Zacks Investment Research lowered shares of Cracker Barrel (NASDAQ:CBRL) from a hold rating to a sell rating in a research report released on Monday.
According to Zacks, “Cracker Barrel shares have underperformed its industry in the past year. Current-quarter and year estimates have also remained stable over the last 30 days. The company reported lower-than-expected revenues in 10 of the trailing 12 quarters. Moreover, comps at both restaurants and retail stores have been under pressure due to the challenging sales environment. Moreover, higher costs are expected to weigh on margins. Nevertheless, the company expects its enhanced focus on convenience, value and menu innovation to aid in fighting persistent challenges. Expansion of units, extensive marketing efforts, seasonal promotions, enhanced focus on retail business along with cost-saving initiatives should further drive growth.”
Several other analysts have also weighed in on CBRL. SunTrust Banks reiterated a hold rating and issued a $163.00 price objective on shares of Cracker Barrel in a research note on Wednesday, January 3rd. BidaskClub upgraded shares of Cracker Barrel from a sell rating to a hold rating in a research note on Wednesday, January 10th. Wells Fargo reiterated a market perform rating and issued a $152.00 price objective (up previously from $140.00) on shares of Cracker Barrel in a research note on Tuesday, February 13th. 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 in a research note on Thursday, February 15th. Finally, Maxim Group restated a hold rating on shares of Cracker Barrel in a research note on Tuesday, February 20th. Two research analysts have rated the stock with a sell rating and eight have assigned a hold rating to the company’s stock. Cracker Barrel currently has a consensus rating of Hold and a consensus price target of $162.50.
Cracker Barrel (NASDAQ:CBRL) last released its quarterly earnings data on Tuesday, February 20th. The restaurant operator reported $2.73 earnings per share for the quarter, beating the consensus estimate of $2.42 by $0.31. The company had revenue of $787.70 million during the quarter, compared to analyst estimates of $787.26 million. Cracker Barrel had a net margin of 8.10% and a return on equity of 36.86%. Cracker Barrel’s revenue for the quarter was up 1.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.19 EPS. analysts forecast that Cracker Barrel will post 9.38 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Monday, May 7th. Shareholders of record on Friday, April 13th will be paid a dividend of $1.20 per share. The ex-dividend date is Thursday, April 12th. This represents a $4.80 dividend on an annualized basis and a yield of 2.97%. Cracker Barrel’s dividend payout ratio (DPR) is presently 57.35%.
A number of hedge funds have recently made changes to their positions in CBRL. Public Employees Retirement Association of Colorado bought a new stake in Cracker Barrel during the 4th quarter valued at $121,000. SeaCrest Wealth Management LLC bought a new stake in Cracker Barrel during the 4th quarter valued at $128,000. Advisory Services Network LLC increased its stake in Cracker Barrel by 209.1% during the 4th quarter. Advisory Services Network LLC now owns 952 shares of the restaurant operator’s stock valued at $151,000 after purchasing an additional 644 shares in the last quarter. FTB Advisors Inc. increased its stake in Cracker Barrel by 291.8% during the 4th quarter. FTB Advisors Inc. now owns 1,007 shares of the restaurant operator’s stock valued at $160,000 after purchasing an additional 750 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank increased its stake in Cracker Barrel by 51.1% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 1,115 shares of the restaurant operator’s stock valued at $177,000 after purchasing an additional 377 shares in the last quarter. Institutional investors and hedge funds own 87.41% of the company’s stock.
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About Cracker Barrel
Cracker Barrel Old Country Store, Inc is engaged in the operation and development of the Cracker Barrel Old Country Store concept (Cracker Barrel). The Company’s segments include Restaurant and Retail. As of September 19, 2016, the Company operated 640 Cracker Barrel stores in 43 states. The format of its stores consists of a rustic old country-store design offering a restaurant menu that features home-style country food and a range of decorative and functional items, such as rocking chairs, holiday and seasonal gifts and toys, apparel, cookware and foods.
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