Street Calls of the Week
On Friday, Truist Securities analysts increased the price target for Cracker Barrel (NASDAQ: NASDAQ:CBRL) stock to $64 from $63, while maintaining a Buy rating. The adjustment follows Cracker Barrel’s fiscal third-quarter 2025 results, which showed inline same-store sales and an earnings per share beat compared to the firm’s estimates. According to InvestingPro data, the company’s current market capitalization stands at $1.19 billion, with a P/E ratio of 36.04.
The analysts noted that despite a 7.2% drop in Cracker Barrel’s stock following the earnings release, the company is seeing improvements in its menu and marketing strategies. These enhancements are reflected in strong data trends observed in May. The analysts view the recent stock weakness as a buying opportunity. The company has demonstrated resilience with revenue growth of 2.84% over the last twelve months and maintains a solid gross profit margin of 32.72%.
Cracker Barrel’s efficiency initiatives, particularly in general and administrative expenses, are beginning to show positive outcomes. The analysts also highlighted that tariff risks have been quantified, with the guidance for the fourth quarter of 2025 indicating a maximum impact.
The analysts expressed confidence in Cracker Barrel’s ongoing ’transformation agenda’, suggesting that further sales and margin catalysts are anticipated. This outlook supports the decision to raise the price target for the company’s stock.
In other recent news, Cracker Barrel Old Country Store has reported its third-quarter 2025 earnings, surpassing expectations with an adjusted earnings per share (EPS) of $0.58, well above the forecasted $0.26. Despite this EPS beat, the company experienced a slight revenue shortfall, posting $821.1 million against an anticipated $827.63 million. The company has raised its full-year adjusted EBITDA guidance to between $215 million and $225 million, reflecting confidence in ongoing strategic initiatives. Loop Capital responded to the earnings report by raising its price target for Cracker Barrel stock to $55 from $50, maintaining a Hold rating. Meanwhile, Citi analysts also adjusted their price target, increasing it to $45 from $42, while maintaining a Sell rating, citing the company’s ongoing brand revitalization efforts. Cracker Barrel’s restaurant comparable sales increased by 1.0% in the third quarter, with a 4.9% increase in menu pricing offset by a 3.9% decrease in traffic. The company continues to focus on menu innovation and operational improvements, despite challenges such as consumer uncertainty and adverse weather conditions.
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