Cracker Barrel Q3 2022 Earnings Report
Key Takeaways
Cracker Barrel's third quarter results were affected by a challenging macro environment with consumer sentiment and high inflationary pressures impacting both top and bottom lines. The company reported a total revenue increase of 10.8% compared to the third quarter of fiscal 2021. Despite these challenges, the company is pursuing strategic initiatives to grow the business.
Total revenue increased by 10.8% compared to the third quarter of fiscal 2021.
GAAP operating income decreased by 42.0% compared to the prior year quarter.
GAAP earnings per diluted share were $1.19, a 15.6% decrease compared to the prior year.
The Board of Directors declared a quarterly dividend of $1.30 per share and authorized a new share repurchase program of up to $200 million.
Cracker Barrel
Cracker Barrel
Forward Guidance
The Company anticipates fourth quarter 2022 revenue to be approximately 8.0% above the prior year fourth quarter, and fourth quarter 2022 adjusted operating income margin to be in the range of 4.0% to 4.5% of total revenue.
Challenges Ahead
- The Company anticipates the near-term consumer environment will remain challenged due to high inflation
- The Company anticipates the near-term consumer environment will remain challenged due to lower consumer confidence especially for the age sixty-five-plus consumer group.
- The Company expects operating margins in the fourth quarter to be adversely impacted by commodity inflation
- The Company expects operating margins in the fourth quarter to be adversely impacted by wage inflation
- The Company expects operating margins in the fourth quarter to be adversely impacted by other operating expenses inflation