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What: Shares of restaurant operator Bob Evans Farms
So what: In a lot of ways, Bob Evans' quarterly results really didn't look all that great. The company, which operates Bob Evans Restaurants and Mimi's Cafes, saw revenue decrease 1.8% from the same period last year, driven by a 5.6% decline in Mimi's same-store sales and a 2.2% slide across both concepts. The $417 million in total revenue also fell short of analysts' expectations. In addition, significant costs during the quarter -- most notably $10 million in asset impairment charges -- dragged down operating profit by 44% from a year ago. However, excluding extraordinary charges, the company's profit was ahead of what Wall Street was hoping for.
Now what: Better-than-expected earnings are generally a crowd pleaser and raised guidance rarely fails to get investors giddy. For the company's fiscal 2011, management pegged revenue guidance at $1.7 billion, which is just ahead of what analysts were estimating, and upped the midpoint of its operating earnings estimate to a bit more than 2% higher than its previous estimate. Particularly after today's gains, shares don't appear to be overly cheap, but as a relatively stable company with good cash flow and a decent dividend, it may be one for investors to keep their eyes on.
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Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy assures you no Wookiees were harmed in the making of this article.