Cracker Barrel’s Stock Repurchase

The parent company of Lebanon-based Cracker Barrel announced a 65-million dollar stock buyback today.

The repurchase comes after the restaurant chain’s stock price closed yesterday at 24-dollars a share – down significantly from its 52-week high of $42.74.

Amy Green of Avondale Partners in Nashville tracks the restaurant business. She says despite the company’s downward trending stock, the repurchase signals the company is confident.

“They’re signaling to the market they believe there’s more value they’re getting credit for. The other thing is they’re comfortable with the amount of cash they’re generating. So, you really are saying, ‘I have the financial wherewithal to come up with 65-million dollars to buy this stock.’ In today’s restaurant market, you know, it’s meaningful when you’ve got Bennigan’s shuttering its doors.”

Green also says Cracker Barrel is in a better position to weather an economic downturn because people are more likely to turn to comfort food, instead of, as she says, “organic salads.”