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CBRL vs. BLMN: Which Restaurant Stock Is the Better Buy Now?
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Key Takeaways
CBRL's focused turnaround, menu upgrades and retail business support its recovery and growth prospects.
CBRL's fiscal 2027 and 2028 EPS estimates imply growth of 95% and 21.8%, with upward revisions.
CBRL's shares gained 90.5% in a year, outpacing BLMN's 20.9% rise, despite trading at a higher sales multiple.
The U.S. casual-dining industry remains highly competitive, with restaurant operators facing shifting consumer preferences, persistent cost pressures and the challenge of attracting diners without sacrificing profitability. Against this backdrop, Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) and Bloomin' Brands, Inc. (BLMN - Free Report) offer investors two distinct turnaround stories to evaluate.
Cracker Barrel is working to strengthen its traditional dining experience and improve operating performance, while Bloomin’ Brands is focused on revitalizing the restaurant portfolio, led by Outback Steakhouse. With both companies seeking to improve results in a demanding market, which restaurant stock offers the more compelling combination of growth potential, financial resilience and value for investors right now?
The Case for Cracker Barrel
Cracker Barrel is working to rebuild its business by sharpening focus on food quality, customer experience and operational execution. Newly appointed CEO David Deno believes the company has a strong foundation, supported by its differentiated brand, loyal customer base and dedicated workforce. Management plans to concentrate on initiatives that can meaningfully improve guest satisfaction and business performance rather than spreading resources across too many priorities. This focused approach, combined with improving operating trends, could help Cracker Barrel strengthen its competitive position and restore sustainable growth.
Menu improvements and value-focused offerings present another growth opportunity. Cracker Barrel plans to enhance the dinner menu, particularly its chicken, hamburger and steak offerings, while building on the established strength in breakfast. The company is also refining menu options to encourage customers to add appetizers, shareables, sides and desserts to their orders. These initiatives could improve customer satisfaction while supporting a favorable menu mix and higher margins.
The company’s competitive pricing further strengthens its appeal, particularly among budget-conscious diners. With a lower average check than the broader casual-dining and family-dining categories, Cracker Barrel has an opportunity to attract guests seeking an affordable full-service restaurant experience. The company's retail business and loyalty program provide additional avenues for customer engagement and sales growth. Unlike most full-service restaurant operators, Cracker Barrel combines dining with an in-store shopping experience, giving it another way to differentiate the brand and generate revenues.
Management intends to improve store layouts, product displays and merchandise selection to make shopping more convenient and appealing. Meanwhile, its Cracker Barrel Rewards program has more than 12.5 million members, accounting for over 40% of tracked sales. The company is enhancing personalization and its digital platforms to make interactions more seamless. Leveraging these capabilities could help drive repeat visits, improve marketing effectiveness and generate additional traffic across its restaurants and retail stores.
Improving operations and a stronger balance sheet could support the turnaround. Better guest satisfaction scores and employee retention trends indicate progress in restaurant execution. Management expects fiscal 2027 adjusted EBITDA of $180-$200 million, supported by improving traffic, menu-mix initiatives and cost efficiencies. Lower debt and ample liquidity also provide flexibility to invest in the business and strengthen cash flow.
However, CBRL faces challenges from declining restaurant traffic, persistent commodity inflation and pressure on lower-income consumers. The company must sustain its operational improvements and deliver on the fiscal 2027 outlook to establish a durable recovery.
The Case for BLMN
Bloomin’ Brands is making progress with its turnaround strategy, led by efforts to improve Outback Steakhouse’s food quality, service and overall dining experience. The company has reported year-over-year improvements in Outback’s guest satisfaction scores for four consecutive quarters. Its revised service model, upgraded steak offerings and restaurant refreshes could strengthen customer loyalty and help revive traffic. Management also plans to increase brand-focused marketing and invest in restaurant upgrades, positioning the business for a potential recovery in sales and profitability.
