Cracker Barrel (NASDAQ: CBRL) reported Q2 EPS of $2.73, $0.42 better than the analyst estimate of $2.31. Revenue for the quarter came in at $787.8 million versus the consensus estimate of $787.4 million.

Second Quarter Fiscal 2018 Highlights

• Comparable restaurant sales growth of 1.1% and traffic of -0.9% outperformed the casual dining industry.
• Net income was $91.1 million, a 72.9% increase over prior year second quarter net income of $52.7 million.
• GAAP diluted earnings per share were $3.79, including a $1.63 per share benefit resulting from the recent Tax Cuts and Jobs Act of 2017 (the "Tax Act"), compared to $2.19 in the prior year second quarter. Of this $1.63 per share tax benefit, $1.06 resulted from a one-time non-cash revaluation of the Company's net deferred tax liability.
• Adjusted diluted earnings per share were $2.73 when excluding the non-cash revaluation of the Company's net deferred tax liability. (See non-GAAP reconciliation below.)

Fiscal 2018 Outlook

Driven primarily by changes in the anticipated tax rate, the Company now expects to report GAAP earnings per diluted share for the 2018 fiscal year of between $10.35 and $10.55 and adjusted earnings per diluted share for the 2018 fiscal year of between $9.30 and $9.50. The Company continues to anticipate total revenue of approximately $3.1 billion, reflecting the expected opening of eight or nine new Cracker Barrel stores and three new Holler & Dash Biscuit House restaurants. The Company now expects comparable store restaurant sales of between 1.0% and 2.0% and continues to anticipate approximately flat comparable store retail sales. The Company now expects food commodity inflation in the range of 2.5% to 3.0% for the year. The Company projects an operating income margin in the range of 9.5% to 10.0% of total revenue for fiscal 2018. The Company expects depreciation expense between $95 million and $100 million; net interest expense in the range of $15 million and $16 million; and capital expenditures of approximately $150 million to $160 million.

GUIDANCE:

Cracker Barrel sees FY2018 EPS of $9.30-$9.50, versus the consensus of $9.61. Cracker Barrel sees FY2018 revenue of $3.1 billion, versus the consensus of $3.11 billion.

For earnings history and earnings-related data on Cracker Barrel (CBRL) click here.