Cracker Barrel Old Country Store, Inc.
) recently decided to hike its quarterly dividend by 15 cents to 40
cents per share. This translates into a 60.0% increase from the
prior dividend. The dividend will be paid on August 6, 2012 to the
stockholders of record as of July 20, 2012.
Earlier, the company increased the quarterly dividend by 3 cents
to 25 cents per share, reflecting a 13.6% hike from the prior
dividend. The dividend was paid on November 7, 2011 to the
stockholders of record as of October 21, 2011.
Cracker Barrel remains dedicated toward maintaining a balanced
approach of capital allocations by debt repayment, brand enrichment
and returning capital to shareholders through dividends and share
Cracker Barrel possesses a strong balance sheet and is well
placed financially. At the end of the second quarter, the company's
cash and cash equivalent more than doubled to $119.4 million as
compared to $52.3 million in fiscal 2011. We believe that the
company has enough cash and cash equivalents to provide optimum
We appreciate Cracker Barrel's efforts to consistently enhance
long-term shareholder value even amidst economic downturn. We
believe that an increase in dividend payment affirms the company's
optimistic outlook and depicts that it is heading toward strong
In addition, Cracker Barrel also reported the highlights of its
upcoming third quarter, 2012. The comparable restaurant traffic
inched up 0.6%, including a 2.5% increase in average check.
Restaurant and retail sales improved 3.1% and 0.4%,
Established in 1969, Cracker Barrel, a chain of combined
restaurant and gift stores in the US, operates 611 company-owned
locations in 42 states. The company undertakes several initiatives
like media spending, refined menu and pricing strategies and
improved restaurant operations and services to drive traffic and
We presently have a Neutral recommendation on Cracker Barrel,
which holds a Zacks #3 Rank, signifying a short-term Hold rating.
We also have a Zacks #3 and a Neutral recommendation on
), a close peer of Cracker Barrel Old Country Inc.
CRACKER BARREL (CBRL): Free Stock Analysis
DENNY'S CORP (DENN): Free Stock Analysis Report
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