Cracker Barrel Old Country Store (CBRL) Downgraded by Zacks Investment Research to “Sell”

Zacks Investment Research cut shares of Cracker Barrel Old Country Store (NASDAQ:CBRL) from a hold rating to a sell rating in a research report report published on Wednesday.

According to Zacks, “Cracker Barrel’s third-quarter fiscal 2018 earnings and revenues not only surpassed the Zacks Consensus Estimate but also grew 4.1% and 3%, respectively, from the year-ago quarter. The company’s extensive marketing efforts, enhanced focus on retail business along with consistent unit development favored third-quarter comps for both the company-owned and retail restaurants. Moreover, through cost saving initiatives, the company achieved a decline in general and administrative expenses in the quarter. However, high labor costs, inflationary pressure and costs from sales building are expected to weigh on the company’s margins, going forward. Also, earnings estimates for the current quarter and year have remained stable over the past month, reflecting analysts’ doubt surrounding the upside potential of the company’s earnings. Moreover, shares of Cracker Barrel have underperformed the industry in the past six months.”

Other equities research analysts have also issued research reports about the company. BidaskClub upgraded Cracker Barrel Old Country Store from a hold rating to a buy rating in a research note on Thursday, May 3rd. SunTrust Banks set a $165.00 price target on Cracker Barrel Old Country Store and gave the stock a hold rating in a research note on Tuesday, February 6th. Maxim Group boosted their price target on Cracker Barrel Old Country Store from $160.00 to $170.00 and gave the stock a hold rating in a research note on Thursday, May 17th. Telsey Advisory Group restated a market perform rating and set a $175.00 price target (up previously from $170.00) on shares of Cracker Barrel Old Country Store in a research note on Thursday, February 15th. Finally, Wells Fargo & Co restated a market perform rating and set a $152.00 price target (up previously from $140.00) on shares of Cracker Barrel Old Country Store in a research note on Tuesday, February 13th. Two research analysts have rated the stock with a sell rating and eight have assigned a hold rating to the company. The stock presently has a consensus rating of Hold and an average price target of $163.75.

Cracker Barrel Old Country Store opened at $158.86 on Wednesday, according to Marketbeat.com. Cracker Barrel Old Country Store has a 1 year low of $141.75 and a 1 year high of $179.12. The stock has a market capitalization of $3.78 billion, a price-to-earnings ratio of 18.98, a P/E/G ratio of 2.16 and a beta of 0.62. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.58 and a current ratio of 1.05.

Cracker Barrel Old Country Store (NASDAQ:CBRL) last issued its quarterly earnings results on Tuesday, May 22nd. The restaurant operator reported $2.03 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.95 by $0.08. Cracker Barrel Old Country Store had a return on equity of 36.57% and a net margin of 8.11%. The business had revenue of $721.40 million for the quarter, compared to analyst estimates of $720.05 million. During the same quarter in the previous year, the firm earned $1.95 earnings per share. The company’s revenue was up 3.0% on a year-over-year basis. sell-side analysts predict that Cracker Barrel Old Country Store will post 9.35 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Monday, August 6th. Investors of record on Friday, July 13th will be given a $1.25 dividend. The ex-dividend date of this dividend is Thursday, July 12th. This represents a $5.00 dividend on an annualized basis and a yield of 3.15%. This is a positive change from Cracker Barrel Old Country Store’s previous quarterly dividend of $1.20. Cracker Barrel Old Country Store’s dividend payout ratio is currently 57.35%.

Hedge funds and other institutional investors have recently modified their holdings of the stock. Public Employees Retirement Association of Colorado purchased a new stake in Cracker Barrel Old Country Store in the fourth quarter valued at approximately $121,000. Synovus Financial Corp purchased a new stake in Cracker Barrel Old Country Store in the first quarter valued at approximately $121,000. SeaCrest Wealth Management LLC purchased a new stake in Cracker Barrel Old Country Store in the fourth quarter valued at approximately $128,000. Advisory Services Network LLC boosted its position in Cracker Barrel Old Country Store by 209.1% in the fourth quarter. Advisory Services Network LLC now owns 952 shares of the restaurant operator’s stock valued at $151,000 after buying an additional 644 shares during the last quarter. Finally, FTB Advisors Inc. boosted its position in Cracker Barrel Old Country Store by 291.8% in the fourth quarter. FTB Advisors Inc. now owns 1,007 shares of the restaurant operator’s stock valued at $160,000 after buying an additional 750 shares during the last quarter. Hedge funds and other institutional investors own 88.11% 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. The company's Cracker Barrel stores consist of a restaurant with a gift shop. Its restaurants serve breakfast, lunch, and dinner. The company's gift shops offer various decorative and functional items, such as rocking chairs, holiday and seasonal gifts, toys, apparels, music CDs, cookware, and various other gift items, as well as candies, preserves, pies, cornbread mixes, coffee, syrups, pancake mixes, and other food items.

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

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