Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) Q1 2019 Earnings Conference Call Transcript

Nov 27, 2018 • 11:00 am ET


Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) Q1 2019 Earnings Conference Call Transcript


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Good morning and welcome to the Cracker Barrel Fiscal 2019 First Quarter Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Adam Hanan, Manager of Investor Relations. Please go ahead.

Adam Hanan

Thanks, Phil. Good morning and welcome to Cracker Barrel's first quarter fiscal 2019 conference call and webcast. This morning, we issued a press release announcing our first quarter results and our outlook for the 2019 fiscal year.

In this press release and on this call, we will refer to non-GAAP financial measures for fiscal 2018 adjusted to exclude the impact of the 53rd week that occurred in our fourth quarter and a one-time non-cash revaluation of the company's net deferred tax liability that occurred in our second quarter. The company believes that excluding these tax effects from its financial results provide information that may be more indicative of the company's ongoing operating performance, while improving comparability to prior periods. This information is not intended to be considered in isolation or as a substitute for financial information prepared in accordance with GAAP. The last page of the press release includes a reconciliation from the non-GAAP information to the GAAP financials.

On the call with me this morning are Cracker Barrel's President and CEO, Sandy Cochran; Senior Vice President and CFO, Jill Golder; Senior Vice President of Marketing, Don Hoffman; and Vice President and Principal Accounting Officer, Jeff Wilson. Sandy will begin with a review of the business and Jill will review the financials and outlook. We will then open up the call for questions for Sandy, Jill, Don and Jeff.

(Forward-Looking Cautionary Statements)

Finally, the information shared on this call is valid as of today's date and the company undertakes no obligation to update it except as maybe required under applicable law.

I'll now turn the call over to Cracker Barrel's President and CEO, Sandy Cochran. Sandy?

Sandy Cochran

Good morning and thank you, Adam. This morning, we announced positive comparable store, restaurant and retail sales and we reported earnings per share of a $1.96. Sales trend reflected an improvement versus the prior quarter and we improved our comparable restaurant sales growth versus the industry. While we made progress in addressing recent traffic declines, we still have much work remaining as we seek to improve performance through a heightened focus on the guest experience, our menu and everyday value and the continued expansion of our off-premise business.

Jill will review the financial results for the quarter as well as updated full year expectations, but before she does I want to speak to some of the highlights from the quarter. As I discussed on our last call, our plans for improving traffic include an increased focus on highlighting our everyday value platforms. In addition, this quarter, we also introduced new news by featuring our biscuits, which is a signature item our guests love and extending them in new ways through offerings, such as our Biscuit