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Cracker Barrel (CBRL) Q3 Earnings Beat Estimates, Sales Lag
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Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) posted mixed third-quarter fiscal 2017 results wherein the bottom line beat the Zacks Consensus Estimate, while the top line lagged the same.
Earnings & Revenues
Cracker Barrel’s adjusted earnings of $1.95 per share for the fiscal third quarter, beat the Zacks Consensus Estimate of $1.84 by 6% and also increased 7.1% from the year-ago figure of $1.82.
The company reported revenues of $700.4 million in the quarter, missing the Zacks Consensus Estimate of $710.8 million by nearly 1.5%. Meanwhile, revenues remained flat on a year-over-year basis.
Behind the Headline Numbers
Comparable store restaurant sales decreased 0.4% year over year, which compared unfavourably with the 0.6% growth recorded in the fiscal second quarter. A 1.7% increase in average check was more than offset by a 2.1% decrease in traffic, leading to the comps decline. Notably, the average menu price rise for the quarter was close to 1.6%.
Meanwhile, comparable store retail sales fell 4.7% in the fiscal third quarter compared with the 2.2% decrease recorded last quarter.
Operating Highlights
Operating margin in the quarter was 10.2%, an increase of 60 basis points (bps) from 9.6% a year ago owing to reduced cost of goods sold (down 90 bps as a percentage of revenue) and general and administrative expenses (down 10 bps), partially offset by an increase in labor and related expenses (up 20 bps) and other store operating expenses (up 20 bps).
Dividend Hike, Special Dividend Announced
The board of directors of Cracker Barrel announced a 4.3% increase in the quarterly dividend from $1.15 to $1.20 per share, payable on Aug 4, 2017, to shareholders of record as of Jul 14, 2017. This adds up to an annual dividend of $4.80, representing a dividend yield of nearly 3%.
Concurrently, they also announced a special cash dividend of $3.50 per share, which will be paid on Jul 28, 2017, to shareholders on record as of Jul 14, 2017. We note that this is the company's third special dividend declaration.
Fiscal Fourth-Quarter 2017 Guidance
In the fourth-quarter fiscal 2017, the company expects earnings in the range of $2.10-$2.20 per share.
Fiscal 2017 Outlook
Cracker Barrel anticipates earnings in the band of $8.25 to $8.35 per share, up from the earlier guided range of $8.10 to $8.25 in fiscal 2017.
Meanwhile, revenues are still expected to be approximately $2.95 billion in fiscal 2017. The outlook is based on the company’s plan to open six (earlier eight) new Cracker Barrel stores and three (earlier four) new Holler & Dash Biscuit House restaurants, thereby expanding the store count beyond the existing number of 644 and four, for the respective brands.
The company now projects comparable store restaurant sales to be flat to up 0.5% compared with the previous guided range of 0.5% to 1%. Additionally, comparable store retail sales are expected to be down roughly 3.5%, which reflects the company's more cautious expectations for the fiscal fourth quarter. The previous expectation was of a dip of approximately 2%.
Moreover, operating margin is now expected to be 10.5% of total revenue for fiscal 2017, which is the high end of the previously guided range of 10-10.5%. Capital expenditures are still anticipated to be roughly $125 million.
Restaurant Brands International, Inc. (QSR - Free Report) reported first-quarter 2017 adjusted earnings per share of 36 cents beating the Zacks Consensus Estimate of 35 cents by 2.9%. Earnings also increased 20% year over year on higher revenues.
In first-quarter 2017, DineEquity, Inc. (DIN - Free Report) posted earnings of $1.22 per share that surpassed the Zacks Consensus Estimate of $1.20 by 1.7%. However, earnings declined 22.8% year over year mainly due to lower gross profit as well as higher general and administrative expenses, partially offset by a lower share count.
Jack in the Box Inc.’s (JACK - Free Report) second-quarter fiscal 2017 adjusted earnings of 98 cents per share outpaced the Zacks Consensus Estimate of 90 cents by 8.9%. Further, the bottom line surged over 15.3% year over year primarily owing to lower G&A expenses.
