Key Takeaways:
Cracker Barrel Old Country Store Inc. reported fiscal third-quarter profit of $42.8 million, defying analyst expectations for a loss as the restaurant chain raised its full-year revenue outlook.
Revenue rose to $797.4 million in the period ended April 24, topping the $775.3 million average estimate of three analysts surveyed by Zacks Investment Research. Adjusted earnings came in at 29 cents per share, compared with the consensus forecast for a loss of 45 cents a share, based on four analyst estimates.
The Lebanon, Tennessee-based company now expects full-year revenue of $3.27 billion to $3.3 billion, up from its prior outlook. Net income for the quarter totaled $1.90 per share, which included non-recurring gains.
Cracker Barrel operates more than 660 company-owned locations across 45 states, making it one of the largest casual dining chains in the US. The results come as restaurant operators contend with elevated food and labor costs that have pressured margins across the sector.
The surprise profit signals that management's cost-control initiatives and menu pricing strategies are gaining traction. Investors will watch the company's fourth-quarter earnings call for updates on same-store sales trends and margin trajectory as the casual dining industry navigates an uncertain consumer spending environment.
This article is for informational purposes only and does not constitute investment advice.
