Cracker Barrel Old Country Store, Inc. has recently released its 10-K report for the year ended July 28, 2024. The company operates the Cracker Barrel Old Country Store concept in the United States, which includes restaurants with a gift shop offering various decorative and functional items. As of September 13, 2024, the company operated 658 Cracker Barrel stores located in 44 states and owned 68 Maple Street Biscuit Company ("MSBC") locations in ten states.
In the 10-K report, the company outlined its strategic priorities, including driving relevancy, delivering food and experiences guests love, and growing profitability. Cracker Barrel also announced a strategic transformation plan with five pillars: refining the brand, enhancing the menu, evolving the store and guest experience, winning in digital and off-premise, and elevating the employee experience. The company's Board of Directors committed to a balanced capital allocation approach focused on profitable growth and returning cash to shareholders through a regular quarterly dividend.
The report also discussed key performance indicators used by management to evaluate operational and financial performance, such as comparable store restaurant and retail sales, average check increase per guest, and comparable restaurant guest traffic increase/decrease. The company believes these indicators are useful for providing a consistent comparison of sales results and trends across comparable periods within its core, established store base.
Cracker Barrel highlighted the competitive nature of the restaurant and retail industries in the United States, noting challenges related to changes in consumer taste and preference, economic conditions, and weather events. The company acknowledged experiencing inflationary conditions with respect to various costs, including food, ingredients, transportation, labor, and utilities.
In terms of financial results, the 10-K report showed that total revenue in 2024 increased by 0.8% compared to 2023, with comparable store restaurant sales decreasing by 0.1% and comparable store retail sales decreasing by 5.5%. The report also detailed the cost of goods sold for both the restaurant and retail segments, highlighting decreases in the percentage of cost of goods sold as a percentage of revenue for both segments in 2024 compared to 2023.
The market has reacted to these announcements by moving the company's shares 0.6% to a price of $46.25. Check out the company's full 10-K submission here.
