Cracker Barrel Old Country Story Inc., the parent of 601 restaurant-and-retail locations, reported Tuesday a year-over-year uptick in third-quarter profit, as revenue and same-store sales remained relatively flat.
The company also reported reduced expectations for its full year, which ends in July, moving its expected earnings per share from between $3.95 and $4.10 per share to between $3.80 and $3.90 per share.
The company indicated that its weaker performance resulted from tough economic conditions. Securities analysts that follow the company said the effects of higher gas prices are to blame, creating an environment of reduced travel and spending.
“Since many of our customers continue to feel the negative impact of economic conditions, we need to continue to focus our efforts on providing the great food, service, atmosphere and shopping experience that differentiates our brand,” Cracker Barrel chairman and chief executive Michael A. Woodhouse said in a statement.
For the third quarter ended April 29, Cracker Barrel recorded net income of $15.2 million, or 64 cents per share, an increase of 5.2 percent from earnings of $14.4 million, or 61 cents per share in the same quarter a year ago. Latest quarter net income included a $1.5 million, or 6 cents per share, gain on the sale of property, the company said.
Third-quarter revenue rose 0.7 percent to $582.5 million. Same-store restaurant sales fell 0.3 percent, reflecting a 2.3-percent increase in average check and a 2.6-percent decline in traffic. Same-store retail sales rose 0.1 percent.