CBRL Earnings Slip

But the bottom line beats estimates.
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CBRL Group's

(CBRL) - Get Report

second-quarter earnings fell 5.5% from a year ago, hurt by store closings and stock-based expenses.

The Lebanon, Tenn., restaurant chain earned $30.8 million, or 61 cents a share, in the quarter, compared with $32.6 million, or 63 cents a share, a year ago. Adjusted for items, earnings were 69 cents a share. Analysts surveyed by Thomson First Call were expecting earnings of 59 cents a share in the most recent quarter.

Second-quarter revenue rose 4.1% from a year ago to $694 million. Analysts were expecting revenue of $697 million.

For third quarter, the company expects revenue to rise about 3% to 5% from a year ago, including the effects of store closings. Analysts were forecasting revenue of $673 million.

Operating profit fell 5.3% to $48.9 million and operating margin fell 70 basis points to 7%.

Comparable store restaurant sales were up 1.1% for Cracker Barrel, while comparable store retail sales at Cracker Barrel were down 9.4%. Comparable restaurant sales for the second fiscal quarter were up 3.2% for Logan's.

The company plans to open six new Cracker Barrel stores and four new Logan's company operated restaurants and one new Logan's franchised location during the third quarter. The company decided to close seven Cracker Barrel units and three Logan's restaurants and to make certain organizational changes at Cracker Barrel during the second quarter.

"Our goal is to be able to execute more consistently across the store system," the company said. "We are also focused on improving margins through purchasing and operational initiatives, and we're striving to keep the core brands fresh."

On Tuesday, Cracker Barrel rose 33 cents to $44.61.

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