Cracker Barrel to Post Q2 Earnings: What's in Store for the Stock?

Cracker Barrel Old Country Store, Inc. CBRL is scheduled to report second-quarter fiscal 2025 results on March 6. In the last reported quarter, CBRL registered an earnings surprise of 12.5%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Trend in Estimate Revision of CBRLThe Zacks Consensus Estimate for the fiscal second-quarter earnings per share (EPS) is pegged at $1, indicating a deterioration of 27% from $1.37 reported in the year-ago quarter.For revenues, the consensus mark is pegged at $0.9 billion. The projection suggests a 0.6% rise from the year-ago quarter’s reported figure.Cracker Barrel Old Country Store, Inc. Price and EPS Surprise Cracker Barrel Old Country Store, Inc. price-eps-surprise | Cracker Barrel Old Country Store, Inc. QuoteLet's take a look at how things have shaped up in the quarter.Factors Likely to Shape CBRL's Quarterly ResultsCracker Barrel’s fiscal second-quarter performance is likely to have benefited from ongoing menu innovation and operational improvements. The company’s focus on refining its menu with new and reimagined dishes, along with a balanced pricing strategy, is expected to have driven customer engagement. Also, a focus on store remodels and refreshes is anticipated to have enhanced the overall dining experience, leading to improved traffic and sales momentum in the fiscal second quarter.The expansion of Cracker Barrel’s off-premise business, including takeout and delivery, is likely to have contributed positively to second-quarter revenues. Digital initiatives such as the Cracker Barrel Rewards program are expected to have bolstered customer loyalty and incremental sales.However, the company’s retail segment may have faced headwinds, with softness in certain categories like decor and toys offsetting gains in kitchen food and bed & bath. Our model predicts retail revenues to fall 1.7% year over year to $200.9 million.Cracker Barrel continues to navigate cost pressures, particularly in key commodities like dairy, beef and pork. Inflationary trends and food cost volatility may have weighed on margins in the fiscal second quarter. While pricing actions and operational efficiencies are expected to have mitigated some of these pressures, elevated costs might have impacted overall profitability. Our model predicts fiscal second quarter adjusted EBITDA to fall 4.1% year over year to $59.9 million.What Our Model Says About CBRL StockOur proven model does not conclusively predict an earnings beat for Cracker Barrel this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that's not the case here.Earnings ESP for CBRL: Cracker Barrel has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Cracker Barrel’s Zacks Rank: The company has a Zacks Rank #4 (Sell).Recent Retail-Wholesale ReleasesRestaurant Brands International, Inc. QSR reported fourth-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both the top and bottom lines increased on a year-over-year basis. You can see the complete list of today’s Zacks #1 Rank stocks here.During the quarter, consolidated comps increased 2.5% year over year, and net restaurants grew 3.4%. Global system-wide sales rose 5.6% year over year. QSR unveiled its long-term consolidated performance expectations from 2024 to 2028. It anticipates achieving more than 3% growth in comparable sales and at least a 5% net restaurant increase.McDonald's Corporation MCD reported fourth-quarter 2024 results, wherein earnings were in line with the Zacks Consensus Estimate, but revenues missed the same. Both the top and bottom lines decreased year over year. Its Accelerating-the-Arches strategy remains the right approach for expanding market share.At company-operated restaurants, sales were $2.31 billion, down 7% year over year. Sales at franchise-operated restaurants amounted to $3.95 billion, which increased 2% year over year. The global comps increased 0.4% compared with 3.4% growth in the prior-year quarter. MCD’s comps increased after witnessing a decline in the preceding two quarters.YUM! Brands, Inc. YUM reported fourth-quarter 2024 results, with adjusted earnings and total revenues beating the Zacks Consensus Estimate. Both the top and bottom lines increased on a year-over-year basis.The company’s top-line performance reflected solid contributions from the KFC, Pizza Hut and Taco Bell divisions. YUM reported progress in the digital space, with digital sales rising approximately 15% and the digital mix surpassing 50%, moving closer to its long-term goal of 100% digital sales. Worldwide system sales, excluding foreign currency translation, grew 8% year over year, with Taco Bell increasing 14% and KFC rising 6%. The metric rose 3% year over year for Pizza Hut.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cracker Barrel Old Country Store, Inc. (CBRL): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report Yum! Brands, Inc. (YUM): Free Stock Analysis Report Restaurant Brands International Inc. (QSR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks