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What: Shares of restaurant and retail chain Cracker Barrel Old Country Store (NASDAQ: CBRL ) climbed 10% today after its quarterly results and outlook impressed Wall Street.
So what: Cracker Barrel's strong second-quarter results -- profits surged 38% on a revenue increase of 4% -- and upbeat full-year guidance reinforce recent optimism over the company's improving financials. In fact, same-store sales managed to increase 3.3% despite relatively poor weather during the quarter, giving analysts plenty of confidence in its ability to grow profitably going forward.
Now what: Management now expects 2013 adjusted EPS of $4.60-4.80, up from its prior view of $4.50-$4.70, but just maintained its revenue guidance of $2.6 billion-$2.65 billion. "While we remain confident of our ability to execute our strategic plan, we also remain cautious about general economic conditions and consumer spending," said President and CEO Sandra Cochran. With the stock hitting a new 52-week high today and up more than 30% over the past year, I'd wait for those risks to be baked more fully into Cracker Barrel's valuation before buying in.
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