Cracker Barrel Old Country Store Inc. (
recently joined forces with the John Morrell Food Group by inking
a multi-year licensing deal to make its product categories
available to customers in new retail channels. The deal is in
line with Cracker Barrel's strategic goal of expanding outside
its physical stores through licensing deals and spreading online
John Morrell Food Group is a subsidiary of
Smithfield Foods, Inc. (
- a global meat producer. It offers various national and regional
brands such as Armour, Eckrich, John Morrell, Curly's, Patrick
Cudahy, Carando and Healthy Ones. The company is a renowned
premium-quality meat products provider in the U.S.
As per the deal, both the companies will develop lines of deli
and meat such as bacon, luncheon meats, summer sausages and
jerky. The products will be launched on an extensive platform in
various forms of retail outlets including grocery and club stores
and mass merchandisers. The high-quality appetizing products
mainly target regular shoppers.
Cracker Barrel remains focused on shareholder value enhancement
and ensuring the company's growth in the long term, based on
three strategies - core business expansion, unit growth and brand
extension. Accordingly, the company has been planning several
initiatives such as media spending, refined menu and pricing
strategies and improved restaurant operations and services to
drive traffic and sales.
Established in 1969, Cracker Barrel operates a chain of combined
restaurant and gift stores in the U.S. The company reported
fourth-quarter 2012 adjusted earnings of $1.20 per share,
comfortably beating the Zacks Consensus Estimate of $1.29 and
exceeding the prior-year earnings of $1.01. At the end of the
quarter, Cracker Barrel operates around 621 company-owned
locations across 42 states.
We have a long-term Neutral recommendation on Cracker Barrel.
Also, it carries a short-term Zacks#3 Rank (Hold). One of its
Panera Bread Co. (
- carries a short-term Zacks#2 Rank (Buy).
CRACKER BARREL (CBRL): Free Stock Analysis
PANERA BREAD CO (PNRA): Free Stock Analysis
SMITHFIELD FOOD (SFD): Free Stock Analysis
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