The stock is off 1.71% at 166.61 in Tuesday morning trading.
The Southern-style restaurant and gift-stores chain reported second-quarter fiscal 2019 net income of $60.8 million, or $2.52 a share, down from $91.1 million, or $3.79 a share, in the same period the prior year.
Adjusted EPS was $2.73, beating the FactSet consensus of $2.50. The company noted the income decline from the comparable period was due to a one-time tax benefit it enjoyed when tax reform was passed.
Revenue grew 3% to $811.7 million, beating FactSet consensus of $810 million.
"I am pleased that we delivered positive comparable-store restaurant sales and traffic, which reflected improvements versus previous quarters," Cracker Barrel President and CEO Sandra Cochran said in a statement. "Our teams continued to make progress driving performance through an increased focus on our menu, the guest experience, and the continued expansion of our off-premise business."
The company said same-store restaurant sales and traffic growth outperformed the casual dining industry. Comparable restaurant sales was up 3.8%, with a 3.7% increase in average check, and restaurant traffic grew 0.1%. However, same-store retail sales fell 1.4%.
For fiscal 2019, the company raised its revenue forecast but maintained profit guidance. It now expects revenue of approximately $3.05 billion, matching FactSet consensus, and earnings per diluted share between $8.95 and $9.10, below FactSet consensus of $9.11 per share.
Cracker Barrel shares have gained 5.5% in year-to-date, while the S&P 500 index climbed 11.3%.