On November 30, 2023, Cracker Barrel Old Country Store Inc (CBRL, Financial) released its 8-K filing, detailing the financial outcomes for the first quarter of fiscal 2024 which ended on October 27, 2023. The company faced a challenging quarter with a slight decrease in comparable store restaurant sales and a more significant decline in retail sales. The company's President and CEO, Julie Masino, commented on the results, emphasizing efforts to improve marketing effectiveness and guest experience as key strategies moving forward.
Financial Performance Overview
CBRL reported a total revenue of $823.8 million, a 1.9% decrease compared to the first quarter of fiscal 2023. The dip in revenue was attributed to a 0.5% decrease in comparable store restaurant sales and an 8.1% decrease in comparable store retail sales. Despite these challenges, the company saw monthly improvements in store traffic during the quarter.
Operating Income and Profitability
Operating income for the quarter stood at $11.4 million, or 1.4% of total revenue, which is a significant decrease from $23.6 million, or 2.8% of total revenue, in the prior year quarter. This decline was primarily due to increased labor and related expenses, higher operating expenses, and increased general and administrative expenses, partially offset by a lower cost of goods sold.
Earnings and Dividends
GAAP net income for the first quarter was $5.5 million, or 0.7% of total revenue, marking a 68% decrease from the prior year's $17.1 million, or 2.0% of total revenue. Earnings per diluted share also fell by 68% to $0.25. Despite the downturn, CBRL's Board of Directors declared a quarterly dividend of $1.30 per share, maintaining its commitment to shareholder returns.
Balance Sheet and Cash Flow
The balance sheet shows a decrease in cash and cash equivalents from $38.7 million to $13.9 million year-over-year. Total assets decreased to $2.2 billion from $2.3 billion in the previous year. The cash flow statement indicates a net cash used in operating activities of $15.8 million, compared to a marginal use of $0.6 million in the prior year.
Outlook and Forward-Looking Statements
CBRL provided an outlook for fiscal 2024, cautioning that macroeconomic conditions such as ongoing inflation, low consumer confidence, and high interest rates could impact consumer behavior and the company's performance. The company's outlook includes assumptions that are subject to change based on factors outside of its control.
For detailed financial tables and a full reconciliation of GAAP to non-GAAP operating results, readers are encouraged to view the full 8-K filing.
Overall, Cracker Barrel Old Country Store Inc (CBRL, Financial) is navigating a tough economic landscape with a focus on marketing, guest experience, and operational excellence. The company's efforts to improve performance are ongoing, and the introduction of the Cracker Barrel Rewards loyalty program is expected to be a key driver of future traffic and differentiation in the market.
Explore the complete 8-K earnings release (here) from Cracker Barrel Old Country Store Inc for further details.
