Cracker Barrel Q1 Earnings: Beating Expectations


Mid capSouthern chicken restaurant stock Cracker Barrel Old Country Store, Inc (NASDAQ: CBRL) reportedearnings for fiscal Q1 2018 (ended October 27, 2017) before the market opened with results topping Wall Street expectations. Total revenue rose 0.1%to $710.4 million as comparable store restaurant sales increased 0.2%, including a 2.0% increase in average check partially offset by a 1.8% decrease in store traffic. The average menu price increase for the quarter was approximately 2.2% whilecomparable store retail sales decreased 3.6% from the prior year quarter. The Company opened two new Holler & Dash Biscuit House locations during the quarter, bringing the store count to 651 combined Cracker Barrel Old Country Store and Holler & Dash Biscuit House locations at quarter-end. Net income was $46.380 million versus net income of $48.355 million. Earnings per diluted share were $1.92, compared to diluted EPS of $2.01 in the prior year first quarter with the Company estimating that hurricanes Harvey and Irma reduced first quarter diluted EPS by approximately $0.07.


The CEO commented:

“We delivered positive comparable store restaurant sales in the first quarter, outperformed our casual dining peers, and exceeded our earnings expectations, despite the challenges presented by the impact of hurricanes Harvey and Irma on many of the communities in which we, our customers and our employees live and work. In addition, our field and leadership teams made significant progress on the introduction of several key business initiatives, including the system-wide rollout of our off-premise platform. While being more cautious in our industry outlook and in our expectations for continued wage and commodity pressure, we remain well-positioned to deliver top-line performance and earnings growth as a result of our fiscal 2018 initiatives.”


A technical chart for Cracker Barrel Old Country Store shows shares heading back up to a key resistance mark at the $165 level:

A long term performance chart shows Cracker Barrel Old Country Store outperforming albeit shares appear to have peaked at the end of last year while potential Southern restaurant stocks like small cap Bojangles Inc (NASDAQ: BOJA) and Southern-Mediterraneaninspired Zoe’s Kitchen Inc (NYSE: ZOES) have underperformed:


Finally, here is a quick recap of mid cap Cracker Barrel Old Country Stores recent earnings history along with EPS estimate trends from the Yahoo! Finance analyst estimates page:

Earnings History10/30/20161/30/20174/29/20177/30/2017
EPS Est. 0.67 1.38 0.7 0.86
EPS Actual 0.76 1.45 0.74 0.92
Difference 0.09 0.07 0.04 0.06
Surprise % 13.40% 5.10% 5.70% 7.00%
EPS TrendCurrent Qtr. (Oct 2017)Next Qtr. (Jan 2018)Current Year (2018)Next Year (2019)
Current Estimate 0.76 1.55 3.97 4.32
7 Days Ago 0.76 1.55 3.97 4.32
30 Days Ago 0.76 1.55 3.97 4.32
60 Days Ago 0.76 1.55 3.97 4.31
90 Days Ago 0.79 1.56 3.95 4.3

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