CBRL/WEN

Cracker Barrel Old Country Store Inc

Consumer


Presented:04/14/2015
Price:$145.59
Cap:$3.48B
Current Price:$45.57
Cap:$1.01B

Presented

Date04/14/2015
Price$145.59
Market Cap$3.48B
Ent Value$3.72B
P/E Ratio23.4x
Book Value$23.48
Div Yield2.75%
Shares O/S23.92M
Ave Daily Vol360,000
Short Int11.60%

Current

Price$45.57
Market Cap$1.01B
Cracker Barrel Old Country Store, Inc. develops and operates the Cracker Barrel Old Country Store concept in the United States. The company’s Cracker Barrel stores consist of a restaurant with a gift shop. Its restaurants provide breakfast, lunch, and dinner. The company’s gift shops offer various decorative and functional items, such as rocking chairs, holiday and seasonal gifts and toys, apparel, music CD’s, cookware, a book-on-audio sale-and-exchange program, and various other gift items, as well as candies, preserves, pies, cornbread mixes, coffee, syrups, pancake mixes, and other food items. As of February 24, 2015, the company operated 634 company-owned locations in 42 states. The company was founded in 1969 and is headquartered in Lebanon, Tennessee.

Publicly traded companies mentioned herein: Cracker Barrel Old Country Store Inc (CBRL), Wendy’s Co/The (WEN)

Highlights

The presenter is short shares of a basket of restaurant companies, highlighting in particular Cracker Barrel (CBRL) and Wendy’s (WEN). He believes these companies are being awarded rich valuations despite seeing minimal growth, and that benefits from lower oil prices have already been baked in. He is expecting a “reversion to the mean” in the near future for overvalued restaurants.

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Idea Discussion

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