Cracker Barrel Q3 Profit Increases 30% on Higher Sales; Beats Estimates; Raises Dividend (CBRL)

Cracker Barrel Q3 Profit Increases 30% on Higher Sales; Beats Estimates; Raises Dividend (CBRL)


Before the opening bell on Monday, restaurant operator Cracker Barrel Old Country Store, Inc. (CBRL) reported an increase in earnings on higher sales in the third quarter. Both earnings and revenues topped Wall Street analysts’ expectations.

The Lebanon, Tennessee-based company said it earned $24.60 million, or $1.02 per share, in the third quarter, up 30% from $18.97 million, or 81 cents per share, in the same period a year ago. Analysts polled by Thomson Reuters were expecting the company to earn 94 cents per share in the quarter.

The company’s revenue rose 5% in the quarter to $640.41 million from $608.51 million last year. Analysts were expecting the company to see $630.56 million in revenue.

Comparable store traffic rose 0.7% for the quarter; comparable store restaurant sales rose 3.1%; comparable store retail sales increased 5.5%.

Sandra Cochran, CEO of Cracker Barrel, said, “Driven by strong sales, traffic and operational performance, our earnings growth for the third quarter exceeded our expectations. We believe focusing on our priorities around menu initiatives, store merchandise, marketing and operations improved our operating margin and profitability during the quarter.”

Looking ahead to full fiscal 2013 results, Cracker Barrel raised its adjusted earnings outlook. It now expects to earn between $4.75 and $4.85 per share; previously the company said it expected to between $4.60 and $4.80 per share for the year. Analysts expect the company to earn $4.79 per share for the year.

Cracker Barrel maintained its outlook that total revenue for the year will be between $2.6 billion and $2.65 billion. Analysts expect the company to see revenue of $2.63 billion for the year.

Also announced on Monday, the company’s board declared its next quarterly dividend payout. The company will now payout 75 cents per share, up 50% from the previous payout of 50 cents per share. This dividend will be paid on August 5 with an ex-dividend date of July 17.

Cracker Barrel shares were up $3.55, or +3.97%, during pre-market trading on Monday. The stock is up +39.22% year-to-date.

The Bottom Line
Shares of Cracker Barrel (CBRL) have a dividend yield of 3.35% based on Friday’s closing price of $89.46 and the company’s updated annualized dividend payout of $3.00 per share.

Cracker Barrel Old Country Store, Inc. (CBRL) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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