CBRL
$153.61
Cracker Barrel
$1.29
.85%
Earnings Details
1st Quarter October 2019
Tuesday, November 26, 2019 8:00:00 AM
Tweet Share Watch
Summary

Cracker Barrel Beats

Cracker Barrel (CBRL) reported 1st Quarter October 2019 earnings of $2.15 per share on revenue of $749.0 million. The consensus earnings estimate was $2.00 per share on revenue of $755.2 million. The Earnings Whisper number was $2.04 per share. Revenue grew 2.1% on a year-over-year basis.

The company said it now expects fiscal 2020 earnings of $9.45 to $9.60 per share, excluding items, and continues to expect revenue of $3.15 billion to $3.20 billion. The company's previous guidance was earnings of $9.30 to $9.45 per share, excluding items, and the current consensus earnings estimate is $9.50 per share on revenue of $3.17 billion for the year ending July 31, 2020.

Cracker Barrel Old Country Store Inc is engaged in the operation and development of the Cracker Barrel Old Country Store® concept. It offers home-style country cooking featuring many of its own recipes.

Results
Reported Earnings
$2.15
Earnings Whisper
$2.04
Consensus Estimate
$2.00
Reported Revenue
$749.0 Mil
Revenue Estimate
$755.2 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Cracker Barrel Reports First Quarter Fiscal 2020 Results And Declares Quarterly Dividend

LEBANON, Tenn., Nov. 26, 2019 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today reported its financial results for the first quarter ended November 1, 2019.

First Quarter Fiscal 2020 Highlights

  • Comparable store restaurant sales growth of 2.1% and traffic of -1.5% outperformed the casual dining industry.
  • As previously announced, the Company acquired Maple Street Biscuit Company in an all-cash transaction for $36 million.
  • The Company repurchased $14.2 million in shares in the first quarter.
  • GAAP earnings per diluted share were $1.79 compared to prior year first quarter earnings per diluted share of $1.96. This figure includes unfavorable impacts to earnings per diluted share for the quarter of ($0.11) related to transactional and integration expenses associated with the acquisition of Maple Street Biscuit Company and ($0.25) from the Company's equity method investment in its unconsolidated subsidiary Punch Bowl Social.
  • The Company's Board of Directors declared a quarterly dividend of $1.30 per share on the Company's common stock, payable on February 5, 2020 to shareholders of record on January 17, 2020.

Commenting on the first quarter results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, "I'm encouraged by our start to the fiscal year. While we faced headwinds from the softening trend in industry traffic and comparable store sales, I was pleased we again outperformed the casual dining industry, and we delivered solid operating income growth. Additionally, we completed our acquisition of Maple Street Biscuit Company, a strong brand with attractive unit economics and growth potential, which accelerates our penetration in the breakfast and lunch-focused fast casual category. We believe this acquisition and our previously announced strategic relationship with Punch Bowl Social will provide complementary growth vehicles for delivering long-term value creation."

First Quarter Fiscal 2020 Results
Revenue 
The Company reported total revenue of $749.0 million for the first quarter of fiscal 2020, representing an increase of 2.1% over the first quarter of the prior year. Cracker Barrel comparable store restaurant sales increased 2.1%, as a 3.6% increase in average check offset a 1.5% decrease in comparable store restaurant traffic. The average menu price increase for the quarter was approximately 2.3%. Comparable store retail sales decreased 0.9% from the prior year quarter.

Cracker Barrel comparable store restaurant traffic, average check, and comparable store restaurant sales and retail sales for the first quarter were as follows:


First Quarter

Comparable restaurant traffic

-1.5%

Average check

3.6%

Comparable restaurant sales

2.1%

Comparable retail sales

-0.9%

Operating Income
Operating income in the first quarter was $63.4 million, or 8.5% of total revenue, an increase from the prior year quarter of $61.7 million, or 8.4% of total revenue. As a percentage of total revenue, reductions in cost of goods sold was partially offset by increases in other operating expenses.

