LEBANON Tenn. Cracker Barrel Old Country Store Inc. reported Tuesday an 8.5-percent increase in profit for the fourth quarter ended July 31, which company officials said was mainly the result of cost-cutting measures that offset continued sales weakness.
Fiscal fourth-quarter earnings rose to $22.8 million, or 99 cents per share, from $21 million, or 93 cents per share, in the same quarter a year ago.
The company said it improved operating margin via lower food cost inflation, effective management of operating costs, and lower general and administrative costs, which fell to $32 million from $35.6 million a year ago. The cost containment more than offset charges taken for impairment and higher healthcare costs, Cracker Barrel said.
Revenue for the fourth quarter fell 1.0 percent to $595.6 million. Same-store restaurant sales fell 1.4 percent and same-store retail sales fell 7 percent. The restaurant average check rose while guest traffic fell 3.8 percent. Cracker Barrel operates 588 family-dining restaurants.
For the full year, Cracker Barrel earned $65.9 million, or $2.89 per share, versus year-earlier earnings of $65.6 million, or $2.80 per share. Latest annual revenue dipped to $2.37 billion from $2.38 billion a year ago.
The company said it expected corporate revenue in fiscal 2010 to increase between 0.5 percent and 2.5 percent, which equates to a range between $2.38 billion and $2.43 billion. Full-year income from continuing operations per share is projected to total between $2.85 and $3.10.
“As we look forward in fiscal 2010, the economic environment is challenging — consumer sentiment is unclear, unemployment remains high, and discounting in our industry continues,” chairman, president and chief executive officer, Michael A. Woodhouse, said. “We are focused on delivering a great experience for our guests each and every day, sustaining the cost containment actions implemented in fiscal 2009, and improving our profitability through investment in long-term initiatives that provide for improved labor scheduling, retail merchandising and speed of service.”
Contact Elissa Elan at [email protected].