Bob Evans Farms (BOBE) Tops Q2 EPS by 3c, Narrows FY15 EPS Guidance

Bob Evans Farms (NASDAQ: BOBE) reported Q2 EPS of $0.36, $0.03 better than the analyst estimate of $0.33. Revenue for the quarter came in at $333.3 million versus the consensus estimate of $343.5 million.

Bob Evans Restaurants reports fiscal November same-store sales (through 11/26) of 0.8%. Q3 QTD same-store sales through Thanksgiving Day (11/27) were 2.7 percent. Combined Thanksgiving Eve and Thanksgiving Day same-store sales increased 25 percent

Bob Evans Farms sees FY2015 EPS of $1.90-$2.10, versus the consensus of $1.92.

Bob Evans Restaurants' same-store sales guidance reflects an extended roll-out schedule for the Broasted Chicken platform to ensure continued strong operational execution and prudent management of implementation expenses. From a development perspective, we expect to open a total of 7 Bob Evans Restaurant locations, and up to 10 Bob Evans Express locations, during fiscal 2015. Food costs are expected to rise 60 to 80 basis points during the second half of fiscal 2015 compared to the prior year due to increased commodity prices and continued off-premise sales mix growth. We also expect continuation of increased health care costs during the second half of fiscal 2015. Offsetting these factors, third and fourth quarter sow cost guidance has been reduced to $73 to $78 per hundredweight, from $80 to $90 per hundredweight, and our full fiscal year estimate is now $78 to $82 per hundredweight, reflecting recent sow cost trends and current predictions from our supply chain experts. Our expected depreciation expense and tax rate assumptions have also been reduced for fiscal 2015, and we continue to focus on reducing our tax rate through effective tax planning strategies.

"We also recently committed to a plan to sell our ownership interest in an aircraft jointly owned with the Greif Corporation. The sale is expected to be completed prior to the end of the current fiscal year and may result in a loss on disposal of $1.7 to $2.2 million. Finally, we expect to spend approximately $2 million during the second half of fiscal 2015 for services provided by advisory firms to review strategic initiatives, and assist in driving sustainable productivity improvements and cost efficiencies," said Chief Financial Officer Mark Hood.

The company's Board of Directors' Finance Committee is engaged in a comprehensive, fresh review of strategic, financial and capital allocation plans; Company has been working with advisory firms to assist in driving sustainable productivity and operating cost improvements to achieve 300 to 350 basis point long-term operating margin improvement goal by fiscal 2018 and has also retained Deloitte to complete a comprehensive review of the Company's S,G&A structure.

For earnings history and earnings-related data on Bob Evans Farms (BOBE) click here.

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