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Investing.com - Truist Securities lowered its price target on Cracker Barrel (NASDAQ:CBRL) to $58.00 from $62.00 on Thursday, while maintaining a Buy rating following the company’s fourth-quarter fiscal 2025 results and fiscal 2026 guidance. According to InvestingPro analysis, the stock appears undervalued at its current price of $49.59.
The restaurant chain, with annual revenue of $3.51 billion and EBITDA of $196.5 million, delivered same-store sales and adjusted EBITDA results that beat expectations for the fourth quarter. Despite these positive results, Truist reduced its estimates based on weaker-than-expected guidance for fiscal year 2026.
Truist indicated it would recommend buying the stock on post-earnings weakness, citing its view that core drivers of Cracker Barrel’s brand turnaround remain intact, including improved menu innovation and service. The firm also expressed optimism that sales may soon recover from what it described as "re-branding backlash" once the company resumes its Fall Menu marketing.
While initial fiscal 2026 adjusted EBITDA guidance came in significantly below Truist’s expectations, the firm noted the guidance appears to include high marketing and labor spending intended to support sales recovery.
Truist expressed encouragement regarding Cracker Barrel’s announced share buyback authorization and suggested a future dividend increase is likely for the restaurant chain.
In other recent news, Cracker Barrel Old Country Store reported its Q4 2025 earnings, showing a slight miss in earnings per share (EPS) expectations but surpassing revenue forecasts. The company posted an EPS of $0.74, which was slightly below the forecasted $0.76, resulting in a negative surprise of 2.63%. Despite this, Cracker Barrel’s revenue reached $868 million, exceeding the anticipated $853.96 million. These developments indicate that while the company faced challenges in meeting EPS expectations, its revenue performance was stronger than expected. There have been no recent reports of mergers involving Cracker Barrel. Additionally, there is no current information on any analyst upgrades or downgrades for the company. Investors might find these recent developments noteworthy as they consider their positions.
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