Cracker Barrel Q4 Results Top Estimates, Initiates 2015 Outlook

(RTTNews) - Full-service restaurants operator Cracker Barrel Old Country Store, Inc. (CBRL) reported Wednesday a profit for the fourth quarter that increased 14 percent from last year, reflecting improved operating margins and higher comparable store sales.

Both earnings per share and quarterly revenues topped analysts' expectations. Looking ahead, the company provided earnings guidance for the first quarter, and also earnings and revenue forecast for the full-year 2015.

"During our 2014 fiscal year, we executed against our business plan and continued to deliver solid results for our shareholders. Although we still face a challenged consumer and industry environment, we have consistently outperformed our peers in the Knapp-Trackcasual dining index," President and CEO Sandra Cochran said in a statement.

The Lebanon, Tennessee-based operator of Cracker Barrel Old Country Store restaurant and retail concept reported net income of $39.19 million or $1.63 per share for the fourth quarter, higher than $34.30 million or $1.43 per share in the prior-year quarter.

On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $1.56 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter increased 2.8 percent to $692.75 million from $674.10 million in the same quarter last year, and topped six Wall Street analysts' consensus estimate of $685.91 million.

Comparable store restaurant sales for the quarter grew 1.2 percent, including a 3.1 percent increase in average check, offset by a 1.9 percent decrease in store traffic. The average menu price increase for the quarter was about 2.2 percent. Comparable store retail sales increased 2.6 percent for the quarter.

Restaurant revenues grew to $563.51 million from $549.66 million, and retail revenues improved to $129.24 million from $124.44 million in the year-ago quarter.

Operating margin improved 60 basis points to 8.7 percent from last year, primarily driven by a 130 basis point reduction in general and administrative expenses, which was partially offset by an increase in cost of goods sold.

Looking ahead to the first quarter, Cracker Barrel forecasts earnings in a range of $1.20 to $1.30 per share. Analysts expect the company to report earnings of $1.29 per share for the quarter.

For fiscal 2015, Cracker Barrel expects earnings in a range of $5.80 to $5.95 per share, on projected revenues between $2.75 billion and $2.80 billion as well as comparable store restaurant and retail sales in a range of 2.0 to 3.0 percent. Street is currently looking for full-year 2015 earnings of $6.08 per share on annual revenues of $2.77 billion.

The revenue projection for reflects the expected opening of six to seven new Cracker Barrel stores.

"As we begin the 2015 fiscal year, we remain focused on the initiatives we set forth in our three-year strategic plan and look forward to continuing to please our guests and deliver value for our shareholders," Cochran added.

CBRL closed Tuesday's regular trading session at $103.25, down $0.44 on a volume of 0.30 million shares.