CBRL - Cracker Barrel Targets Younger Generations With New Restaurant Chains
Cracker Barrel (NASDAQ: CBRL) in its 50 years of operation, has grown steadily from its first Tennessee location, to a 660 unit chain. That size already puts the restaurant in the top ten largest casual dining chains, and investors are justified in wondering how much larger it can grow. Growth has already slowed with only six new locations planned for fiscal 2020 -- less than 1% unit growth.
Among priorities reaffirmed by CEO Sandra B. Cochran in its recent earnings call is the priority to "extend the brand" by having other restaurant concepts in its portfolio. The company began working on this priority in 2016 when it opened up its first new restaurant called Holler & Dash Biscuit House. But earlier this year it further extended the brand by acquiring a non-controlling interest in an entertainment restaurant chain called Punch Bowl Social. Not stopping there, Cracker Barrel also outright acquired the Maple Street Biscuit Company earlier this month.
Image Source: Cracker Barrel