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Cracker Barrel's (CBRL) Beats on Q4 Earnings & Revenues
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Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) posted fourth quarter and fiscal year 2016 results, wherein both bottom line and top line beat the Zacks Consensus Estimate.
The results were announced after trading hours and did not have any large-scale impact on Cracker Barrel’s share price.
Earnings & Revenues
Cracker Barrel’s adjusted earnings of $2.12 per share for the fourth quarter beat the Zacks Consensus Estimate by 2 cents and also increased 7.6% from the year-ago figure of $1.97.
The company reported revenues of $745.6 million in the quarter, surpassing the Zacks Consensus Estimate of $738 million by 1% and also increasing 3.7% year over year. Primary reasons for the same include better comps performance and increase in store count.
Operating margin in the quarter was 10.4%, an increase of 30 basis points from 10.1% a year ago, on the back of reduced general and administrative expenses (down 5%), partially offset by an increase in store operating expenses (up 8%).
Behind the Headline Numbers
Comparable restaurant sales increased 3.2% year over year and comparable store retail sales increased 3.5% in the fourth quarter. This quarter also marked the company’s largest quarterly outperformance relative to the casual dining industry in fiscal 2016.
Restaurant comps increased on the back of a 4.4% increase in average check, partially offset by a 1.2% decrease in store traffic. Also, the average menu price increase for the quarter was close to 2.4%.
Fiscal 2016 Results
The company reported total revenue of $2.91 billion for the fiscal year 2016, in line with the Zacks Consensus Estimate, but increasing 2.5% year over year.
The full year earnings were $7.55 per share, which compared favorably with last year’s figure of $6.82, marking an increase of 10.7%. Full year EPS marginally beat the Zacks Consensus Estimate of $7.53 by 2 cents (0.3%).
The company also declared a special dividend of $3.25 per share, in addition to the regular quarterly dividend totaling $4.45, bringing the total dividends declared per share to $7.7 in fiscal 2016.
Fiscal 2017 Outlook
Cracker Barrel expects revenues for fiscal 2017 to be between $2.95 billion and $3 billion, and earnings per share between $7.95 and $8.10.
The outlook is based on the company’s plan to open seven or eight new stores, expanding the Cracker Barrel store count beyond the existing number of 641.
It also expects an increase in comp sales in the range of 1% to 2% and a food commodity deflation in the range of 2% to 3% for fiscal 2017. The operating margin is expected to be between 9.5% and 10%.
Additionally, first quarter fiscal 2017 earnings are expected to be between $1.75 and $1.85 per share.
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Cracker Barrel's (CBRL) Beats on Q4 Earnings & Revenues
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) posted fourth quarter and fiscal year 2016 results, wherein both bottom line and top line beat the Zacks Consensus Estimate.
The results were announced after trading hours and did not have any large-scale impact on Cracker Barrel’s share price.
Earnings & Revenues
Cracker Barrel’s adjusted earnings of $2.12 per share for the fourth quarter beat the Zacks Consensus Estimate by 2 cents and also increased 7.6% from the year-ago figure of $1.97.
The company reported revenues of $745.6 million in the quarter, surpassing the Zacks Consensus Estimate of $738 million by 1% and also increasing 3.7% year over year. Primary reasons for the same include better comps performance and increase in store count.
CRACKER BARREL Price, Consensus and EPS Surprise
CRACKER BARREL Price, Consensus and EPS Surprise | CRACKER BARREL Quote
Operating Highlights
Operating margin in the quarter was 10.4%, an increase of 30 basis points from 10.1% a year ago, on the back of reduced general and administrative expenses (down 5%), partially offset by an increase in store operating expenses (up 8%).
Behind the Headline Numbers
Comparable restaurant sales increased 3.2% year over year and comparable store retail sales increased 3.5% in the fourth quarter. This quarter also marked the company’s largest quarterly outperformance relative to the casual dining industry in fiscal 2016.
Restaurant comps increased on the back of a 4.4% increase in average check, partially offset by a 1.2% decrease in store traffic. Also, the average menu price increase for the quarter was close to 2.4%.
Fiscal 2016 Results
The company reported total revenue of $2.91 billion for the fiscal year 2016, in line with the Zacks Consensus Estimate, but increasing 2.5% year over year.
The full year earnings were $7.55 per share, which compared favorably with last year’s figure of $6.82, marking an increase of 10.7%. Full year EPS marginally beat the Zacks Consensus Estimate of $7.53 by 2 cents (0.3%).
The company also declared a special dividend of $3.25 per share, in addition to the regular quarterly dividend totaling $4.45, bringing the total dividends declared per share to $7.7 in fiscal 2016.
Fiscal 2017 Outlook
Cracker Barrel expects revenues for fiscal 2017 to be between $2.95 billion and $3 billion, and earnings per share between $7.95 and $8.10.
The outlook is based on the company’s plan to open seven or eight new stores, expanding the Cracker Barrel store count beyond the existing number of 641.
It also expects an increase in comp sales in the range of 1% to 2% and a food commodity deflation in the range of 2% to 3% for fiscal 2017. The operating margin is expected to be between 9.5% and 10%.
Additionally, first quarter fiscal 2017 earnings are expected to be between $1.75 and $1.85 per share.
Zacks Rank & Stocks to Consider
Cracker Barrel currently has a Zacks Rank #4 (Sell). Better-ranked stocks in this sector include Papa John's International Inc. (PZZA - Free Report) , Del Taco Restaurants, Inc. and Wingstop, Inc. (WING - Free Report) , all holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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