Earnings per Diluted Share
GAAP earnings per diluted share were $1.79 compared to prior year first quarter earnings per diluted share of $1.96. This figure includes unfavorable impacts to earnings per diluted share for the quarter of ($0.11) related to transactional and integration expenses associated with the acquisition of Maple Street Biscuit Company and ($0.25) from the Company's equity method investment in its unconsolidated subsidiary Punch Bowl Social.

Share Repurchases
The Company repurchased $14.2 million in shares in the first quarter.

Quarterly Dividend Declared
The Company's Board of Directors declared a quarterly dividend to common shareholders of $1.30 per share, payable on February 5, 2020 to shareholders of record on January 17, 2020.

Fiscal 2020 Outlook
The Company provided the following updated outlook for fiscal 2020:

  • GAAP earnings per diluted share between $8.50 and $8.65
    • This includes an expected loss from the Company's equity method investment in its unconsolidated subsidiary, Punch Bowl Social, resulting in an unfavorable GAAP earnings per diluted share impact of approximately ($0.80). This estimate includes expenses related to growth such as pre-opening expenses, the expected impact from unit closure expenses, and updated business performance expectations.
    • This also includes transactional and integration expenses related to the Company's acquisition of Maple Street Biscuit Company, which are expected to result in an unfavorable impact to GAAP earnings per diluted share of approximately ($0.15).
  • Total revenue of $3.15 billion to $3.20 billion
  • Cracker Barrel comparable store restaurant sales growth of approximately 2.0%
  • Cracker Barrel comparable store retail sales growth of approximately 1.0%
  • Operating income margin of approximately 9.0% as a percent of total revenue
  • Depreciation expense of $110 million to $115 million
  • Capital expenditures of $115 million to $125 million
  • Net interest expense of approximately $12 million, which includes the benefit of interest income resulting from the Company's lending to Punch Bowl Social
  • An effective tax rate of between 16.0% and 17.0%, which assumes a renewal of the Work Opportunity Tax Credit and includes an expected tax benefit from the projected loss from the Company's equity method investment in Punch Bowl Social

The Company reminds investors that its outlook for fiscal 2020 reflects a number of assumptions, many of which are outside the Company's control. 

Fiscal 2020 First Quarter Conference Call
As previously announced, the live broadcast of Cracker Barrel's quarterly conference call will be available to the public on-line at investor.crackerbarrel.com today beginning at 11:00 a.m. (ET). The on-line replay will be available at 2:00 p.m. (ET) and continue through December 10, 2019.

About Cracker Barrel Old Country Store®
Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) shares warm welcomes and friendly service while offering guests high-quality homestyle food and unique shopping — all at a fair price. By creating a world filled with hospitality and charm through an experience that combines dining and shopping, guests are cared for like family. Established in 1969 in Lebanon, Tenn., Cracker Barrel and its affiliates operate 660 company-owned Cracker Barrel Old Country Store® locations in 45 states and own the fast-casual Maple Street Biscuit Company and Holler and Dash® restaurants. For more information about the company, visit crackerbarrel.com.

