The CBRL Report

This newsletter outlines a stock analysis for Cracker Barrel Old Country Store, Inc. (CBRL), a company known for its restaurants and gift shops.

Fundamental Analysis

Cracker Barrel's recent financial performance has shown a mixed picture. In its Q3 2025 earnings report, the company reported a better-than-expected EPS of $0.58, beating the analyst consensus of $0.17. However, revenue of $821.10 million fell slightly short of analyst estimates.

The company's long-term financial health shows some areas for concern, including a high debt-to-equity ratio and declining operating margins. However, its P/E ratio suggests the stock may be modestly undervalued, and analysts are forecasting a 12.32% increase in earnings per share for the next fiscal year, from $2.76 to $3.10.

Technical Analysis

The stock is currently in a downtrend. Recent significant news has caused the stock to drop more than 10% in the last five days. Its RSI (Relative Strength Index) suggests the stock is approaching oversold territory, which could indicate a potential rebound, but the recent price action points to a continuation of the downward trend.

Big News

• Controversial Logo Redesign: The most significant recent news is the company's decision to unveil a new, modernized logo. This move sparked a strong online backlash from some customers and conservative commentators, leading to a plunge in the stock price and a loss of nearly $100 million in market value.

• Brand Transformation: The logo change is part of a larger brand makeover, which includes new menu items and a refresh of its restaurant interiors. This strategy is aimed at attracting a broader customer base and improving the brand's relevance, but it has been met with both internal and external criticism.

• Marketing Campaign: The company is embarking on a new fall campaign with strategic branding, which is hoped to restore customer and investor confidence.

Expert Recommendations and Forecast

The consensus among analysts is a "Hold" rating. While there are some "Buy" and "Sell" ratings, the majority of analysts are recommending a neutral position. The average 12-month price target is approximately $55.14, which indicates a potential for slight upside from the current price, but the forecast is cautious given the company's recent challenges.

Earnings and Outlook

Cracker Barrel's next earnings report, for Q4 2025, is estimated to be on Thursday, September 18, 2025. This report will be critical for investors as they will be looking for how the company's new brand strategy is impacting revenue and to see if it can reverse the recent negative sentiment.