Financial Analyst Darnell L Williams
A lady asked me why I talk about bonds so
much when there are so many other investments that we can buy? I told her to look at the title of the blog.
It is called, "Investing in Bonds." It is not call
"Investing." My specialty is Bonds. It is not in Options, Insurance
Contracts, or Penny Stocks. Here is why
I talk about bonds, mainly junk bonds. My
portfolio is made up of only 1 to 2 percent stock.
But I will tell you about a stock that I
think is a good long term investment. However,
as of today, I do not own it. Cracker Barrel Old Country Store, Inc. (Symbol: CBRL) sells on the Nasdaq. Click on the link below to see the current quote.
http://investor.crackerbarrel.com/stockquote.cfm
The secret
to Cracker Barrel success is that they put Cracker Barrels by all the major
highways. Now that people are going on vacations for the summer, they will make
money. Their earnings will go up and so will the stock. Simple isn't it?
Details About
The Stock
June 2, 2015
Cracker Barrel Reports Results for Third Quarter Fiscal 2015, Raises Full-Year Earnings Guidance, Increases Quarterly Dividend and Declares Special Dividend
Positive Comparable Store Traffic, Restaurant and Retail Sales
Adjusted EPS Increased 21% to $1.49
Board Increases Quarterly Dividend to $1.10 per share and Declares Special Dividend of $3.00 per share
Third-Quarter Fiscal 2015 Highlights
- Compared to the prior-year third quarter, comparable store traffic increased 1.8%, comparable store restaurant sales increased 5.2% and comparable store retail sales increased 4.5%.
- Fourteenth consecutive quarter of outperformance of the Knapp-TrackTM casual dining index.
- On a GAAP basis, operating income margin was 8.1% of total revenue, compared with 7.0% in the prior year quarter. Adjusted to exclude the impact of additional charges related to the settlement of the previously disclosed Fair Labor Standards Act ("FLSA") litigation, adjusted operating income margin was 8.2% of total revenue, compared to prior year adjusted operating income margin of 7.2%. (See non-GAAP reconciliation below.)
- On a GAAP basis, earnings per diluted share were
$1.47 , or$1.49 when adjusted to exclude the impact of charges related to the FLSA settlement, a 21% increase over adjusted earnings per diluted share of$1.23 in the prior year quarter.
Third-Quarter Fiscal 2015 Results
Revenue
The Company reported total revenue of
Comparable store restaurant traffic, average check, and comparable store restaurant and retail sales for the fiscal months of February, March and April and for the third quarter were as follows:
February
|
March
|
April
|
Third
Quarter | |||||||||||||
Comparable restaurant traffic | 1.9% | 1.1% | 2.4% | 1.8% | ||||||||||||
Average check | 3.4% | 3.2% | 3.6% | 3.4% | ||||||||||||
Comparable restaurant sales | 5.3% | 4.3% | 6.0% | 5.2% | ||||||||||||
Comparable retail sales | 4.6% | 5.0% | 4.1% | 4.5% | ||||||||||||
GAAP operating income in the third quarter was
Diluted Earnings per Share
On a GAAP basis, earnings per diluted share in the third quarter of fiscal 2015 were
Quarterly Dividend Increase and Special Dividend
The Company announced that its Board of Directors increased the quarterly dividend to
Commenting on the quarterly and special dividend,
Fiscal 2015 Outlook
