Cracker Barrel (CBRL) Q1 Earnings, Revenues Beat Estimates
Zacks Investment Research | Nov 27, 2018 11:28PM ET
Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) reported better-than-expected results for the first-quarter of fiscal 2019.
Adjusted earnings of $1.96 per share surpassed the Zacks Consensus Estimate of $1.91 by 2.6%. Earnings increased 2.1% year over year on marketing efforts and increased revenues.
Revenues of $733.5 million surpassed the consensus mark of $717 million by 2.3%. Moreover, revenues increased 3.3% from the prior-year quarter, driven by higher comparable store retail and restaurant sales.
Following the better-than-expected results, shares of Cracker Barrel jumped 4.7% on Nov 27. The company’s shares have rallied 17.1% in a year, outperforming the industry ’s collective growth of 9.4%.
Comps Details
Comparable store restaurant sales increased 1.4% in the reported quarter buoyed bya 3% uptickin average check, partially offset bya 1.6% fall in comparable store restaurant traffic. The average menu price rose about 2% in the reported quarter. In fact, comps compared favorably with the fiscal fourth quarter’s 0.5% decline.
Comparable store retail sales in the first quarter increased 4.3%, better than the1.3% improvement recorded in the fourth quarter.
Operating Highlights
Operating income in the first quarter was $61.7 million, showing a decline from the year-ago quarter’s $70.8 million. Operating margin in the reported quarter was 8.4%, down 160 basis points (bps) from 10% a year ago.
As a percentage of total revenues, the cost of goods and labor expenses increased 60 bps and 30 bps, respectively. Moreover, the company witnessed a rise in other operating, and general and administrative expenses.
Balance Sheet
As of Nov 2, 2018, cash and cash equivalents were $101.6 million, down from $120.2million as of Oct 27, 2017 (end of first-quarter fiscal 2017). Long-term debt remained at $400 million in the quarter, flat with the prior-year quarter.
Inventory at the end of the quarter amounted to $181.6 million, down from first-quarter fiscal 2017 value of $191.5 million.
Cash flow from operating activities was $59.6 million as of Nov 2, 2018, compared with $38.3 million as of Oct 27, 2017.
In the fiscal first quarter, Cracker Barrel announced a quarterly dividend of $1.25 per share on the company's common stock. The dividend is payable on Feb 5, 2019, to shareholders of record as of Jan 18, 2019.
Get The News You Want
Cracker Barrel Old Country Store, Inc. Price, Consensus and EPS Surprise
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.