Critical Review: Zoe’s Kitchen (ZOES) vs. Cracker Barrel Old Country Store (CBRL)
Zoe’s Kitchen (NYSE: ZOES) and Cracker Barrel Old Country Store (NASDAQ:CBRL) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.
Cracker Barrel Old Country Store pays an annual dividend of $4.80 per share and has a dividend yield of 3.1%. Zoe’s Kitchen does not pay a dividend. Cracker Barrel Old Country Store pays out 57.9% of its earnings in the form of a dividend. Zoe’s Kitchen has raised its dividend for 7 consecutive years.
Volatility and Risk
Zoe’s Kitchen has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Cracker Barrel Old Country Store has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.
Insider & Institutional Ownership
88.6% of Cracker Barrel Old Country Store shares are held by institutional investors. 3.0% of Zoe’s Kitchen shares are held by insiders. Comparatively, 0.9% of Cracker Barrel Old Country Store shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Zoe’s Kitchen and Cracker Barrel Old Country Store’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Zoe’s Kitchen||$275.96 million||1.09||$1.80 million||$0.01||1,544.54|
|Cracker Barrel Old Country Store||$2.93 billion||1.28||$201.89 million||$8.29||18.88|
Cracker Barrel Old Country Store has higher revenue and earnings than Zoe’s Kitchen. Cracker Barrel Old Country Store is trading at a lower price-to-earnings ratio than Zoe’s Kitchen, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Zoe’s Kitchen and Cracker Barrel Old Country Store, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cracker Barrel Old Country Store||1||8||0||0||1.89|
Zoe’s Kitchen presently has a consensus target price of $17.15, suggesting a potential upside of 11.15%. Cracker Barrel Old Country Store has a consensus target price of $157.38, suggesting a potential upside of 0.55%. Given Zoe’s Kitchen’s stronger consensus rating and higher possible upside, equities analysts clearly believe Zoe’s Kitchen is more favorable than Cracker Barrel Old Country Store.
This table compares Zoe’s Kitchen and Cracker Barrel Old Country Store’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cracker Barrel Old Country Store||6.83%||35.14%||13.08%|
Cracker Barrel Old Country Store beats Zoe’s Kitchen on 10 of the 16 factors compared between the two stocks.
About Zoe’s Kitchen
Zoe’s Kitchen, Inc. develops and operates fast-casual restaurants serving a menu of fresh, wholesome, Mediterranean-inspired dishes delivered with Southern hospitality. The Company’s menu offers meals made from scratch using produce, proteins and other ingredients, including its appetizers, soups, salads and kabobs. Its food, including both hot and cold items, is suited for catering to a range of business and social occasions. It caters to a range of dietary needs by offering vegetarian, vegan, gluten-free and its calorie conscious, Simply 500 menu selections. Its party packs serve groups of approximately 10 and are each filled with their own combination of fresh fruits, veggies, proteins and grains. The Company serves dishes for various occasions, such as Guilt-Free Girls Night, Game Day Goodies, Shower Sensations and Kids’ Party Pack. As of December 26, 2016, it had operated 201 Company-owned restaurants and three franchise restaurants in 20 states across the United States.
About Cracker Barrel Old Country Store
Cracker Barrel Old Country Store, Inc. is engaged in the operation and development of the Cracker Barrel Old Country Store concept (Cracker Barrel). The Company’s segments include Restaurant and Retail. As of September 19, 2016, the Company operated 640 Cracker Barrel stores in 43 states. The format of its stores consists of a rustic old country-store design offering a restaurant menu that features home-style country food and a range of decorative and functional items, such as rocking chairs, holiday and seasonal gifts and toys, apparel, cookware and foods. Its restaurants offer home-style country cooking featuring of its own recipes. Its restaurants serve breakfast, lunch and dinner. Its breakfast items include juices, eggs, pancakes, grits, and a range of biscuit specialties. Its lunch and dinner items include country ham, chicken and dumplings, chicken fried chicken, meatloaf, fresh side items and specialty items, such as pinto beans and turnip greens.
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