Bear Of The Day: Cracker Barrel Old Country Store


Cracker Barrel Old Country Store (CBRL) owns and operates full-service dining locations with a restaurant and a retail store in the same unit. Analysts have taken a bearish stance on the company’s outlook, pushing it down into an unfavorable Zacks Rank #5 (Strong Sell).Zacks Investment ResearchImage Source: Zacks Investment ResearchIn addition, the company is in the Zacks Retail – Restaurants industry, which is currently ranked in the bottom 24% of all Zacks industries.Let’s take a closer look at the company. Cracker BarrelCBRL shares haven’t fared well year-to-date, down 37% and widely underperforming relative to the general market. Shares faced pressure following its latest set of quarterly results despite posting numbers that exceeded expectations.Zacks Investment ResearchImage Source: Zacks Investment ResearchThe adverse price action has bumped up CBRL’s annual dividend yield, currently paying a sizable 11.4% annually. Still, the company’s 107% payout ratio remains a concern, reflecting that it’s paying more out to shareholders than earnings generated.The company has primarily posted mixed earnings results as of late, falling short of the Zacks Consensus EPS Estimate by an average of -7.7% across its last four releases.Keep an eye out for the company’s upcoming quarterly release expected on May 30, as current consensus expectations allude to a 53% pullback in earnings on -0.7% lower sales. Revenue expectations have moved downward alongside earnings expectations, with the $827 million expected down 1.4% since the beginning of March.Zacks Investment ResearchImage Source: Zacks Investment Research Bottom LineNegative earnings estimate revisions from analysts and mixed quarterly results paint a challenging picture for the company’s shares in the near term.Cracker Barrel Old Country Store (CBRL) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.More By This Author:Should You Buy Stock Splits?3 Big Winners From Earnings Season Nvidia Earnings: AI-Boom Remains Robust

Reviews

  • Total Score 0%
User rating: 0.00% ( 0
votes )



Leave a Reply

Your email address will not be published. Required fields are marked *