Based upon year-to-date financial performance, recent trends, and current estimates, the Company raised its full-year earnings guidance. For fiscal 2015, the Company now expects to report adjusted earnings per diluted share of between
Fiscal 2015 Third-Quarter Conference Call
As previously announced, the live broadcast of Cracker Barrel's quarterly conference call will be available to the public online at investor.crackerbarrel.com on
About Cracker Barrel
CBRL-F
Except for specific historical information, certain of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These, and similar statements are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual performance of
CONDENSED CONSOLIDATED INCOME STATEMENT (Unaudited) (In thousands, except share and per share amounts, percentages and ratios) | ||||||||||||||||||||
Third Quarter Ended | Nine Months Ended | |||||||||||||||||||
Percentage | Percentage | |||||||||||||||||||
Change | Change | |||||||||||||||||||
Total revenue | 6% | 7% | ||||||||||||||||||
Cost of goods sold (exclusive of depreciation and rent)
| 216,142 | 201,507 | 7 | 700,592 | 650,451 | 8 | ||||||||||||||
Labor and other related expenses | 246,805 | 242,977 | 2 | 740,806 | 718,466 | 3 | ||||||||||||||
Other store operating expenses | 126,711 | 121,060 | 5 | 390,609 | 374,501 | 4 | ||||||||||||||
Store operating income | 94,047 | 77,754 | 21 | 291,092 | 247,512 | 18 | ||||||||||||||
General and administrative expenses | 38,570 | 32,541 | 19 | 108,952 | 99,356 | 10 | ||||||||||||||
Operating income | 55,477 | 45,213 | 23 | 182,140 | 148,156 | 23 | ||||||||||||||
Interest expense | 4,030 | 4,327 | (7) | 13,138 | 13,205 | (1) | ||||||||||||||
Pretax income | 51,447 | 40,886 | 26 | 169,002 | 134,951 | 25 | ||||||||||||||
Provision for income taxes | 16,130 | 12,158 | 33 | 52,498 | 42,008 | 25 | ||||||||||||||
Net income | 23 | 25 | ||||||||||||||||||
Earnings per share - Basic: | 22 | 25 | ||||||||||||||||||
Earnings per share - Diluted: | 23 | 25 | ||||||||||||||||||
Weighted average shares: | ||||||||||||||||||||
Basic | 23,937,844 | 23,820,309 | 0 | 23,904,945 | 23,816,841 | 0 | ||||||||||||||
Diluted | 24,066,061 | 23,978,474 | 0 | 24,033,296 | 23,958,058 | 0 | ||||||||||||||
Ratio Analysis
| ||||||||||||||||||||
Total revenue: | ||||||||||||||||||||
Restaurant | 81.5% | 81.4% | 79.2% | 79.1% | ||||||||||||||||
Retail | 18.5 | 18.6 | 20.8 | 20.9 | ||||||||||||||||
Total revenue | 100.0 | 100.0 | 100.0 | 100.0 | ||||||||||||||||
Cost of goods sold (exclusive of depreciation and rent) | 31.6 | 31.3 | 33.0 | 32.7 | ||||||||||||||||
Labor and other related expenses | 36.1 | 37.8 | 34.9 | 36.1 | ||||||||||||||||
Other store operating expenses | 18.5 | 18.8 | 18.4 | 18.8 | ||||||||||||||||
Store operating income | 13.8 | 12.1 | 13.7 | 12.4 | ||||||||||||||||
General and administrative expenses | 5.7 | 5.1 | 5.1 | 5.0 | ||||||||||||||||
Operating income | 8.1 | 7.0 | 8.6 | 7.4 | ||||||||||||||||
Interest expense | 0.6 | 0.6 | 0.6 | 0.6 | ||||||||||||||||
Pretax income | 7.5 | 6.4 | 8.0 | 6.8 | ||||||||||||||||
Provision for income taxes | 2.3 | 1.9 | 2.5 | 2.1 | ||||||||||||||||
Net income |
5.2%
| 4.5% | 5.5% | 4.7% | ||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited and in thousands, except share amounts) | ||||||||
Assets | ||||||||
Cash and cash equivalents | ||||||||
Accounts receivable | 25,858 | 16,402 | ||||||
Income tax receivable | 8,269 | 3,570 | ||||||
Inventory | 136,405 | 147,378 | ||||||