CBRL-F

Except for specific historical information, certain of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These, and similar statements are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual performance of Cracker Barrel Old Country Store, Inc. and its subsidiaries to differ materially from those expressed or implied by this discussion. All forward-looking information is subject to completion of our financial procedures for Q1 FY 2020 and is provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "trends," "assumptions," "target," "guidance," "outlook," "opportunity," "future," "plans," "goals," "objectives," "expectations," "near-term," "long-term," "projection," "may," "will," "would," "could," "expect," "intend," "estimate," "anticipate," "believe," "potential," "regular," "should," "projects," "forecasts," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology and include the expected effects of operational improvement initiatives, such as new menu items and retail offerings. Factors which could materially affect actual results include, but are not limited to: the effects of uncertain consumer confidence, higher costs for energy, general or regional economic weakness, and weather on sales and customer travel, discretionary income or personal expenditure activity of our customers; information technology-related incidents, including data privacy and information security breaches, whether as a result of infrastructure failures, employee or vendor errors, or actions of third parties; our ability to identify, acquire and sell successful new lines of retail merchandise and new menu items at our restaurants; our ability to sustain or the effects of plans intended to improve operational or marketing execution and performance; uncertain performance of acquired businesses, strategic investments and other initiatives that we may pursue now or in the future, including our acquisition and integration of Maple Street Biscuit Company and our non-controlling ownership interest in Punch Bowl Social; changes in or implementation of additional governmental or regulatory rules, regulations and interpretations affecting tax, wage and hour matters, health and safety, pensions, insurance or other undeterminable areas; the effects of plans intended to promote or protect our brands and products; commodity price increases; the ability of and cost to us to recruit, train, and retain qualified hourly and management employees in an escalating wage environment; the effects of increased competition at our locations on sales and on labor recruiting, cost, and retention; workers' compensation, group health and utility price changes; consumer behavior based on negative publicity or concerns over nutritional or safety aspects of our food or products or those of the restaurant industry in general, including concerns about pandemics, as well as the possible effects of such events on the price or availability of ingredients used in our restaurants; the effects of our indebtedness and associated restrictions on our financial and operating flexibility and ability to execute or pursue our operating plans and objectives; changes in interest rates or capital market conditions affecting our financing costs and ability to refinance all or portions of our indebtedness; the effects of business trends on the outlook for individual restaurant locations and the effect on the carrying value of those locations; our ability to retain key personnel; the availability and cost of suitable sites for restaurant development and our ability to identify those sites; our ability to enter successfully into new geographic markets that may be less familiar to us; changes in land, building materials and construction costs; the actual results of pending, future or threatened litigation or governmental investigations and the costs and effects of negative publicity associated with these activities; practical or psychological effects of natural disasters or terrorist acts or war and military or government responses; disruptions to our restaurant or retail supply chain; changes in foreign exchange rates affecting our future retail inventory purchases; implementation of new or changes in interpretation of existing accounting principles generally accepted in the United States of America ("GAAP"); and other factors described from time to time in our filings with the Securities and Exchange Commission, press releases, and other communications. Any forward-looking statement made by us herein, or elsewhere, speaks only as of the date on which made. We expressly disclaim any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

 


CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Unaudited)

(In thousands, except share and per share amounts, percentages and ratios)



   First Quarter Ended  







Percentage



11/1/19


11/2/18


Change


Total revenue

$749,040


$733,543


2%









Cost of goods sold, exclusive of depreciation and rent

219,814


222,293


(1)


Labor and other related expenses

263,314


258,159


2


Other store operating expenses

162,908


152,478


7


Store operating income

103,004


100,613


2


General and administrative expenses

39,631


38,935


2


Operating income

63,373


61,678


3


Interest expense

3,580


4,349


(18)


Pretax income

59,793


57,329


4


Provision for income taxes

10,590


10,122


5


Income (loss) from unconsolidated subsidiary

(5,980)


0




Net income

$43,223


$47,207


(8)









Earnings per share – Basic:

$1.80


$1.97


(9)


Earnings per share – Diluted:

$1.79


$1.96


(9)









Weighted average shares:







    Basic

24,038,354


24,022,586


0


    Diluted

24,103,922


24,073,722


0









Ratio Analysis







Total revenue:







    Restaurant

81.0%


80.6%




    Retail

19.0


19.4




            Total revenue

100.0


100.0




Cost of goods sold, exclusive of depreciation and rent

29.3


30.3




Labor and other related expenses

35.2


35.2




Other store operating expenses

21.7


20.8




Store operating income

13.8


13.7




General and administrative expenses

5.3


5.3




Operating income

8.5


8.4




Interest expense

0.5


0.6




Pretax income

8.0


7.8




Provision for income taxes

1.4


1.4




Income (loss) from unconsolidated subsidiary

(0.8)


0.0




Net income

5.8%


6.4%





         

CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited and in thousands, except share amounts)


