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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.

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.

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