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Sit-Down Dining Stocks Q1 Results: Benchmarking Cracker Barrel (NASDAQ:CBRL)


Jabin Bastian /
2024/06/07 3:12 am EDT

Looking back on sit-down dining stocks' Q1 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 14 sit-down dining stocks we track reported an ok Q1; on average, revenues missed analyst consensus estimates by 0.9%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and sit-down dining stocks have held roughly steady amidst all this, with share prices up 2.4% on average since the previous 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 $817.1 million, down 1.9% year on year, falling short of analysts' expectations by 0.4%. It was a very strong quarter for the company, with an impressive beat of analysts' gross margin estimates and a solid beat of analysts' earnings estimates.

Commenting on the third quarter results, Cracker Barrel President and Chief Executive Officer Julie Masino said, "As we indicated in our recent business update call, our third quarter results came in below expectations due to softer traffic than we originally anticipated, which underscores the importance of executing our strategic transformation. Our teams are fully committed to bringing these plans to life while continuing to deliver an exceptional guest experience and managing our business every shift, every day. "

Cracker Barrel Total Revenue

The stock is up 12.1% since the results and currently trades at $50.82.

Is now the time to buy Cracker Barrel? Access our full analysis of the earnings results here, it's free.

Best Q1: BJ's (NASDAQ:BJRI)

Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.

BJ's reported revenues of $337.3 million, down 1.2% year on year, in line with analysts' expectations. It was a good quarter for the company, with a decent beat of analysts' earnings estimates.

BJ's Total Revenue

The stock is up 9.4% since the results and currently trades at $35.83.

Is now the time to buy BJ's? Access our full analysis of the earnings results here, it's free.

Weakest Q1: 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 $206.2 million, down 3.5% year on year, falling short of analysts' expectations by 2%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

The stock is down 9.3% since the results and currently trades at $39.59.

Read our full analysis of Dine Brands's results here.

First Watch (NASDAQ:FWRG)

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

First Watch reported revenues of $242.4 million, up 14.7% year on year, falling short of analysts' expectations by 1.1%. It was a strong quarter for the company, with an impressive beat of analysts' gross margin estimates and a decent beat of analysts' earnings estimates.

The stock is down 23.4% since the results and currently trades at $19.24.

Read our full, actionable report on First Watch here, it's free.

Brinker International (NYSE:EAT)

Founded by Norman Brinker in Dallas, Texas, Brinker International (NYSE:EAT) is a casual restaurant chain that operates under the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.

Brinker International reported revenues of $1.12 billion, up 3.4% year on year, falling short of analysts' expectations by 0.1%. It was a very strong quarter for the company, with an impressive beat of analysts' gross margin estimates and optimistic earnings guidance for the full year.

The stock is up 45% since the results and currently trades at $72.01.

Read our full, actionable report on Brinker International here, it's free.

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