Cracker Barrel Reports FY4Q22

Oct 10, 2022 | Corporate Insights, No Bull Economics

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•Cracker Barrel’s fiscal 4Q22 (ending 7/29/22) results included a +6.5% increase in restaurant revenue and a +3.3% increase in retail revenue. The chain delivered a stressed 4.4% operating income margin as expected, reflecting inflationary cost pressures and uncertain consumers. 

•Restaurant comps grew +6.1% y/y, driven primarily by +7% pricing, while retail comps increased +3% y/y.

•Restaurant COG margin increased +3.6% y/y, driven by +18% commodity inflation (including +35% poultry, +76% oils & +27% grains). While management does not believe that labor costs will ease substantially in the future, it believes that food commodity costs will begin to ease.

•Cracker Barrel anticipates a discount rate for FY23 that will be higher than last year, but lower than pre–covid.

•New breakfast menu was introduced in June targeting younger guests who appreciate the customization offered by its home-style breakfast section.

•Further, the chain hopes to invest in tech to sustain a younger consumer base. Its off-premise mix was 18% during the quarter.  Revenue guidance for FY23 is up +7% to +8%.

Cracker Barrel Financials Chart
Cracker Barrel Financials Chart

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