Cracker Barrel and Bob Evans Take the Chipotle Challenge

Investors in Cracker Barrel Old Country Stores (NASDAQ: CBRL  ) and Bob Evans (NASDAQ: BOBE  ) were rewarded last week with gains of 9% and 4%, respectively, after both casual-dining chains posted better-than-expected quarterly results. 

Both stocks hit new highs, posting positive comps along the way. You don't see that very often these days among publicly traded casual-dining chains as the hungry flock to fast-casual establishments led by Chipotle Mexican Grill (NYSE: CMG  ) .

In this video, Fool contributor Rick Munarriz explores how comfort food is holding up well against the rise of Chipotle and its fast-casual peers. 

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  • Report this Comment On June 11, 2013, at 6:20 PM, TMFPennyWise wrote:

    Interesting take on two old fashioned restaurants, Rick.

    Just thought of Bob Evens today when I went to Chipotle for lunch where no space for me, it was loud and fast and not that cheap. And two doors down was Bob Evan's--and I thought I should remember to go there when I want a nice seat and some quiet to talk or think.

    I've been watching Bob Evan's revamp their properties and also their menus in the last year or so. Both really are freshened up--Bob Evan's offers a yoghurt and fruit breakfast among other 'healthy' items. And a pot of 'gourmet' coffee so you can sit and talk and hang out with friends. I know it's corny but my kids (who are twenty something and sort of edgy) really like to go their for comfort food which shocks me.

    Oh, and they have drive thrus where you can pick up a homey dinner for four for not much money on the way home from work.

    I wouldn't be surprised if BOBE really turns out to be a winner.

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