Prepaid expenses | 13,826 | 13,148 | ||||||
Deferred income taxes | 4,964 | 4,339 | ||||||
Property and equipment, net | 1,042,898 | 1,034,834 | ||||||
Other long-term assets | 66,793 | 60,625 | ||||||
Total assets | ||||||||
Liabilities and Shareholders' Equity | ||||||||
Accounts payable | ||||||||
Other current liabilities | 226,602 | 240,024 | ||||||
Long-term debt | 400,000 | 381,250 | ||||||
Interest rate swap liability | 9,633 | 7,908 | ||||||
Other long-term obligations | 130,083 | 122,223 | ||||||
Deferred income taxes | 61,350 | 57,956 | ||||||
Shareholders' equity, net | 584,072 | 487,203 | ||||||
Total liabilities and shareholders' equity | ||||||||
Common shares issued and outstanding | 23,949,084 | 23,820,500 | ||||||
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (Unaudited and in thousands) | ||||||||
Nine Months Ended | ||||||||
Cash flows from operating activities: | ||||||||
Net income | ||||||||
Depreciation and amortization | 53,928 | 50,601 | ||||||
Loss on disposition of property and equipment | 5,413 | 3,159 | ||||||
Share-based compensation, net of excess tax benefit | 7,571 | 5,520 | ||||||
Decrease (increase) in inventories | 29,021 | (691) | ||||||
(Decrease) in accounts payable | (9,150) | (38,666) | ||||||
Net changes in other assets and liabilities | 13,393 | (11,669) | ||||||
Net cash provided by operating activities
| 216,680 | 101,197 | ||||||
Cash flows from investing activities: | ||||||||
Purchase of property and equipment, net of insurance recoveries | (60,055) | (62,337) | ||||||
Proceeds from sale of property and equipment | 1,563 | 1,572 | ||||||
Net cash used in investing activities | (58,492) | (60,765) | ||||||
Cash flows from financing activities: | ||||||||
Net payments for credit facilities and other long-term obligations | 0 | (1) | ||||||
(Taxes withheld) from exercise of share-based compensation awards, net | (3,432) | (8,430) | ||||||
Excess tax benefit from share-based compensation | 3,224 | 612 | ||||||
Purchases and retirement of common stock | 0 | (12,473) | ||||||
Deferred financing costs | (3,537) | 0 | ||||||
Dividends on common stock | (71,750) | (53,619) | ||||||
Net cash used in financing activities | (75,495) | (73,911) | ||||||
Net increase (decrease) in cash and cash equivalents | 82,693 | (33,479) | ||||||
Cash and cash equivalents, beginning of period | 119,361 | 121,718 | ||||||
Cash and cash equivalents, end of period | ||||||||
Supplemental Information (Unaudited) | ||||||||||||||
Third Quarter Ended | Nine Months Ended | |||||||||||||
Units in operation: | ||||||||||||||
Open at beginning of period | 634 | 625 | 631 | 624 | ||||||||||
Opened during period | 0 | 2 | 3 | 3 | ||||||||||
Open at end of period | 634 | 627 | 634 | 627 | ||||||||||
Total revenue: (In thousands) | ||||||||||||||
Restaurant | ||||||||||||||
Retail | 126,607 | 119,741 | 441,736 | 417,035 | ||||||||||
Total revenue | ||||||||||||||
Cost of goods sold: (In thousands) | ||||||||||||||
Restaurant | ||||||||||||||
Retail | 62,791 | 59,750 | 230,081 | 217,716 | ||||||||||
Total cost of goods sold | ||||||||||||||
Average unit volume: (In thousands) | ||||||||||||||
Restaurant | ||||||||||||||
Retail | 199.7 | 191.3 | 697.3 | 667.2 | ||||||||||
Total | ||||||||||||||
Operating weeks:
|
8,242
|
8,137
|
24,706
|
24,378
| ||||||||||
Q3 2015 vs. Q3 2014
|
9 mo. 2015 vs. 9 mo. 2014
| |||||||
