Cracker Barrel Old Ctry Store Stock Price, News & Analysis

Biglari Capital Corp. has nominated Raymond Barbrick to the board of Cracker Barrel Old Country Store (NASDAQ: CBRL) in a letter to shareholders. The firm is concerned about the board's spending of shareholder funds and recent losses, including a $137.1 million loss from the acquisition of Punch Bowl Social. Biglari asserts that enhancing core operations and improving guest traffic could unlock over $600 million in annual revenue. The letter underscores the need for strategic focus on the Cracker Barrel brand and questions the board's expansion strategy and financial performance.

Cracker Barrel filed definitive proxy materials with the SEC for its Annual Meeting on November 19, 2020. Shareholders as of September 18, 2020 are eligible to vote. CEO Sandra B. Cochran emphasized operational adjustments during the pandemic, achieving positive operating income of over $103 million in fiscal 2020 and maintaining a strong track record of shareholder returns. The board urges support for its nominees against Sardar Biglari's influence. Cracker Barrel aims for long-term growth with strategic initiatives despite challenges posed by the pandemic.

On September 16, 2020, Cracker Barrel announced the launch of holiday-inspired virtual backgrounds to celebrate the 100-day countdown to Christmas. Guests can download these backgrounds for video conferencing applications, such as Zoom, reflecting four unique Christmas Collections. Alongside the backgrounds, a limited-time 20% discount on holiday décor items purchased online is available until October 16, 2020. This initiative aims to uplift spirits during the COVID-19 pandemic, allowing families to connect while preparing for the holiday season.

Biglari Capital Corp., a major shareholder in Cracker Barrel Old Country Store (NASDAQ: CBRL), issued a letter expressing dissatisfaction with the company's management and board decisions. Owning 8.7% of shares, they criticized the board's strategy, particularly the failed investment in Punch Bowl Social which led to a $133 million loss. Biglari Capital aims to enhance transparency and capital allocation by seeking board representation. They propose to nominate Raymond P. Barbrick for the board, emphasizing the need for a focus on Cracker Barrel's core business.

Cracker Barrel (Nasdaq: CBRL) reported its fiscal 2020 fourth quarter results, showing a 37.1% revenue decline to $495.1 million. Comparable store restaurant sales fell 39.2%, with off-premise sales rising 145%. GAAP earnings per diluted share decreased to $1.05 from $2.70 year-over-year, while adjusted earnings were (0.85). The fiscal year total revenue was $2.52 billion, a 17.9% decrease. Despite challenges, management expressed optimism about recovery and plans for future growth.

Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) will host a live webcast of its fourth quarter earnings conference call on September 15, 2020, at 11:00 a.m. Eastern Time. The call will discuss financial results for the fiscal quarter that ended on July 31, 2020. A replay of the call will be available from 2:00 p.m. Eastern Time the same day, continuing until September 29, 2020. The conference call can be accessed via the company's investor relations website.

Cracker Barrel Old Country Store introduces new menu items for the fall season, including the Chicken Pot Pie, now available daily. The updated Kid's Menu features fun meal options like Mini Confetti Pancakes and Lil' Barrel Cheeseburgers. Seasonal favorites such as Carrot Cake, Peach Tea, and Pumpkin Pie Latte are also back until October 11. The changes aim to enhance family dining experiences amid ongoing challenges. These offerings will be highlighted in a national TV campaign titled 'Homestyle Has Always Been Our Style.'

On August 4, 2020, Cracker Barrel Old Country Store launched a simplified dinner menu to enhance the dining experience for guests. This new menu introduces signature dishes like Maple Bacon Grilled Chicken, Country Fried Pork Chops, and Pot Roast Supper, with prices starting at $7.99. The initiative responds to consumer demand for comfort food, with 66% of casual diners expressing a craving for such meals. Alongside new dishes, recipes for popular items have been updated, and diners can enjoy these meals via curbside, pickup, or delivery options.

Cracker Barrel Old Country Store (Nasdaq: CBRL) has elected Gilbert Dávila to its Board of Directors, effective immediately. Dávila, founder and CEO of DMI Consulting, brings extensive experience in multicultural marketing and digital engagement, having previously held significant roles at Disney, Sears, and Coca-Cola. His expertise is aimed at enhancing the company's strategic focus on diversity and inclusion. The Board emphasizes that Dávila's appointment aligns with ongoing succession planning and aims to bolster Cracker Barrel's growth strategies.