Cracker Barrel: Comp Sales Are Getting Crushed (Downgrade)
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Gary Alexander32.8K FollowersFollow5ShareSavePlay(9min)Comment(1)SummaryCracker Barrel faces deep challenges, including a damaging logo-change scandal and macroeconomic headwinds, leading to a sharp stock decline.CBRL slashed FY26 sales guidance by ~4% to $3.2–$3.3 billion, implying a 7% y/y decline, with adjusted EBITDA margin guidance nearly halved.Despite cost-cutting and reduced capex, CBRL’s leverage remains high (~6x EBITDA), and core customers are abandoning the brand.I downgrade CBRL to a "Sell," viewing it as a value trap with unattractive risk/reward and deteriorating fundamentals. tirc83/iStock Unreleased via Getty Images Amid the threat of a weaker macroeconomy and far more restrained consumer spending, there is little doubt that the restaurant sector has been among the most challenged of the year, with previously venerable names like Chipotle (CMG) losing halfThis article was written byGary Alexander32.8K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You