Critical Contrast: El Pollo Loco Holdings (LOCO) vs. Cracker Barrel Old Country Store (CBRL)
El Pollo Loco Holdings (NASDAQ: LOCO) and Cracker Barrel Old Country Store (NASDAQ:CBRL) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.
This is a summary of recent recommendations and price targets for El Pollo Loco Holdings and Cracker Barrel Old Country Store, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|El Pollo Loco Holdings||0||4||1||0||2.20|
|Cracker Barrel Old Country Store||1||7||0||0||1.88|
El Pollo Loco Holdings presently has a consensus target price of $14.33, suggesting a potential upside of 19.44%. Cracker Barrel Old Country Store has a consensus target price of $161.63, suggesting a potential upside of 8.10%. Given El Pollo Loco Holdings’ stronger consensus rating and higher probable upside, equities analysts plainly believe El Pollo Loco Holdings is more favorable than Cracker Barrel Old Country Store.
This table compares El Pollo Loco Holdings and Cracker Barrel Old Country Store’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|El Pollo Loco Holdings||4.66%||9.56%||5.52%|
|Cracker Barrel Old Country Store||6.90%||35.49%||13.26%|
Institutional & Insider Ownership
77.2% of El Pollo Loco Holdings shares are held by institutional investors. Comparatively, 85.6% of Cracker Barrel Old Country Store shares are held by institutional investors. 45.9% of El Pollo Loco Holdings 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares El Pollo Loco Holdings and Cracker Barrel Old Country Store’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|El Pollo Loco Holdings||$393.64 million||1.18||$62.17 million||$0.46||26.09|
|Cracker Barrel Old Country Store||$2.93 billion||1.23||$399.48 million||$8.38||17.84|
Cracker Barrel Old Country Store has higher revenue and earnings than El Pollo Loco Holdings. Cracker Barrel Old Country Store is trading at a lower price-to-earnings ratio than El Pollo Loco Holdings, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
El Pollo Loco Holdings has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Cracker Barrel Old Country Store has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.
Cracker Barrel Old Country Store pays an annual dividend of $4.80 per share and has a dividend yield of 3.2%. El Pollo Loco Holdings does not pay a dividend. Cracker Barrel Old Country Store pays out 57.3% of its earnings in the form of a dividend. El Pollo Loco Holdings has raised its dividend for 7 consecutive years.
Cracker Barrel Old Country Store beats El Pollo Loco Holdings on 10 of the 17 factors compared between the two stocks.
About El Pollo Loco Holdings
El Pollo Loco Holdings, Inc. specializes in fire-grilling citrus-marinated chicken and operates in the limited service restaurant (LSR) segment. The Company’s menu features its signature product, citrus-marinated fire-grilled chicken, and a range of Mexican-inspired entrees that it creates from chicken. Every day in every restaurant, the Company marinates and fire-grills its chicken over open flames, and hand-slices whole tomatoes, avocados, serrano peppers and cilantro to make its salsas, guacamole and cilantro dressings from scratch. The Company also offers burritos, salads, tostadas, bowls, stuffed quesadillas and chicken entrees. The Company’s entrees include Chicken Avocado Burrito, Under 500 Calorie entrees, Ultimate Pollo Bowl, and Stuffed Chicken Avocado Quesadilla. As of December 28, 2016, the Company had 460 restaurants, consisting of 201 Company-operated and 259 franchised restaurants. The Company also offers additional proteins, such as shrimp, carnitas and beef.
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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