Cracker Barrel (NASDAQ: CBRL) reported Q1 EPS of $1.79, $0.27 worse than the analyst estimate of $2.06. Revenue for the quarter came in at $749 million versus the consensus estimate of $755.09 million.

First Quarter Fiscal 2020 Highlights

• Comparable store restaurant sales growth of 2.1% and traffic of -1.5% outperformed the casual dining industry.
• As previously announced, the Company acquired Maple Street Biscuit Company in an all-cash transaction for $36 million.
• The Company repurchased $14.2 million in shares in the first quarter.
• GAAP earnings per diluted share were $1.79 compared to prior year first quarter earnings per diluted share of $1.96. This figure includes unfavorable impacts to earnings per diluted share for the quarter of ($0.11) related to transactional and integration expenses associated with the acquisition of Maple Street Biscuit Company and ($0.25) from the Company's equity method investment in its unconsolidated subsidiary Punch Bowl Social.
• The Company's Board of Directors declared a quarterly dividend of $1.30 per share on the Company's common stock, payable on February 5, 2020 to shareholders of record on January 17, 2020.

Commenting on the first quarter results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, "I'm encouraged by our start to the fiscal year. While we faced headwinds from the softening trend in industry traffic and comparable store sales, I was pleased we again outperformed the casual dining industry, and we delivered solid operating income growth. Additionally, we completed our acquisition of Maple Street Biscuit Company, a strong brand with attractive unit economics and growth potential, which accelerates our penetration in the breakfast and lunch-focused fast casual category. We believe this acquisition and our previously announced strategic relationship with Punch Bowl Social will provide complementary growth vehicles for delivering long-term value creation."

GUIDANCE:

Cracker Barrel sees FY2020 revenue of $3.15-3.2 billion, versus the consensus of $3.18 billion.

The Company provided the following updated outlook for fiscal 2020:

• GAAP earnings per diluted share between $8.50 and $8.65
  • This includes an expected loss from the Company's equity method investment in its unconsolidated subsidiary, Punch Bowl Social, resulting in an unfavorable GAAP earnings per diluted share impact of approximately ($0.80). This estimate includes expenses related to growth such as pre-opening expenses, the expected impact from unit closure expenses, and updated business performance expectations.
  • This also includes transactional and integration expenses related to the Company's acquisition of Maple Street Biscuit Company, which are expected to result in an unfavorable impact to GAAP earnings per diluted share of approximately ($0.15).
• Total revenue of $3.15 billion to $3.20 billion
• Cracker Barrel comparable store restaurant sales growth of approximately 2.0%
• Cracker Barrel comparable store retail sales growth of approximately 1.0%
• Operating income margin of approximately 9.0% as a percent of total revenue
• Depreciation expense of $110 million to $115 million
• Capital expenditures of $115 million to $125 million
• Net interest expense of approximately $12 million, which includes the benefit of interest income resulting from the Company's lending to Punch Bowl Social
• An effective tax rate of between 16.0% and 17.0%, which assumes a renewal of the Work Opportunity Tax Credit and includes an expected tax benefit from the projected loss from the Company's equity method investment in Punch Bowl Social

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