Cracker Barrel Old Country Store Earnings: Here’s Why Investors are Buying Shares Now

Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.53%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Cracker Barrel Old Country Store, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 18.6% to $1.02 in the quarter versus EPS of $0.86 in the year-earlier quarter.

Revenue: Rose 5.24% to $640.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cracker Barrel Old Country Store, Inc. reported adjusted EPS income of $1.02 per share. By that measure, the company beat the mean analyst estimate of $0.94. It beat the average revenue estimate of $630.56 million.

Quoting Management: “Driven by strong sales, traffic and operational performance, our earnings growth for the third quarter exceeded our expectations,” said Sandra B. Cochran, President and Chief Executive Officer of Cracker Barrel Old Country Store, Inc. “We believe focusing on our priorities around menu initiatives, store merchandise, marketing and operations improved our operating margin and profitability during the quarter. Our diluted earnings per share grew by 19% over the prior year. This performance enabled us to further enhance shareholder value by increasing our quarterly dividend by 50%, while we reduced our debt by $125 million. We remain encouraged by our results and look to build on our successes in the fourth quarter and into the next fiscal year.”

Key Stats (on next page)…

Revenue decreased 8.86% from $702.67 million in the previous quarter. EPS decreased 28.67% from $1.43 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.38 to a profit $1.34. For the current year, the average estimate has moved up from a profit of $4.68 to a profit of $4.79 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , , ,  

More from The Cheat Sheet