Comparing Ruby Tuesday (RT) & Cracker Barrel Old Country Store (CBRL)

Ruby Tuesday (NYSE: RT) and Cracker Barrel Old Country Store (NASDAQ:CBRL) are both cyclical consumer goods & services companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Profitability

This table compares Ruby Tuesday and Cracker Barrel Old Country Store’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ruby Tuesday -8.36% -3.67% -1.56%
Cracker Barrel Old Country Store 6.83% 35.14% 13.08%

Earnings & Valuation

This table compares Ruby Tuesday and Cracker Barrel Old Country Store’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ruby Tuesday $951.97 million 0.15 -$106.14 million ($1.27) -1.87
Cracker Barrel Old Country Store $2.93 billion 1.35 $201.89 million $8.29 19.87

Cracker Barrel Old Country Store has higher revenue and earnings than Ruby Tuesday. Ruby Tuesday is trading at a lower price-to-earnings ratio than Cracker Barrel Old Country Store, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Ruby Tuesday and Cracker Barrel Old Country Store, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ruby Tuesday 0 0 0 0 N/A
Cracker Barrel Old Country Store 1 8 0 0 1.89

Cracker Barrel Old Country Store has a consensus target price of $152.71, indicating a potential downside of 7.27%. Given Cracker Barrel Old Country Store’s higher possible upside, analysts plainly believe Cracker Barrel Old Country Store is more favorable than Ruby Tuesday.

Insider and Institutional Ownership

77.3% of Ruby Tuesday shares are held by institutional investors. Comparatively, 88.9% of Cracker Barrel Old Country Store shares are held by institutional investors. 4.8% of Ruby Tuesday shares are held by company insiders. Comparatively, 0.9% of Cracker Barrel Old Country Store shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Cracker Barrel Old Country Store pays an annual dividend of $4.80 per share and has a dividend yield of 2.9%. Ruby Tuesday does not pay a dividend. Cracker Barrel Old Country Store pays out 57.9% of its earnings in the form of a dividend. Cracker Barrel Old Country Store has increased its dividend for 7 consecutive years.

Volatility and Risk

Ruby Tuesday has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Cracker Barrel Old Country Store has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Summary

Cracker Barrel Old Country Store beats Ruby Tuesday on 11 of the 14 factors compared between the two stocks.

About Ruby Tuesday

Ruby Tuesday, Inc. owns and operates Ruby Tuesday casual dining and Lime Fresh Mexican Grill (Lime Fresh) casual restaurants. The Company also franchises the Ruby Tuesday concept in selected domestic and international markets, and the Lime Fresh concept in selected domestic markets. Its segments include Ruby Tuesday concept and Lime Fresh concept. As of March 1, 2016, the Company operated 729 Ruby Tuesday restaurants in 44 states, 13 foreign countries, and Guam, and there were 16 Lime Fresh restaurants in two states. Of those restaurants, it owned and operated approximately 649 Ruby Tuesday restaurants and franchised over 80 Ruby Tuesday restaurants, which consisted of 28 domestic and 52 international restaurants. It also owned and operated over eight Lime Fresh restaurants and franchised eight Lime Fresh domestic restaurants. The Company’s corporate-owned and operated restaurants are concentrated primarily in the Southeast, Northeast, Mid-Atlantic and Midwest of 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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