Cracker Barrel is a restaurant and old country store that is located off of most interstate Highways throughout America. With a menu consisting of different homestyle meals, they cater to travelers looking for a “consistent, quality place to stop along the way” (Website). Since Cracker Barrel doubles as a restaurant and old country store, they sell different novelty items along with serving meals to the customers. Cracker Barrel offers a friendly environment for people who travel and need a quality place to stop during a long car ride. Cracker Barrel saw an increase in sales from year 2016 to 2017 of about $14 million. They saw a decrease in the cost of goods sold of about $37 million. The gross profit increase by about $50 million. …show more content…
Cracker Barrel issued a $1.20 dividend per share, but the stock price was increased to $176.48. The dividend yield decreased from 2016 to 2017. The dividend yield for 2016 was .74% which is also very small, but better than the .68% seen in 2017. The dividend yield changed because Cracker Barrel issued a larger dividend but the stock price drastically increased. If an investor is interested only in earning dividends, this is not a good stock to buy. If an investor is looking for a stock that shows growth, this could be a good stock to invest …show more content…
Even though Cracker Barrel has seen a consistent increase in revenue, gross profit, and net income, the company does not have enough liquidity. Cracker Barrel would only have $0.48 for every dollar they would need. Not only does the company not have enough money to pay off debts, the cash they have per dollar has decreased from 2016 to 2017. Cracker Barrel also pays a very tiny dividend. According to Cracker Barrel’s website they paid a $1.20 per share dividend to their stockholders. The price of the stock is over $170 and that $1.20 attributes to less than one percent of the market value of the stock. Moreover, while the market value of the stock increased from 2016 to 2017, the stock in beginning of 2018 has been on a steady decline and has decreased by about 20 dollars as of the end of February 2018 (to what it is