Featured News Headlines
Cracker Barrel Stock Analysis: Buy, Hold, or Sell in 2025?
Pinnacle Holdings LLC recently acquired a new stake in Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL), purchasing 28,000 shares valued at approximately $1.09 million during the first quarter. This move adds to the growing attention the restaurant operator is receiving from institutional investors.
Other major investors have also adjusted their holdings in Cracker Barrel. For example, Marshall Wace LLP increased its position by 151.9% in the fourth quarter, acquiring an additional 462,542 shares, bringing their total to over 767,000 shares valued at $40.5 million. Meanwhile, Towle & Co., Raymond James Financial, and Woodline Partners LP also established new stakes in the company during the same period.
Dimensional Fund Advisors LP boosted its stake by 16.9%, now holding 351,539 shares worth $18.6 million. Overall, about 96% of Cracker Barrel’s stock is held by institutional investors, highlighting the company’s strong appeal in the market.
Analysts Adjust Price Targets, Mixed Ratings Remain
Cracker Barrel’s stock has attracted varying opinions from equity analysts. Loop Capital recently raised their price target from $50 to $55, maintaining a “hold” rating. Similarly, Truist Financial increased its target slightly to $65, rating the stock as a “buy.”
Conversely, Citigroup reaffirmed a “sell” rating but adjusted their target price up to $42 from $39. UBS Group kept a “neutral” rating and lifted their target to $69 from $60. Bank of America maintained an “underperform” rating but raised its target to $45 from $39.
The consensus rating for Cracker Barrel stands at “hold,” with an average price target of $55.14, reflecting cautious optimism among analysts.
Stock Performance Overview
Shares of Cracker Barrel (CBRL) traded down 0.8% on Wednesday, closing at $59.02, with a volume of 280,024 shares, below the average daily volume of approximately 965,831. The company’s market capitalization is about $1.31 billion.
Key financial ratios include a price-to-earnings (P/E) ratio of 22.88 and a beta of 1.47, suggesting moderate volatility relative to the market. The firm has a quick ratio of 0.26, a current ratio of 0.65, and a debt-to-equity ratio of 1.04, indicating a balanced but leveraged financial structure.
Cracker Barrel’s stock has fluctuated between a 1-year low of $33.85 and a high of $71.93. The 50-day moving average price stands at $62.20, while the 200-day moving average is $52.30, signaling recent upward momentum.
Quarterly Earnings Beat Expectations
In its latest quarterly report, Cracker Barrel posted earnings per share (EPS) of $0.58, surpassing analysts’ consensus estimate of $0.17. Revenues came in at $821.1 million, slightly below the expected $824.65 million.
The company’s return on equity was 16.83%, with a net profit margin of 1.65%. Revenue showed a marginal increase of 0.5% compared to the same quarter last year. However, EPS declined from $0.88 in the previous year’s quarter.
Looking ahead, Cracker Barrel set its guidance for fiscal year 2025 EPS, with analysts forecasting an average of $2.76 per share, indicating moderate growth expectations.
Dividend Update Offers Steady Income
Cracker Barrel recently declared a quarterly dividend of $0.25 per share, which was paid on August 13 to shareholders of record as of July 18. This amounts to an annualized dividend of $1.00 per share, representing a yield of approximately 1.7%.
The company’s dividend payout ratio stands at 38.76%, reflecting a balanced approach to returning cash to shareholders while maintaining funds for operational needs.
What This Means for Investors
Cracker Barrel Old Country Store presents a mixed but stable picture. Institutional buying activity indicates confidence in the company’s long-term prospects, while varied analyst opinions suggest cautious monitoring of market conditions.
The stock’s recent earnings beat is a positive sign, but the modest revenue growth and EPS decline year-over-year highlight challenges in the current environment. Meanwhile, the steady dividend adds an attractive income component for investors seeking stability.
The company’s financial ratios and stock price trends imply moderate risk, which may suit investors with a balanced risk tolerance.
Overall, Cracker Barrel remains a noteworthy player in the restaurant sector with solid institutional backing, a clear earnings outlook, and an appealing dividend policy. Investors should consider these factors alongside broader market conditions when evaluating CBRL as a potential addition to their portfolio.
