LEBANON Tenn. Citing the use of better cost controls, Cracker Barrel Old Country Store Inc., parent of the 588-unit Cracker Barrel family-dining chain, reported Wednesday a 14-percent profit increase for the third quarter ended May 5.
Net income totaled $12 million, or 52 cents per share, compared with $10.4 million, or 46 cents a share, in the same quarter a year ago. Latest-quarter revenue totaled $567.6 million, nearly unchanged from the $567.1 million in revenue booked a year earlier.
Quarterly same-store restaurant sales fell 0.9 percent, and same-store retail sales declined 7.4 percent.
“With the continued uncertainty in the economy and its impact on casual dining, the steps we have taken have improved our near-term profitability and should help make us a stronger competitor for the long-term,” said Cracker Barrel chairman, president and chief executive Michael A. Woodhouse.
The company did not outline its specific cost-controlling initiatives that led to improved unit-level margins.
Cracker Barrel also said it expects to generate lower proceeds from the sale-leaseback of 15 Cracker Barrel stores and its retail distribution center. It now estimates proceeds of between $53 million and $54 million, rather than the $55 million to $60 million it had estimated earlier.
Contact Elissa Elan at [email protected].