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Cracker Barrel vs. Brinker: Which Restaurant Stock Is the Better Buy?
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Key Takeaways
Brinker's Chili's delivered its 21st straight quarter of same-store sales growth, with comps up 6%.
EAT's margin gains, traffic growth and higher unit volumes support its fiscal 2027 growth strategy.
CBRL is targeting 3-5% comparable sales growth through menu, traffic and guest-experience initiatives.
The restaurant industry continues to navigate changing consumer preferences, persistent cost pressures and uneven dining traffic. Against this backdrop, Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) and Brinker International, Inc. (EAT - Free Report) offer investors two distinct approaches to the casual-dining market. While Cracker Barrel focuses on revitalizing brands and improving restaurant performance, Brinker benefits from strong performance at its flagship Chili’s brand and ongoing investments in traffic and sales growth.
Both companies are pursuing strategies aimed at strengthening sales, improving margins and driving long-term growth. However, differences in operating scale, brand strength, financial performance and valuation could influence their investment appeal. Let’s compare CBRL and EAT across key fundamentals to determine how the two restaurant stocks stack up.
The Case for CBRL
Cracker Barrel is entering fiscal 2027 with a more streamlined strategy centered on three priorities: food, guest experience and people. Management plans to improve dinner offerings, particularly chicken, burgers and steaks, while maintaining its strong breakfast business. These initiatives are designed to improve guest satisfaction and traffic without relying solely on cost reductions.
Operational metrics are moving in the right direction, providing another potential catalyst for CBRL. In the fiscal fourth quarter, the company’s Google rating rose 2% year over year, while food taste and service scores improved nearly 400 basis points and food-temperature scores increased 500 basis points. Its Cracker Barrel Rewards program also has more than 12.5 million members, accounting for over 40% of tracked sales, giving the company a sizeable platform for personalized marketing and traffic generation.
CBRL has several levers to support its fiscal 2027 sales outlook. Management expects comparable restaurant sales to increase approximately 3-5%, supported by improving traffic trends, menu-mix initiatives and stronger attachment rates for appetizers and sides. The retail business also remains an important differentiator, with comparable retail sales rising 0.7% in the fiscal fourth quarter and marking its strongest growth since fiscal 2023.
Cracker Barrel's earnings profile is also showing signs of improvement. Fiscal fourth-quarter adjusted EBITDA rose 11.4% year over year to $62.1 million, while lower debt helped reduce net interest expense. For fiscal 2027, management expects adjusted EBITDA of $180-$200 million, up from the prior year's level, with menu-margin improvements, efficiency initiatives and better traffic trends expected to contribute. The company ended the quarter with $337.2 million in debt and $541.3 million in available liquidity, giving it flexibility to invest in the business while maintaining a conservative balance sheet.
The Case for EAT
Brinker enters fiscal 2027 with strong operating momentum at Chili’s. The brand delivered its 21st consecutive quarter of same-store sales growth, with fiscal fourth-quarter comps rising 6%. Chili’s also posted positive traffic, while Brinker’s fiscal 2026 revenues increased 7.9% and adjusted EPS climbed 20.6%. Average annual unit volumes at Chili’s increased to $5 million from slightly more than $4.5 million a year earlier, highlighting the improvement in restaurant productivity.
EAT has multiple avenues to drive traffic while maintaining its value proposition. The Big Crispy Chicken Sandwich has emerged as a key catalyst, with sales reaching 55 sandwiches per restaurant per day by the end of the fiscal fourth quarter, up 175% from the pre-launch level. Management also cited the Margarita of the Month program, Triple Dipper and dessert offerings as contributors to recent traffic gains. These initiatives are complemented by continued marketing and menu innovation aimed at attracting new guests and encouraging repeat visits.
Brinker is also showing improvement in restaurant-level economics. Restaurant operating margin increased 20 basis points year over year to 18% in the fiscal fourth quarter, while labor costs improved 90 basis points. For fiscal 2027, management expects 20-40 basis points of restaurant-level margin improvement on a 52-week basis, with the 53rd operating week potentially lifting the improvement to as much as 50 basis points. The company also sees further margin opportunity as sales and average unit volumes grow.