Comparable store sales period to period increase: | ||||||||
Restaurant | 5.2% |
5.5%
| ||||||
Retail | 4.5% |
4.5%
| ||||||
Number of locations in comparable store base | 624 |
621
| ||||||
Reconciliation of GAAP basis operating
|
results to adjusted non-GAAP operating results
|
(Unaudited and in thousands)
|
Third Quarter ended | Third Quarter ended | |||||||||||||||||||||||||||
As Reported | Adjust | As Adjusted | As Reported | Adjust | As Adjusted | |||||||||||||||||||||||
(1) | (3) | |||||||||||||||||||||||||||
Store operating income | 94,047 | - | 94,047 | 77,754 | - | 77,754 | ||||||||||||||||||||||
General and administrative expenses | 38,570 | (769 | ) | 37,801 | 32,541 | (1,113 | ) | 31,428 | ||||||||||||||||||||
Operating income | 55,477 | 769 | 56,246 | 45,213 | 1,113 | 46,326 | ||||||||||||||||||||||
Interest Expense | 4,030 | - | 4,030 | 4,327 | - | 4,327 | ||||||||||||||||||||||
Pretax income | 51,447 | 769 | 52,216 | 40,886 | 1,113 | 41,999 | ||||||||||||||||||||||
Provision for income taxes | 16,130 | 239 | 16,369 | 12,158 | 346 | 12,504 | ||||||||||||||||||||||
Net income | $ | 35,317 | $ | 530 | $ | 35,847 | $ | 28,728 | $ | 767 | $ | 29,495 | ||||||||||||||||
Earning per share - Basic | $ | 1.48 | $ | 0.02 | $ | 1.50 | $ | 1.21 | $ | 0.03 | $ | 1.24 | ||||||||||||||||
Earning per share - Diluted | $ | 1.47 | $ | 0.02 | $ | 1.49 | $ | 1.20 | $ | 0.03 | $ | 1.23 | ||||||||||||||||
Nine months ended | Nine months ended | |||||||||||||||||||||||||||
As Reported | Adjust | As Adjusted | As Reported | Adjust | As Adjusted | |||||||||||||||||||||||
(1), (2) | (3) | |||||||||||||||||||||||||||
Store operating income | 291,092 | - | 291,092 | 247,512 | - | 247,512 | ||||||||||||||||||||||
General and administrative expenses | 108,952 | (2,919 | ) | 106,033 | 99,356 | (4,313 | ) | 95,043 | ||||||||||||||||||||
Operating income | 182,140 | 2,919 | 185,059 | 148,156 | 4,313 | 152,469 | ||||||||||||||||||||||
Interest Expense | 13,138 | - | 13,138 | 13,205 | - | 13,205 | ||||||||||||||||||||||
Pretax income | 169,002 | 2,919 | 171,921 | 134,951 | 4,313 | 139,264 | ||||||||||||||||||||||
Provision for income taxes | 52,498 | 3,226 | 55,724 | 42,008 | 1,343 | 43,351 | ||||||||||||||||||||||
Net income | $ | 116,504 | $ | (307 | ) | $ | 116,197 | $ | 92,943 | $ | 2,970 | $ | 95,913 | |||||||||||||||
Earning per share - Basic | $ | 4.87 | $ | (0.01 | ) | $ | 4.86 | $ | 3.90 | $ | 0.12 | $ | 4.02 | |||||||||||||||
Earning per share - Diluted | $ | 4.85 | $ | (0.01 | ) | $ | 4.84 | $ | 3.88 | $ | 0.12 | $ | 4.00 | |||||||||||||||
(1) Accrued liability and tax effects related to the settlement of the Fair Labor Standards Act litigation. |
(2) Provision for taxes adjusted to exclude the |
(3) Charges and tax effects of the special meeting of shareholders or proxy contest at the annual shareholders meeting. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20150602005579/en/
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How to buy this stock!
For lower income people, I would suggest using the Share Builder's Plan Account. See the details below.
https://www.sharebuilder.com/
Here you can invest in the stock buying fractions of shares. That means that this account allows you to invest with as little as $25 per transaction buying a small fraction of a share every time you buy into this company.
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