Beating Buffett

http://seekingalpha.com/article/950951-restaurant-stocks-offer-a-mixed-menu

Symbol: CBRL - Jun. 12, 2009 close: $28.08
52-week range: $10.67 (Nov. 21, 2008) - $35.18 (Apr. 22, 2009)
Dividend = $0.20 quarterly = 2.85% current yield

Cracker Barrel Old Country Store, Inc. is principally engaged in the operation and development of the Cracker Barrel Old Country Store restaurant and retail concept (Cracker Barrel). As of September 24, 2008, the Company operated 579 full-service Cracker Barrel restaurants and gift shops in 41 states. Cracker Barrel stores are intended to appeal to both the traveler and the local customer. The format of Cracker Barrel stores consists of a rustic, old country-store design with a separate retail area offering a variety of decorative and functional items featuring rocking chairs, holiday and seasonal gifts and toys, apparel, cookware and foods, including various old fashioned candies and jellies.

• company profile by MSN MoneyCentral

Fiscal 2009 will likely mark the ninth straight year of improved EPS for CBRL despite the poor economic conditions. (FYs end July 31 of the same year). The dividend has been increased significantly in each of the past six years growing from two cents to eighty cents (annually) since 2003.

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Burger King Holdings [NYSE:BKC] May 29, 2009: $16.56
52-week range: $15.85 (May 29, 2009) - $30.95 (Aug. 11, 2008)
Dividend = $0.625 quarterly = 1.51% current yield

Burger King is second to McDonalds in its category with over $2.5 billion in annual sales. BKC shares touched a new multi-year low during intra-day trading last Friday. The closing quote of $16.56 was still slightly below its May 2006 IPO price of $17/share and well under the secondary offering price of $22 /share in February 2007. Fundamentals have improved even as the share price has gotten cheaper.

Morningstar likes Burger King Holdings. They give BKC their highest 5-Star ranking and assign a ”Fair Value’ of $24 per share.

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