Cracker Barrel Old Country Store (CBRL)

Pretax margin

		Aug 2, 2024	Jul 28, 2023	Jul 29, 2022	Jul 30, 2021	Jul 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	24,186	103,611	143,383	310,551	-61,158
Revenue	US$ in thousands	3,459,870	3,436,210	3,262,150	2,817,380	2,516,320
Pretax margin		0.70%	3.02%	4.40%	11.02%	-2.43%

August 2, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $24,186K ÷ $3,459,870K
= 0.70%

The pretax margin of Cracker Barrel Old Country Store has exhibited fluctuations over the past five years. The pretax margin was 0.70% as of August 2, 2024, indicating a decrease from the previous year's level of 3.02% as of July 28, 2023. This reduction suggests a decline in the company's ability to generate profits before accounting for taxes in the most recent period.

Comparing the current pretax margin to historical data reveals a downward trend in profitability. The pretax margin of 0.70% in 2024 is significantly lower than the levels seen in 2022 and 2021, which were 4.40% and 11.02%, respectively. Additionally, it is worth noting that in 2020, the company reported a negative pretax margin of -2.43%, indicating losses before taxes.

The declining trend in pretax margin raises concerns about Cracker Barrel Old Country Store's overall profitability and operational efficiency. Further analysis of the company's cost structure, revenue streams, and potential changes in the competitive landscape may be necessary to address the factors contributing to the decreasing pretax margin over the years.