UPDATE: Cracker Barrel Posts Rise In FQ3 Earnings, Issues Weak Outlook

Cracker Barrel Old Country Store

reported a rise in its fiscal third-quarter net profit. Cracker Barrel's quarterly net income surged to $28.7 million, or $1.20 per share, versus $24.6 million, or $1.02 per share, in the year-ago period. Its adjusted earnings came in at $1.23 per share. Its revenue surged 0.5% to $643.3 million from $640.4 million. However, analysts were expecting earnings of $1.22 per share on revenue of $643 million. Cracker Barrel's comparable store restaurant sales fell 0.6%. Customer traffic declined 2.9%, while average check rose 2.3%. The average menu price rose around 1.8%. Its comparable store retail sales also climbed 0.9% in the quarter. Cracker Barrel's opened 2 stores in the third quarter. Cracker Barrel President and Chief Executive Officer Sandra B. Cochran stated, “Like many in our industry, Cracker Barrel continued to face headwinds during the quarter from severe winter weather, a challenging consumer environment and an increasingly promotional competitive landscape. Nevertheless, we continued to outperform our peers in the Knapp-Track casual dining index for the tenth consecutive quarter, while our field teams focused on controlling costs and preserving our operating margins.” Cracker Barrel now projects FY14 earnings of $5.50 to $5.60 per share on revenue of $2.70 billion. Analysts expected earnings of $5.70 per share. It also expects Q4 adjusted earnings of $1.50 to $1.60 per share, versus analysts' estimates of $1.69 per share. Cracker Barrel shares gained 1.28% to close at $100.52 yesterday.