Battle of the sit down restaurants. We compare the stock of Cracker Barrel (CBRL) and Darden Restaurants (DRI). Who comes out on top?
Category: Cracker Barrel (CBRL) and Darden Restaurants (DRI)
Date: 30 June 2020 Stock price of Cracker Barrel: $109.31 Stock price of Darden Restaurants: $76.63 Battle of the sit down restaurant stocks. We take a look at Cracker Barrel (CBRL) and Darden Restaurants (DRI) stock's performance over the last couple of years and look at which stock offers the best prospects for future growth based on their current financial position and their latest earnings report.
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We therefore believe at their respective prices, the stock of Constellation Brands offers far better long term investment value than that of Boston Beer Company. Especially considering the strong stock performance of Boston Beer Company over the last three years. We do feel that Boston Beer Company's stock has run far ahead of its future earnings potential. "
More About Cracker Barrel
Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL), established in 1969 in Lebanon, Tenn., provides a friendly home-away-from-home in its old country stores and restaurants. Guests are cared for like family while relaxing and enjoying real home-style food and shopping that’s surprisingly unique, genuinely fun and reminiscent of America’s country heritage…all at a fair price. The restaurants serve up delicious, home-style country food such as meatloaf and homemade chicken n’ dumplins as well as our signature biscuits using an old family recipe. The authentic old country retail store is fun to shop and offers unique gifts and self-indulgences
Overview of Cracker Barrel's latest earnings report
Overview of Cracker Barrel's latest earnings report
- Total revenue: $432.544 million (down from $739.603 million from the same quarter of the previous year)
- Revenues decreased by -42% over the last 12 months
- Cost of Goods sold: $137.138 million (down from $217.073 million for the same quarter of the previous year)
- Cost of goods sold decreased by -37% over the last 12 months
- Net loss: -$161.932 million (down from $50.414 million for the same quarter of the previous year)
- Diluted loss per share: -$6.81 (down -426% from $2.09 for the same quarter of the previous year)
- Diluted weighted-average shares outstanding: 23.777 million (up from 24.104 million for the same quarter of the previous year)
- Cash and cash equivalents: $363.330 million
- Cash and cash equivalents per share: $15.28
- Cash and cash equivalents makes up 14.2% of Cracker Barrel's market capital
- Cash and cash equivalents makes up 16.24% of Cracker Barrel's total assets
- Inventories: $146.279 million
- Inventories makes up 6.5% of Cracker Barrel's total assets
- Stockholders equity in Cracker Barrel Old Country Store: $392.209 million
- Stockholders equity per share: $16.49
- Cracker Barrel's is trading at 6.62 times its stockholders equity per share which is well above the expected 2 to 4 times that most firms tend to trade at
More About Darden Restaurants
The Darden family of restaurants features some of the most recognizable and successful brands in full-service dining. Through subsidiaries, we own and operate more than 1,700 restaurants, employ 185,000 people and serve nearly 400 million guests a year. Some of Darden Restaurants brands include:
Olive Garden
Longhorn Steakhouse
Cheddar's Scratch Kitchen
Yard House
Bahama Breeze
Overview of Darden's latest earnings report
Olive Garden
Longhorn Steakhouse
Cheddar's Scratch Kitchen
Yard House
Bahama Breeze
Overview of Darden's latest earnings report
- Sales: $1.270 billion (down from $2.229 billion from the same quarter of the previous year)
- Revenues decreased by -43% over the last 12 months
- Total Operating Costs: $1.862 billion (down from $1.993 billion for the same quarter of the previous year)
- Operating costs decreased by -6.7% over the last 12 months
- Net loss: -$480 million (down from $208 million for the same quarter of the previous year)
- Diluted loss per share: -$3.86 (down from $1.67 for the same quarter of the previous year)
- Diluted weighted-average shares outstanding: 124.5 million (down from 124.9 million for the same quarter of the previous year)
- Cash and cash equivalents: $763.3 million
- Cash and cash equivalents per share: $1.27
- Cash and cash equivalents makes up 6.13% of Darden Restaurants' market capital
- Cash and cash equivalents makes up 7.7% of Darden Restaurants' total assets
- Inventories: $206.9 million
- Inventories makes up 2.1% of Darden Restaurants' total assets
- Stockholders equity in Darden Restaurants: $2.331 billion
- Stockholders equity per share: $18.72
- Darden restaurants is trading at 3.96 times its stockholders equity per share which is within the expected range of between 2 and 4 times that most firms tend to trade at.
Related Topics
Cracker Barrel (CBRL) vs Darden Restaurants (DRI)
The image below shows the stock price performance of Cracker Barrel (CBRL) and Darden Restaurants (DRI) over the last 3 years. Both these firms are active in the sit down restaurant space and their stock price trends are remarkably similar. Over the three year period the stock of Darden declined by -16.5% while the stock of Cracker Barrel declined by -30.7% over the same time period. So does the stock of Cracker Barrel provide a greater buying opportunity because it has declined more over the three year period or is there a fundamental financial reason why it has declined more than Darden?
So if one had to buy one of these two sit down restaurant stocks now which one is the better buy? Does the stock of Cracker Barrel provide a greater buying opportunity because it has declined more over the three year period or is there a fundamental financial reason why it has declined more than Darden?
One of our key metrics is the Price to Stockholders equity per share ratio. When looking at this we find the following for both stocks:
Based on this metric Darden offers far more value than Cracker Barrel. Most firms tend to trade at a ratio of between 2 and 4 times. Cracker Barrel is trading at well above the expected range and Darden is trading at just inside the expected range. Next up cash as percentage of stock price. Cash per share makes up just over 14% of Cracker Barrel's stock price while Darden's cash makes up 6.2% of their stock price. Total cash as percentage of total assets is as follows. Cash makes up 16.2% of Cracker Barrels' total assets while Darden's cash makes up around 7% of their total assets. So it does look like Cracker Barrel is better placed to ride out difficult times as is currently being experienced during Covid-19
We therefore believe at their respective prices, the stock of Cracker Barrel offers a better long term investment value than that of Darden Restaurants. Therefore in the battle of the sit down restaurants if we have to pick between Cracker Barrel and Darden Restaurants, we rate Cracker Barrel as the Winner.
- Price/Stockholders equity per share for Cracker Barrel (CBRL) :6.62
- Price/Stockholders equity per share for Darden Restaurants: 3.96
Based on this metric Darden offers far more value than Cracker Barrel. Most firms tend to trade at a ratio of between 2 and 4 times. Cracker Barrel is trading at well above the expected range and Darden is trading at just inside the expected range. Next up cash as percentage of stock price. Cash per share makes up just over 14% of Cracker Barrel's stock price while Darden's cash makes up 6.2% of their stock price. Total cash as percentage of total assets is as follows. Cash makes up 16.2% of Cracker Barrels' total assets while Darden's cash makes up around 7% of their total assets. So it does look like Cracker Barrel is better placed to ride out difficult times as is currently being experienced during Covid-19
We therefore believe at their respective prices, the stock of Cracker Barrel offers a better long term investment value than that of Darden Restaurants. Therefore in the battle of the sit down restaurants if we have to pick between Cracker Barrel and Darden Restaurants, we rate Cracker Barrel as the Winner.