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Investing.com - Truist Securities lowered its price target on Cracker Barrel (NASDAQ:CBRL) to $62.00 from $65.00 on Monday, while maintaining a Buy rating on the restaurant chain’s stock. The company currently trades at a P/E ratio of 19.86x and an EV/EBITDA multiple of 11.84x, suggesting a relatively high valuation compared to industry peers.
The price target reduction comes just ahead of Cracker Barrel’s fourth-quarter fiscal 2025 earnings report, scheduled for release after market close on Wednesday, September 17. The company generated $3.51 billion in revenue over the last twelve months, with analysts expecting the company to remain profitable this year. InvestingPro analysis reveals additional key metrics and insights available for subscribers.
Truist noted that investor expectations remain very low, with short interest reaching a nearly 17-year high, following a sales decline triggered by backlash to the company’s rebranding efforts.
The firm views Cracker Barrel’s pivot away from a comprehensive remodel program as positive, suggesting a likely "refresh" program will support sales while freeing up cash for shareholder returns.
Truist remains bullish on Cracker Barrel’s menu and service improvements, which form the core of its optimistic outlook, despite lowering its price target by $3.
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