In a February 22nd release, Cracker Barrel Old Country Store Inc. (CBRL) posted financial results for the 2nd quarter of fiscal 2022. This company is a bellwether for casual and family dining and competes with Denny’s, IHOP and both local and regional chains offering full menus. The Company experiences the same pressures of increased cost of ingredients, labor and transport as its competitors in an environment still restrained by COVID. Comparable restaurant sales representing 76.1 percent of revenue increased 25.9 percent over Q2 of FY 2021.
For the 2nd Quarter of FY 2022 ending January 28th, net income was $37.6 million on total revenue of $862.3 million. Comparable figures for the 2nd quarter of fiscal 2021 ending January 29th were net income of $14.0 million (with a $10 million tax benefit) on total revenue of $677.2 million. Diluted EPS increased from $0.59 for the 2nd quarter of fiscal 2021 to $1.60 for the most recent quarter.
Commenting on the quarter, Sandra B. Cochran President and CEO said, "I am pleased that we once again delivered improved restaurant sales and strong retail sales despite the impact of rising COVID cases during the second quarter, and even more pleased to be welcoming back our guests who we believe are eager to return to more normalized routines of travel and visitation as Omicron fades and concerns about indoor dining continue to subside. Although we anticipate a peak inflationary environment in the third quarter for both commodities (up 15 percent) and wages (up 12 percent) 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."
The Company provided guidance of sales attaining $800 million in Q3 of FY 2022. Cracker Barrel operated 1,732 stores of which 235 are company-owned.
On January 28th 2021, CBRL posted assets of $2,302 million, against long-term debt and lease obligations of $1,133 million. The Company had an intraday market capitalization of $3,120 million on January 28th. CBRL trades with a forward P/E of 17.3 and has ranged over a 52-week period from $111.79 to $178.82 with a 50-day moving average of $125.86. Twelve-month trailing operating margin was 5.8 percent and profit margin 4.0 percent. Return on assets over the past twelve months was 4.1 with 19.2 percent on equity. At close of trading February 18th pre-release, CBRL was priced at $130.38. At 15H00 post-release on Tuesday February 22nd CBRL traded at at $131.68 on a decidedly down day despite beating street estimates on the top and bottom lines.