Cracker Barrel Old Country Store, Inc. (CBRL) on Thursday reported a 3 percent decline in profit for the first quarter as a higher tax rate and expenses offset revenue growth. However, adjusted earnings per share beat analysts' estimates, while revenues missed their expectations.
Looking ahead, the company forecast earnings for the second quarter below Street view, but maintained its financial outlook for fiscal 2013.
The Lebanon, Tennessee-based company engages in the development and operation of the Cracker Barrel Old Country Store restaurant and retail concept.
On a comparable basis, store traffic for the quarter edged up 0.8 percent, store restaurant sales rose 3.3 percent and store retail sales grew 1.6 percent.
The increase in comparable store restaurant sales includes a 2.5 percent increase in average check. The average menu price increase for the quarter was about 2.0 percent.
The effective income tax rate in the quarter increased to 33.0 percent, compared with 28.9 percent in the prior-year quarter, due primarily to the expiration of the Work Opportunities Tax Credit. The higher tax rate in the quarter reduced earnings per share by $0.06.
Cracker Barrel's net income for the first quarter declined to $23.19 million or $0.97 per share from $23.80 million or $1.03 per share in the prior-year period.
Adjusted for severance and proxy contest expenses, earnings per share for the quarter were $1.08, compared to $1.09 in the same period last year.
On average, eight analysts polled by Thomson Reuters expected the company to earn $1.06 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenue for the quarter grew 5 percent to $627.45 million from $598.44 million in the prior-year period. Analysts had a consensus revenue estimate of $629.72 million.
Looking ahead to the second quarter, Cracker Barrel forecasts adjusted earnings per share in a range of $1.22 to $1.27. Analysts expect the company to earn $1.28 per share.
For fiscal 2013, Cracker Barrel maintained its outlook for earnings per share of $4.50 to $4.70 on revenue in a range of $2.60 billion to $2.65 billion.
The revenue outlook reflects the expected opening of 9 to 11 new Cracker Barrel stores and projected increases in comparable store restaurant and retail sales of 2 to 3 percent.
Analysts expect earnings of $4.68 per share for the year on revenues of $2.63 billion.
CBRL closed Wednesday's trading at $65.10, up $0.72 on a volume of 255,800 shares.
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