UPDATE: Cracker Barrel Posts Higher Q1 Earnings, Lifts FY15 Forecast

Shares of Cracker Barrel Old Country Store

gained more than 3% in pre-market trading after the company reported a rise in its first-quarter earnings and lifted its forecast for the year. The Lebanon, Tennessee-based company posted quarterly earnings of $34 million, or $1.42 per share, compared to $27 million, or $1.14 per share, in the year-ago period. Cracker Barrel had expected earnings of $1.20 to $1.30 per share. Its revenue climbed 5.3% to $683 million. However, analysts were expecting earnings of $1.29 per share on revenue of $665 million. Its same-store restaurant sales gained 3.3%, while traffic gained 0.8% in the quarter. Operating income margin widened to 8.1% of total revenue, from 6.8% in the year-ago quarter. Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, “We are pleased with our first quarter results. We believe that our continued focus on enhancing the guest experience and operational improvements is reflected in the increase in comparable store traffic and sales, and in our operating margin. We saw meaningful progress during the quarter on our fiscal 2015 priorities and are confident that our focus on these initiatives will continue to positively impact the year's results. " For the current quarter, the company projects earnings of $1.50 to $1.60 per share, versus analysts' estimates of $1.65 per share. Cracker Barrel now projects FY15 earnings of $5.95 to $6.10 per share on revenue of around $2.8 billion. The company had earlier expected earnings of $5.80 to $5.95 per share on revenue of $2.75 billion to $2.8 billion. Cracker Barrel shares rose 3.08% to $125.00 in pre-market trading.