Cracker Barrel Q3 Profit Down, Tops View, Revenues Miss; Lifts FY17 Profit View

(RTTNews) - Cracker Barrel Old Country Store, Inc. (CBRL) reported Tuesday that its third-quarter net income declined 5 percent to $46.92 million from last year's $49.17 million. Earnings per share fell 4 percent to $1.95 from $2.04 in the prior year.

On an adjusted basis, earnings per share increased 7.1% from last year's earnings per share of $1.82.

Operating income margin as a percent of total revenue increased 60 basis points over the prior year quarter to 10.2%.

Total revenue for the third quarter was $700.41 million, almost flat compared to prior year's $700.14 million.

On average, 8 analysts polled by Thomson Reuters expected earnings of $1.85 per share on revenues of $713.06 million for the quarter. Analysts' estimates typically exclude special items.

Comparable store restaurant sales decreased 0.4%, as a 2.1% decline in comparable store restaurant traffic was partially offset by a 1.7% increase in average check. The average menu price increase was approximately 1.6%. Comparable store retail sales decreased 4.7%.

Further, the company announced that its Board of Directors increased the quarterly dividend to $1.20 per share, a 4.3% increase over the previous quarterly dividend of $1.15.

The Board also declared a special dividend of $3.50 per share on the Company's common stock.

Looking ahead, for the fourth quarter, the company expects to report earnings per share of between $2.10 and $2.20. Analysts expect earnings of $2.19 per share for the quarter.

Further, for fiscal 2017, the company raised its earnings guidance and now expects to report earnings per share between $8.25 and $8.35. Previously, the company was projecting earnings of $8.10 and $8.25 per share.

Further, the company still expects total revenue of approximately $2.95 billion, reflecting the expected opening throughout fiscal 2017 of six new Cracker Barrel stores and three new Holler & Dash Biscuit House restaurants.

Analysts expect earnings of $8.23 per share on revenues of $2.96 billion for the year.

The Company now expects comparable store restaurant sales of between flat and 0.5% and comparable store retail sales of approximately -3.5%, reflecting the Company's more cautious expectations for the fourth quarter.

In pre-market activity on Nasdaq, the shares were gaining 1.29 percent to $163.50.