Cracker Barrel stock sinks on earnings miss, cuts to 2023 revenue outlook
Shares of Cracker Barrel tumbled after the company missed on earnings expectations and trimmed its revenue outlook for next year.
DAVE BRIGGS: My play is Cracker Barrel. The stock slumping to finish the week on missed expectations. Net income dropping to 17 million, or $0.77 a share, from 33 million, or $1.41 a share from a year prior. Pretty precipitous drop there. For fiscal '23, the company also trimmed its revenue growth outlook.
CEO Sandra Cochran saying, quote, "While the increased macroeconomic uncertainty and persistent inflationary pressures merit caution, we believe our value proposition and strong guest experience position us well to navigate the environment." Shares hammered, as you can see, down more than 12% today and 24% this year.
And you continue to hear CEOs like Sandra Cochran talk about this macroeconomic environment that is softening and what they're seeing from the consumer. Another good indicator of what could be around the corner.
SEANA SMITH: Yeah, and just another example of inflation hitting some of these companies here. They expect commodity inflation to be 8% to 9% growth in 2023. Wage inflation up to another 6% next year. So certainly higher prices a huge headwind for Cracker Barrel and also for many of its competitors as well, because they're being forced to pass along some of those higher prices to consumers.
DAVE BRIGGS: You ever been to Cracker Barrel?
SEANA SMITH: I was going to ask--
DAVE BRIGGS: I was going to guess you hadn't.
SEANA SMITH: No, I have.
DAVE BRIGGS: Oh, OK.
SEANA SMITH: I have. They have a very, very good breakfast. Have you?
DAVE BRIGGS: I have many times, but I lived in Oklahoma, and the South--
JARED BLIKRE: On the way to Disney World when I was a kid many times.
SEANA SMITH: It's good.
DAVE BRIGGS: The chicken fried steak is also terrific.
SEANA SMITH: I've gone with my mom a couple of times. I like it a lot.