11/1/19


11/2/18


Assets





   Cash and cash equivalents

$43,209


$101,631


   Accounts receivable

22,104


21,545


   Inventory

188,719


181,569


   Prepaid expenses and other current assets

39,381


20,989


   Property and equipment, net

1,177,969


1,157,979


   Operating lease right-of-use assets, net

473,488


0


   Investment in unconsolidated subsidiary

83,120


0


   Other long-term assets

109,897


75,884


           Total assets

$2,137,887


$1,559,597







Liabilities and Shareholders' Equity





   Accounts payable

$145,945


$131,156


   Other current liabilities

296,712


245,148


   Long-term debt

485,000


400,000


   Long-term operating lease liabilities

467,085


0


   Other long-term obligations

81,177


130,756


   Deferred income taxes

56,184


52,359


   Shareholders' equity, net

605,784


600,178


          Total liabilities and shareholders' equity

$2,137,887


$1,559,597








 

CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

(Unaudited and in thousands)


Three Months Ended


11/1/19


11/2/18

Cash flows from operating activities:




             Net income

$43,223


$47,207

             Net loss from unconsolidated subsidiary

5,980


0

             Depreciation and amortization

28,678


24,838

             Loss on disposition of property and equipment

1,740


3,056

             Impairment

664


0

             Share-based compensation, net of excess tax benefit

1,798


2,089

             Noncash lease expense

15,330


0

             (Increase) in inventories

(33,534)


(25,316)

             Increase in accounts payable

11,848


8,824

             Net changes in other assets and liabilities

(30,892)


(1,071)

                           Net cash provided by operating activities

44,835


59,627

Cash flows from investing activities:




             Purchase of property and equipment, net of insurance recoveries

(27,828)


(36,746)

             Proceeds from sale of property and equipment

1,534


80

             Notes receivable from unconsolidated subsidiary

(16,000)


0

             Acquisition of business, net of cash acquired

(32,971)


0

                           Net cash (used in) investing activities

(75,265)


(36,666)

Cash flows from financing activities:




              Net proceeds from long-term debt

85,000


0

              Taxes withheld from issuance of share-based compensation awards

(1,994)


(2,016)

              Purchases and retirement of common stock

(14,188)


0

              Deferred financing costs

0


(3,022)

              Dividends on common stock

(32,063)


(30,948)

                           Net cash provided by (used in) financing activities

36,755


(35,986)





Net increase (decrease) in cash and cash equivalents

6,325


(13,025)

Cash and cash equivalents, beginning of period

36,884


114,656

Cash and cash equivalents, end of period

$43,209


$101,631




 

CRACKER BARREL OLD COUNTRY STORE, INC.

Supplemental Information

(Unaudited)


First Quarter Ended






11/1/19


11/2/18





Company-owned units in operation:








     Cracker Barrel stores open at beginning of period

660


653





     Holler & Dash units open at beginning of period

7


7





     Total open at beginning of period

667


660













      Cracker Barrel stores opened during period

0


3





      Holler & Dash units opened during period

0


0





      Total opened during period

0


3













      Maple Street Biscuit Company units acquired during period

28


0





      Total company-owned units in operation at end of period

695


663













      Total franchised Maple Street Biscuit Company units at end of period

5


0













Total revenue*: (In thousands)








Restaurant

$605,871


$590,978





Retail

141,961


142,565





Total revenue

$747,832


$733,543













Cost of goods sold* (exclusive of depreciation and rent): (In thousands)








      Restaurant

$149,164


$149,188





      Retail

$70,357


73,105





      Total cost of goods sold

$219,521


$222,293













Average unit volume*: (In thousands)







      Restaurant

$908.4


$893.5





      Retail

212.8


215.5





      Total

$1,121.2


$1,109.0







Operating weeks*:

8,671


8,599















Note*: These items exclude Maple Street Biscuit Company due to the fact that the acquisition occurred late in the Company's
fiscal quarter and its operating results were immaterial.











Q1 2020 vs. Q1 2019






Comparable Cracker Barrel store sales period to period increase (decrease):









Restaurant


2.1%







Retail


-0.9%
















Number of Cracker Barrel  locations in comparable store base:


647
















 

 

Investor Contact:

Adam Hanan


(615) 443-9887



Media Contact:

Janella Escobar


(615) 235-4618

 

Cracker Barrel Old Country Store logo

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/cracker-barrel-reports-first-quarter-fiscal-2020-results-and-declares-quarterly-dividend-300964860.html

SOURCE Cracker Barrel Old Country Store, Inc.