Cracker Barrel Inc. (NASDAQ: CBRL) is likely to bring rewards to those who wait. Read on to know what it means.
The restaurants and hospitality sector has suffered brutally during the coronavirus pandemic. With entire economies shut down for months on end, some restaurants or food chains even shut down during the crisis period. Cracker Barrel has not been an exception to this period. This comfort food chain also bore the brunt of the pandemic.
CBRL Stocks To Bring Steady Returns To Long-Term Investors
However, recent reports suggest that the company is showing signs of improvement. According to the 2021 Q1 reports, the comps were more than 16% down on a year-over-year basis and retail sales were only down by about 8%. Though the figures are still in the negative, a detailed look at the figures tell us that these show huge signs of improvement as compared to the previous quarter’s figures. In the last quarter CBRL comps were about 39% down on a year-over-year basis and the retail sales showed a decline of 32% y-o-y.
Even though the company was hit hard by the Covid-19 pandemic, the company’s CEO mentioned that the off-premises sales majorly backed the company. He said in a statement following the Q1 call that the off-premises demand among customers remains steady. So, CBRL started focusing on planning initiatives that will boost off-premises sales. Cracker Barrel boosted their operations, focused on delivery systems and dedicated to building awareness of their brand.
Compared to last year’s figures, this time the company’s off-premise sales grew by approximately 122%. This type of sales constituted almost 25% of the net restaurant’s sales which was 9% last year.
Analysts figured that CBRL stocks are stable and will show steady returns for long-term investors. However, a vaccine roll-out might help boost the figures in 2021.