Bob Evans (BOBE) reported earnings Mon 5 Dec 2016 (a/h)

** charts before earnings **

** charts after earnings **

Bob Evans beats by $0.11, reports revs in-line; raises FY17 EPS above consensus, lowers BEF segment sales due to pricing, reaffirms restaurant comps:

• Reports Q2 (Oct) earnings of $0.56 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus of $0.45; revenues fell 2.8% year/year to $316 mln vs the $318.17 mln Capital IQ Consensus. 
• Same-store sales declined 1.8% (-2% in Aug/Sept, -1.4% in Oct.) with the balance of the net sales decline due to net restaurant closures during the past year; a new menu design, product upgrades, and improved hospitality continue to enhance the guest experience
• BEF Foods' net sales were $96.2 mln, an increase of $1.9 mln, or 2.0%, compared to $94.3 mln in the corresponding period last year. Pounds sold increased 6.9 percent while average net selling price per pound declined 4.6 percent compared to the corresponding period last year. BEF Foods non-GAAP operating income was $18.7 mln, compared to $17.6 mln in the corresponding period last year
• Co issues guidance for FY17, raises EPS to $2.15-2.30 from $2.05-2.20, excluding non-recurring items, vs. $2.11 Capital IQ Consensus; lowers FY17 revs to $1.24-1.29 bln from 1.28-1.33 bln vs. $1.3 bln Capital IQ Consensus. 
• "While we continue to expect full-year negative low-single digit to flat same-store sales at Bob Evans Restaurants, we have adjusted our restaurant commodity pricing outlook to negative low-single digit to flat for the year, from approximately flat previously. As for BEF Foods, we have lowered our sow cost forecast to $42 to $45 per hundredweight, from $50 to $53 previously, to reflect expectations for the remainder of the fiscal year. As a consequence of lower projected sow costs, we expect lower sausage pricing (resulting from increases in trade spending to reflect an increased competitive pricing environment from lower sow costs) and have lowered our BEF Foods sales outlook to $390 to $410 mln, from $400 to $420 mln previously."