Cracker Barrel sees $3.8 million stock acquisition by GMT Capital

In a recent transaction, GMT Capital Corp, along with several affiliated entities, acquired a significant stake in Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL), which has seen its stock decline over 42% in the past year. According to the SEC filing, the group purchased 105,900 shares of Cracker Barrel's common stock at a price of $35.94 per share, amounting to a total investment of approximately $3.8 million. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with eight analysts recently revising their earnings expectations downward.

The acquisition was made by Bay Resource Partners, L.P., Bay II Resource Partners, L.P., Bay Resource Partners Offshore Master Fund, L.P., and Thomas E. Claugus, all collectively referred to as the Reporting Persons. Post-transaction, the aggregate ownership of these entities stands at 2,452,200 shares. The investment comes at a time when Cracker Barrel maintains a notable 44-year streak of consecutive dividend payments, though its current financial health metrics show short-term obligations exceeding liquid assets, with a current ratio of 0.62.

The largest share purchase came from Bay Resource Partners Offshore Master Fund, L.P., with 50,700 shares, while Bay Resource Partners, L.P., and Bay II Resource Partners, L.P., bought 29,900 and 19,400 shares, respectively. Thomas E. Claugus, President of GMT Capital, personally acquired 5,900 shares.

GMT Capital, acting as the general partner and investment manager, holds the power to direct the voting and disposition of the shares owned by these entities. The filing notes that both GMT Capital and Claugus may have an indirect pecuniary interest due to performance-based fees and profit allocations, though they disclaim beneficial ownership beyond what is ultimately realized.

This transaction highlights GMT Capital's continued interest in Cracker Barrel, a company known for its Southern-themed restaurants and retail stores. For deeper insights into Cracker Barrel's financial health, valuation metrics, and growth potential, investors can access comprehensive analysis through InvestingPro's detailed research reports, which cover over 1,400 US equities with expert analysis and actionable intelligence.

In other recent news, Cracker Barrel Old Country Store has reported notable financial results for the first quarter of fiscal year 2025. The company exceeded expectations with an adjusted earnings per share (EPS) of $1.38, surpassing the projected $0.99, and reported revenue of $949.4 million, which was higher than the anticipated $939.97 million. Truist Securities responded to this performance by upgrading Cracker Barrel's stock rating from Hold to Buy, with a revised price target of $55, highlighting the company's successful turnaround efforts and solid quarterly results.

Conversely, BofA Securities adjusted its outlook on Cracker Barrel, reducing the price target to $48 from $60 while maintaining an Underperform rating. This adjustment reflects concerns over near-term prospects due to broader industry challenges, despite the company's strong second-quarter performance fueled by holiday and catering sales. Analysts at BofA Securities remain optimistic about the company's positive same-store sales growth momentum into the latter half of 2025, supported by enhanced marketing efforts.

Cracker Barrel's strategic initiatives in menu innovation and operational improvements have contributed to its financial success, with a focus on pricing adjustments and customer satisfaction. The company has also announced a robust full-year revenue guidance of $3.45-$3.5 billion, with anticipated improvements in traffic and labor productivity. As Cracker Barrel continues its transformation strategy, investors and analysts are closely monitoring its progress and performance in the competitive dining industry.

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