Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) reported better-than-expected fourth-quarter fiscal 2019 results. With this, the company’s earnings surpassed the Zacks Consensus Estimate for the fourth straight quarter.
Adjusted earnings came in at $2.70 per share, which outpaced the Zacks Consensus Estimate of $2.43. The bottom line also increased 23.3% year over year on high expenses.
Revenues of $787.1 million surpassed the consensus mark of $774 million but declined 3% from the prior-year quarter. The downside was primality due to the inclusion of the 53rd week in the prior-year quarter.
Comps Details
Comparable store restaurant sales increased 3.8% in the reported quarter, courtesy of a 3.6% uptick in average check and a 0.2% increase in comparable store restaurant traffic. Also, the average menu price rose about 2.3%. Moreover, comps compared favorably with the third quarter’s 1.3% rise.
Comparable store retail sales in the fiscal fourth quarter rose 0.4% compared with a 2.6% decline in the third quarter.
Operating Highlights
Operating income in the fiscal fourth quarter totaled $79.4 million, down 4% year over year. Operating margin was 10.1%, down 10 basis points from the prior-year quarter.
As a percentage of total revenues, rise in other operating expenses, and general and administrative expenses were overshadowed by a decline in cost of goods sold and labor and other related expenses.
Cracker Barrel Old Country Store, Inc. Price, Consensus and EPS Surprise
Cracker Barrel Old Country Store, Inc. price-consensus-eps-surprise-chart | Cracker Barrel Old Country Store, Inc. Quote
Balance Sheet
As of Aug 2, 2019, cash and cash equivalents were $36.9 million, down from $114.7 million as of Aug 3, 2018. Long-term debt remained at $400 million in the reported quarter, in line with the prior-year quarter.
Inventory at the end of the quarter under review amounted to $155 million, down from fourth-quarter fiscal 2018 value of $156.3 million.
Net cash provided by operating activities was $362.8 million as of Aug 2, 2019, compared with $330.6 million as of Aug 3, 2018.
Fiscal 2019 Guidance
Cracker Barrel expects total revenues in the range of $3.15-$3.2 billion. Comparable store restaurant sales and retail sales are expected to grow 2-3%. The company also aims to open six Cracker Barrel stores in fiscal 2019.
Management continues to project earnings per diluted share of $8.8-$8.95 (including the impact of investment in Punch Bowl Social) for fiscal 2020 compared with $9.27 in fiscal 2019.
Cracker Barrel currently carries a Zacks Rank #3 (Hold). You can the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
Darden (NYSE:DRI) reported fourth-quarter fiscal 2019 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues lagged the same. Adjusted earnings of $1.76 per share outpaced the Zacks Consensus Estimate of $1.73. The bottom line also increased 26.6% year over year on higher revenues.
Domino’s (NYSE:DPZ) reported mixed second-quarter 2019 financial numbers, wherein earnings exceeded the Zacks Consensus Estimate but revenues missed the same. Adjusted earnings of $2.19 per share outpaced the Zacks Consensus Estimate of $2.00. The metric also increased 19% on a year-over-year basis. The bottom-line improvement was driven by higher net income and lower diluted share count as a result of share repurchases.
Chipotle (NYSE:CMG) reported better-than-expected results in the second quarter of 2019. Its adjusted earnings of $3.99 per share surpassed the Zacks Consensus Estimate of $3.69 by 8.1%. The bottom line also grew 39% from the year-ago quarter number backed by solid revenues and strong operating margins.
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Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report
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