Cracker Barrel Old Country Store (CBRL) revealed a wide beat on the top and bottom lines on Tuesday as higher traffic helped drive second-quarter sales despite a still weak economy.
The Lebanon, Tenn.-based restaurant and store operator reported net income of $35.2 million, or $1.47 a share, compared with a year-earlier $25.6 million, or $1.10.
Excluding one-time severance expenses, Cracker Barrel said it earned $1.43 a share, widely topping average analyst estimates of $1.25 a share in a Thomson Reuters poll.
Revenue for the three months ended Feb. 1 climbed 4.4% to $702.7 million from $673.2 million a year ago on a same-store increase of 3.3%. Average checks grew 3.1% and prices ticked up about 2.6%. The results beat the Street’s view of $694.1 million.
Shares of Cracker Barrel climbed about 11% to a 52-week high of $75.45 Tuesday morning.
“This quarter’s financial results exceeded our expectations and reflect the continued success of our marketing, menu, and operational initiatives,” said Cracker Barrel CEO Sandra Cochran.
However, the company warned that while it is confident, it also “remain cautious” about general economic conditions and consumer spending.
Citing continued commodity pressure, inclement weather and other uncertainties, Cracker Barrel lowered its full-year revenue guidance to between $2.6 billion and $2.65 billion on adjusted earnings of $4.60 to $4.80 a share.
Both bracket the consensus view of $2.63 billion in sales and EPS of $4.65.