Shares of Cracker Barrel Old Country Store Inc (NASDAQ:CBRL) are up 8.4% at $46.40 at last glance, after Truist Securities upgraded the stock to "buy" from "hold," with a price-target hike to $55 from $51.
Consumers are shifting their morning routines, recent data shows. This comes as prices for eggs and coffee, two staples of breakfast in the U.S., remain at record highs.
CBRL's second-quarter fiscal 2025 results benefit from its strategic efforts to enhance profitability in off-premise channels during the busy holiday season.
Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL ) Q2 2025 Earnings Conference Call March 6, 2025 11:00 AM ET Company Participants Adam Hanan - Director of Investor Relations Julie Masino - President and CEO Craig Pommells - SVP and CFO Conference Call Participants Jeff Farmer - Gordon Haskett Research Advisors Todd Brooks - The Benchmark Company Katherine Griffin - Bank of America Alton Stump - Loop Capital Markets Andrew Wolf - CL King Jon Tower - Citigroup Larson Rice - Truist Securities Operator Good morning, and welcome to the Cracker Barrel's Second Quarter Fiscal 2025 Result Conference Call. All participants will be in listen only mode.
Shares of restaurant chain Cracker Barrel (CBRL 6.70%) have been steadily sliding downwards since early 2021. And on Wednesday, the stock was trading close to its lowest price in over a decade.
The headline numbers for Cracker Barrel (CBRL) give insight into how the company performed in the quarter ended January 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Cracker Barrel Old Country Store (CBRL) came out with quarterly earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $1.37 per share a year ago.
CBRL's fiscal second-quarter performance is likely to have benefited from menu innovation, optimized pricing initiatives and store remodels.
Beyond analysts' top -and-bottom-line estimates for Cracker Barrel (CBRL), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended January 2025.
Cracker Barrel (CBRL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Cracker Barrel's turnaround is evident with same-store sales up 2.9% YoY in Q1 FY 2025, driven by promotions and menu enhancements. Despite a recent 15% stock sell-off due to macroeconomic concerns, Cracker Barrel's value proposition and resilient guest traffic make it a strong buy. The restaurant chain's pricing strategy, loyalty programs, and menu innovations are boosting average check growth, with prices expected to increase 5% YoY in FY 2025.
Cracker Barrel's rural-first strategy and low competition provide a strong moat, with pricing flexibility to capture market share amid consumer debt concerns. CEO Julie Masino's focus on menu innovation, store remodels, and technology upgrades aims to modernize the brand and attract younger demographics via "Date Night". The stock is a deep value play with significant upside potential if the turnaround is executed well, despite high short float and execution risks.