The impact of missed monetary goals is being scrutinized by analysts as 2023 beckons.
This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: Wikipedia.org, ScrapeHero.com, and NRN.com.
Wikipedia features a comprehensive and well-attributed overview of the Cracker Barrel restaurant chain: Cracker Barrel Old Country Store, Inc., doing business as simply Cracker Barrel, is an American chain of restaurant and gift stores with a Southern country theme. The company was founded by Dan Evins in 1969. Its first store was in Lebanon, Tennessee; the corporate offices are located at a different facility in the same city. The chain's stores were at first positioned near Interstate Highway exits in the Southeastern and Midwestern United States, but expanded across the country during the 1990s and 2000s.
Per ScrapeHero.com: There are 664 Cracker Barrel stores in the United States as of November 28, 2022. The state with the most number of Cracker Barrel locations in the U.S is Florida, with 60 stores, which is about 9% of all Cracker Barrel stores in the U.S.
Based purely on location count, the company is a successful chain. However, a new financial report portrays the company as “struggling” due to missed financial goals.
Will this report cause the company to close locations in the upcoming year?
Let us explore further.
Cracker Barrel, 2022
According to a December 2nd article from trade site NRN.com, entitled “Cracker Barrel is Struggling and Inflation is the Culprit,” recent company gains have been largely mitigated.
As excerpted from the article: While Cracker Barrel’s revenues grew 7% in the first quarter ended Oct. 28, thanks in large part to multiple price increases (totaling 7.8%), profits were down as a result of astronomical commodity costs.
Business across-the-board was higher by most indicators, though inflation strongly impacted those gains.
As the article further states: “We continue to operate in a challenging environment of economic uncertainty that makes predicting the balance of the year particularly difficult,” Craig Pommells, CFO of Cracker Barrel said during Friday’s earnings call. “Consumer confidence, recession risks, inflation and supply chain constraints are some of the things that, depending on whether, when, and how much they shift, can impact our business positively or negatively for the balance of the year… The overall sentiment, however, is that commodities and other external factors are “volatile” right now, Pommells said.
In terms of the usual rumors following such reports, the company has stated it is not planning to close any stores in the immediate future, and is instead continuing to focus on expansion with a planned 12-17 new restaurants scheduled for 2023.
I have written many articles on restaurant chains such as Cracker Barrel, and more often than not when such downcast reports are publicly released online rumors follow about the given company’s long-term future.
Cracker Barrel, for now, is continuing its expansion plans.
In the event of pertinent updates on these matters, I will share them here on NewsBreak.
Thank you for reading.