Benchmark Co. analyst Todd Brooks has maintained their neutral stance on CBRL stock, giving a Hold rating on March 7.
Todd Brooks has given his Hold rating due to a combination of factors influencing Cracker Barrel’s current and future performance. The company reported stronger than expected revenues and margins for the second quarter of fiscal 2025, driven by increased traffic and profitability in their heat-n-serve business during the holiday season. However, despite these positive results, the company is still in the early stages of a strategic transformation expected to span three years, which can present various challenges.
Additionally, management has noted a tougher start to the third quarter, with traffic trends being affected by broader economic and weather-related pressures. Although Cracker Barrel’s pricing remains competitive compared to its peers, the potential for future cost pressures, particularly in the Retail segment due to sourcing from China, could impact margins. These factors contribute to the cautious approach reflected in the Hold rating, as the company navigates both internal transformation efforts and external market conditions.
Brooks covers the Consumer Cyclical sector, focusing on stocks such as Cracker Barrel, BJ’s Restaurants, and Denny’s. According to TipRanks, Brooks has an average return of -3.7% and a 35.98% success rate on recommended stocks.
In another report released on March 7, Loop Capital Markets also maintained a Hold rating on the stock with a $50.00 price target.
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