CBRL Group Earnings Preview

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CBRL Group (NAS: CBRL) didn't hit the Street's expectations last quarter, but investors hope it will rebound this quarter. The company will unveil its latest earnings on Tuesday. Cracker Barrel Old Country Store is engaged in the operation and development of the Cracker Barrel Old Country Store restaurant and retail concept. The company operates more than 500 full-service restaurants and gift shops in 41 states.

What analysts say:

  • Buy, sell, or hold?: Analysts are bullish on CBRL Group as four analysts rate it as a buy and only one analyst rates it as a sell. Analysts like CBRL Group better than competitor Bob Evans Farms overall.
  • Revenue forecasts: On average, analysts predict $623.5 million in revenue this quarter. That would represent a rise of 1.8% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.97 per share. Estimates range from $0.62 to $1.06.

What our community says:
CAPS All-Stars are solidly backing the stock with 91.5% granting it an outperform rating. The community at large backs the All-Stars with 83.6% assigning it a rating of "outperform." Fools have embraced CBRL Group, though the message boards have been quiet lately with only 96 posts in the past 30 days. Despite the majority sentiment in favor of CBRL Group, the stock has a middling CAPS rating of three out of five stars.

Management:
CBRL Group's profit has risen year over year by an average of 17.6% over the past five quarters. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q3

Q2

Q1

Q4

Gross Margin

69.1%

65.7%

70.0%

70.1%

Operating Margin

5.4%

8.2%

7.6%

7.4%

Net Margin

2.6%

4.5%

4.0%

4.5%

One final thing: If you want to keep tabs on CBRL Group movements, and for more analysis on the company, make sure you add it to your watchlist.

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At the time this article was published

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