Cracker Barrel Old Country Store Inc. stock slid 2.8% premarket Tuesday, after the restaurant and retail store operator said third-quarter earnings were held in check by inflation and deteriorating consumer sentiment. The company posted net income of $27.5 million, or $1.91 a share, for the quarter to April 29, down from $33.5 million, or $1.41 a share, in the year-earlier period. Adjusted per-share earnings came to $1.29, ahead of the $1.27 FactSet consensus. Revenue rose 11% to $790.2 million from $713.4 million a year ago, squeezing ahead of the $790.0 million FactSet consensus. Same-restaurant sales rose 10.9% and same-store sales rose 9.7%. The FactSet consensus was for same-restaurant sales growth of 11% and same-store sales growth of 9%. “A challenging macro environment, including deteriorating consumer sentiment and high inflationary pressures, impacted both our top and bottom lines in the third quarter,” CEO Sandra B. Cochran said in a statement. The company is planning strategic initiatives to grow the business, inlcuding “focusing on store-level execution to provide a superior guest experience, expanding Maple Street Biscuit Company, and positioning Cracker Barrel to be even more attractive to both our core guests as well as a broader audience,” she said. The board has approved a share buyback program of up to $200 million. The company expects fourth-quarter revenue to be up 8% from a year ago, compared with a FactSet consensus of $852 million, implying growth of about 9%. Shares have fallen 21% in the year to date, while the S&P 500 has fallen 13.5%.
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