What is in this article?:
- Cracker Barrel: Marketing, menu moves drove 2Q sales
- Biglari proxy battle continues into 2013
The company says the restaurant industry is facing pressures that include rising gas prices, tax increases and an uncertain job market for consumer.
Cracker Barrel Old Country Store Inc. reported a same-store sales increase of 3.3 percent at its restaurants during the second quarter, a jump the company attributes in part to marketing and menu initiatives.
The Lebanon, Tenn.-based company noted that the second quarter ended Feb. 1 marked its fifth consecutive quarter of same-store sales and traffic increases.
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Net income for the quarter was 35.2 million, or $1.47 per share, compared with 25.6 million, $1.10 per share, the year prior.
Revenue for the quarter was $702.7 million, a 4.4-percent increase from the second quarter of 2012.
Average check rose 3.1 percent during the quarter, driven in part by a 2.6-percent menu price increase. Restaurant traffic rose 0.2 percent year over year, and same-store sales for Cracker Barrel’s retail business jumped 3.1 percent. Cracker Barrel has 621 company-owned locations in 42 states.
“We're pleased with our second quarter results and our performance during the first half of our fiscal year,’ said Cracker Barrel President and Chief Executive Sandra B. Cochran. “As we look to the second half of the year, our industry is facing several pressures.”
Those pressures include rising gas prices, tax increases and an uncertain job market for consumers. In response, she noted, Cracker Barrel will continue to heavily market value.
In an effort to push Cracker Barrel’s value proposition during the second quarter, the company revamped 200 of its 1,600 billboards — a major advertising method for the company — to highlight its 14 Country Dinner Plates and their $7.69 price point.
“We currently have 20 percent of our billboards dedicated to sharp price-point messaging,” she said. “And this messaging further reinforces the affordability of our menu.”
The company will also market better-for-you menu options and has been developing a permanent menu category called Wholesome Fixin’s, Cochransaid, which contains menu items with fewer than 500 calories at breakfast and fewer than 600 calories at lunch and dinner.
