Cracker Barrel's Sales on the Rise

Sep 14, 2016 Industry News
Industry News

Cracker Barrel Old Country Store reported its financial results for the fourth quarter and for the fiscal year ended July 29.

Fourth Quarter Fiscal 2016 Highlights

Compared to the prior year fourth quarter, comparable store restaurant sales increased 3.2 percent, marking the company's largest quarterly outperformance relative to the casual dining industry in fiscal 2016; comparable store retail sales increased 3.5 percent.

Operating income as a percent of total revenue increased 30 basis points to 10.4 percent.

Full Year Fiscal 2016 Highlights

Comparable store restaurant sales increased 2.2 percent and comparable store retail sales increased 2.7 percent.

Operating income was 9.6 percent of total revenue, compared to GAAP operating income margin of 9 percent in the prior year, or 9.1 percent in the prior year when adjusted to exclude the impact of a prior year litigation matter (See non-GAAP reconciliation below).

Commenting on the fourth quarter and full fiscal year results, Cracker Barrel president and chief executive officer Sandra B. Cochran says, "We believe the strategic programs we implemented during the fiscal year successfully drove our continued positive results. While we anticipate ongoing challenges in the industry during fiscal 2017, our management team and employees remain focused on delivering continued growth in our business and driving long-term shareholder value."

Fourth Quarter Fiscal 2016 Results

Revenue

The company reported total revenue of $745.6 million for the fourth quarter of fiscal 2016, representing an increase of 3.7 percent over the fourth quarter of the prior year. Comparable store restaurant sales increased 3.2 percent, including a 4.4% increase in average check partially offset by a 1.2 percent decrease in store traffic. The average menu price increase for the quarter was approximately 2.4 percent. Comparable store retail sales were up 3.5 percent for the quarter. The company opened four new Cracker Barrel stores during the quarter, and one new Holler & Dash Biscuit House, bringing the combined store count to 641 locations at fiscal year-end.

Operating Income

Operating income in the fourth quarter was $77.6 million, or 10.4 percent of total revenue. Operating income in the prior year quarter was 10.1 percent of total revenue. As a percentage of total revenue, reductions in general and administrative expenses and cost of goods sold were partially offset by an increase in store operating expenses.

Fiscal 2016 Results

The company reported total revenue of $2.91 billion for the fiscal year, representing an increase of 2.5 percent over the prior year. Comparable store restaurant sales increased 2.2 percent including a 3.5 percent increase in average check partially offset by a 1.3 percent decrease in store traffic. Comparable store retail sales were up 2.7 percent for the fiscal year.

Operating income for fiscal 2016 was $280.5 million, or 9.6 percent of total revenue. GAAP operating income in the prior year was $254.9 million, equal to 9 percent of total revenue, or 9.1 percent of total revenue when adjusted to exclude the impact of a prior year litigation matter.

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