|
Related Topics
|
Category: Stock Market and Cracker Barrel Old Country Store (CBRL)
Date: 15 September 2020 Stock Price of Cracker Barrel: $133.42 We take a look at the 4th quarter earnings release of their 2020 fiscal year of old style country stores and restaurants owner Cracker Barrel who owns and operates 664 stores across 45 states in the United States. The group's revenue declined by -37% compared to 12 months ago to $495.065 million and net earnings for the quarter came in at $25.1 million.
|
Throughout the quarter, we continued to take decisive actions to ensure the health and safety of our guests and employees, strengthen our business model, and bolster liquidity"
About Cracker Barrel Old Country Store (CBRL)
Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL), established in 1969 in Lebanon, Tenn., provides a friendly home-away-from-home in its old country stores and restaurants. Guests are cared for like family while relaxing and enjoying real home-style food and shopping that’s surprisingly unique, genuinely fun and reminiscent of America’s country heritage…all at a fair price. The restaurants serve up delicious, home-style country food such as meatloaf and homemade chicken n’ dumplins as well as our signature biscuits using an old family recipe. The authentic old country retail store is fun to shop and offers unique gifts and self-indulgences
Overview of Cracker Barrel's 4th quarter 2020 earnings report
The data below refers to the latest quarterly data unless specified otherwise:
- Total revenue: $495.065 million (down from $787.089 million from the same quarter of the previous year)
- Revenues decreased by -37% over the last 12 months
- Cost of Goods sold: $150.778 million (down from $236.532 million for the same quarter of the previous year)
- Cost of goods sold decreased by -33% over the last 12 months
- Net earnings: $25.066 million (down from $65.025 million for the same quarter of the previous year)
- Diluted earnings per share: $1.05 (down 61% from $2.70 for the same quarter of the previous year)
- Diluted weighted-average shares outstanding: 23.760 million (down from 24.113 million for the same quarter of the previous year)
- Cash and cash equivalents: $436.996 million
- Cash and cash equivalents per share: $18.39
- Cash and cash equivalents makes up 13.7% of Cracker Barrel's market capital
- Cash and cash equivalents makes up 17.2% of Cracker Barrel's total assets
- Inventories: $131.091 million
- Inventories makes up 5.15% of Cracker Barrel's total assets
- Stockholders equity in Cracker Barrel Old Country Store: $418.389 million
- Stockholders equity per share: $17.60
- Cracker Barrel's is trading at 7.5 times its stockholders equity per share which is well above the expected 2 to 4 times that most firms tend to trade at
- For some perspective the average price to book value of firms in the S&P 500 is 3.7. Read more about the S&P 500 here
- Cash generated from operations for fiscal 2020: $161 million
- Cash generated from operations per share for fiscal 2020: $6.67
Cracker Barrel's management commentary on their 4th quarter 2020 earnings and guidance
LEBANON, Tenn., Sept. 15, 2020 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today reported its financial results for the fourth quarter of fiscal 2020 ended July 31, 2020 and provided an update regarding the impact of the COVID-19 pandemic on the Company's business.
Fourth Quarter Fiscal 2020 Highlights
Fourth Quarter Fiscal 2020 Highlights
- Dining room service gradually returned during the first two months of the quarter, and by the end of June, substantially all dining rooms were open at varying levels of reduced capacity.
- Comparable store restaurant and retail sales both improved sequentially each month during the quarter. Comparable store restaurant sales decreased 39.2% and comparable store retail sales decreased 32.3% for the full quarter compared to the prior year quarter.
- Off-premise sales grew approximately 145% over the prior year quarter and represented approximately 35% of restaurant sales.
- GAAP earnings per diluted share were $1.05 compared to prior year quarter GAAP earnings per diluted share of $2.70. Adjusted earnings (loss) per diluted share were ($0.85). (See non-GAAP reconciliation below.)
Commenting on the fourth quarter results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, "Throughout the quarter, we continued to take decisive actions to ensure the health and safety of our guests and employees, strengthen our business model, and bolster liquidity. I am encouraged by our sales recovery, and I am pleased with both the progress we have made on key initiatives and with how well our teams have continued to manage our business under changing and challenging circumstances. Our actions have put us in a position of financial strength which will allow us to invest in initiatives that we believe will drive long-term value creation for our shareholders. Cracker Barrel remains a trusted and highly differentiated brand with loyal guests, and our management team is confident our fiscal 2021 business priorities and plans will help us successfully navigate this environment while further strengthening our leadership position in casual dining."
Maple Street Biscuit Company
In October 2019, the Company acquired the award-winning fast casual concept Maple Street Biscuit Company ("Maple Street") in an all-cash transaction for $36 million. At the time of the acquisition, Maple Street had 28 company-owned locations. The Company subsequently converted its Holler & Dash units into Maple Street locations, and Maple Street also opened one additional location in fiscal 2020, bringing the total number of company-owned units in operation to 35.
Fiscal 2021 Outlook
As a result of the pandemic, the sales performance of the Company's stores varies significantly and is heavily influenced by factors outside the Company's control, including, but not limited to, capacity restrictions, jurisdictional regulations, and the extent that the local economy has reopened. The Company anticipates these circumstances will continue for the foreseeable future and due to this uncertainty is not providing its customary annual guidance.
