Cracker Barrel operates old country style restaurants across the US. CBRL announced results couple of days back and both revenue and profits met/exceeded expectations slightly. They also announced a dividend increase to $1.00/share from $0.75/share.
CBRL has been increasing dividends quite a bit the last couple of years, though I expect them to not being able to continue similar increase going forward. With the stock yielding close to 4% with the dividend increase, I wanted to give it a shot. The only other restaurant stock that I hold (Chipotle – CMG) doesn’t pay dividends even though I purchased that as a growth stock.
I purchased 15 shares of CBRL at $99.79 on 5/30/2014. With the recent dividend increase, CBRL pays $1.00/share which amounts to an yield of 4.00%. This purchase adds $60.00 to my annual dividend going forward.
Other restaurant stocks that are on my radar: MCD and YUM.