Sit-Down Dining Stocks Q2 Recap: Benchmarking Cracker Barrel (NASDAQ:CBRL)
Looking back on sit-down dining stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Cracker Barrel (NASDAQ:CBRL) and its peers.
Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.
The 13 sit-down dining stocks we track reported a slower Q2. As a group, revenues were in line with analysts’ consensus estimates.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
Sit-Down Dining stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
Cracker Barrel (NASDAQ:CBRL)
Known for its country-themed food and merchandise, Cracker Barrel (NASDAQ:CBRL) is a beloved American restaurant and retail chain that celebrates the warmth and charm of Southern hospitality.
Cracker Barrel reported revenues of $894.4 million, up 6.9% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a miss of analysts’ earnings estimates.
Commenting on the fourth quarter and full year results, Cracker Barrel President and Chief Executive Officer Julie Masino said, "Our teams are highly engaged and intently focused on executing our strategic transformation and our day-to-day business at a high level. We are already making great progress and are encouraged by the initial results of key initiatives such as operational excellence and the guest experience, optimized pricing, and our remodel program. Although there is much work to be done, I am both excited and confident in our future."
Interestingly, the stock is up 6.5% since reporting and currently trades at $44.28.
Read our full report on Cracker Barrel here, it’s free.
Best Q2: BJ's (NASDAQ:BJRI)
Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.
BJ's reported revenues of $349.9 million, flat year on year, in line with analysts’ expectations. The business had a very strong quarter with a solid beat of analysts’ earnings estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 11.4% since reporting. It currently trades at $33.01.
Is now the time to buy BJ's? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Denny's (NASDAQ:DENN)
Open around the clock, Denny’s (NASDAQ:DENN) is a chain of diner restaurants serving breakfast and traditional American fare.
Denny's reported revenues of $115.9 million, flat year on year, falling short of analysts’ expectations by 2.6%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.
As expected, the stock is down 20.6% since the results and currently trades at $6.09.
Read our full analysis of Denny’s results here.
The ONE Group (NASDAQ:STKS)
Doubling as a hospitality services provider for hotels and resorts, The One Group Hospitality (NASDAQ:STKS) is an upscale restaurant company that operates STK Steakhouse and Kona Grill.
The ONE Group reported revenues of $172.5 million, up 107% year on year. This print missed analysts’ expectations by 3.3%. It was a slower quarter as it also produced full-year revenue guidance missing analysts’ expectations.
The ONE Group pulled off the fastest revenue growth but had the weakest performance against analyst estimates and weakest performance against analyst estimates among its peers. The stock is down 13.1% since reporting and currently trades at $3.45.
Read our full, actionable report on The ONE Group here, it’s free.
Brinker International (NYSE:EAT)
Founded by Norman Brinker in Dallas, Texas, Brinker International (NYSE:EAT) is a casual restaurant chain that operates under the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.
Brinker International reported revenues of $1.21 billion, up 12.3% year on year. This number surpassed analysts’ expectations by 3.8%. Zooming out, it was a mixed quarter as it also produced full-year revenue guidance beating analysts’ expectations but underwhelming earnings guidance for the full year.
Brinker International delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is up 18% since reporting and currently trades at $82.96.
Read our full, actionable report on Brinker International here, it’s free.
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