What To Expect From Cracker Barrel's (CBRL) Q3 Earnings

Restaurant company Cracker Barrel (NASDAQ:CBRL) will be reporting earnings next Tuesday afternoon. Here’s what investors should know.

Cracker Barrel beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $868 million, down 2.9% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ same-store sales estimates but full-year revenue guidance missing analysts’ expectations significantly.

Is Cracker Barrel a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Cracker Barrel’s revenue to decline 4.6% year on year to $806.6 million, a reversal from the 2.6% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.65 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cracker Barrel has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Cracker Barrel’s peers in the sit-down dining segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Bloomin' Brands’s revenues decreased 10.6% year on year, beating analysts’ expectations by 2.7%, and Red Robin reported a revenue decline of 3.5%, topping estimates by 3.3%. Bloomin' Brands traded down 7.7% following the results while Red Robin was also down 6.5%.

Read our full analysis of Bloomin' Brands’s results here and Red Robin’s results here.

There has been positive sentiment among investors in the sit-down dining segment, with share prices up 7.7% on average over the last month. Cracker Barrel is down 10.5% during the same time and is heading into earnings with an average analyst price target of $44.13 (compared to the current share price of $28.86).

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