|
Related Topics
|
|
Category: Stock Market and Cracker Barrel
Date: 17 September 2019 Stock Price: $164.84 We take a look at the 4th quarter earnings release of their 2019 fiscal year of old style country stores and restaurants owner Cracker Barrel.
|
|
About Cracker Barrel Old Country Store
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
The image below shows a store front of Cracker Barrel in California as obtained from their website.
The image below shows a store front of Cracker Barrel in California as obtained from their website.
Overview of Cracker Barrel's latest earnings report
The numbers we are interested in (for the quarter):
- Total revenue: $797.098 million (down from $810.893 million from the same quarter of the previous year)
- Revenues decreased by 3% over the last 12 months
- Cost of Goods sold: $226.532 million (up from $245.977 million for the same quarter of the previous year)
- Cost of goods sold decreased by 8% over the last 12 months
- Net income: $65.025 million (up from $61.345 million for the same quarter of the previous year)
- Diluted earnings per share: $2.70 (down from $0.19 for the same quarter of the previous year)
- Dividend for the fiscal year: $8.05 (including a special dividend of $3)
- Dividend yield: 4.9%
- Diluted weighted-average shares outstanding: 24.113 million (up from 24.074 million for the same quarter of the previous year)
- Cash and cash equivalents: $36.884 million
- Cash and cash equivalents per share: $1.52
- Cash and cash equivalents makes up 0.92% of Cracker Barrel's market capital
- Cash and cash equivalents makes up 2.3% of Cracker Barrel's total assets
- Receivables: $22.757 million
- Receivables makes up 1.76% of Cracker Barrel's total assets
- Inventories: $154.958 million
- Inventories makes up 9.7% of Cracker Barrel's total assets
- Stockholders equity: $604.710 million
- Stockholders equity per share: $25.1
- Cracker Barrel's is trading at 6.51 times its stockholders equity
- Cash generated from operations for the fiscal year: $223.401 million
- Cash generated from operations per share for the fiscal year: $9.26
Cracker Barrel's management commentary on the results and earnings guidance
LEBANON, Tenn., Sept. 17, 2019 /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 2019 ended August 2, 2019
Commenting on the fourth quarter and full year results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, "In fiscal 2019, our teams drove performance through an increased focus on our menu, the guest experience, and the continued expansion of our off-premise business. We ended the fiscal year with a strong quarter, delivering comparable store restaurant sales and traffic growth in the fourth quarter that outperformed the casual dining industry, and I was especially pleased with the results of our Signature Fried Chicken initiative. As we enter our 50th year of Pleasing People, we believe our fiscal 2020 business plans will help build on our momentum and support long-term value creation."Commenting on the fourth quarter and full year results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, "In fiscal 2019, our teams drove performance through an increased focus on our menu, the guest experience, and the continued expansion of our off-premise business. We ended the fiscal year with a strong quarter, delivering comparable store restaurant sales and traffic growth in the fourth quarter that outperformed the casual dining industry, and I was especially pleased with the results of our Signature Fried Chicken initiative. As we enter our 50th year of Pleasing People, we believe our fiscal 2020 business plans will help build on our momentum and support long-term value creation."
Full Year Fiscal 2019 Highlights
Fiscal 2020 Outlook
The Company is providing the following outlook for fiscal 2020:
Commenting on the fourth quarter and full year results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, "In fiscal 2019, our teams drove performance through an increased focus on our menu, the guest experience, and the continued expansion of our off-premise business. We ended the fiscal year with a strong quarter, delivering comparable store restaurant sales and traffic growth in the fourth quarter that outperformed the casual dining industry, and I was especially pleased with the results of our Signature Fried Chicken initiative. As we enter our 50th year of Pleasing People, we believe our fiscal 2020 business plans will help build on our momentum and support long-term value creation."Commenting on the fourth quarter and full year results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, "In fiscal 2019, our teams drove performance through an increased focus on our menu, the guest experience, and the continued expansion of our off-premise business. We ended the fiscal year with a strong quarter, delivering comparable store restaurant sales and traffic growth in the fourth quarter that outperformed the casual dining industry, and I was especially pleased with the results of our Signature Fried Chicken initiative. As we enter our 50th year of Pleasing People, we believe our fiscal 2020 business plans will help build on our momentum and support long-term value creation."
Full Year Fiscal 2019 Highlights
- For the full fiscal year, comparable store restaurant sales growth of 2.6% and traffic of -0.7% outperformed the casual dining industry.
- Fiscal 2019 earnings per diluted share were $9.27 compared to prior year GAAP earnings per diluted share of $10.29 (including a $1.06 per share benefit in Q2 2018 resulting from a one-time non-cash revaluation of the Company's deferred tax liability in conjunction with the Tax Cut and Jobs Act of 2017) and adjusted earnings per diluted share of $8.87 (see non-GAAP reconciliation below).
- During fiscal 2019, the Company declared regular quarterly dividends totaling $5.05 per share. Additionally, the Company declared a special dividend of $3.00 per share, bringing the total declared dividends in fiscal 2019 to $8.05 per share.
Fiscal 2020 Outlook
The Company is providing the following outlook for fiscal 2020:
- Total revenue of $3.15 billion to $3.20 billion
- Comparable store restaurant sales growth of 2.0% to 3.0%
- Comparable store retail sales growth of approximately 1.0%
- Operating income margin of approximately 9.0% as a percent of total revenue
- Depreciation expense of $110 million to $115 million
- Net interest expense of approximately $14 million
- Capital expenditures of $115 million to $125 million
- An effective tax rate of approximately 17.0%, which assumes a renewal of the Work Opportunity Tax Credit
- Earnings per diluted share, excluding any impacts from Punch Bowl Social, between $9.30 and $9.45
- The Company anticipates its investment in Punch Bowl Social will have an unfavorable impact of approximately $0.50, driven primarily by pre-opening expenses; taking these impacts into account, the Company expects to report earnings per diluted share between $8.80 and $8.95
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 been a very good time for Cracker Barrel stockholders. 5 years ago the stock was trading at around $102 and its currently trading at $164.84. That's a strong return of 60.7% return provided to Cracker Barrel investors over the last 5 years. The stock is trading at close to the midpoint of its 52 week low and 52 week high, which shows the shorter term sentiment and momentum of the stock is neutral
Cracker Barrel (NASDAQ: CBRL) latest stock valuation
So based on the earnings report of Cracker Barrel (NASDAQ: CBRL) and what do we value Cracker Barrel (CBRL) stock at? Based on the earnings reported our valuation model provides a target (full value) price for Cracker Barrel at $169.10 a stock. We therefore believe that Cracker Barrel is close to full value. We would not recommend long term fundamental or value investors buy into Cracker Barrel at its current price but rather at a level at least 10% below our target (full value) price of $169. So a good entry point into CBRL would be around $152