Coronavirus pandemic plunged Cracker Barrel revenue 42% in third quarter

Cracker Barrel Old Country Store Inc. reported a sharp drop in sales and a loss of $6.81 a share for its latest quarter, another illustration of how the Covid-19 pandemic hit restaurants that rely on in-store dining.

The company reported a net loss of $161.9 million for the third quarter that ended May 1, down from a profit of $50.4 million, of $2.09 a share, the year earlier.

On an adjusted basis, the company reported a loss of $1.81 a share. Analysts predicted a loss of $1.06 a share on that metric.

The company said Tuesday it generated $432.5 million in total revenue, down 42% compared with the same period last year and less than the $478 million that analysts polled by FactSet predicted.

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Comparable sales from restaurants declined 42% for the period.

Like other restaurant companies, Cracker Barrel moved to focus on selling food to customers via take-out and delivery options after shutting down its dining rooms earlier this year as officials looked to contain the spread of the new coronavirus.

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Results for the latest period reflected its payment of $17 million to hourly store employees, funds meant to provide short-term financial assistance.

In the quarter, Cracker Barrel also recorded a non-cash impairment of $132.9 million tied to its investment in Punch Bowl Social, a food, drinks and entertainment brand.

It also recorded $18.3 million in non-cash impairment charges related to store assets.

Cracker Barrel also said Tuesday that as of May 29, 505 of its stores were offering limited dine-in service.

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"The company expects that substantially all stores will have limited dine-in service by the end of June," it said. Cracker Barrel has 664 company stores in 45 states and also owns a brand called Maple Street Biscuit Company.

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