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Cracker Barrel Old Country Store Inc (NASDAQ: CBRL) posted solid numbers for its fiscal fourth quarter. Lower costs helped the simple country restaurant beat the Street's expectations. The company reported earnings of $22.8 million for the quarter – good for 99 cents a share. Last year, the company earned $21 million. Cracker Barrel has been topping forecasts for the past year.
Lower costs have been driving the trend, and absent impairment and store closing charges, Reuters estimates the company pulled in $1.06 a share.
Bolstering profit margins has been the company's priority. General and administrative expenses dropped 10% to $32 million for the quarter, and Cracker Barrel is looking to refinance or extend its long-term debt next year, which suggests another cost control measure.
"We improved our operating margin as a result of lower food cost inflation, effective management of our operating costs, and lower general and administrative expenses," Chief Executive Michael Woodhouse said in a statement.
Noticeably absent, however, is where the diners are and how willingly they're opening their wallets. Either because fewer diners are walking through the door or because they aren't stopping at the gift shop on the way out, Cracker Barrel's revenue fell 1% for the quarter to $595.6 million. Analysts had set a revenue target of $597.9 million.
Cheap comfort food is always a winner in a tough market, but it looks like people are making it at home.
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Reader Comments (Page 1 of 1)
9-15-2009 @ 1:48PM
al coholic said...
Cracker Barrels are located near Interstates for a reason. Vacationers seem to be a large part of their customer base. These people often check out the locally flavored trinkets in the store while they are there. But I don't think as large a number of Americans will be traveling this year as in past years and a good number of them may succumb to cheap dollar menu options at fast food places to pinch pennies.
Now that Cracker Barrel has cut expenses they may soon be forced to lower prices as well.