On Monday, Piper Sandler adjusted its outlook on Cracker Barrel (NASDAQ:CBRL) Old Country Store, Inc. (NASDAQ:CBRL) by reducing the stock price target from $75.00 to $70.00 while keeping a Neutral rating on the stock. This decision comes in the wake of Cracker Barrel's recent Fiscal 2Q24 earnings report and subsequent earnings call, which revealed ongoing business challenges.
Cracker Barrel's latest quarterly results indicated a decline in customer visits, with a 4% drop in restaurant traffic and a 5.3% decrease in same-store sales (SSS) within its retail segment. These figures have prompted the company to revise its full-year Fiscal 2024 adjusted operating income guidance downward by approximately 7% at the midpoint.
The company's management team discussed various measures being taken as part of a strategic transformation process aimed at improving business performance. These initiatives include increasing labor hours and advertising spending to enhance customer experience and drive more traffic to their outlets.
Additionally, Cracker Barrel is exploring larger scale optimization projects. The management has announced plans to provide more details on these initiatives during a dedicated investor presentation scheduled for May. The efforts are part of a broader strategy to address the current challenges faced by the company and to bolster its financial outlook.
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