Shares of restaurant company Cracker Barrel (NASDAQ:CBRL) fell 5.2% in the morning session after the company reported first quarter results that missed analysts' revenue and EPS expectations. Same-store sales were in line, though they declined in absolute terms as traffic declined and more than offset the positive contribution from pricing growth. Adding to the negatives was the fact that Cracker Barrel initiated fiscal 2024 guidance below Wall Street Consensus for revenue and operating margin. Overall, it was a weaker quarter for the company, and the results could have been better.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Cracker Barrel? Access our full analysis report here, it's free.
What is the market telling us:
Cracker Barrel's shares are somewhat volatile and over the last year have had 9 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Cracker Barrel is down 26.9% since the beginning of the year, and at $69.01 per share it is trading 42.6% below its 52-week high of $120.13 from April 2023. Investors who bought $1,000 worth of Cracker Barrel's shares 5 years ago would now be looking at an investment worth $381.70.
Do you want to know what moves the stocks you care about? Add them to your StockStory watchlist and every time a stock we cover moves more than 5%, we provide you with a timely explanation straight to your inbox. It's free and will only take you a second.