The function extends to assigning stocks a "dividend grade". One of the great features of Seeking Alpha premium is its extensive stock ratings based on quantitative metrics. This is on top of the regular $1.30 per share quarterly dividend that currently yields 5.3%. A new $200 million buyback authorization was also announced. Considering approximately $252 million in adjusted EBITDA over the past year, we calculate a net leverage ratio of 1.4x which highlights an overall solid balance and liquidity position.įinally, we note that Cracker Barrel has been active with share buybacks, repurchasing $39 million in stock during the quarter. The company ended the quarter with $24.7 million in cash and equivalents against $373 million in long-term debt. The attraction is that Maple Street is expected to generate higher margins with four new locations in fiscal Q4 as an incremental growth driver. Operationally, a key initiative for Cracker Barrel has been the expansion of its "Maple Street Biscuit Company" fast-casual breakfast-focused restaurant concept as a sister brand. In terms of guidance, the company is targeting 8% y/y revenue growth for Q4 while an adjusted operating margin range between 4.0% and 4.5%, would be roughly flat to Q3 on a reported basis. The message from management is that the challenging economic environment has impacted the top and bottom lines and the headwinds are expected to continue. Adjusted EBITDA at $59.6 million fell 28% y/y. The operating margin of 3.9% was down from 7.4% in Q3 2021 and also a strong 8.8% margin in Q3 2019. The combination of a 22% increase in the cost of goods sold based on food inflation, along with a 13% higher labor costs resulted in a 42% decline in operating income compared to the period last year. While there was positive growth including comparable total sales up 4.9% compared to the 2019 pre-pandemic benchmark, the story here was a surge in costs and tighter margins. Revenue of $790 million, up 11% year-over-year, was also slightly below the market estimate. The company last reported its fiscal Q3 earnings back in early June with non-GAAP EPS of $1.29 misses which missed expectations by $0.02. We'll also note that CBRL stands out with a 5.3% dividend yield which is among the highest in its peer group, supported by overall fundamentals. Our bullish case here is that the recent trend of lower gas prices supports a more positive operating environment for dining as customers get back on the road. Recognizing a reset of expectations and softer earnings, we like the stock at the current level which is well positioned for a rebound. Indeed, shares of CBRL are down more than 25% year to date, and off nearly 45% from its 2021 high. The challenge for the company this year has followed many of the trends in the broader restaurant industry dealing with a weaker economic environment and inflationary cost pressures.
Jetcityimage/iStock Editorial via Getty ImagesĬracker Barrel Old Country Store ( NASDAQ: CBRL) controls over 650 restaurants across the United States marketing a "homestyle" food experience.
0 kommentar(er)
