Cracker Barrel (CBRL) stock: heavily shorted, but does that make sense?

11:59 am ET, 18 Sep 2018

Cracker Barrel Old Country Store, Inc. (CBRL) shares are trading at $144.45, down -4%.  In today's earnings, comparable retail sales rose 1.3%, however, restaurant revenue grew by a meager 0.9%, which sent the stock down.  What should investors know about Cracker Barrell Old Country Store? What's CBRL stock price forecast?

Cracker Barrel Old Country Store stock has yielded a modest return of 4% in the past year. The stock has found some support since August and CBRL business is developing favorably. The restaurant's same-store sales increased 1.1% in June and 0.5% in August.

The company has entered a five-year $950 million revolving line of credit which will give it better financial flexibility. The bulls are confident that the company will perform well in the long run because of its store footprint, expansion efforts, menu innovation, customer engagement, and seasonal promotions. On the other hand, certain investors feel nervous about the company’s modest traffic increase (or decline in the previous months).

The quarterly results were released before the market opening on September 18, 2018.  Restaurant revenue grew 0.9% to $616.93M, but comparable restaurant sales declined 0.4% in Q4.  Cracker Barrel experienced a 3.1% increase in average check, which is offset by a 3.5% decrease in store traffic.  The average menu price increased ~2.7%.

The company also published FY19 guidance: total revenue is bound to be ~$3.04B, while comparable store restaurant sales are expected to lie flat, along with comparable store retail sales.  

What is the sentiment towards the CBRL stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Cracker Barrel Old Country Store, Inc. (CBRL) returned +5.07%.

Cracker Barrel Old Country Store (CBRL) short share of float is 20.31%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Cracker Barrel Old Country Store, Inc. (CBRL) average analyst price target ($161.20) is 4.85% above its current price ($153.75).

For the latest price and information on Cracker Barrel Old Country Store, Inc., please visit Finstead and search for "CBRL price" or "CBRL news".

Cracker Barrel Old Country Store, Inc. (CBRL) Stock Guide

Updated at: 1:32 pm ET, 17 Sep 2020

Before we start: if you're looking for CBRL stock price, you can quickly find it out by visiting Finny and typing "CBRL quote". If you're looking for a quick scoop on CBRL stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "CBRL". You'll get all this info in one place. Or you can just type "CBRL news" to get the latest stock news.

Looking to buy or sell Cracker Barrel Old Country Store, Inc. (CBRL)? Interested in getting the full scoop on CBRL, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this CBRL stock guide, we'll address key questions about CBRL, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are CBRL earnings?
2. What is CBRL stock forecast (i.e., prediction)?
3. CBRL buy or sell? What is CBRL Finny Score?
4. What are the reasons to buy CBRL? Why should I buy CBRL stock?
5. What are the reasons to sell CBRL? Why should I sell CBRL stock?
6. What are CBRL key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are CBRL earnings?

CBRL trailing 12-month earnings per share (EPS) is $0.31.

Analyst Predictions

2. What is CBRL stock forecast (i.e., prediction)?

Based on CBRL analyst price targets, CBRL stock forecast is $117.83 (for a year from now). That means the average analyst price target for CBRL stock is $117.83. The prediction is based on 9 analyst estimates.

The low price target for CBRL is $100.00, while the high price target is $133.00.

CBRL analyst rating is Hold.

Analysis

3. CBRL buy or sell? What is CBRL Finny Score?

#{finnyScore:45}Our quantitative analysis shows 5 reasons to buy and 6 reasons to sell CBRL, resulting in Finny Score of 45.

4. What are the reasons to buy CBRL? Why should I buy CBRL stock?

Here are the reasons to buy CBRL stock:

5. What are the reasons to sell CBRL? Why should I sell CBRL stock?

Let's look at the reasons to sell CBRL stock (i.e., the bear case):

  • CBRL quarterly revenue growth was -41.50%, lower than the industry and sector average revenue growth (1.25% and 0.78%, respectively). See CBRL revenue growth chart.
  • CBRL forward P/E ratio is 29.16, which is high compared to its industry peers’ P/E ratios. See CBRL forward P/E ratio chart.
  • CBRL PEG ratio (P/E adjusted for growth) is 212.20, which is high compared to its industry peers’ PEG ratios. See CBRL PEG chart.
  • CBRL average analyst price target ($117.83) is below its current price ($122.96). See CBRL price target chart.
  • CBRL short share of float is 12.97%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See CBRL short share of float chart.
  • CBRL short interest (days to cover the shorts) ratio is 7.78. The stock garners more short interest than the average industry, sector or S&P 500 stock. See CBRL short interest ratio chart.

Key Stats

6. What are CBRL key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for CBRL:

Metrics CBRL
Price $116.43
Average Price Target / Upside $117.83 / 1.20%
Average Analyst Rating Hold
Forward Dividend Yield 0.00%
Industry Restaurants
Sector Consumer Cyclical
Number of Employees 73,000
Market Cap $3.22B
Forward P/E Ratio 29.16
Price/Book Ratio 1.14
Revenue (TTM) $2.81B
YoY Quarterly Revenue Growth -41.50%
Profit Margin 0.27%

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