Key Takeaways
- Cracker Barrel said it expects wages to rise faster than commodity prices over the next year.
- The company on Thursday reported fourth-quarter earnings just below analyst estimates.
- Comparable dining sales rose year-over-year, but they fell in the company’s well-known gift shops.
One of America’s best-known casual dining chains sees inflation continuing in the year ahead, with wages rising more than commodity prices.
Cracker Barrel (CBRL), which has more than 600 restaurants in 44 states, on Thursday said it expects wages to rise by 3% to 4% over the course of the next year. Commodity prices, meanwhile, were seen rising 2% to 3%.
The company, which reported full-fiscal year results today, had previously said it expected 5% wage inflation, and flat commodity inflation, for the full year. Cracker Barrel reported 0.5% commodity deflation in the first nine months of the fiscal year.
Dining Sales Rise While Gift Shops Struggle
Cracker Barrel’s latest quarterly results came in just below Wall Street’s estimates. Revenue of $894.4 million and net income of $18.1 million were both about $3 million lower than predicted, according to estimates compiled by Visible Alpha. Dining comparable sales increased 0.4% year-over-year, while they slipped 4.2% at the chain’s iconic gift shops.
CEO Julie Masino said Thursday that she is “excited and confident” about the company’s future, while noting that “there is much work to be done”.
Cracker Barrel shares edged lower in recent trading Thursday. The stock is down more than 40% this year.