Cracker Barrel Old Country Store (CBRL) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research cut shares of Cracker Barrel Old Country Store (NASDAQ:CBRL) from a buy rating to a hold rating in a research note released on Friday.

According to Zacks, “Shares of Cracker Barrel have outperformed the industry in a year’s time and should continue to do so after the company reported better-than-expected earnings in the first quarter of fiscal 2019. Earnings and revenues not only surpassed analysts’ expectations but also increased 2.1% and 3.3%, respectively, from the year-ago quarter. The company’s strong marketing efforts and enhanced focus on retail business, along with consistent unit development, have led to the overall top-line improvement. Further, increased focus on menu innovation continues to drive revenues. However, high costs of operations and a competitive environment continue to hurt the company’s margins. Nevertheless, management’s cost-savings plan through its two prime initiatives — food waste and labor management — is expected to drive profits.”

Other equities research analysts have also recently issued research reports about the company. BidaskClub cut Cracker Barrel Old Country Store from a hold rating to a sell rating in a research note on Thursday, August 30th. SunTrust Banks boosted their price objective on Cracker Barrel Old Country Store to $134.00 and gave the company a hold rating in a research note on Wednesday, September 19th. Telsey Advisory Group reduced their price objective on Cracker Barrel Old Country Store from $165.00 to $155.00 and set an outperform rating for the company in a research note on Wednesday, September 19th. ValuEngine upgraded Cracker Barrel Old Country Store from a sell rating to a hold rating in a research note on Tuesday, October 9th. Finally, Wells Fargo & Co cut their price target on Cracker Barrel Old Country Store from $140.00 to $139.00 and set a market perform rating for the company in a research note on Wednesday, September 19th. Two research analysts have rated the stock with a sell rating, five have assigned a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the stock. The company currently has a consensus rating of Hold and a consensus target price of $166.84.

Shares of NASDAQ CBRL opened at $179.60 on Friday. The company has a debt-to-equity ratio of 0.67, a current ratio of 0.87 and a quick ratio of 0.38. Cracker Barrel Old Country Store has a twelve month low of $141.63 and a twelve month high of $185.00. The company has a market capitalization of $4.35 billion, a price-to-earnings ratio of 20.25, a PEG ratio of 2.01 and a beta of 0.40.

Cracker Barrel Old Country Store (NASDAQ:CBRL) last issued its quarterly earnings data on Tuesday, November 27th. The restaurant operator reported $1.96 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.91 by $0.05. Cracker Barrel Old Country Store had a return on equity of 35.18% and a net margin of 8.14%. The company had revenue of $733.50 million during the quarter, compared to analysts’ expectations of $720.94 million. During the same quarter in the previous year, the business earned $1.92 earnings per share. The firm’s revenue for the quarter was up 3.3% on a year-over-year basis. As a group, sell-side analysts anticipate that Cracker Barrel Old Country Store will post 9 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Tuesday, February 5th. Stockholders of record on Friday, January 18th will be paid a dividend of $1.25 per share. This represents a $5.00 annualized dividend and a dividend yield of 2.78%. The ex-dividend date is Thursday, January 17th. Cracker Barrel Old Country Store’s dividend payout ratio (DPR) is presently 56.37%.

In other news, major shareholder Sardar Biglari sold 243,718 shares of the company’s stock in a transaction that occurred on Monday, December 3rd. The stock was sold at an average price of $182.26, for a total transaction of $44,420,042.68. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Nicholas V. Flanagan sold 6,000 shares of the company’s stock in a transaction that occurred on Monday, September 24th. The stock was sold at an average price of $145.81, for a total value of $874,860.00. Following the sale, the vice president now owns 18,784 shares of the company’s stock, valued at approximately $2,738,895.04. The disclosure for this sale can be found here. Insiders have sold 423,899 shares of company stock valued at $76,993,830 in the last 90 days. Company insiders own 0.88% of the company’s stock.

Large investors have recently added to or reduced their stakes in the business. Fifth Third Bancorp raised its position in Cracker Barrel Old Country Store by 128.0% in the third quarter. Fifth Third Bancorp now owns 684 shares of the restaurant operator’s stock worth $101,000 after acquiring an additional 384 shares in the last quarter. FMR LLC purchased a new position in Cracker Barrel Old Country Store in the third quarter worth $144,000. Stratos Wealth Partners LTD. purchased a new position in Cracker Barrel Old Country Store in the third quarter worth $169,000. Wellington Shields Capital Management LLC purchased a new position in Cracker Barrel Old Country Store in the third quarter worth $209,000. Finally, Itau Unibanco Holding S.A. purchased a new position in Cracker Barrel Old Country Store in the second quarter worth $230,000. Hedge funds and other institutional investors own 87.84% of the company’s stock.

About Cracker Barrel Old Country Store

Cracker Barrel Old Country Store, Inc develops and operates the Cracker Barrel Old Country Store concept in the United States. Its Cracker Barrel stores consist of a restaurant with a gift shop. The company's restaurants serve breakfast, lunch, and dinner. Its gift shops offer various decorative and functional items, such as rocking chairs, holiday and seasonal gifts, toys, apparel, music CDs, cookware, and various other gift items, as well as pies, cornbread mixes, coffee, syrups, pancake mixes, candies, preserves, and other food items.

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