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Cracker Barrel Old Country Store, Inc. (CBRL) announced its financial results for the first fiscal quarter of 2014, reporting an earnings increase of 17%. The restaurant and retail-store chain saw increases in comparable store restaurant sales and comparable store retail sales of 2.8% and 2.5% respectively. The 2.8% increase in restaurant sales reflects a 0.1% decrease in traffic but a 2.9% increase in average check. Revenue improved 3.5% to $649.1M, beating analyst expectations of $647M. Company earnings were up from $23.2M and $0.97 a year ago to $27.2M and $1.14 per share. Cracker Barrel activist shareholder Sardar Biglari has made repeated attempts to gain more control of the company, attempting to gain seats on the board. His latest efforts to increase his power in the company were voted down by shareholders.
I can not understand the reason for such a big sell off. I thought the results were great. Any ideas that I am missing? I am not sure why they guided cautiously. When families get together, they often go to Cracker Barrel. I know my family does. I am very biased because I love the store but the sell off seems extreme and not warranted.
Interestingly, BH has not fallen a similar amount which is surprising to me.
Will be interesting to see what BH does and how he gets out of part or all of his position.
I dont think he is interested in "burning" anyone, just doing whats best for him and his investors.
And I cant think that continuing to hold 20% of CBRL at these levels is a good idea. Compared to what he might find elsewhere in undervalued stocks.