We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cracker Barrel (CBRL) Rises 18% in 3 Months: More Room to Run?
Read MoreHide Full Article
Shares of Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) have risen 18.1% in the past three months compared with the industry’s increase of 6.9%. Menu innovation, expansion efforts, solid comps growth and off-premise sales are aiding the company’s performance. Let’s delve deeper.
Growth Drivers
Cracker Barrel is continuously focusing on rejuvenating its menu, which serves as the backbone of the company’s riveting growth potential. Meanwhile, CBRL announced that it has shifted its focus toward the breakfast menu. To this end, the company initiated a two-phase rollout process, which involves the streamlining of breakfast offerings, guest customization and a better value proposition.
Moreover, the company initiated the new Build Your Own Homestyle Breakfast format. This allows guests to customize their meals.
Cracker Barrel’s continuous expansion strategies are also helping the company drive growth. In the second quarter of fiscal 2023, the company opened two new Maple Street locations in Columbus, Ohio, and Houston, TX. As of Jan 27, 2023, the company operated 56 MSBC locations across 10 states. The company expects to open 15 new Maple Street biscuit company locations and three to four new Cracker Barrel locations in fiscal 2023.
The company is also benefiting from robust comps growth. In the fiscal second quarter, comparable store restaurant sales rose 8.4% compared with the same period in fiscal 2022. The upside was primarily backed by a 9% average menu price increase. Comparable store retail sales increased 4.1% year over year.
Robust off-premise sales are also aiding Cracker Barrel. It continues to focus on off-premise initiatives, such as curbside delivery, third-party delivery and family meal baskets. It also continues to invest in technology initiatives to enhance its digital store and revamp its app to streamline the ordering process, provide a personalized experience and reduce friction on mobile devices.
To address the challenges of the competitive restaurant industry, this Zacks Rank #2 (Buy) company undertakes extensive marketing efforts, mainly focusing on the brand’s differentiation, menu offering and value. In the second quarter of fiscal 2023, the company reported improved guest visitation from older age (65 and more) groups.
Further, Cracker Barrel stated gains due to its culinary and marketing initiatives. Also, it stated the benefits of seasonal culinary promotions, including Country Fried Turkey and Cinnamon Roll Pie. The company intends to focus on growing its off-premise business and investing in its digital infrastructure to improve the guest experience and drive growth.
Chuy’s Holdings currently sports a Zacks Rank #1 (Strong Buy). CHUY has a trailing four-quarter earnings surprise of 19.1%, on average. Shares of the company have increased 41.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Chuy’s Holdings’ 2023 sales and EPS suggests growth of 10.8% and 19%, respectively, from the corresponding year-ago period’s levels.
Arcos Dorados currently sports a Zacks Rank #1. ARCO has a long-term earnings growth rate of 7.8%. Shares of the company have declined 2.8% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2024 sales and EPS suggests growth of 8% and 11.4%, respectively, from the year-ago period’s levels.
Bloomin' Brands carries a Zacks Rank #1. BLMN has a long-term earnings growth rate of 12.3%. The stock has risen 19.7% in the past year.
The Zacks Consensus Estimate for Bloomin' Brands’ 2024 sales and EPS suggests growth of 2.4% and 5.5%, respectively, from the year-ago period’s reported levels.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Cracker Barrel (CBRL) Rises 18% in 3 Months: More Room to Run?
Shares of Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) have risen 18.1% in the past three months compared with the industry’s increase of 6.9%. Menu innovation, expansion efforts, solid comps growth and off-premise sales are aiding the company’s performance. Let’s delve deeper.
Growth Drivers
Cracker Barrel is continuously focusing on rejuvenating its menu, which serves as the backbone of the company’s riveting growth potential. Meanwhile, CBRL announced that it has shifted its focus toward the breakfast menu. To this end, the company initiated a two-phase rollout process, which involves the streamlining of breakfast offerings, guest customization and a better value proposition.
Moreover, the company initiated the new Build Your Own Homestyle Breakfast format. This allows guests to customize their meals.
Cracker Barrel’s continuous expansion strategies are also helping the company drive growth. In the second quarter of fiscal 2023, the company opened two new Maple Street locations in Columbus, Ohio, and Houston, TX. As of Jan 27, 2023, the company operated 56 MSBC locations across 10 states. The company expects to open 15 new Maple Street biscuit company locations and three to four new Cracker Barrel locations in fiscal 2023.
The company is also benefiting from robust comps growth. In the fiscal second quarter, comparable store restaurant sales rose 8.4% compared with the same period in fiscal 2022. The upside was primarily backed by a 9% average menu price increase. Comparable store retail sales increased 4.1% year over year.
Robust off-premise sales are also aiding Cracker Barrel. It continues to focus on off-premise initiatives, such as curbside delivery, third-party delivery and family meal baskets. It also continues to invest in technology initiatives to enhance its digital store and revamp its app to streamline the ordering process, provide a personalized experience and reduce friction on mobile devices.
To address the challenges of the competitive restaurant industry, this Zacks Rank #2 (Buy) company undertakes extensive marketing efforts, mainly focusing on the brand’s differentiation, menu offering and value. In the second quarter of fiscal 2023, the company reported improved guest visitation from older age (65 and more) groups.
Further, Cracker Barrel stated gains due to its culinary and marketing initiatives. Also, it stated the benefits of seasonal culinary promotions, including Country Fried Turkey and Cinnamon Roll Pie. The company intends to focus on growing its off-premise business and investing in its digital infrastructure to improve the guest experience and drive growth.
Image Source: Zacks Investment Research
Key Picks
Some other top-ranked stocks in the Zacks Retail-Wholesale sector are Chuy's Holdings, Inc. (CHUY - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Bloomin' Brands, Inc. (BLMN - Free Report) .
Chuy’s Holdings currently sports a Zacks Rank #1 (Strong Buy). CHUY has a trailing four-quarter earnings surprise of 19.1%, on average. Shares of the company have increased 41.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Chuy’s Holdings’ 2023 sales and EPS suggests growth of 10.8% and 19%, respectively, from the corresponding year-ago period’s levels.
Arcos Dorados currently sports a Zacks Rank #1. ARCO has a long-term earnings growth rate of 7.8%. Shares of the company have declined 2.8% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2024 sales and EPS suggests growth of 8% and 11.4%, respectively, from the year-ago period’s levels.
Bloomin' Brands carries a Zacks Rank #1. BLMN has a long-term earnings growth rate of 12.3%. The stock has risen 19.7% in the past year.
The Zacks Consensus Estimate for Bloomin' Brands’ 2024 sales and EPS suggests growth of 2.4% and 5.5%, respectively, from the year-ago period’s reported levels.