Brinker has several additional growth levers beyond its current sales momentum. The company plans to complete 60-80 Chili’s reimages in fiscal 2027, while its pipeline is expected to support a significant increase in new-unit growth beginning in fiscal 2028. Management also sees whitespace for Chili’s expansion across several U.S. markets. Meanwhile, Brinker repurchased nearly $400 million of shares in fiscal 2026 and increased the amount available under its buyback authorization to $750 million, while the debt redemption is expected to provide interest savings in fiscal 2027.
How Do CBRL and EAT Compare on Estimates?
For Cracker Barrel, the consensus estimates for fiscal 2027 and 2028 EPS point to year-over-year growth of 47.5% and 53.5%, respectively.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Brinker’s fiscal 2027 and 2028 EPS implies year-over-year growth of 22.5% and 7.7%, respectively.
Image Source: Zacks Investment Research
Price Performance & Valuation
EAT has delivered a strong stock-market performance, with shares gaining 59.3% over the past year, sharply outperforming the restaurant industry’s 14% decline. CBRL has also generated solid returns, with its shares advancing 21% during the same period, highlighting continued investor interest in both restaurant stocks.
Price Performance
Image Source: Zacks Investment Research
CBRL currently trades at 0.34X forward 12-month sales, above its one-year median of 0.22X. EAT trades at 1.32X, also above its one-year median of 1.11X.
P/S (F12M)
Image Source: Zacks Investment Research
Investment Conclusion
Both CBRL and EAT have compelling growth opportunities and carry a Zacks Rank #2 (Buy) at present, but the latter appears slightly better positioned at present because of its stronger and more consistent operating momentum. Brinker’s sustained same-store sales growth, improving restaurant-level margins, higher unit productivity and continued traffic gains at Chili’s provide a clearer near-term growth trajectory. Its ongoing restaurant reimagining program, new-unit pipeline and shareholder-return initiatives further strengthen the investment case.
CBRL, meanwhile, offers meaningful turnaround potential, supported by improving guest metrics, menu innovation, retail strength and a stronger balance sheet. However, much of its upside depends on successfully executing its food, experience and people strategy and translating improving trends into sustained traffic growth. Therefore, while both stocks present attractive opportunities, EAT’s established momentum and visibility give it a slight edge over CBRL at this stage.
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Cracker Barrel vs. Brinker: Which Restaurant Stock Is the Better Buy?
Key Takeaways
The restaurant industry continues to navigate changing consumer preferences, persistent cost pressures and uneven dining traffic. Against this backdrop, Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) and Brinker International, Inc. (EAT - Free Report) offer investors two distinct approaches to the casual-dining market. While Cracker Barrel focuses on revitalizing brands and improving restaurant performance, Brinker benefits from strong performance at its flagship Chili’s brand and ongoing investments in traffic and sales growth.
Both companies are pursuing strategies aimed at strengthening sales, improving margins and driving long-term growth. However, differences in operating scale, brand strength, financial performance and valuation could influence their investment appeal. Let’s compare CBRL and EAT across key fundamentals to determine how the two restaurant stocks stack up.
The Case for CBRL
Cracker Barrel is entering fiscal 2027 with a more streamlined strategy centered on three priorities: food, guest experience and people. Management plans to improve dinner offerings, particularly chicken, burgers and steaks, while maintaining its strong breakfast business. These initiatives are designed to improve guest satisfaction and traffic without relying solely on cost reductions.
Operational metrics are moving in the right direction, providing another potential catalyst for CBRL. In the fiscal fourth quarter, the company’s Google rating rose 2% year over year, while food taste and service scores improved nearly 400 basis points and food-temperature scores increased 500 basis points. Its Cracker Barrel Rewards program also has more than 12.5 million members, accounting for over 40% of tracked sales, giving the company a sizeable platform for personalized marketing and traffic generation.
CBRL has several levers to support its fiscal 2027 sales outlook. Management expects comparable restaurant sales to increase approximately 3-5%, supported by improving traffic trends, menu-mix initiatives and stronger attachment rates for appetizers and sides. The retail business also remains an important differentiator, with comparable retail sales rising 0.7% in the fiscal fourth quarter and marking its strongest growth since fiscal 2023.
