Cracker Barrel Old Country Store (NASDAQ:CBRL) Shares Gap Up Following Earnings Beat

Key Points

• Cracker Barrel shares surged after the company reported better-than-expected quarterly results, opening well above the previous close and trading sharply higher on heavy volume.
• The restaurant operator posted earnings of $0.29 per share versus expectations for a loss and revenue of $797.4 million, topping analyst estimates despite a year-over-year sales decline.
• Management also raised its FY26 outlook and declared a quarterly dividend of $0.25 per share, though some analysts cautioned the beat was aided by one-time items and underlying trends remain weak.

Shares of Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL - Get Free Report) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $36.30, but opened at $43.50. Cracker Barrel Old Country Store shares last traded at $47.0450, with a volume of 2,498,373 shares.

The restaurant operator reported $0.29 earnings per share for the quarter, beating the consensus estimate of ($0.45) by $0.74. Cracker Barrel Old Country Store had a positive return on equity of 4.25% and a negative net margin of 0.12%.The firm had revenue of $797.37 million for the quarter, compared to analyst estimates of $776.69 million. During the same quarter in the prior year, the firm posted $0.56 earnings per share. The company's quarterly revenue was down 2.9% on a year-over-year basis.

Cracker Barrel Old Country Store Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 12th. Investors of record on Friday, July 17th will be paid a dividend of $0.25 per share. The ex-dividend date of this dividend is Friday, July 17th. This represents a $1.00 annualized dividend and a yield of 2.2%. Cracker Barrel Old Country Store's dividend payout ratio (DPR) is presently -555.56%.

Key Cracker Barrel Old Country Store News

Here are the key news stories impacting Cracker Barrel Old Country Store this week:

• Positive Sentiment: Cracker Barrel reported fiscal Q3 EPS of $0.29, beating expectations for a loss, and revenue of $797.4 million, above estimates. CRACKER BARREL REPORTS THIRD QUARTER FISCAL 2026 RESULTS AND UPDATES FISCAL 2026 OUTLOOK
• Positive Sentiment: The company raised its FY26 outlook, including higher revenue and adjusted EBITDA guidance, which is encouraging for investors looking for improving fundamentals. Cracker Barrel Posts Surprise Profit, Lifts Outlook for Year
• Positive Sentiment: Market coverage and earnings-call commentary described the results as evidence that Cracker Barrel’s turnaround may be picking up, helping fuel the stock’s move higher. Cracker Barrel soars after FQ3 results show the turnaround is picking up
• Neutral Sentiment: The board also declared a quarterly dividend of $0.25 per share, which supports the shareholder-return story but is not the main driver of the stock move.
• Negative Sentiment: Some analysts noted that the earnings beat was helped by a one-time litigation gain, while core trends remained weak, including lower comparable sales and declining operating income. Cracker Barrel: A Rally Without A Recovery
• Negative Sentiment: Revenue still declined year over year, showing the recovery is not yet fully reflected in the underlying business. Cracker Barrel (CBRL) Reports Q3 Earnings: What Key Metrics Have to Say

Wall Street Analysts Forecast Growth

CBRL has been the subject of a number of recent analyst reports. Benchmark restated a "hold" rating on shares of Cracker Barrel Old Country Store in a research report on Wednesday. Citigroup reissued a "sell" rating on shares of Cracker Barrel Old Country Store in a research note on Wednesday. Wall Street Zen downgraded Cracker Barrel Old Country Store from a "sell" rating to a "strong sell" rating in a report on Sunday, April 19th. Wells Fargo & Company raised Cracker Barrel Old Country Store from an "equal weight" rating to an "overweight" rating and raised their price target for the stock from $35.00 to $50.00 in a research report on Wednesday. Finally, Freedom Capital upgraded Cracker Barrel Old Country Store to a "strong-buy" rating in a report on Monday, April 6th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, four have assigned a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $39.00.

Hedge Funds Weigh In On Cracker Barrel Old Country Store

A number of large investors have recently added to or reduced their stakes in CBRL. Caitong International Asset Management Co. Ltd acquired a new stake in Cracker Barrel Old Country Store in the 3rd quarter valued at approximately $26,000. Axiom Investment Management LLC acquired a new stake in shares of Cracker Barrel Old Country Store in the first quarter valued at about $28,000. Hilton Head Capital Partners LLC bought a new stake in shares of Cracker Barrel Old Country Store during the 4th quarter worth approximately $35,000. Canada Pension Plan Investment Board bought a new stake in Cracker Barrel Old Country Store during the second quarter worth $37,000. Finally, PNC Financial Services Group Inc. lifted its position in shares of Cracker Barrel Old Country Store by 22.0% in the first quarter. PNC Financial Services Group Inc. now owns 1,783 shares of the restaurant operator's stock valued at $50,000 after buying an additional 321 shares during the last quarter. Institutional investors own 96.01% of the company's stock.

Cracker Barrel Old Country Store Trading Up 24.7%

The company has a market cap of $1.01 billion, a price-to-earnings ratio of -254.47 and a beta of 1.30. The company has a current ratio of 0.49, a quick ratio of 0.18 and a debt-to-equity ratio of 0.90. The business's 50 day moving average price is $30.80 and its 200-day moving average price is $29.89.

About Cracker Barrel Old Country Store

Cracker Barrel Old Country Store, Inc operates a distinctive combination of country-themed restaurants and retail stores across the United States. Since its founding in 1969, the company has focused on providing a nostalgic dining experience reminiscent of Southern hospitality, serving breakfast, lunch and dinner with an emphasis on traditional comfort foods.

The restaurant segment offers an extensive menu featuring signature items such as buttermilk pancakes, country ham, biscuits and gravy, meatloaf and pot roast.

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