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CBRL Nasdaq· Cracker Barrel Old Country Store Inc
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CBRL Nasdaq· Cracker Barrel Old Country Store Inc
Earnings report Q4 2023

CBRL Reports Decrease in Total Revenue for Latest Quarter

Segments of revenue

In the latest quarter, CBRL reported total revenue of $823.8 million, a decrease of 1.9% compared to the same quarter in the previous year. The breakdown of revenue by segment is as follows:

  • Cost of goods sold (exclusive of depreciation and rent) accounted for 31% of total revenue, amounting to $255.6 million.
  • Labor and other related expenses represented 37% of total revenue, totaling $304.4 million.
  • Other store operating expenses accounted for 24.7% of total revenue, amounting to $203.7 million.
  • General and administrative expenses represented 5.9% of total revenue, totaling $48.7 million.

Strengths

Despite the decrease in total revenue, CBRL's management highlighted some strengths in their financial performance. They attributed the decrease in revenue to higher advertising expenses, store occupancy costs, and general insurance expenses. The increase in advertising expense was primarily due to higher media spending and costs associated with the launch of their new customer loyalty program, Cracker Barrel Rewards. Additionally, higher media spending was a result of a shift in the timing of holiday television advertising compared to the previous year.

Challenges

CBRL faced challenges in their latest quarter, as evidenced by the decrease in total revenue. The decrease can be attributed to various factors, including higher advertising expenses, store occupancy costs, and general insurance expenses. These challenges impacted the company's operating income, which decreased from 2.8% in the previous year's quarter to 1.4% in the latest quarter.

Noteworthy

It is worth noting that CBRL experienced a net change in units, with one new Cracker Barrel unit and one new MSBC unit added during the latest quarter. This expansion may have contributed to the company's overall performance.

Summary

CBRL reported a decrease in total revenue for the latest quarter, primarily driven by higher advertising expenses, store occupancy costs, and general insurance expenses. Despite these challenges, the company's management remains optimistic about their new customer loyalty program and the potential for future growth. However, it will be important for CBRL to address the factors impacting their revenue and operating income to improve their financial performance in the upcoming quarters.

Source documents

Form 10-Q  filed on Nov 30, 2023
76 pages scanned

Reference data

Company financials Q4 revenue 0
Analyst estimates Q4 EPS missed by 0.00%
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