On March 6, 2025, Cracker Barrel Old Country Store Inc (CBRL, Financial) announced its financial results for the second quarter of fiscal 2025, ending January 31, 2025. The company reported a 1.5% increase in total revenue to $949.4 million compared to the previous year. Despite a decrease in GAAP net income, adjusted EBITDA saw a significant rise, prompting the company to raise its financial outlook for the remainder of the fiscal year.
Positive Highlights
- Total revenue increased by 1.5% to $949.4 million.
- Comparable store restaurant sales rose by 4.7%.
- Adjusted earnings per diluted share increased by 9.5% to $1.38.
- Adjusted EBITDA grew by 19.6% to $74.6 million.
- Raised fiscal 2025 revenue outlook to $3.45 billion to $3.50 billion.
Negative Highlights
- GAAP net income decreased by 16.3% to $22.2 million.
- GAAP earnings per diluted share fell by 16.8% to $0.99.
- Net income margin decreased from 2.8% to 2.3%.
Financial Analyst Perspective
Cracker Barrel's financial performance in Q2 fiscal 2025 reflects a robust operational strategy, particularly in enhancing profitability through off-premise channels. The significant increase in adjusted EBITDA indicates effective cost management and operational efficiency. However, the decline in GAAP net income suggests areas for improvement in managing expenses and optimizing net profit margins. The raised guidance for fiscal 2025 demonstrates confidence in continued growth and operational improvements.
Market Research Analyst Perspective
Cracker Barrel's performance in the second quarter highlights its resilience in a challenging economic environment. The increase in comparable store restaurant sales suggests strong consumer demand and effective pricing strategies. The company's focus on expanding its Maple Street Biscuit Company units aligns with market trends favoring fast-casual dining experiences. The updated fiscal outlook reflects a positive market sentiment and potential for further market share gains.
Frequently Asked Questions
Q: What was Cracker Barrel's total revenue for Q2 fiscal 2025?
A: The total revenue was $949.4 million, a 1.5% increase from the previous year.
Q: How did comparable store restaurant sales perform?
A: Comparable store restaurant sales increased by 4.7% over the prior year quarter.
Q: What is the updated fiscal 2025 revenue outlook?
A: The company expects total revenue of $3.45 billion to $3.50 billion.
Q: How did adjusted EBITDA change compared to the previous year?
A: Adjusted EBITDA increased by 19.6% to $74.6 million.
Q: What is the declared quarterly dividend?
A: The Board of Directors declared a quarterly dividend of $0.25 per share.
Read the original press release here.
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