Cautious Hold Rating on Cracker Barrel Amid Rebranding Controversy and Economic Pressures

In a report released today, Dennis Geiger from UBS maintained a Hold rating on Cracker Barrel, with a price target of $26.00.

Dennis Geiger has given his Hold rating due to a combination of factors affecting Cracker Barrel’s current performance and outlook. The company is experiencing ongoing challenges with restaurant traffic and sales, partly due to a rebranding controversy and broader economic pressures. These issues have led to a downward revision of their financial guidance for FY26, with expected declines in traffic and revenue.
Despite the significant drop in share prices following the rebranding controversy, Geiger notes that the current challenges limit the visibility of a recovery path. While there are strategic initiatives in place to improve traffic and sales, such as menu innovation and operational improvements, the recovery progress has been delayed. As a result, Geiger is cautious and prefers to wait for clearer signs of sales and margin improvements before adopting a more optimistic stance on the stock.

In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $28.00 price target.

Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CBRL in relation to earlier this year.