Spotting Winners: Cracker Barrel (NASDAQ:CBRL) And Sit-Down Dining Stocks In Q3

Looking back on sit-down dining stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Cracker Barrel (NASDAQ:CBRL) and its peers.

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 13 sit-down dining stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.

Thankfully, share prices of the companies have been resilient as they are up 9.7% on average since the latest earnings results.

Cracker Barrel (NASDAQ:CBRL)

Known for its country-themed food and merchandise, Cracker Barrel (NASDAQ:CBRL) is a beloved American restaurant and retail chain that celebrates the warmth and charm of Southern hospitality.

Cracker Barrel reported revenues of $797.2 million, down 5.7% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with full-year revenue and EBITDA guidance missing analysts’ expectations significantly.

Cracker Barrel President and Chief Executive Officer Julie Masino said, "First quarter results were below our expectations amid unique and ongoing headwinds. We have adjusted our operational initiatives, menu, and marketing to ensure we are consistently delivering delicious food and exceptional experiences. Additionally, we are executing a variety of cost savings initiatives to bolster our financial performance. Although our recovery will take time, our teams are more committed than ever, and we are confident that we will regain momentum."

Unsurprisingly, the stock is down 2.5% since reporting and currently trades at $26.26.

Read our full report on Cracker Barrel here, it’s free for active Edge members.

Best Q3: Bloomin' Brands (NASDAQ:BLMN)

Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Bloomin' Brands reported revenues of $928.8 million, down 10.6% year on year, outperforming analysts’ expectations by 2.7%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 9.3% since reporting. It currently trades at $6.55.

Is now the time to buy Bloomin' Brands? Access our full analysis of the earnings results here, it’s free for active Edge members.

Denny's (NASDAQ:DENN)

Open around the clock, Denny’s (NASDAQ:DENN) is a chain of diner restaurants serving breakfast and traditional American fare.

Denny's reported revenues of $113.2 million, up 1.3% year on year, falling short of analysts’ expectations by 3.2%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a miss of analysts’ EBITDA estimates.

Interestingly, the stock is up 50.9% since the results and currently trades at $6.20.

Read our full analysis of Denny’s results here.

The Cheesecake Factory (NASDAQ:CAKE)

Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory (NASDAQ:CAKE) is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands.

The Cheesecake Factory reported revenues of $907.2 million, up 4.8% year on year. This number missed analysts’ expectations by 0.5%. Zooming out, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a slight miss of analysts’ same-store sales estimates.

The stock is down 5.2% since reporting and currently trades at $51.53.

Read our full, actionable report on The Cheesecake Factory here, it’s free for active Edge members.

Dine Brands (NYSE:DIN)

Operating a franchise model, Dine Brands (NYSE:DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.

Dine Brands reported revenues of $216.2 million, up 10.8% year on year. This result came in 1.7% below analysts' expectations. Overall, it was a softer quarter as it also recorded a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

The stock is up 32.9% since reporting and currently trades at $32.70.

Read our full, actionable report on Dine Brands here, it’s free for active Edge members.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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