Cracker Barrel Old Country Store (CBRL) Lifted to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Cracker Barrel Old Country Store (NASDAQ:CBRL) from a hold rating to a buy rating in a research note issued to investors on Thursday. The brokerage currently has $196.00 price target on the restaurant operator’s stock.

According to Zacks, “Shares of Cracker Barrel have outperformed the industry in an year 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 2019 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.”

A number of other equities research analysts have also recently issued reports on the stock. Argus cut shares of Cracker Barrel Old Country Store from a buy rating to a hold rating and set a $181.75 target price on the stock. in a report on Sunday, December 2nd. Telsey Advisory Group upped their target price on shares of Cracker Barrel Old Country Store from $175.00 to $190.00 and gave the company an outperform rating in a report on Wednesday, November 28th. Gordon Haskett cut shares of Cracker Barrel Old Country Store from a hold rating to an underperform rating in a report on Wednesday, November 28th. Wells Fargo & Co upped their target price on shares of Cracker Barrel Old Country Store from $139.00 to $157.00 and gave the company a market perform rating in a report on Monday, November 26th. Finally, Maxim Group cut shares of Cracker Barrel Old Country Store from a buy rating to a hold rating and set a $175.00 price target on the stock. in a report on Tuesday, November 20th. They noted that the move was a valuation call. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the stock. The company presently has a consensus rating of Hold and a consensus price target of $166.97.

Shares of CBRL stock opened at $171.43 on Thursday. The company has a current ratio of 0.87, a quick ratio of 0.38 and a debt-to-equity ratio of 0.67. The stock has a market capitalization of $4.12 billion, a PE ratio of 19.24, a PEG ratio of 1.91 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 issued its earnings results on Tuesday, November 27th. The restaurant operator reported $1.96 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.91 by $0.05. The company had revenue of $733.50 million for 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%. Cracker Barrel Old Country Store’s quarterly revenue was up 3.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.92 EPS. As a group, equities analysts forecast that Cracker Barrel Old Country Store will post 8.98 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Tuesday, February 5th. Shareholders of record on Friday, January 18th will be issued a $1.25 dividend. The ex-dividend date of this dividend is Thursday, January 17th. This represents a $5.00 annualized dividend and a yield of 2.92%. Cracker Barrel Old Country Store’s dividend payout ratio is currently 56.37%.

In other Cracker Barrel Old Country Store news, VP Laura A. Daily sold 2,740 shares of the stock in a transaction dated Thursday, September 27th. The shares were sold at an average price of $145.60, for a total value of $398,944.00. Following the transaction, the vice president now directly owns 11,392 shares of the company’s stock, valued at approximately $1,658,675.20. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, major shareholder Sardar Biglari sold 32,600 shares of the stock in a transaction dated Thursday, December 13th. The shares were sold at an average price of $174.70, for a total transaction of $5,695,220.00. The disclosure for this sale can be found here. Over the last three months, insiders sold 473,499 shares of company stock worth $85,662,010. Insiders own 0.88% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in CBRL. Fifth Third Bancorp grew its position in shares of Cracker Barrel Old Country Store by 128.0% during the 3rd quarter. Fifth Third Bancorp now owns 684 shares of the restaurant operator’s stock worth $101,000 after purchasing an additional 384 shares in the last quarter. IMS Capital Management acquired a new position in shares of Cracker Barrel Old Country Store during the 3rd quarter worth approximately $131,000. FMR LLC acquired a new position in shares of Cracker Barrel Old Country Store during the 3rd quarter worth approximately $144,000. Stratos Wealth Partners LTD. acquired a new position in shares of Cracker Barrel Old Country Store during the 3rd quarter worth approximately $169,000. Finally, Wellington Shields Capital Management LLC acquired a new position in shares of Cracker Barrel Old Country Store during the 3rd quarter worth approximately $209,000. 87.84% of the stock is currently owned by hedge funds and other institutional investors.

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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