Biglari Holdings Inc (BH) May Get His Chance With Cracker Barrel Old Country Store, Inc. (CBRL)

What to expect
It will be interesting to see what Cracker Barrel management has to say next week regarding ROI on new stores and other accounting practices. Even more interesting will be if Biglari responds.

As far as earnings go, analysts are looking for an average of $1.25 in EPS for the quarter ended in January. That would come in $0.05 higher than the year-ago quarter, in which analysts were expecting just $1.14 in earnings. I will make no prediction as to whether Cracker Barrel will meet, exceed, or miss earnings.

I mentioned in previous articles that investors should exercise caution in looking at Cracker Barrel. Even though it’s had a very impressive rise and the earnings forecast looks like solid growth, if it turns out that the company has had some reporting issues, the stock price could suffer. On the flip side, if Biglari is successful in gaining a board seat, it could cause the stock to go through the roof based on the investor’s previous success in influencing quick-service restaurant operations and, of course, profits.

As always, invest only in that which you are comfortable with.

The article Biglari May Get His Chance With Cracker Barrel originally appeared on Fool.com and is written by Michael B. Lewis.

Fool contributor Michael B. Lewis has no position in any stocks mentioned. The Motley Fool recommends Apple, Berkshire Hathaway, and Cracker Barrel Old Country Store (NASDAQ:CBRL) and owns shares of Apple and Berkshire Hathaway.

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