Cracker Barrel's earnings profile is also showing signs of improvement. Fiscal fourth-quarter adjusted EBITDA rose 11.4% year over year to $62.1 million, while lower debt helped reduce net interest expense. For fiscal 2027, management expects adjusted EBITDA of $180-$200 million, up from the prior year's level, with menu-margin improvements, efficiency initiatives and better traffic trends expected to contribute. The company ended the quarter with $337.2 million in debt and $541.3 million in available liquidity, giving it flexibility to invest in the business while maintaining a conservative balance sheet.
The Case for EAT
Brinker enters fiscal 2027 with strong operating momentum at Chili’s. The brand delivered its 21st consecutive quarter of same-store sales growth, with fiscal fourth-quarter comps rising 6%. Chili’s also posted positive traffic, while Brinker’s fiscal 2026 revenues increased 7.9% and adjusted EPS climbed 20.6%. Average annual unit volumes at Chili’s increased to $5 million from slightly more than $4.5 million a year earlier, highlighting the improvement in restaurant productivity.
EAT has multiple avenues to drive traffic while maintaining its value proposition. The Big Crispy Chicken Sandwich has emerged as a key catalyst, with sales reaching 55 sandwiches per restaurant per day by the end of the fiscal fourth quarter, up 175% from the pre-launch level. Management also cited the Margarita of the Month program, Triple Dipper and dessert offerings as contributors to recent traffic gains. These initiatives are complemented by continued marketing and menu innovation aimed at attracting new guests and encouraging repeat visits.
Brinker is also showing improvement in restaurant-level economics. Restaurant operating margin increased 20 basis points year over year to 18% in the fiscal fourth quarter, while labor costs improved 90 basis points. For fiscal 2027, management expects 20-40 basis points of restaurant-level margin improvement on a 52-week basis, with the 53rd operating week potentially lifting the improvement to as much as 50 basis points. The company also sees further margin opportunity as sales and average unit volumes grow.
Brinker has several additional growth levers beyond its current sales momentum. The company plans to complete 60-80 Chili’s reimages in fiscal 2027, while its pipeline is expected to support a significant increase in new-unit growth beginning in fiscal 2028. Management also sees whitespace for Chili’s expansion across several U.S. markets. Meanwhile, Brinker repurchased nearly $400 million of shares in fiscal 2026 and increased the amount available under its buyback authorization to $750 million, while the debt redemption is expected to provide interest savings in fiscal 2027.
How Do CBRL and EAT Compare on Estimates?
For Cracker Barrel, the consensus estimates for fiscal 2027 and 2028 EPS point to year-over-year growth of 47.5% and 53.5%, respectively.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Brinker’s fiscal 2027 and 2028 EPS implies year-over-year growth of 22.5% and 7.7%, respectively.
Image Source: Zacks Investment Research
Price Performance & Valuation
EAT has delivered a strong stock-market performance, with shares gaining 59.3% over the past year, sharply outperforming the restaurant industry’s 14% decline. CBRL has also generated solid returns, with its shares advancing 21% during the same period, highlighting continued investor interest in both restaurant stocks.
Price Performance
Image Source: Zacks Investment Research
CBRL currently trades at 0.34X forward 12-month sales, above its one-year median of 0.22X. EAT trades at 1.32X, also above its one-year median of 1.11X.
P/S (F12M)
Image Source: Zacks Investment Research
Investment Conclusion
Both CBRL and EAT have compelling growth opportunities and carry a Zacks Rank #2 (Buy) at present, but the latter appears slightly better positioned at present because of its stronger and more consistent operating momentum. Brinker’s sustained same-store sales growth, improving restaurant-level margins, higher unit productivity and continued traffic gains at Chili’s provide a clearer near-term growth trajectory. Its ongoing restaurant reimagining program, new-unit pipeline and shareholder-return initiatives further strengthen the investment case.
CBRL, meanwhile, offers meaningful turnaround potential, supported by improving guest metrics, menu innovation, retail strength and a stronger balance sheet. However, much of its upside depends on successfully executing its food, experience and people strategy and translating improving trends into sustained traffic growth. Therefore, while both stocks present attractive opportunities, EAT’s established momentum and visibility give it a slight edge over CBRL at this stage.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.