You know Cracker Barrel (NASDAQ:CBRL) by its old-fashioned country store look that starts on the porch lined with rocking chairs and ends at the knickknacks in every nook and cranny of the in-house store.
CBRL got its start in 1969 in Tennessee, and the company runs 604 stores in 42 states, all based on that same country store theme.
Under the hood, Cracker Barrel generated $2.5 billion in sales last year, netting an impressive $86 million, with a return on equity at a solid 28%. Cracker Barrel generates around $190 million in cash flow, which helped to fund a recent 60% increase in the dividend — at 40 cents, CBRL would yield about 2.6% at current prices.
CBRL is trading at an all-time high of around $60, primarily thanks to strong third-quarter results driven by a 3.1% increase in comparable restaurant sales and raising guidance for fiscal 2012 earnings. Yet it’s still not grossly overvalued — Cracker Barrel stock is trading at around 16 times trailing 12-month earnings and about 13 times fiscal 2013 earnings.
A nice company with a nice model, Cracker Barrel offers more than just a sweet cobbler.