LEBANON Tenn. Shares in CBRL Group Inc. jumped 12 percent Tuesday as the parent of the 577-unit Cracker Barrel chain gave an upbeat forecast for the current year, including positive same-store sales projections that will be driven by new lunch and breakfast offerings.
The company's fourth quarter results, however, came in a penny short of Wall Street expectations.
Net income for the fourth quarter ended Aug. 1 totaled $21.0 million, or 93 cents per share, compared with year-ago net profit of $27.8 million, or $1.13 a share.
Income from continuing operations, which excludes losses or gains from discontinued operations like CBRL's former Logan's Roadhouse chain, fell to $20.6 million, or 91 cents per share, from year-ago results of $28.2 million, or $1.15 per share. Analysts had expected the company to earn 92 cents per share, according to Thompson Financial.
CBRL blamed softer sales and higher operating costs for the drop in profit.
Fourth quarter revenue fell 4.8 percent to $601.8 million. Excluding sales from an additional operating week in the year-ago quarter, latest-quarter revenue would have increased 2.7 percent, the company said.
Same-store restaurant sales fell 0.8 percent and reflected a 3.7-percent increase in the average check. Same-store retail sales rose 0.8 percent.
For the full year, CBRL posted net income of $65.6 million, or $2.80 per share, compared with profit of $162.1 million, or $5.23 a share. The year-ago result included income from the now-discontinued Logan's operations totaling $86.1 million.
Full-year income from continuing operations totaled $65.3 million, or $2.79 per share, compared with $76.0 million, or $2.52 per share, in fiscal 2007. Excluding the additional 53rd operating week in fiscal 2007, per-share earnings from continuing operations would have increased 17 percent in the latest year.
For the current fiscal 2009, CBRL officials predicted per-share income from continuing operations to total between $2.80 and $3.00. Revenue is expected to increase between 4.5 percent and 5.5 percent from the year earlier and same-store restaurant sales are expected to grow between 2 percent and 3 percent, including a 3.5-percent menu price hike, the company said.
CBRL officials said the company would look to boost traffic with lunchtime programs including the "Best of the Barrel" program, which includes a streamlined menu in an effort to speed up service times, reduce waste and improve margins. The program, which was being tested in select stores, is expected to be rolled out systemwide in the second half of the current fiscal year, the company said.
Company officials also said Cracker Barrel is testing a new breakfast offering, the Fireside Country Skillets. Priced at $6.99, the skillets include home-style potatoes, onions, peppers and a choice of smoked sausage, ham and cheese, or veggies.
Officials hinted at other new products in the pipeline but provided no details.
CBRL's stock closed Tuesday at $28.92, up 12 percent.