Why Cracker Barrel Old Country Store Shares Are Falling Today

Cracker Barrel Old Country Store Inc CBRL reported third-quarter FY23 sales growth of 5.4% year-on-year to $832.69 million, missing the analyst consensus of $846 million.
Comparable store retail sales decreased 4.6%, and comparable store restaurant sales grew 7.4%.
General and administrative expenses increased 12% Y/Y to $45 million. The operating margin was 2%, and operating income for the quarter fell 45% to $16.8 million.
Adjusted EBITDA increased 1.2% to $60.3 million.
Cracker Barrel held $22.5 million in cash and equivalents as of Apr. 28, 2023.
Adjusted EPS of $1.21 missed the analyst consensus of $1.34.
The Board of Directors declared a quarterly dividend of $1.30 per share, payable on August 8, 2023, to shareholders of record as of July 21, 2023.
Outlook: Cracker Barrel expects Q4 revenue growth of 1% - 3%.
For Q4, CBRL expects GAAP operating income margin rate of 4.1%-5.1%. The company anticipates capital expenditures of $30 million - $135 million.
CBRL anticipates the near-term environment will remain challenged due to heightened economic uncertainty, lower discretionary spending, and weaker consumer confidence.
Price Action: CBRL shares are trading lower by 4.25% at $93.17 on the last check Tuesday.