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Jan 31, 2020
Cracker Barrel Q2 2020 Earnings Report
Cracker Barrel outperformed the casual dining industry with solid operating income growth.
Key Takeaways
Cracker Barrel reported a 4.2% increase in total revenue, driven by comparable store restaurant sales growth of 3.8% and retail sales growth of 1.3%. Operating income increased by 3.2% to $79.1 million, and GAAP earnings per diluted share were $2.55.
Comparable store restaurant sales growth of 3.8% and traffic of -0.2% outperformed the casual dining industry.
Comparable store retail sales increased 1.3%.
Operating income was $79.1 million, a 3.2% increase compared to the prior year.
GAAP earnings per diluted share were $2.55, including an unfavorable impact from Punch Bowl Social.
Cracker Barrel
Cracker Barrel
Cracker Barrel Revenue by Segment
Revenue by Segment
Restaurant Revenue
CapyFin.comRetail Revenue
CapyFin.com Forward Guidance
The Company updated the following components of its fiscal 2020 outlook: GAAP earnings per diluted share between $8.55 and $8.65
Positive Outlook
- Cracker Barrel comparable store restaurant sales growth of 2.0% to 2.5%
- Approximately flat comparable store retail sales growth
- Commodity inflation, on a constant mix basis, of 1.5% to 2.0%
- Depreciation expense of approximately $115 million
- Sustainable cost savings of approximately $11 million
Challenges Ahead
- GAAP earnings per diluted share between $8.55 and $8.65
- This includes an expected loss from the Company’s equity method investment in its unconsolidated subsidiary, Punch Bowl Social, resulting in an unfavorable GAAP earnings per diluted share impact of approximately ($0.80)
- This also includes transactional and integration expenses related to the Company’s acquisition of Maple Street Biscuit Company, which are expected to result in an unfavorable impact to GAAP earnings per diluted share of approximately ($0.15)
- Capital expenditures of approximately $125 million
- An effective tax rate of approximately 16.0%, which includes an expected tax benefit from the projected loss from the Company’s equity method investment in Punch Bowl Social
Revenue & Expenses
Visualization of income flow from segment revenue to net income