Cracker Barrel Old Country Store, Inc. CBRL
Consumer Discretionary - Hotels, Restaurants & Leisure | Reports June 1, Before Market Opens
Key Takeaways
- The Estimize consensus is calling for earnings per shares of $1.81 on $704.63 million in revenue, 1 cent higher than Wall Street on the bottom line and right in line on the top
- Cracker Barrel Old Country Store (NASDAQ:CBRL) has benefited in the recent years without making any major changes
- Cracker Barrel has pledged to transition 100% of its eggs to cage free over the next 10 years
The recent trends in the food industry are shifting back towards casual dining after years of praise for the fast casual sector. Restaurants like Darden Restaurants (NYSE:DRI) and the The Cheesecake Factory (NASDAQ:CAKE) have posted double digit gains this quarter while the fast casual sector has been plagued by names like Chipotle Mexican Grill Inc (NYSE:CMG). Tomorrow’s report for Cracker Barrel is expected to maintain the current trends within the restaurant industry.
The Estimize consensus is calling for earnings per shares of $1.81 on $704.63 million in revenue, 1 cent higher than Wall Street on the bottom line and right in line on the top. Compared to a year earlier this projects as a 22% increase in earnings with sales expected to grow 3%. Given the strength in the restaurant industry, it’s not surprising that the stock is a positive mover through earnings. In the 30 days following its report shares typically increase 2% which could add to the 20% gains already made this year.
Despite a relatively weak Q2, Cracker Barrel has benefited from the resurgence of the casual dining sector. The old fashion brand continues to deliver positive comparable store sales and earnings on the high end of expectations. Generally speaking, Cracker Barrel has outpaced its peers in the casual dining space. During its Q2 analyst call, they raised guidance for the remainder of fiscal 2016, reflecting easing commodity prices, increasing traffic and growing average check.
Cracker Barrel has made significant gains in the past few years, despite making zero major changes. The biggest augmentation has been its pledge to transition to cage free eggs over the next 10 years. A move to higher quality ingredients preserves its core values but also meets changing consumer habits to healthier products.
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