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Cracker Barrel (CBRL) Q3 Earnings Beat Estimates, Sales Lag
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) posted mixed third-quarter fiscal 2017 results wherein the bottom line beat the Zacks Consensus Estimate, while the top line lagged the same.
Earnings & Revenues
Cracker Barrel’s adjusted earnings of $1.95 per share for the fiscal third quarter, beat the Zacks Consensus Estimate of $1.84 by 6% and also increased 7.1% from the year-ago figure of $1.82.
The company reported revenues of $700.4 million in the quarter, missing the Zacks Consensus Estimate of $710.8 million by nearly 1.5%. Meanwhile, revenues remained flat on a year-over-year basis.
Behind the Headline Numbers
Comparable store restaurant sales decreased 0.4% year over year, which compared unfavourably with the 0.6% growth recorded in the fiscal second quarter. A 1.7% increase in average check was more than offset by a 2.1% decrease in traffic, leading to the comps decline. Notably, the average menu price rise for the quarter was close to 1.6%.
Meanwhile, comparable store retail sales fell 4.7% in the fiscal third quarter compared with the 2.2% decrease recorded last quarter.
Operating Highlights
Operating margin in the quarter was 10.2%, an increase of 60 basis points (bps) from 9.6% a year ago owing to reduced cost of goods sold (down 90 bps as a percentage of revenue) and general and administrative expenses (down 10 bps), partially offset by an increase in labor and related expenses (up 20 bps) and other store operating expenses (up 20 bps).
Dividend Hike, Special Dividend Announced
The board of directors of Cracker Barrel announced a 4.3% increase in the quarterly dividend from $1.15 to $1.20 per share, payable on Aug 4, 2017, to shareholders of record as of Jul 14, 2017. This adds up to an annual dividend of $4.80, representing a dividend yield of nearly 3%.
Concurrently, they also announced a special cash dividend of $3.50 per share, which will be paid on Jul 28, 2017, to shareholders on record as of Jul 14, 2017. We note that this is the company's third special dividend declaration.
Fiscal Fourth-Quarter 2017 Guidance
In the fourth-quarter fiscal 2017, the company expects earnings in the range of $2.10-$2.20 per share.
Fiscal 2017 Outlook
Cracker Barrel anticipates earnings in the band of $8.25 to $8.35 per share, up from the earlier guided range of $8.10 to $8.25 in fiscal 2017.
Meanwhile, revenues are still expected to be approximately $2.95 billion in fiscal 2017. The outlook is based on the company’s plan to open six (earlier eight) new Cracker Barrel stores and three (earlier four) new Holler & Dash Biscuit House restaurants, thereby expanding the store count beyond the existing number of 644 and four, for the respective brands.
The company now projects comparable store restaurant sales to be flat to up 0.5% compared with the previous guided range of 0.5% to 1%. Additionally, comparable store retail sales are expected to be down roughly 3.5%, which reflects the company's more cautious expectations for the fiscal fourth quarter. The previous expectation was of a dip of approximately 2%.
Moreover, operating margin is now expected to be 10.5% of total revenue for fiscal 2017, which is the high end of the previously guided range of 10-10.5%. Capital expenditures are still anticipated to be roughly $125 million.
Cracker Barrel has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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
Peer Releases
Restaurant Brands International, Inc. (QSR - Free Report) reported first-quarter 2017 adjusted earnings per share of 36 cents beating the Zacks Consensus Estimate of 35 cents by 2.9%. Earnings also increased 20% year over year on higher revenues.
In first-quarter 2017, DineEquity, Inc. (DIN - Free Report) posted earnings of $1.22 per share that surpassed the Zacks Consensus Estimate of $1.20 by 1.7%. However, earnings declined 22.8% year over year mainly due to lower gross profit as well as higher general and administrative expenses, partially offset by a lower share count.
Jack in the Box Inc.’s (JACK - Free Report) second-quarter fiscal 2017 adjusted earnings of 98 cents per share outpaced the Zacks Consensus Estimate of 90 cents by 8.9%. Further, the bottom line surged over 15.3% year over year primarily owing to lower G&A expenses.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>