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

Cracker Barrel Old Country Store (NASDAQ:CBRL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Wednesday. The firm presently has a $201.00 price target on the restaurant operator’s stock. Zacks Investment Research‘s target price suggests a potential upside of 14.56% from the stock’s current price.

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. 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. 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 0.8% over the past 7 days, reflecting analyst’s optimism over the stock.”

Other research analysts have also issued reports about the stock. BidaskClub lowered shares of 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 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. ValuEngine raised 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 lowered their target price on shares of 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. Finally, Wells Fargo & Co lowered their target price on shares of 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 analysts have rated the stock with a sell rating, five have given a hold rating, two have given a buy rating and one has issued a strong buy rating to the stock. The company has an average rating of “Hold” and a consensus price target of $167.59.

NASDAQ CBRL opened at $175.46 on Wednesday. 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 firm has a market cap of $4.27 billion, a price-to-earnings ratio of 19.92, a PEG ratio of 1.98 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 data 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 company had revenue of $733.50 million during the quarter, compared to analyst estimates 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 previous year, the firm earned $1.92 earnings per share. Analysts predict that Cracker Barrel Old Country Store will post 8.98 EPS for the current fiscal year.

In related news, VP Nicholas V. Flanagan sold 6,000 shares of Cracker Barrel Old Country Store stock in a transaction dated Monday, September 24th. The stock was sold at an average price of $145.81, for a total value of $874,860.00. Following the completion of the sale, the vice president now directly owns 18,784 shares in the company, valued at $2,738,895.04. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder Sardar Biglari sold 243,718 shares of Cracker Barrel Old Country Store stock in a transaction dated Monday, December 3rd. The shares were sold at an average price of $182.26, for a total value of $44,420,042.68. The disclosure for this sale can be found here. Insiders have sold 423,899 shares of company stock valued at $76,993,830 over the last three months. Insiders own 0.88% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. raised its holdings 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 valued at $375,281,000 after acquiring an additional 36,891 shares in the last quarter. Advisors Asset Management Inc. raised its holdings 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 valued at $7,630,000 after acquiring an additional 631,635 shares in the last quarter. Wells Fargo & Company MN raised its holdings 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 valued at $98,035,000 after acquiring an additional 30,000 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings 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 valued at $66,786,000 after acquiring an additional 1,824 shares in the last quarter. Finally, Bank of New York Mellon Corp raised its holdings 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 valued at $62,944,000 after acquiring an additional 12,007 shares in the last quarter. 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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