Cracker Barrel Is Making People Rich. Here's How You Can Join In.

You may love Cracker Barrel Old Country Store (NASDAQ: CBRL  ) for its Southern comfort food, but other people appreciate the Tennessee-based chain for an entirely different reason. That is, it's making investors rich.

Over the past decade, Cracker Barrel's shares have beaten the S&P 500 (SNPINDEX: ^GSPC  ) by a factor of two. And if you extend it back even further -- going back to, say, the mid-1980s -- it's outperformed the S&P 500 by a factor of four. Indeed, as I've previously discussed, had you invested $10,000 in Cracker Barrel's stock in 1985, it would be worth more than $1 million today.

In the following video, Motley Fool contributor John Maxfield explains that the restaurant chain has accomplished this feat by opening new restaurants and taking care of shareholders. With only a few exceptions, it's paid dividends every quarter since the mid-1980s. And over the past 10 years, its outstanding share count has been sliced in half.

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  • Report this Comment On March 23, 2014, at 8:08 AM, PEStudent wrote:

    The way to "get in" with CBRL is join it's no-purchase-fee DRIP administered by amstock.com.

    You can join with no-prior stock ownership and a small initial deposit or having $50/month or more automatically taken out of your checking account each month for no-fee purchases and you can reinvest the 3% dividends with no fees.

    I've been in the CBRL DRIP since the early 90's. Except for a problem in the late 90's related to forest fires temporarily closing 1/3 of its stores and a bad acquisition by a poor Harvard-MBA CEO who replaced the founder by was then quickly shown the door, the stock has been a good performer and, since it expanded its dividend in the 2000's, a good defensive dividend-stock.

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