Casual restaurant and pork products producer Bob Evans Farms, Inc. (NASDAQ: BOBE) beat Wall Street estimates of $0.39 per share and posted another profitable quarter, despite rising labor and food commodities costs. This is the fifth consecutive quarter of same store sales increases, though admittedly some of those increases have been small. CEO Steve Davis is justifiably proud of the cost control measures and productivity programs he has instituted across the board. The company has cut payroll and advertising expenses deeply.
Net income for 2Q 2008 was $15.5 million or diluted EPS of $0.45, up 21.6% from a year ago and beating Wall Street estimates by 6 cents. Net sales in the restaurant segment rose 2.9% to $356 million. But the growth driver for Bob Evans right now is its much smaller food products segment that produces pork products for sale in grocery stores. Thus segment posted net sales increase of 5.5% to $71 million, and a 79% operating income increase.
Bob Evans has repurchased two million shares thus far in FY 2008, with plans for an additional one million share buyback. FY 2008 guidance remains as previously forecast -- diluted EPS in the $1.77-$1.84 range. Patient investors are finally getting to share in the pork.
Why is gold making a new high, trading at $1,118.00 per ounce?
Chasing Value: Ten stocks for 2010 -- Part 1 
Closing Bell: A six-day rally (AIG, REGN, M, MOT, PALM, RIMM)
