Cracker Barrel stock soars on positive quarterly report

Cracker Barrel Old Country Store, Inc., stock prices soared Tuesday following a positive quarterly earnings report.

Shares hit an all-time high, peaking at $75.45 in early morning trading before tapering off a bit at the end of the day to settle at $72.45. The price rose $5.80 from the previous day’s trading, which represented an 8.66-percent increase.

During a second fiscal quarter report Tuesday, the Lebanon-based company touted positive comparable store traffic, restaurant and retail sales as reasons for a 4.4-percent increase in total revenue compared to the same quarter that ended Feb. 1, 2012. Cracker Barrel officials reported $702.7 million in total revenue during the second quarter.

“This is the first quarter in more than 10 years with positive comparable store traffic against a prior-year quarter with positive comparable store traffic,” said Sandra B. Cochran, Cracker Barrel’s president and chief executive officer. “This was also the fifth consecutive quarter of comparable store traffic and sales growth, and of outperforming the Knapp-Track casual dining index. This quarter’s financial results exceeded our expectations and reflect the continued success of our marketing, menu and operational initiatives. While we remain confident of our ability to execute our strategic plan, we also remain cautious about general economic conditions and consumer spending.”

Compared to the prior year’s second quarter, store traffic increased .2 percent, store restaurant sales increased 3.3 percent, including a 3.1-percent increase in average check and store retail sales increased 3.1 percent. The average menu price increase for the quarter was about 2.6 percent.

Cracker Barrel’s operating margin income was 8.1 percent of total revenue, compared with 7 percent in the previous year’s quarter.

Adjusted earnings per share increased 19.17 percent to $1.43 in the quarter versus $1.20 in the year-earlier quarter.

Cracker Barrel also beat the mean analyst estimate of $1.25 adjusted earnings per share and the average revenue estimate of $694.06 million.

During the quarter, Cracker Barrel opened one new store, raising its total to five during the fiscal year to date.

For fiscal 2013, Cracker Barrel expects between $2.6 billion-$2.65 billion in total revenue and between $4.60-$4.80 of adjusted earnings per diluted share. The revenue projection reflects the expected opening of eight news stories and projected increases in comparable store restaurant and retails sales in a range of 2 percent-3 percent, along with an adjusted operating income margin between 7.3 percent-7.5 percent of total revenue.