Through the first six weeks of the Company's first quarter of fiscal 2021, comparable store restaurant sales decreased approximately 20% and comparable store retail sales decreased approximately 15% when compared to the comparable period in 2019.
In fiscal 2021, the Company anticipates capital expenditures of approximately $100 million, and it expects to open three new Cracker Barrel stores and up to 15 new Maple Street units.
Maple Street Biscuit Company
In October 2019, the Company acquired the award-winning fast casual concept Maple Street Biscuit Company ("Maple Street") in an all-cash transaction for $36 million. At the time of the acquisition, Maple Street had 28 company-owned locations. The Company subsequently converted its Holler & Dash units into Maple Street locations, and Maple Street also opened one additional location in fiscal 2020, bringing the total number of company-owned units in operation to 35.
Fiscal 2021 Outlook
As a result of the pandemic, the sales performance of the Company's stores varies significantly and is heavily influenced by factors outside the Company's control, including, but not limited to, capacity restrictions, jurisdictional regulations, and the extent that the local economy has reopened. The Company anticipates these circumstances will continue for the foreseeable future and due to this uncertainty is not providing its customary annual guidance.
Through the first six weeks of the Company's first quarter of fiscal 2021, comparable store restaurant sales decreased approximately 20% and comparable store retail sales decreased approximately 15% when compared to the comparable period in 2019.
In fiscal 2021, the Company anticipates capital expenditures of approximately $100 million, and it expects to open three new Cracker Barrel stores and up to 15 new Maple Street units.
Cracker Barrel Old Country Store (NASDAQ:CBRL) stock price history
The image below, obtained from Google, shows the stock price history of Cracker Barrel (NASDAQ: CBRL) for the last 5 years. And its not been a good time for Cracker Barrel stockholders. 5 years ago the stock was trading at around $146 and its currently trading at $107.69. That's a loss of 5.52% suffered by Cracker Barrel investors over the last 5 years.
The stock of Cracker Barrel Old Country Store is trading at a lot close to the midpoint between its 52 week low and 52 week high which to us is a clear indication that the short term sentiment and momentum of Cracker Barrel's stock is neutral at this point in time.
The stock of Cracker Barrel Old Country Store is trading at a lot close to the midpoint between its 52 week low and 52 week high which to us is a clear indication that the short term sentiment and momentum of Cracker Barrel's stock is neutral at this point in time.
Cracker Barrel (CBRL) stock vs Darden Restaurants (DRI) stock over the last 3 years
The image below shows the stock price performance of Cracker Barrel (CBRL) and Darden Restaurants (DRI) over the last 3 years. While both these stocks are active in the casual sit down dining space their stock price trends and returns are very different. The summary below shows the stock price returns of Cracker Barrel and Darden over the last 3 years:
The stock of Darden has easily outperformed that of Cracker Barrel over the last 3 years
- Darden (DRI): 17.7%
- Cracker Barrel (CBRL): -13.1%
The stock of Darden has easily outperformed that of Cracker Barrel over the last 3 years
Recent coverage of Cracker Barrel
The extract below covers the latest regarding Cracker Barrel as obtained from Investorplace.com
Cracker Barrel (NASDAQ:CBRL) earnings for the fourth quarter of fiscal year 2020 have CBRL stock ticking lower on Tuesday. This comes despite the company reported adjusted earnings per share (EPS) of $1.05, which crushed Wall Street’s estimate of a $1.05 loss. Also, Cracker Barrel’s reported revenue of $495.07 million is above analysts’ estimate of $478.63 million for the quarter.
Read the article here
Cracker Barrel (NASDAQ:CBRL) earnings for the fourth quarter of fiscal year 2020 have CBRL stock ticking lower on Tuesday. This comes despite the company reported adjusted earnings per share (EPS) of $1.05, which crushed Wall Street’s estimate of a $1.05 loss. Also, Cracker Barrel’s reported revenue of $495.07 million is above analysts’ estimate of $478.63 million for the quarter.
Read the article here
Cracker Barrel (NASDAQ: CBRL) latest stock valuation
So based on the 4th quarter 2020 earnings report of Cracker Barrel (NASDAQ: CBRL) and what do we value Cracker Barrel (CBRL) stock at? Based on the earnings reported and the fact that the group is now loss making and that they withdrew their fiscal guidance our valuation model provides a target price (full value price) for Cracker Barrel at $145.70 a stock (up slightly from our 3rd quarter 2020 earnings report valuation of Cracker Barrel).
We therefore believe that Cracker Barrel is undervalued at its current price of $133.42
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $145.70. So a good entry point into Cracker Barrel would be around $131.10. We expect the stock of Cracker Barrel to kick up in coming weeks and months as the various states starts opening up after the covid-19 pandemic.
We therefore believe that Cracker Barrel is undervalued at its current price of $133.42
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $145.70. So a good entry point into Cracker Barrel would be around $131.10. We expect the stock of Cracker Barrel to kick up in coming weeks and months as the various states starts opening up after the covid-19 pandemic.
Next earnings release of Cracker Barrel Old Country Store (CBRL)
It is expected that Cracker Barrel Old Country Store will release their 1st quarter 2021 earnings report in early December 2020