Biglari Capital Responds to Cracker Barrel's Preliminary Q1 2025 Announcement
Biglari Capital has responded critically to Cracker Barrel's Q1 2025 preliminary earnings. The company's adjusted EBITDA margin was 5.4%, down 70 bps from Q1 2023 and similar to Q1 2024, which was part of Cracker Barrel's historically worst year. Despite plans to open new stores and invest $160-180 million in capital expenditures, management maintained its FY 2025 guidance, projecting revenue and adjusted EBITDA to be similar to or lower than FY 2024. Biglari Capital expressed concerns about the effectiveness of Cracker Barrel's $700 million transformation plan and urged shareholders to vote for board changes.
Biglari Capital ha espresso una critica ai risultati preliminari del Q1 2025 di Cracker Barrel. Il margine EBITDA rettificato dell'azienda è stato del 5.4%, in calo di 70 punti base rispetto al Q1 2023 e simile a quello del Q1 2024, che è stato parte dell'anno storicamente peggiore per Cracker Barrel. Nonostante i piani di aprire nuovi negozi e investire tra i 160 e i 180 milioni di dollari in spese di capitale, la direzione ha mantenuto le previsioni per l'anno fiscale 2025, prevedendo ricavi e EBITDA rettificati simili o inferiori a quelli del FY 2024. Biglari Capital ha espresso preoccupazioni sull'efficacia del piano di trasformazione da 700 milioni di dollari di Cracker Barrel e ha esortato gli azionisti a votare per cambiamenti nel consiglio.
Biglari Capital ha respondido críticamente a los resultados preliminares del Q1 2025 de Cracker Barrel. El margen EBITDA ajustado de la compañía fue del 5.4%, una disminución de 70 puntos básicos en comparación con el Q1 2023 y similar al Q1 2024, que fue parte del año históricamente peor de Cracker Barrel. A pesar de sus planes de abrir nuevas tiendas e invertir entre 160 y 180 millones de dólares en gastos de capital, la dirección mantuvo su guía para el FY 2025, proyectando ingresos y EBITDA ajustado similares o inferiores a los del FY 2024. Biglari Capital expresó preocupaciones sobre la efectividad del plan de transformación de 700 millones de dólares de Cracker Barrel y urgió a los accionistas a votar por cambios en la junta.
빅라리 캐피탈이 크래커 배럴의 2025년 1분기 예비 실적에 대해 비판적인 반응을 보였습니다. 회사의 조정된 EBITDA 마진은 5.4%로, 2023년 1분기 대비 70bp 하락했으며, 2024년 1분기와 유사하게 나타났습니다. 2024년은 크래커 배럴의 역사상 최악의 해 중 하나였습니다. 새로운 매장을 열고 1억 6천만에서 1억 8천만 달러를 자본 지출에 투자할 계획에도 불구하고 경영진은 2025 회계연도 가이던스를 유지하며, 수익 및 조정 EBITDA가 2024 회계연도와 유사하거나 그보다 낮을 것으로 예상했습니다. 빅라리 캐피탈은 크래커 배럴의 7억 달러 규모의 전환 계획의 효과성에 대한 우려를 표명했으며 주주들에게 이사회 변화를 위한 투표를 촉구했습니다.
Biglari Capital a réagi de manière critique aux résultats préliminaires du Q1 2025 de Cracker Barrel. La marge EBITDA ajustée de l'entreprise était de 5,4%, en baisse de 70 points de base par rapport au Q1 2023 et similaire à celle du Q1 2024, qui a été l'une des pires années de Cracker Barrel. Malgré des projets d'ouverture de nouveaux magasins et un investissement de 160 à 180 millions de dollars dans des dépenses d'investissement, la direction a maintenu ses prévisions pour l'exercice 2025, prévoyant des revenus et un EBITDA ajusté similaires ou inférieurs à ceux de l'exercice 2024. Biglari Capital a exprimé des inquiétudes concernant l'efficacité du plan de transformation de 700 millions de dollars de Cracker Barrel et a exhorté les actionnaires à voter en faveur de changements au sein du conseil d'administration.
Biglari Capital hat kritisch auf die vorläufigen Ergebnisse von Cracker Barrel für das 1. Quartal 2025 reagiert. Die bereinigte EBITDA-Marge des Unternehmens betrug 5,4%, was einen Rückgang von 70 Basispunkten im Vergleich zum 1. Quartal 2023 darstellt und ähnlich wie im 1. Quartal 2024 ist, das Teil des historisch schlechtesten Jahres von Cracker Barrel war. Trotz der Pläne, neue Geschäfte zu eröffnen und zwischen 160 und 180 Millionen Dollar in Investitionsausgaben zu investieren, hielt das Management an den Prognosen für das Geschäftsjahr 2025 fest und rechnete damit, dass die Umsätze und das bereinigte EBITDA ähnlich oder niedriger sein würden als im Geschäftsjahr 2024. Biglari Capital äußerte Bedenken hinsichtlich der Wirksamkeit des 700 Millionen Dollar umfassenden Transformationsplans von Cracker Barrel und forderte die Aktionäre auf, für Veränderungen im Vorstand zu stimmen.
- None.
- Adjusted EBITDA margin declined 70 bps year-over-year to 5.4%
- Guest traffic continued to decline in Q1 2025
- FY 2025 guidance projects flat or lower revenue and EBITDA despite expansion plans
- $160-180M capital expenditure yielding no projected improvement
- Q1 2025 performance similar to historically worst year (FY 2024)
Insights
The preliminary Q1 2025 results paint a concerning picture for Cracker Barrel. The
The planned capital expenditure of
Cracker Barrel's preliminary Q1 2025 earnings announcement reinforces our concerns that the Company is on the wrong track.
The Company did not disclose the change in guest traffic, which continued to decline during the quarter.
The adjusted EBITDA margin in Q1 2025 was
Importantly, Cracker Barrel did not change its FY 2025 guidance. Management expects revenue and adjusted EBITDA in FY 2025 to be similar to or lower than in FY 2024 (assuming the midpoint of guidance), despite opening two new Cracker Barrel stores and three to four new Maple Street Biscuit units and making
The Board attempted to spin the bad news, saying, "Our fiscal year is off to a strong start…," yet management still did not change its guidance. There is a lack of confidence on the part of analysts and the investing community regarding the
The Q1 2025 results do not change the underlying concerns we have or the urgent need for change. Shareholders cannot afford to wait for the Company to implode.
Cracker Barrel is in trouble if the incumbent Board is investing
Shareholders must act now to protect their investments. Vote "FOR" on the Gold proxy card to elect Sardar Biglari and Milena Alberti-Perez to the Board.
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SOURCE Biglari Capital Corp.
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