Cracker Barrel Old Country Stores (
) certainly has brand recognition, but it remains an
under-the-radar stock in IBD's restaurant group.
That's despite a consistent track record of earnings growth,
high return on equity and steady dividend payouts.
It currently pays a quarterly dividend of 50 cents a share,
giving it an annualized yield of 2.4%.
The company, with a market capitalization of $1.95 billion,
operates 622 company-owned locations in 42 states. Its
restaurants offer moderately priced, home-style country meals.
Each location also has a gift shop, offering merchandise like
CDs, apparel and seasonal gifts.
The company generates the majority of sales from its
When the company reported fiscal second-quarter earnings in
late February, profit rose 19% from a year ago to $1.43 a share.
Sales rose 4% to $702.7 million.
Restaurant sales rose 5% to $528.2 million. Retail sales rose
3% to $174.5 million. Same-stored sales at each segment rose
The company plans to launch eight new Cracker Barrel stores in
fiscal 2013 ending in July.
Cracker Barrel is thinly traded with an average daily volume
close to 200,000 shares. But with a share price over 80, it's not
suffering from lack of institutional support. At the end of the
first quarter, 309 mutual funds owned about 35% of the shares
outstanding. Several are A-rated funds in IBD's database.
Volume has dried up in the stock in recent weeks but it
continues to hold gains above its 10-week moving average, a key
support level for now. A break below the 10-week line from here
means the stock is probably ready to consolidate gains for a
while. If it continues to move sideways , below its recent high
of 83.58, a flat base could form.