CBRL shares jump on 2009 guidance

Shares of CBRL Group Inc., which operates the Cracker Barrel chain of restaurants and gift shops, jumped Monday after the company offered 2009 profit guidance that assumes a boost in same-store sales.

Shares advanced $3.09, or 12 percent, to $28.92. The stock has ranged between $18.93 and $42.74 over the past year, and is off 11 percent since January.

Before the market opened, the company said its profit fell 24 percent due to "soft consumer demand" and higher commodity costs. Earnings from continuing operations missed analyst's predictions by 1 cent per share, according to a poll by Thomson Reuters.

But investors appeared to mainly focus on the company's 2009 profit guidance of $2.80 to $3 per share for continuing operations. Analysts anticipate profit of $2.84 per share for the year.

That guidance assumes same-store sales, or sales at stores open at least a year, will grow between 2 percent and 3 percent at restaurants and 2.5 percent and 3.5 percent at gift shops.

JPMorgan analyst Steven Rees said in a note to investors that the sales assumption appeared a bit "aggressive" given that the company reported a 1 percent decline in same-store sales at restaurants in July and flat growth at gift shops.

"We see risk to these assumptions given a casual dining environment that has not yet shown signs of a bottom," he said.

Rees has a "Neutral" rating on the stock.