Cracker Barrel Old Country Store (CBRL) Cut to “Hold” at Zacks Investment Research

Cracker Barrel Old Country Store (NASDAQ:CBRL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Thursday.

According to Zacks, “Shares of Cracker Barrel have outperformed the industry year to date and should continue to do so after the company reported better-than-expected earnings in the first quarter of fiscal 2019. 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. Also, management’s cost-savings plan through its two prime initiatives — food waste and labor management — is expected to drive profits. Moreover, earnings estimate for 2018 has increased 1.4% over the past 30 days, reflecting analyst’s optimism over the stock. However, the company's dependency on consumer discretionary spending, rising costs as well as limited geographical presence remain potent headwinds for the company.”

CBRL has been the subject of several other reports. ValuEngine upgraded shares of Cracker Barrel Old Country Store from a “sell” rating to a “hold” rating in a report on Tuesday, September 4th. SunTrust Banks lifted their target price on shares of Cracker Barrel Old Country Store to $134.00 and gave the company a “hold” rating in a research note on Wednesday, September 19th. BidaskClub upgraded shares of Cracker Barrel Old Country Store from a “sell” rating to a “hold” rating in a research note on Tuesday, October 9th. Telsey Advisory Group upgraded shares of Cracker Barrel Old Country Store from a “market perform” rating to an “outperform” rating and lifted their target price for the company from $155.00 to $175.00 in a research note on Tuesday, October 16th. Finally, Maxim Group reduced their target price on shares of Cracker Barrel Old Country Store from $187.00 to $175.00 and set a “buy” 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 assigned a buy rating and one has given a strong buy rating to the company. The stock currently has an average rating of “Hold” and an average price target of $167.59.

CBRL stock opened at $170.86 on Thursday. The company has a quick ratio of 0.38, a current ratio of 0.87 and a debt-to-equity ratio of 0.67. The company has a market cap of $4.22 billion, a P/E ratio of 19.26, a P/E/G ratio of 1.95 and a beta of 0.40. Cracker Barrel Old Country Store has a 52 week low of $141.63 and a 52 week high of $185.00.

Cracker Barrel Old Country Store (NASDAQ:CBRL) last posted its quarterly earnings results on Tuesday, November 27th. The restaurant operator reported $1.96 EPS for the quarter, topping the consensus estimate of $1.91 by $0.05. The business had revenue of $733.50 million during the quarter, compared to analysts’ expectations of $720.94 million. Cracker Barrel Old Country Store had a net margin of 8.14% and a return on equity of 35.18%. The firm’s quarterly revenue was up 3.3% compared to the same quarter last year. During the same period last year, the company posted $1.92 earnings per share. As a group, analysts anticipate that Cracker Barrel Old Country Store will post 8.98 earnings per share for the current year.

In other news, VP Laura A. Daily sold 2,740 shares of the business’s stock in a transaction on Thursday, September 27th. The shares were sold at an average price of $145.60, for a total value of $398,944.00. Following the completion of the sale, the vice president now directly owns 11,392 shares in the company, valued at $1,658,675.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, major shareholder Sardar Biglari sold 171,441 shares of the business’s stock in a transaction on Thursday, November 29th. The stock was sold at an average price of $182.57, for a total transaction of $31,299,983.37. The disclosure for this sale can be found here. Insiders sold 423,899 shares of company stock valued at $76,993,830 over the last quarter. Corporate insiders own 0.88% of the company’s stock.

Several institutional investors have recently modified their holdings of the company. BlackRock Inc. lifted its stake in shares of Cracker Barrel Old Country Store by 1.5% in the third quarter. BlackRock Inc. now owns 2,550,687 shares of the restaurant operator’s stock worth $375,281,000 after buying an additional 36,891 shares during the last quarter. Advisors Asset Management Inc. lifted its stake in shares of Cracker Barrel Old Country Store by 1,039.7% in the second quarter. Advisors Asset Management Inc. now owns 692,385 shares of the restaurant operator’s stock worth $7,630,000 after buying an additional 631,635 shares during the last quarter. Wells Fargo & Company MN lifted its stake in shares of Cracker Barrel Old Country Store by 4.7% in the third quarter. Wells Fargo & Company MN now owns 666,318 shares of the restaurant operator’s stock worth $98,035,000 after buying an additional 30,000 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of Cracker Barrel Old Country Store by 0.4% in the third quarter. Dimensional Fund Advisors LP now owns 453,933 shares of the restaurant operator’s stock worth $66,786,000 after buying an additional 1,824 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its stake in shares of Cracker Barrel Old Country Store by 2.9% in the third quarter. Bank of New York Mellon Corp now owns 427,805 shares of the restaurant operator’s stock worth $62,944,000 after buying an additional 12,007 shares during the last quarter. Institutional investors and hedge funds own 87.84% of the company’s stock.

Cracker Barrel Old Country Store Company Profile

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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Analyst Recommendations for Cracker Barrel Old Country Store (NASDAQ:CBRL)

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