks to buy or sell before they are flagged with our Income ESP Filter.

Cracker Barrel has an ESP gain of 0.00% and a Zacks # 4 (sell) rank.

You can see The full list of current Zacks # 1 Rank stocks here.

Peer Releases

Yum! Brands, Inc. YUM reported a strong first quarter 2021 results, with profit and revenue exceeding Zacks’ consensus estimate. The parameters have increased year by year. The company’s adjusted profit of $ 1.07 beat Zacks’ consensus estimate by 85 cents. In the quarter of the previous year, the company reported adjusted earnings of 64 cents. Quarterly revenues of $ 1,486 million exceeded the consensus estimate of $ 1,461 million. The top line also increased 17.7% year over year. The increase can be attributed to increased sales as well as increased franchise and ownership income.

McDonald’s Corporation MCD reported first quarter 2021 results, with profits and revenues above Zacks’ consensus estimate. The company reported adjusted earnings of $ 1.92 per share, which topped Zacks’ consensus estimate of $ 1.81. In addition, net income increased 31% year over year. Quarterly revenue of $ 5,124.6 million exceeded Zacks’ consensus estimate of $ 5,047 million. In addition, this figure has increased by 9% year over year. Sales benefited from increased comparable sales worldwide.

Starbucks Corporation SBUX reported second quarter 2021 results, with earnings exceeding Zacks’ consensus estimate and revenue similarly missing. The company reported adjusted EPS of 62 cents, which beat the Zacks consensus estimate of 52 cents. In the quarter of the previous year, the company reported adjusted EPS of 32 cents. Meanwhile, quarterly revenue of $ 6,668 million missed Zacks’ consensus estimate of $ 6,803 million. However, the top line rose 11.2% from last year’s quarter levels. The increase was driven by growth in same store sales, partially offset by the unfavorable impact of activities related to the transition of the Global Coffee Alliance.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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