LEBANON Tenn. Citing positive same-store sales for the first time in more than a year, Cracker Barrel Old Country Store Inc. said net income rose 40.5 percent for its first quarter ended Oct. 30.
The Lebanon-based operator of family restaurants also credited its profit gain to a 16.7-percent improvement in operating income and lower interest expense.
Cracker Barrel earned $18.0 million, or 78 cents per share, for the first quarter, compared with earnings of $12.8 million, or 57 cents a share, in the same year-ago quarter.
“Lower food costs, positive sales leverage and lower operating expenses produced significantly better margins at the store operating level compared with a year ago,” Michael A. Woodhouse, chairman, chief executive and president of Cracker Barrel, said.
Latest-quarter revenue rose 1.3 percent to $581.2 million, on the strength of sales from 10 new units from a year ago, as well as growth in comparable-unit sales. Same-store restaurant sales rose 0.6 percent, which Woodhouse said marked the first year-over-year increase since the third quarter of fiscal 2008. Menu prices increased, on average, 2.7 percent during the quarter, which led to a 2-percent increase in the chain’s average check. Same-store guest traffic fell 1.4 percent.
Same-store retail sales in the chain’s gift shops fell 4.8 percent for the quarter.
“These results demonstrate the progress we have made in providing solid value to our guests,” Woodhouse said.
Cracker Barrel ended the quarter with 591 restaurants.
Contact Al Liddle at [email protected].