Cracker Barrel (CBRL) Q1 Earnings: What To Expect

Restaurant company Cracker Barrel (NASDAQ:CBRL) will be reporting results tomorrow morning. Here's what to look for.

Cracker Barrel beat analysts' revenue expectations by 1.9% last quarter, reporting revenues of $935.4 million, flat year on year. It was a very strong quarter for the company, with full-year revenue guidance beating analysts' expectations.

Is Cracker Barrel a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Cracker Barrel's revenue to decline 1.5% year on year to $820.6 million, a reversal from the 5.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.66 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 8 downward revisions over the last 30 days. Cracker Barrel has missed Wall Street's revenue estimates five times over the last two years.

Looking at Cracker Barrel's peers in the sit-down dining segment, some have already reported their Q1 results, giving us a hint as to what we can expect. BJ's revenues decreased 1.2% year on year, meeting analysts' expectations, and The Cheesecake Factory reported revenues up 2.9%, in line with consensus estimates. BJ's traded up 5.9% following the results while The Cheesecake Factory was also up 6.2%.

Read our full analysis of BJ's results here and The Cheesecake Factory's results here.

Inflation fears have put pressure on growth stocks, and while some of the sit-down dining stocks have fared somewhat better, they have not been spared, with share prices down 2.7% on average over the last month. Cracker Barrel is down 19.9% during the same time and is heading into earnings with an average analyst price target of $56.8 (compared to the current share price of $46.6).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.