Looking out to 2016, estimates are calling for earnings per share of $6.30, which if achieved would put the payout ratio at a somewhat safer 63%. That assumes, however, that the dividend stays constant, and it is unclear whether Cracker Barrel has future dividend increases in mind.
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At the time of publication, Heller was long Biglari Holdings.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.