Citi raises Cracker Barrel stock price target amid sales recovery

Published 06/06/2025, 10:52
Citi raises Cracker Barrel stock price target amid sales recovery

On Friday, Citi analysts raised the price target for Cracker Barrel (NASDAQ:CBRL) stock to $45 from $42 while maintaining a Sell rating. According to InvestingPro data, analyst targets for the stock range from $39 to $63, with 4 analysts recently revising their earnings expectations upward. The decision comes as the company continues its efforts to revitalize its brand and address years of declining traffic and profits.

Cracker Barrel has seen a sales recovery driven primarily by check growth, which has contributed to a modest improvement in store profits. The company’s year-to-date store profits have improved by approximately 50 basis points, with revenue growing 2.84% and maintaining a healthy gross profit margin of 32.72%. Get deeper insights into Cracker Barrel’s financial health with InvestingPro’s comprehensive analysis.

Citi analysts noted that while Cracker Barrel is in the early stages of its brand revitalization, the company needs to show a consistent positive trajectory in traffic to gain ongoing investor confidence. This is particularly important as the company prepares for increased capital expenditures.

The investment firm emphasized the importance of these brand changes resonating with guests to support Cracker Barrel’s long-term recovery story.

In other recent news, Cracker Barrel Old Country Store reported its third-quarter 2025 earnings, significantly surpassing EPS expectations with an adjusted EPS of $0.58, compared to the forecasted $0.26. However, the company experienced a slight revenue shortfall, posting $821.1 million against the anticipated $827.63 million. Despite this revenue miss, Cracker Barrel raised its full-year adjusted EBITDA guidance to $215-$225 million, reflecting confidence in its ongoing strategic initiatives. The company continues to face challenges such as a decline in retail revenue by 2.7%, although restaurant revenue increased by 1.2%. Analysts have noted the company’s ability to manage costs effectively, even as revenue growth faced headwinds. Additionally, Cracker Barrel has been actively working on tariff mitigation strategies, anticipating a $5 million impact in Q4. The company has also been focusing on menu innovation and AI-driven personalization to enhance customer engagement. These recent developments indicate Cracker Barrel’s resilience in navigating a complex economic environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.