- Cracker Barrel Old Country Store Inc (NASDAQ:CBRL) reported second-quarter FY22 sales growth of 27.3% year-on-year, to $862.26 million, missing the analyst consensus of $870.14 million.
- Comparable retail sales increased 32.5%, and comparable restaurant sales rose 25.9% versus Q2 FY21.
- Comparable retail sales increased 13.7%, and comparable restaurant sales rose 1.9% versus Q2 FY19.
- Adjusted EPS of $1.71 beat the analyst consensus of $1.66.
- General and administrative expenses for the quarter rose 28% Y/Y to $43.5 million.
- The operating margin for the quarter was 5.4%, and the operating income rose 224% Y/Y to $46.7 million.
- EBITDA increased 68% Y/Y to $75.4 million. EBITDA margin was 8.7% versus 6.6% last year.
- Cracker Barrel held $79.7 million in cash and equivalents as of January 28, 2022.
- "Although we anticipate a peak inflationary environment in the third quarter for both commodities and wages that will pressure our third quarter operating margins, we are confident that our initiatives to welcome back our guests, drive sales, and manage costs will lead to a meaningful recovery of both top and bottom-line results in the fourth quarter and into fiscal 2023," said CEO Sandra B. Cochran.
- Outlook: Cracker Barrel expects Q3 FY22 sales of about $800 million, above the consensus of $788.07 million.
- The company anticipates Q3 commodity inflation of approximately 15% and wage inflation of approximately 11% - 12%.
- Price Action: CBRL shares are trading lower by 1.26% at $130.83 on the last check Tuesday.
