Cracker Barrel's stock has nearly tripled from its low, and new management's cost savings could push it higher.
Cracker Barrel's stock has nearly tripled from its low, and new management's cost savings could push it higher.
Cracker Barrel Old Country Store (CBRL +0.07%) is known for its country cooking and the gift shop by the front door, but brand recognition hasn't been enough in recent quarters. Fiscal 2026 was a tough year, with revenue down about 5%.
But a new leader is at the helm. CEO David Deno took over Aug. 10, 2026, and the stock has been on a tear, up about 180% from its 52-week low of $24.85 last December. It still looks like a buy.
The restaurant chain just clobbered Wall Street's expectations last quarter, and those results show the comeback has real momentum.
Cost savings could fuel higher earnings over the next year
In its fiscal fourth quarter, ending July 31, 2026, Cracker Barrel reported revenue of $849 million and adjusted earnings of $0.99 per share. Analysts had expected about $835 million and $0.17 per share. That's a massive beat on earnings, suggesting something special is cooking behind the scenes.
The results reflect Deno's strategy in "doing fewer things better," as noted on the Sept. 23 earnings call. Management is allowing guests to upgrade to three sides as part of a broader menu initiative to increase profit margins without relying solely on price increases. Management is looking at several ways to lower costs to lift margins, which seems to be the biggest driver of the stock moving higher right now.
For fiscal 2027, management expects comparable-store restaurant sales -- sales at locations open at least a year -- to grow 3% to 5%. Comp sales growth should translate into earnings as management continues to execute its cost-saving initiatives.
CBRL Cracker Barrel Old Country Store
$69.02+$0.05 (+0.07%)
Averytin News Financial update.