Cracker Barrel Sinks Despite Q4 Earnings Beat

Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) saw its shares plummet Tuesday, on fourth-quarter figures that beat expectations.

During the quarter, 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 loss per diluted share were $0.85.

The company reported total revenue of $495.1 million for the fourth quarter of fiscal 2020, representing a decrease of 37.1% compared to the fourth quarter of the prior year.

Cracker Barrel fourth-quarter comparable store restaurant sales decreased 39.2% compared to the prior year quarter, as a 40.7% decrease in comparable store restaurant traffic was partially offset by a 1.5% increase in average check.

CEO Sandra Cochran remarked, "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."

CBRL shares lost $5.32, or 3.9%, to $132.78.