Cracker Barrel: I Can't Trust This Story Yet (Rating Downgrade)
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Kenio Fontes1.71K FollowersFollow5ShareSavePlay(8min)CommentsSummaryCracker Barrel Old Country Store, Inc. is downgraded to Sell as turnaround initiatives have failed to deliver, deepening operational uncertainty.CBRL Q1 results were poor: revenue fell 6%, margins collapsed, and adjusted EPS was -$0.74 despite non-recurring costs being excluded.Execution missteps, including food quality inconsistencies and rebranding-driven marketing spend, drove CBRL underperformance and margin pressure.Even if operational fixes succeed, CBRL stock’s valuation—EV/EBITDA ~15x for 2026—offers limited upside, making the investment thesis highly speculative.
Getty Images It's been a few months since I did my analysis of Cracker Barrel Old Country Store, Inc. (CBRL), and it was right around the time of the rebranding, when everyone was talking about the logo change. MyThis article was written byKenio Fontes1.71K FollowersFollowEquity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect!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