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

Cracker Barrel Old Country Store (NASDAQ:CBRL) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Thursday, Zacks.com reports.

According to Zacks, “Shares of Cracker Barrel have underperformed the industry in the past six months. We are particularly encouraged by the company’s revenue growth. Of late, earnings estimates for the current quarter and year have remained stable, reflecting analysts’ doubt surrounding the upside potential of the company’s earnings. Despite cost-saving initiatives, higher labor costs due to increased wages are expected to continue keeping profits under pressure. Moreover, expenses for opening of units are expected to continue hurting the margins of the company. However, increased focus on menu innovation and consistent unit growth are expected to continue driving growth. Cracker Barrel is continuously focusing on rejuvenating its menu, which serves as the backbone of the company’s riveting growth potential.”

CBRL has been the topic of a number of other reports. Maxim Group upgraded shares of Cracker Barrel Old Country Store from a “hold” rating to a “buy” rating and increased their price objective for the company from $180.00 to $190.00 in a research note on Thursday, April 11th. BidaskClub upgraded shares of Cracker Barrel Old Country Store from a “hold” rating to a “buy” rating in a research note on Friday, April 26th. Wells Fargo & Co dropped their price objective on shares of Cracker Barrel Old Country Store from $157.00 to $150.00 and set a “market perform” rating on the stock in a research note on Wednesday, February 27th. Finally, Argus reiterated a “buy” rating on shares of Cracker Barrel Old Country Store in a research note on Wednesday, February 27th. One research analyst has rated the stock with a sell rating, five have given a hold rating and three have assigned a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus price target of $169.82.

CBRL stock traded down $4.64 during mid-day trading on Thursday, reaching $164.43. The company had a trading volume of 11,224 shares, compared to its average volume of 350,955. The company has a debt-to-equity ratio of 0.64, a current ratio of 0.94 and a quick ratio of 0.55. The company has a market capitalization of $4.07 billion, a P/E ratio of 18.55, a P/E/G ratio of 1.89 and a beta of 0.50. Cracker Barrel Old Country Store has a 12 month low of $141.63 and a 12 month high of $185.00.

Cracker Barrel Old Country Store (NASDAQ:CBRL) last issued its earnings results on Tuesday, February 26th. The restaurant operator reported $2.52 EPS for the quarter, topping the Zacks’ consensus estimate of $2.46 by $0.06. The business had revenue of $811.70 million for the quarter, compared to the consensus estimate of $810.49 million. Cracker Barrel Old Country Store had a net margin of 7.09% and a return on equity of 34.20%. The company’s revenue for the quarter was up 3.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.73 EPS. On average, research analysts expect that Cracker Barrel Old Country Store will post 8.95 EPS for the current fiscal year.

In other news, major shareholder Sardar Biglari sold 12,130 shares of the stock in a transaction that occurred on Friday, May 10th. The shares were sold at an average price of $170.02, for a total transaction of $2,062,342.60. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 0.88% of the stock is currently owned by company insiders.

A number of large investors have recently bought and sold shares of the stock. BlackRock Inc. raised its holdings in shares of Cracker Barrel Old Country Store by 1.4% during the first quarter. BlackRock Inc. now owns 2,630,579 shares of the restaurant operator’s stock worth $425,129,000 after purchasing an additional 36,576 shares during the last quarter. Robeco Institutional Asset Management B.V. grew its position in shares of Cracker Barrel Old Country Store by 2,122.4% during the first quarter. Robeco Institutional Asset Management B.V. now owns 452,822 shares of the restaurant operator’s stock worth $73,182,000 after buying an additional 432,447 shares in the last quarter. Dimensional Fund Advisors LP grew its position in shares of Cracker Barrel Old Country Store by 4.1% during the first quarter. Dimensional Fund Advisors LP now owns 448,059 shares of the restaurant operator’s stock worth $72,411,000 after buying an additional 17,574 shares in the last quarter. Two Sigma Advisers LP grew its position in shares of Cracker Barrel Old Country Store by 335.4% during the fourth quarter. Two Sigma Advisers LP now owns 430,942 shares of the restaurant operator’s stock worth $68,890,000 after buying an additional 331,959 shares in the last quarter. Finally, Bessemer Group Inc. grew its position in shares of Cracker Barrel Old Country Store by 57.1% during the fourth quarter. Bessemer Group Inc. now owns 376,103 shares of the restaurant operator’s stock worth $60,124,000 after buying an additional 136,641 shares in the last quarter. 85.53% of the stock is owned by 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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Analyst Recommendations for Cracker Barrel Old Country Store (NASDAQ:CBRL)

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