(Reuters) - CBRL Group Inc CBRL.O, parent of the Cracker Barrel Old Country Store restaurants and gift shops, reported lower restaurant same-store sales in June and cut its 2008 outlook, sending shares down to a 52-week low.
Shares of the company dropped 16 percent to $20.58 in early morning trade on Nasdaq, but recovered a bit and were down 9 percent at $22.35.
“We will not reach the earnings level that we previously forecast for fiscal 2008 given the continuing negative pressures on consumers”, CEO Michael Woodhouse said in a statement.
Restaurants have been hurt as consumers deal with the high cost for gas and food items, coupled with a weak economy that has led to cutting back on dining out.
Lebanon, Tennessee-based, CBRL lowered its 2008 earnings from continuing operations of $2.77 to $2.87 share from its prior view of $3.02 and $3.12 a share.
The company expects total revenue from continuing operations to grow about 1.5 percent over year-ago. It had previously forecast revenue growth of 2 percent.
Analysts on average were expecting earnings of $3.04 per share, before special items, on revenue of $2.40 billion, according to Reuters Estimates.
The company, which operates 576 Cracker Barrel Old Country Store restaurants and gift shops in 41 states, reported a 1.2 percent decrease in June restaurant same-store sales. Retail same stores sales for June increased 0.2 percent.
Reporting by Shivani Singh in Bangalore
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