Cracker Barrel Comparable Retail Sales Down; Backs Q2 Earnings View

(RTTNews) - Cracker Barrel Old Country Store, Inc. (CBRL), the operator of Cracker Barrel Old Country Store restaurant and retail concept, Monday reported that its comparable retail sales declined 2.8 percent each for the months of November and December mainly due to negative weather impacts.

Comparable restaurant traffic edged down 0.4 percent in November and declined 4.7 percent in December. Comparable restaurant sales in November grew 2.5 percent, but declined 2.7 percent in November.

In the quarter-to-date period, comparable retail sales declined 2.8 percent and comparable restaurant sales edged down 0.1 percent with a 2.5 percent drop in traffic.

The company said it estimates that inclement weather in November and December negatively impacted quarter-to- date comparable store traffic, restaurant and retail sales by approximately 1.5 to 2.0 percentage points, with the most significant impact in December.

Sandra Cochran, President and Chief Executive Officer, said, "Our sales were negatively impacted by weather events in three of the four weekends during this shortened holiday season, and the inclement weather continued through the first two weeks of our January fiscal month..... Our sales during the period also reflected the continued economic challenges faced by our customers."

Further, the company affirmed its previous earnings guidance for its second fiscal quarter of $1.50 to $1.60 per share. The company noted that it expected second-quarter earnings to be close to the midpoint of this range. On average, seven analysts polled by Thomson Reuters expect earnings of $1.62 per share for the quarter. Analysts' estimates typically exclude special items.