In a challenging year for Cracker Barrel (NASDAQ:CBRL) Old Country Store, Inc., the company's stock has touched a 52-week low, trading at $37.2. This latest price point underscores a significant downturn for the restaurant and gift store chain, which has seen its stock value plummet by 51.54% over the past year. Investors have been cautious as the company grapples with the headwinds of changing consumer habits, economic pressures, and competitive market dynamics, all of which have contributed to the stock's underperformance and its current position at a yearly low.
In other recent news, Cracker Barrel has experienced notable developments. The company reported its third-quarter fiscal results, with a revenue of $817.1 million and an adjusted EBITDA of $47.9 million. Despite missing same-store sales expectations, an adjusted earnings per share beat was reported, largely due to tax benefits. Additionally, Truist Securities revised its outlook on Cracker Barrel, reducing its price target to $42.00 from $46.00, while maintaining a Hold rating. The revision was driven by concerns of potential near-term risks, including weaker-than-expected fiscal year 2025 guidance.
In corporate news, Cracker Barrel is engaged in a proxy contest with Biglari Holdings Inc., marking the seventh such contest in 13 years. Biglari is nominating five candidates, including himself, for election to Cracker Barrel's Board of Directors at the 2024 Annual Meeting of Shareholders. The current Board plans to review these nominations as part of its commitment to good governance.
Furthermore, the company announced the appointment of Sarah Moore as its new Chief Marketing Officer. Moore, who brings nearly two decades of experience in the hospitality industry from MGM Resorts (NYSE:MGM) International, will leverage her expertise in marketing and brand building to further Cracker Barrel’s strategic growth. These are some of the recent developments for Cracker Barrel.
InvestingPro Insights
In light of Cracker Barrel's recent stock performance, a deeper look into the company's financial health and market position through InvestingPro data and tips can provide investors with a clearer picture. With a market capitalization of $828.15M and a price-to-earnings (P/E) ratio of 13.79, the company appears to be valued conservatively in the market. The adjusted P/E ratio for the last twelve months as of Q3 2024 is even lower, at 10.1, which could indicate the stock is undervalued compared to earnings.
One of the InvestingPro Tips highlights Cracker Barrel's high shareholder yield, which could be an attractive point for investors seeking income. Additionally, the company has demonstrated a commitment to its dividend, maintaining payments for 43 consecutive years, even as its revenue has seen a slight decline of 0.68% over the last twelve months as of Q3 2024.
While the company's short-term obligations exceeding liquid assets may raise concerns about its immediate financial flexibility, the long history of profitability, including over the last twelve months, and analysts' predictions of profitability this year, suggest a potential for recovery. Cracker Barrel's stock price has taken a significant hit over the last six months, with a total return of -43.29%, reflecting the challenges it faces. However, the InvestingPro Fair Value estimate of $52.49 USD indicates potential upside from the previous close price of $38.12 USD.
For investors considering Cracker Barrel as a potential addition to their portfolio, these insights underscore the importance of evaluating both the risks and opportunities. The InvestingPro platform offers additional tips for a more comprehensive analysis.
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