We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cracker Barrel (CBRL) Q2 Earnings Top Estimates, Sales Lag
Read MoreHide Full Article
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) posted mixed second-quarter fiscal year 2017 results wherein the bottom line beat the Zacks Consensus Estimate, while the top line lagged the same.
Notably, shares of the company were down nearly 5% in yesterday’s trading session following the earnings release.
Earnings & Revenues
Cracker Barrel’s adjusted earnings of $2.19 per share for the fiscal second quarter, beat the Zacks Consensus Estimate by 5 cents and also increased 14.7% from the year-ago figure of $1.91.
The company reported revenues of $772.7 million in the quarter, missing the Zacks Consensus Estimate of $777 million by 0.6%. Nevertheless, revenues inched up 1.1% over prior-year quarter primarily due to better comps performance and increase in store count.
Behind the Headline Numbers
Comparable restaurant sales increased 0.6% year over year, which was lower than 3.2% growth recorded in the fiscal first quarter. Meanwhile, comparable store retail sales decreased 2.2% in the fiscal second quarter, as against the 3.5% increase recorded last quarter.
Restaurant comps increased on the back of a 2.7% increase in average check, partially offset by a 2.1% decrease in store traffic. Notably, the average menu price rise for the quarter was close to 2.1%.
Operating Highlights
Operating margin in the quarter was 10.7%, an increase of 150 basis points (bps) from 9.2% a year ago owing to reduced cost of goods sold (down 170 bps as a percentage of revenue), other store operating expenses (down 20 bps) and general and administrative expenses (down 20 bps), partially offset by an increase in labor and related expenses (up 60 bps).
Cracker Barrel Old Country Store, Inc. Price, Consensus and EPS Surprise
For the third-quarter fiscal 2017, the company expects earnings in the range of $1.75--$1.85 per share. The Zacks Consensus Estimate of the quarter’s earnings of $1.92 per share lies above the company guided range.
Fiscal 2017 Outlook
Cracker Barrel continues to expect earnings per share between $8.10 and $8.25 for fiscal 2017. The Zack Consensus Estimate for the same time period stands at $8.25 per share which lies at the higher end of the guided range.
Meanwhile, revenues for fiscal 2017 are expected to be approximately $2.95 billion, which is at the lower end of its previously issued guidance between $2.95 billion and $3 billion.
The outlook is based on the company’s plan to open eight new Cracker Barrel stores and four new Holler & Dash Biscuit House restaurants, expanding the store count beyond the existing number of 641 and four, for the respective brands.
It now expects an increase in comparable store restaurant sales in the range of 0.5% to 1%, down from the previous expectation of 1-2%. Additionally comparable store retail sales of approximately -2.0% are expected, which reflects the company's more cautious expectations for the second half of the fiscal year. The previous expectation was of a dip of approximately 1%.
Also, the operating margin is now expected to be between 10% and 10.5%, as compared with the prior guidance of approximately 10%.
Zacks Rank & Stocks to Consider
Cracker Barrel currently has a Zacks Rank #2 (Buy). Other favorably-ranked restaurant stocks include Potbelly Corporation (PBPB - Free Report) with a Zacks Rank #1 (Strong Buy). Its long-term growth estimate is pegged at 20% compared with the industry average of 15.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dave & Buster’s Entertainment, Inc. (PLAY - Free Report) is another Zacks Rank #1 company. It has a positive record of earnings surprises, recording an average beat of 37.81% in the last four quarters.
Wingstop, Inc.’s (WING - Free Report) 2016 earnings growth estimate is pegged at 21.3% compared with the industry average of 7.5%. It currently carries a Zacks Rank #2.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Cracker Barrel (CBRL) Q2 Earnings Top Estimates, Sales Lag
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) posted mixed second-quarter fiscal year 2017 results wherein the bottom line beat the Zacks Consensus Estimate, while the top line lagged the same.
Notably, shares of the company were down nearly 5% in yesterday’s trading session following the earnings release.
Earnings & Revenues
Cracker Barrel’s adjusted earnings of $2.19 per share for the fiscal second quarter, beat the Zacks Consensus Estimate by 5 cents and also increased 14.7% from the year-ago figure of $1.91.
The company reported revenues of $772.7 million in the quarter, missing the Zacks Consensus Estimate of $777 million by 0.6%. Nevertheless, revenues inched up 1.1% over prior-year quarter primarily due to better comps performance and increase in store count.
Behind the Headline Numbers
Comparable restaurant sales increased 0.6% year over year, which was lower than 3.2% growth recorded in the fiscal first quarter. Meanwhile, comparable store retail sales decreased 2.2% in the fiscal second quarter, as against the 3.5% increase recorded last quarter.
Restaurant comps increased on the back of a 2.7% increase in average check, partially offset by a 2.1% decrease in store traffic. Notably, the average menu price rise for the quarter was close to 2.1%.
Operating Highlights
Operating margin in the quarter was 10.7%, an increase of 150 basis points (bps) from 9.2% a year ago owing to reduced cost of goods sold (down 170 bps as a percentage of revenue), other store operating expenses (down 20 bps) and general and administrative expenses (down 20 bps), partially offset by an increase in labor and related expenses (up 60 bps).
Cracker Barrel Old Country Store, Inc. Price, Consensus and EPS Surprise
Cracker Barrel Old Country Store, Inc. Price, Consensus and EPS Surprise | Cracker Barrel Old Country Store, Inc. Quote
Fiscal Third-Quarter 2017 Guidance
For the third-quarter fiscal 2017, the company expects earnings in the range of $1.75--$1.85 per share. The Zacks Consensus Estimate of the quarter’s earnings of $1.92 per share lies above the company guided range.
Fiscal 2017 Outlook
Cracker Barrel continues to expect earnings per share between $8.10 and $8.25 for fiscal 2017. The Zack Consensus Estimate for the same time period stands at $8.25 per share which lies at the higher end of the guided range.
Meanwhile, revenues for fiscal 2017 are expected to be approximately $2.95 billion, which is at the lower end of its previously issued guidance between $2.95 billion and $3 billion.
The outlook is based on the company’s plan to open eight new Cracker Barrel stores and four new Holler & Dash Biscuit House restaurants, expanding the store count beyond the existing number of 641 and four, for the respective brands.
It now expects an increase in comparable store restaurant sales in the range of 0.5% to 1%, down from the previous expectation of 1-2%. Additionally comparable store retail sales of approximately -2.0% are expected, which reflects the company's more cautious expectations for the second half of the fiscal year. The previous expectation was of a dip of approximately 1%.
Also, the operating margin is now expected to be between 10% and 10.5%, as compared with the prior guidance of approximately 10%.
Zacks Rank & Stocks to Consider
Cracker Barrel currently has a Zacks Rank #2 (Buy). Other favorably-ranked restaurant stocks include Potbelly Corporation (PBPB - Free Report) with a Zacks Rank #1 (Strong Buy). Its long-term growth estimate is pegged at 20% compared with the industry average of 15.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dave & Buster’s Entertainment, Inc. (PLAY - Free Report) is another Zacks Rank #1 company. It has a positive record of earnings surprises, recording an average beat of 37.81% in the last four quarters.
Wingstop, Inc.’s (WING - Free Report) 2016 earnings growth estimate is pegged at 21.3% compared with the industry average of 7.5%. It currently carries a Zacks Rank #2.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>