Cracker Barrel (CBRL 181.75, +6.74) has climbed 3.9% in
pre-market after reporting better than expected quarterly results. The early
advance has lifted the stock to a fresh record high, extending this year's gain
The restaurant operator reported above-consensus first quarter earnings of $1.96 per share on a 3.3% yr/yr increase in revenue to $733.50 mln, which was also ahead of estimates.
Comparable restaurant sales grew 1.4% due to a 3.0% increase in average check, which offset a 1.6% decline in store traffic. Average menu prices increased 2.0%, reflecting the presence of inflationary pressures. Comparable store retail sales grew 4.3% yr/yr .
Operating income decreased 12.9% to $61.70 mln. The decline was entirely due to higher costs, including higher cost of goods sold, higher labor and related expenses, other operating expenses, and higher general and administrative expenses. Store operating income fell 7.0% to $100.61 mln.
The company opened three new restaurants during the quarter, bringing its total store count to 663.
Looking ahead, the company expects that earnings for fiscal 2019 will be between $8.95 per share and $9.10 per share while revenue is expected to hit $3.04 bln. Cracker Barrel raised its forecast for comparable retail sales growth to 1.0% to 2.0% from expectations for growth of up to 1.0%. The company's earnings and revenue guidance is in line with current market expectations.
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