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Sydnee Gatewood
Sydnee Gatewood
Articles (328) 

Cracker Barrel Shares on a Roll After Earnings Beat

Restaurant posts revenue miss

September 13, 2017 | About:

Restaurant and gift store operator Cracker Barrel Old Country Store Inc. (NASDAQ:CBRL) reported its results for the fourth quarter and full fiscal 2017 before the opening bell on Sept. 13.

The Lebanon, Tennessee-based company posted EPS of $2.23 for the quarter, beating estimates of $2.18. Quarterly revenue of $743.2 million missed expectations of $750.3 million and declined 0.3% from the prior-year quarter.

For the year, Cracker Barrel recorded EPS of $8.37 and revenue of $2.93 billion, which increased 6.5% and 0.5% from 2016.

The company’s revenue growth over the past decade is illustrated in the chart below.

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Shortly after the market opened on Wednesday, shares were up over 2% at around $151.22.

Quarterly same-store restaurant sales declined 0.8% from the year-ago quarter but were up 0.2% for the year. In its retail segment, same-store sales fell 4.4% for the quarter and 3.7% for the year.

President and CEO Sandra B. Cochran commented on the company’s performance for the year.

"We ended fiscal 2017 with solid operating income margin and earnings growth,” Cochran said. “Since fiscal 2014, when we laid out our three-year strategic plan, we have grown earnings per share by nearly 50%, well above our target growth.”

For first-quarter 2018, the company expects EPS to range from $1.85 to $1.95. For full fiscal 2018, Cracker Barrel forecasts total revenue of $3.1 billion, a 2.5% to 3.5% increase in same-store restaurant sales and up to 1% increase in same-store retail sales. EPS guidance for the year is between $8.85 and $9.

“As we enter the new fiscal year, we anticipate the environment to remain challenged, yet are confident in our plans to invest in the long-term growth of the company," Cochran said.

With 0.24% of outstanding shares, Pioneer Investments (Trades, Portfolio) has the largest position in Cracker Barrel among the gurus. Joel Greenblatt (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) are also shareholders.

Disclosure: I do not own any stocks mentioned.

About the author:

Sydnee Gatewood
I am an editorial assistant at GuruFocus. I have a BA in journalism and an MA in mass communications from Texas Tech University. I have lived in Texas most of my life, but also have roots in New Mexico and Colorado. Follow me on Twitter! @gurusydneeg

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