Cracker Barrel (NASDAQ: CBRL) reported Q3 EPS of $1.51, $1.24 better than the analyst estimate of $0.27. Revenue for the quarter came in at $713.42 million versus the consensus estimate of $659.52 million.

Third Quarter Fiscal 2021 Highlights

• The Company continued its sales recovery during the third quarter with both restaurant and retail comparable store sales improvements compared to the second quarter. Driven by the reopening of dining rooms and strategic sales initiatives, the Company further rebuilt its sales volumes.
  • Versus the third quarter of fiscal 20191, comparable store restaurant sales decreased 8.6% and comparable store retail sales increased 10.8%.
  • Comparable store off-premise sales grew 144.0% compared to the third quarter of 20191 and represented approximately 23% of restaurant sales.
• GAAP operating income in the third quarter was $52.5 million, or 7.4% of total revenue, and adjusted2 operating income was $55.7 million, or 7.8% of total revenue.
• GAAP net income was $33.5 million, or 4.7% of total revenue. EBITDA was $82.8 million, or 11.6% of total revenue; this represented an 84% sequential improvement compared to fiscal 2021 second quarter EBITDA of $45.0 million.
• GAAP earnings per diluted share were $1.41, and adjusted2 earnings per diluted share were $1.51.
• The Company's Board of Directors declared a quarterly dividend of $1.00 per share on the Company's common stock payable on August 6, 2021 to shareholders of record on July 16, 2021.

Commenting on the third quarter results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, "The pace of our sales and margin recovery in the quarter exceeded expectations as we welcomed guests back into our dining rooms and our off-premise business remained strong. I'm pleased with the way our teams continue to deliver on our mission of Pleasing People as they care for guests and care for one another. As the ongoing recovery from the pandemic brings us closer to 2019 sales levels, I am confident our solid execution, unique brand, and the strategic initiatives implemented during the pandemic will support growth in long-term shareholder value."

Fiscal 2021 Fourth Quarter Outlook

The Company is providing the following selected components of its fiscal 2021 fourth quarter outlook:

• Total revenues of approximately flat to fiscal 2019 fourth quarter total revenues.
• Continued sequential improvement in operating income margin above fiscal 2021 third quarter operating income margin.
• Commodity inflation of approximately 5.0% and wage inflation on a constant mix basis of between 3.0% and 3.5%.
• Capital expenditures of approximately $25 million.
• Effective tax rate for the quarter in the range of 11% to 12%.

Additionally, the Company now expects to repay up to a total of $500 million of its third-party borrowings for the 2021 fiscal year, including up to $165 million during the fourth quarter.

The Company reminds investors that its outlook for fiscal 2021 reflects a number of assumptions, many of which are outside the Company's control, and a continued uncertain environment occasioned by the pandemic and increasing food and wage inflationary pressures.

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