Cracker Barrel (NASDAQ: CBRL) reported Q3 EPS of ($1.81), $0.39 better than the analyst estimate of ($2.20). Revenue for the quarter came in at $432.5 million versus the consensus estimate of $476.35 million.

• Third Quarter Fiscal 2020 Results Revenue The Company reported total revenue of $432.5 million for the third quarter of fiscal 2020, representing a decrease of 41.5% over the third quarter of the prior year. Cracker Barrel comparable store restaurant sales decreased 41.7% in the third quarter over the prior year quarter, as a 43.6% decrease in comparable store restaurant traffic was marginally offset by a 1.9% increase in average check. Comparable store retail sales decreased 45.5% from the prior year quarter.
• Operating Income (Loss)GAAP operating income (loss) in the third quarter was ($79.0) million, or (18.3%) of total revenue, a decrease from the prior year quarter GAAP operating income of $65.1 million, or 8.8% of total revenue. In the fiscal third quarter, the Company recorded non-cash impairment charges totaling approximately $18.3 million related to store assets. Excluding these impairment charges and approximately $7.1 million in expenses related to COVID-19, adjusted operating income (loss) was ($53.6) million. (See non-GAAP reconciliation below).
• Other EventsAdditionally, these results reflect the Company's payment of approximately $17 million to its hourly store employees during the third quarter to provide short-term financial assistance as their hours were being reduced as a result of dining room closures.
• In the third quarter, the Company also recorded a non-cash impairment charge of approximately $132.9 million, which represents the approximate total value of its equity investment in Punch Bowl Social and the principal and accumulated interest under the outstanding unsecured indebtedness of Punch Bowl Social held by the Company.
• Earnings per Diluted ShareGAAP earnings (loss) per diluted share were ($6.81) compared to prior year third quarter earnings per diluted share of $2.09. Excluding the impairment charges related to store assets, expenses related to COVID-19, the impairment charge related to Punch Bowl Social, and the related tax effects, adjusted earnings (loss) per diluted share were ($1.81).

COVID-19 Business UpdateBeginning in March, the unprecedented circumstances and rapidly changing market conditions caused by the COVID-19 pandemic resulted in significant disruptions to the restaurant industry and to the Company's business. As previously disclosed, the Company undertook numerous actions in response to the pandemic to bolster its liquidity and to adapt its operations to the current environment.

In connection with its actions addressing the COVID-19 pandemic, the Company provided the following update:

• For the third quarter of fiscal 2020, when compared to the comparable period in 2019, comparable restaurant sales declined 41.7% and comparable store retail sales declined 45.5%.
• All Cracker Barrel stores have remained open. However, all stores were operating in an off-premise-only model with no dine-in service from late March through late April, with incremental dine-in openings initiating thereafter.
• For the week ending May 29, 2020, when compared to the comparable period in 2019, comparable store restaurant sales for stores with limited dine-in service decreased approximately 32% compared to approximately 76% for stores that were limited to an off-premise-only business model.
• As of May 29, 2020, 505 stores had limited dine-in service, and the Company expects that substantially all stores will have limited dine-in service by the end of June.

"The past several months have presented unprecedented challenges for Cracker Barrel, the industry and our country. I believe our strategic priorities, such as accelerating our off-premise business, combined with the rapid actions we took to bolster liquidity, strengthen our business model and adapt our operations to the circumstances have positioned us well for the recovery period to come," said Cracker Barrel President and Chief Executive Officer Sandra B. Cochran. "I am inspired by the tireless work of our teams and how they continue to deliver our mission of Pleasing People during this difficult time. Our Company also greatly appreciates our loyal guests who love and have continued to support our brand, and we're looking forward to welcoming them back into our stores. While there continues to be significant uncertainty, and we expect our industry will be challenged in the coming months, Cracker Barrel remains a trusted and highly differentiated brand, and I believe we have the appropriate strategies in place to navigate this environment and to strengthen our business model."

Fiscal 2020 OutlookAs announced on March 18, 2020, the Company withdrew its previously issued fiscal 2020 outlook, including fiscal 2020 earnings guidance, due to the uncertain impact of the COVID-19 pandemic.

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