Cracker Barrel Old Country Store Q4 comparable store restaurant sales up 3.8%Staff writer ▼ | September 17, 2015
Cracker Barrel Old Country Store reported its financial results for the fourth quarter and for the fiscal year ended July 31, 2015. Compared to the prior year fourth quarter, comparable store traffic increased 0.8%; comparable store restaurant sales increased 3.8%.
Cracker Barrel Old Country Store Q4 total revenue was $719.2 million
The Company reported total revenue of $719.2 million for the fourth quarter of fiscal 2015, representing an increase of 3.8% over the fourth quarter of the prior year. Comparable store restaurant sales increased 3.8%, including a 3.0% increase in average check and a 0.8% increase in store traffic.
The average menu price increase for the quarter was approximately 2.7%. Comparable store retail sales were up 0.6% for the quarter. The Company opened three new Cracker Barrel stores during the quarter, for a total of six new store openings during the fiscal year.
Operating income in the fourth quarter was $72.7 million, or 10.1% of total revenue. Operating income in the prior year quarter was 8.7% of total revenue. As a percentage of total revenue, reductions in cost of goods sold, labor and related expenses, and store operating expenses were partially offset by an increase in general and administrative expenses.
The Company reported total revenue of $2.84 billion for the fiscal year, representing an increase of 5.9% over the prior year. Comparable store restaurant sales increased 5.1% including a 3.0% increase in average check and a 2.1% increase in store traffic. Comparable store retail sales were up 3.6% for the fiscal year.
Operating income for fiscal 2015 was $254.9 million, or 9.0% of sales compared to $208.4 million or 7.8% of sales in the prior year. Adjusted operating income for the year was $258.4 million, or 9.1% of sales. In comparison, adjusted operating income in the prior fiscal year was $212.7 million, or 7.9% of sales.
GAAP net income was $163.9 million, or $6.82 per diluted share, compared to $132.1 million or $5.51 per diluted share in the prior year. Adjusted net income was $164.0 million, or $6.82 per diluted share, compared to adjusted net income of $135.1 million, or $5.63 per diluted share in the prior year, representing a year-over-year increase in adjusted EPS of 21.1%.
For fiscal 2016, the Company expects total revenue of between $2.90 billion and $2.95 billion, and earnings per diluted share of between $7.15 and $7.30.
The increased revenue projection for fiscal 2016 reflects the expected opening of seven or eight new Cracker Barrel stores, and projected increases in comparable store restaurant sales in a range of 2.5% to 3.5%, and comparable store retail sales in a range of 2.0% to 3.0%. The Company projects food commodity inflation in the range of 3.0% to 3.5% for the year, driven largely by expected increases in egg prices.
The Company projects an operating income margin of approximately 9.0% of total revenue for fiscal 2016. The Company expects depreciation expense between $78 million and $79 million; net interest expense between $14 million and $15 million; and capital expenditures between $110 million and $120 million. The Company expects an effective tax rate for fiscal 2016 of between 32% and 33%.
The Company expects to report earnings per diluted share for the first quarter of 2016 of between $1.50 and $1.60. The Company reminds investors that its outlook for fiscal 2016 reflects a number of assumptions, many of which are outside the Company's control. ■