U.S. Markets closed

Cracker Barrel (CBRL) Dips 31% in a Year: Will It Revive?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Shares of Cracker Barrel Old Country Store, Inc. CBRL have lost 30.9% in the past year compared with the industry’s decline of 6.8%.

However, the stock might take a U-turn, as the company is benefiting from robust off-premise sales, the retail business and the Maple Street Biscuit company concept.

Let’s delve deeper and find out factors likely to drive the stock in the coming days.

Growth Drivers

Cracker Barrel aims to meet consumers' needs for convenience via growth in its off-premise business. It plans to enhance its off-premise platform by introducing catering menu offerings and in-store training of hourly employees.

In second-quarter fiscal 2021, the company’s comparable store off-premise sales surged 78% year over year. In third-quarter fiscal 2021, off-premise sales soared 144% from the more normalized third-quarter fiscal 2019. In fourth-quarter fiscal 2021, comparable store off-premise sales rose 108.6% from the 2019 levels.

For fiscal 2022, the company plans to drive off-premise sales through awareness building, advertising and partnerships with third-party delivery companies. Further, it expects to attract customers and drive sustained growth in its off-premise business through its virtual brand, Chicken, and Biscuits. Given the solid acceptance of its offerings, the company plans to roll out Chicken and Biscuits to 500 stores by the end of first-quarter fiscal 2022. Also, it intends to launch its breakfast-focused virtual brand — the Pancake Kitchen — in 100 stores simultaneously.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

The Zacks Rank #3 (Hold) company’s continuous expansion strategies are helping it to drive growth. The company expects to open 11 Maple Street biscuit company locations and two new Cracker Barrel locations in fiscal 2022.

In a bid to address the challenges of the competitive restaurant industry, Cracker Barrel undertakes extensive marketing efforts, mainly focusing on the brand’s differentiation, menu offering and value. The company relies heavily on seasonal promotions and limited-time offers to drive traffic and boost the top-line performance, as these are appealing to both regular users and less-frequent guests.

In fiscal 2021, the introduction of Cracker Barrel’s latest dinner menu and the continued roll-out of beer and wine to the stores have helped ensure the continued recovery of sales.

Key Picks

Some better-ranked stocks in the Zacks Retail-Wholesale sector are BBQ Holdings, Inc. BBQ, Arcos Dorados Holdings Inc. ARCO and Tapestry, Inc. TPR.

BBQ Holdings currently sports a Zacks Rank #1 (Strong Buy). BBQ has a long-term earnings growth of 14%. Shares of the company have gained 67.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BBQ Holdings’ 2022 sales and EPS suggests growth of 40.9% and 66.2%, respectively, from the year-ago period’s levels.

Arcos Dorados flaunts a Zacks Rank #1 at present. ARCO has a long-term earnings growth of 31.3%. Shares of the company have risen 61.4% in the past year.

The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 10.3% and 62.5%, respectively, from the year-ago period’s levels.

Tapestry currently carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 28.2%, on average. Shares of the company have declined 13.9% in the past year.

The Zacks Consensus Estimate for Tapestry’s 2022 sales and EPS suggests growth of 17.5% and 22.9%, respectively, from the year-ago period’s reported levels.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report

Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report

Tapestry, Inc. (TPR) : Free Stock Analysis Report

BBQ Holdings, Inc. (BBQ) : Free Stock Analysis Report

To read this article on Zacks.com click here.