Is Cracker Barrel Old Country Store Inc. (CBRL) positioned for future growth?

Cracker Barrel Old Country Store Inc. (NASDAQ: CBRL) stock fell -5.19% on Tuesday to $104.88 against a previous-day closing price of $110.62. With 0.59 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.43 million shares. During the session, the Restaurants company that operates in wider Consumer Cyclical sector, reached to the highest price of $110.40 whereas the lowest price it dropped to was $104.28. The 52-week range on CBRL shows that it touched its highest point at $135.99 and its lowest point at $81.87 during that stretch. It currently has a 1-year price target of $100.88. With its current market cap of 2.24 billion, CBRL has annualized dividend of $5.20 while the current yield stands at 4.96%. Beta for the stock currently stands at 1.34.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CBRL was down-trending over the past week, with a drop of -1.90%, but this was up by 9.67% over a month. Three-month performance surged to 3.79% while six-month performance rose 14.66%. The stock lost -9.16% in the past year, while it has gained 10.70% so far this year. A look at the trailing 12-month EPS for CBRL yields 5.03 with Next year EPS estimates of 7.22. For the next quarter, that number is 1.38. This implies an EPS growth rate of -47.00% for this year and 25.64% for next year. EPS is expected to grow by 10.34% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -7.50%.

Float and Shares Shorts:

At present, 22.19 million CBRL shares are outstanding with a float of 21.78 million shares on hand for trading. On Oct 13, 2022, short shares totaled 2.1 million, which was 9.46% higher than short shares on Sep 14, 2022. In addition to Ms. Sandra Brophy Cochran as the firm’s Pres, CEO & Director, Mr. Craig A. Pommells serves as its Interim Principal Accounting Officer, Sr. VP & CFO.

Institutional Ownership:

Through their ownership of 90.94% of CBRL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 48.66% of CBRL, in contrast to 41.55% held by mutual funds. Shares owned by individuals account for 14.28%. As the largest shareholder in CBRL with 10.14% of the stake, The Vanguard Group, Inc. holds 2,250,357 shares worth 2,250,357. A second-largest stockholder of CBRL, BlackRock Fund Advisors, holds 2,197,404 shares, controlling over 9.90% of the firm’s shares. Biglari Capital LLC is the third largest shareholder in CBRL, holding 2,000,000 shares or 9.01% stake. With a 3.08% stake in CBRL, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 683,921 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.01% of CBRL stock, is the second-largest Mutual Fund holder. It holds 668,995 shares valued at 63.38 million. Vanguard Small Cap Index Fund holds 2.57% of the stake in CBRL, owning 571,134 shares worth 54.11 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CBRL since 10 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CBRL analysts setting a high price target of $125.00 and a low target of $90.00, the average target price over the next 12 months is $100.88. Based on these targets, CBRL could surge 19.18% to reach the target high and fall by -14.19% to reach the target low. Reaching the average price target will result in a decline of -3.81% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CBRL will report FY 2023 earnings on 09/19/2023. Analysts have provided yearly estimates in a range of $6.18 being high and $5.55 being low. For CBRL, this leads to a yearly average estimate of $5.72. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Cracker Barrel Old Country Store Inc. surprised analysts by -$0.18 when it reported $0.99 EPS against a consensus estimate of $1.17. The surprise factor in the prior quarter was $0.19. Based on analyst estimates, the high estimate for the next quarter is $1.72 and the low estimate is $1.20. The average estimate for the next quarter is thus $1.36.

Dividends & Yield:

In terms of dividends, CBRL has a current ratio of $5.2, which is $5.2 over the trailing 12-months, while a dividend of $4.18 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and CBRL currently yields $4.96. In the past year, CBRL’s dividend yield has been $4.96, but when looking at the stock over the past five years, its yield has been $3.17. Accordingly, CBRL has a current buyback yield of $6.18. This was $6.18 for the TTM, and it was $1.61 for the past five years.

Summary of Insider Activity:

Insiders traded CBRL stock several times over the past three months with 11 Buys and 0 Sells. In these transactions, 14,019 shares were bought while 0 shares were sold. The number of buy transactions has increased to 35 while that of sell transactions has risen to 29 over the past year. The total number of shares bought during that period was 129,030 while 24,858 shares were sold.

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