Why Cracker Barrel Should Keep Rolling


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, casual dining chain Cracker Barrel Old Country Store (NAS: CBRL) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Cracker Barrel and see what CAPS investors are saying about the stock right now.

Cracker Barrelfacts

Headquarters (Founded)

Lebanon, Tenn. (1969)

Market Cap

$1.4 billion



Trailing-12-Month Revenue

$2.6 billion


CEO Sandra Cochran (since 2011)
CFO Lawrence Hyatt (since 2011)

Return on Equity (average, past 3 years)



$118.9 million / $554.0 million

Dividend Yield



Denny's (NAS: DENN)
(NYS: DIN) Waffle House

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 87% of the 196 members who have rated Cracker Barrel believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those bulls, fellow Fool Thomas Engle (TMF1000), succinctly summed up the outperform case for our community:

Cracker Barrel is a country styled casual dining restaurant. Its restaurants are along highways where traffic can be hurt by higher gas prices. Today they have 660 restaurants which is a fairly small store base considering Applebees has nearly 2000 stores. The company has room to grow and is working on a smaller store concept that will be cheaper to build and allow them to be more flexible when looking for store locations. I would like to see them diversify away from the highways. ...

It isn't going to be a fast grower like [Buffalo Wild Wings (NAS: BWLD) ], but it is steady and it pays a nice dividend. Biglari/Cracker barrel proxy fight is costing them some money, but he does keep them on their toes, perhaps it evens out. I don't really want them to grow too fast. I like their disciplined approach. They offer a good value to customers and they are fairly small compared to other casual dining restaurants. I believe the growth will come.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Cracker Barrel may not be your top choice.

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The article Why Cracker Barrel Should Keep Rolling originally appeared on Fool.com.

Fool contributor Brian Pacampara and The Motley Fool have no positions in the stocks mentioned above. Motley Fool newsletter services recommend Buffalo Wild Wings and Cracker Barrel Old Country Store. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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