An In-depth Look at the Dividend Performance and Sustainability of Cracker Barrel Old Country Store Inc
Cracker Barrel Old Country Store Inc (CBRL, Financial) recently announced a dividend of $1.3 per share, payable on 2023-11-07, with the ex-dividend date set for 2023-10-19. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into Cracker Barrel Old Country Store Inc's dividend performance and assess its sustainability.
What Does Cracker Barrel Old Country Store Inc Do?
Cracker Barrel Old Country Store Inc operates hundreds of full-service restaurants throughout the United States. Its restaurants are open for breakfast, lunch, and dinner, with menus that offer home-style country food. Cracker Barrel's biggest input costs are beef, dairy, fruits and vegetables, pork, and poultry. The company purchases its food products from a few different vendors on a cost-plus basis. All restaurants are located in freestanding buildings and include gift shops, which contribute roughly one fourth of total company revenue. Apparel and accessories are the company's biggest revenue generators in the retail segment of the business.
A Glimpse at Cracker Barrel Old Country Store Inc's Dividend History
Cracker Barrel Old Country Store Inc has maintained a consistent dividend payment record since 1985. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Cracker Barrel Old Country Store Inc's Dividend Yield and Growth
As of today, Cracker Barrel Old Country Store Inc currently has a 12-month trailing dividend yield of 7.24% and a 12-month forward dividend yield of 7.24%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Cracker Barrel Old Country Store Inc's annual dividend growth rate was 26.00%. Extended to a five-year horizon, this rate decreased to 0.90% per year. And over the past decade, Cracker Barrel Old Country Store Inc's annual dividends per share growth rate stands at 3.10%.
Based on Cracker Barrel Old Country Store Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Cracker Barrel Old Country Store Inc stock as of today is approximately 7.57%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-07-31, Cracker Barrel Old Country Store Inc's dividend payout ratio is 1.17. And this may suggest that the company's dividend may not be sustainable.
Cracker Barrel Old Country Store Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Cracker Barrel Old Country Store Inc's profitability 7 out of 10 as of 2023-07-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Cracker Barrel Old Country Store Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Cracker Barrel Old Country Store Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Cracker Barrel Old Country Store Inc's revenue has increased by approximately 13.50% per year on average, a rate that outperforms approximately 87.23% of global competitors.
Conclusion
In conclusion, while Cracker Barrel Old Country Store Inc has a high dividend yield and a consistent history of dividend payments, its high payout ratio raises concerns about the sustainability of its dividends. However, the company's strong profitability and robust growth metrics suggest that it has the potential to maintain its dividend payments, provided it manages to control its payout ratio. Investors should continue to monitor these factors closely.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
