Cracker Barrel Old Country Store (CBRL) and The Competition Critical Analysis

Cracker Barrel Old Country Store (NASDAQ: CBRL) is one of 44 publicly-traded companies in the “Restaurants & Bars” industry, but how does it compare to its peers? We will compare Cracker Barrel Old Country Store to related companies based on the strength of its earnings, risk, profitability, institutional ownership, dividends, valuation and analyst recommendations.

Dividends

Cracker Barrel Old Country Store pays an annual dividend of $4.80 per share and has a dividend yield of 3.3%. Cracker Barrel Old Country Store pays out 57.3% of its earnings in the form of a dividend. As a group, “Restaurants & Bars” companies pay a dividend yield of 3.0% and pay out 61.1% of their earnings in the form of a dividend. Cracker Barrel Old Country Store has raised its dividend for 7 consecutive years. Cracker Barrel Old Country Store is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Cracker Barrel Old Country Store and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cracker Barrel Old Country Store 1 7 0 0 1.88
Cracker Barrel Old Country Store Competitors 370 1702 2179 82 2.46

Cracker Barrel Old Country Store presently has a consensus target price of $161.00, suggesting a potential upside of 9.43%. As a group, “Restaurants & Bars” companies have a potential upside of 12.98%. Given Cracker Barrel Old Country Store’s peers stronger consensus rating and higher probable upside, analysts plainly believe Cracker Barrel Old Country Store has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Cracker Barrel Old Country Store and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cracker Barrel Old Country Store $2.93 billion $391.90 million 17.56
Cracker Barrel Old Country Store Competitors $2.03 billion $348.19 million -5.37

Cracker Barrel Old Country Store has higher revenue and earnings than its peers. Cracker Barrel Old Country Store is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

85.8% of Cracker Barrel Old Country Store shares are held by institutional investors. Comparatively, 69.8% of shares of all “Restaurants & Bars” companies are held by institutional investors. 1.0% of Cracker Barrel Old Country Store shares are held by insiders. Comparatively, 20.3% of shares of all “Restaurants & Bars” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Cracker Barrel Old Country Store and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cracker Barrel Old Country Store 6.90% 35.49% 13.26%
Cracker Barrel Old Country Store Competitors 1.41% 20.10% 1.52%

Volatility & Risk

Cracker Barrel Old Country Store has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Cracker Barrel Old Country Store’s peers have a beta of 0.66, meaning that their average share price is 34% less volatile than the S&P 500.

Summary

Cracker Barrel Old Country Store beats its peers on 9 of the 15 factors compared.

About Cracker Barrel Old Country Store

Cracker Barrel Old Country Store, Inc. is engaged in the operation and development of the Cracker Barrel Old Country Store concept (Cracker Barrel). The Company’s segments include Restaurant and Retail. As of September 19, 2016, the Company operated 640 Cracker Barrel stores in 43 states. The format of its stores consists of a rustic old country-store design offering a restaurant menu that features home-style country food and a range of decorative and functional items, such as rocking chairs, holiday and seasonal gifts and toys, apparel, cookware and foods. Its restaurants offer home-style country cooking featuring of its own recipes. Its restaurants serve breakfast, lunch and dinner. Its breakfast items include juices, eggs, pancakes, grits, and a range of biscuit specialties. Its lunch and dinner items include country ham, chicken and dumplings, chicken fried chicken, meatloaf, fresh side items and specialty items, such as pinto beans and turnip greens.

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