Menu innovation and affordability initiatives offer additional growth opportunities. Bloomin’ Brands is encouraging customers to choose premium steak cuts, combination meals, specialty sides and desserts to improve menu mix. Its Aussie 3-Course offer also helps attract price-conscious diners, with many customers opting for higher-priced selections. Meanwhile, Carrabba’s has delivered six consecutive quarters of positive comparable sales, while Bonefish Grill has shown improving traffic trends. These developments suggest that the company’s recovery efforts extend beyond Outback, providing multiple avenues for improving performance.
However, weak traffic remains a key concern, particularly at Outback, where customer visits continued to decline despite better guest satisfaction scores. Converting these improvements into sustained traffic growth will be critical to the turnaround. Persistent commodity inflation and the cost of restaurant renovations and marketing investments could also weigh on near-term margins and cash flow.
Bloomin’ Brands also faces balance-sheet and earnings pressures. The company reported $636 million in net debt at the end of the second quarter of fiscal 2026 and continues to prioritize debt reduction alongside business investments. Although management raised its full-year adjusted EPS guidance, the expected third-quarter adjusted loss highlights the uneven nature of the recovery.
How Do CBRL and BLMN Compare on Estimates?
For Cracker Barrel, the Zacks Consensus Estimates for fiscal 2027 and 2028 EPS indicate year-over-year growth of 95% and 21.8%, respectively. Earnings estimates for both fiscal years have been revised upward over the past 30 days, signaling improving analyst expectations.
Image Source: Zacks Investment Research
In contrast, the Zacks Consensus Estimates for Bloomin’ Brands project an EPS decline of 22.5% for the current year, followed by growth of 7.7% next year. However, estimates for both periods have moved higher over the past 30 days, indicating that analyst sentiment is improving despite the near-term earnings pressure.
Image Source: Zacks Investment Research
Price Performance & Valuation
CBRL has significantly outperformed the restaurant industry over the past year. Its shares gained 90.5% against the industry's 9.1% decline. BLMN’s shares have also advanced, rising 20.9% over the same period. While both stocks have delivered positive returns, CBRL's stronger share-price performance reflects greater investor optimism about its recovery prospects.
Price Performance
Image Source: Zacks Investment Research
CBRL currently trades at 0.45X forward 12-month sales, above its one-year median of 0.22X. BLMN trades at 0.19X, also above its one-year median of 0.16X.
P/S (F12M)
Image Source: Zacks Investment Research
End Notes
Cracker Barrel appears to be the stronger investment choice at present, supported by more favorable earnings prospects and upward estimate revisions. Its turnaround strategy, improving operational performance, differentiated dining and retail model and focus on restoring profitability provide potential catalysts for further improvement.
In contrast, Bloomin’ Brands is making progress with its Outback Steakhouse turnaround, but persistent traffic weakness, earnings pressure and elevated debt remain concerns. Although CBRL trades at a higher sales multiple relative to the historical valuation, the stronger earnings outlook and Zacks Rank #1 (Strong Buy) make it more attractive than BLMN, which carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
View the Zacks #1 Rank List
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CBRL vs. BLMN: Which Restaurant Stock Is the Better Buy Now?
Key Takeaways
The U.S. casual-dining industry remains highly competitive, with restaurant operators facing shifting consumer preferences, persistent cost pressures and the challenge of attracting diners without sacrificing profitability. Against this backdrop, Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) and Bloomin' Brands, Inc. (BLMN - Free Report) offer investors two distinct turnaround stories to evaluate.
Cracker Barrel is working to strengthen its traditional dining experience and improve operating performance, while Bloomin’ Brands is focused on revitalizing the restaurant portfolio, led by Outback Steakhouse. With both companies seeking to improve results in a demanding market, which restaurant stock offers the more compelling combination of growth potential, financial resilience and value for investors right now?
The Case for Cracker Barrel
Cracker Barrel is working to rebuild its business by sharpening focus on food quality, customer experience and operational execution. Newly appointed CEO David Deno believes the company has a strong foundation, supported by its differentiated brand, loyal customer base and dedicated workforce. Management plans to concentrate on initiatives that can meaningfully improve guest satisfaction and business performance rather than spreading resources across too many priorities. This focused approach, combined with improving operating trends, could help Cracker Barrel strengthen its competitive position and restore sustainable growth.
Menu improvements and value-focused offerings present another growth opportunity. Cracker Barrel plans to enhance the dinner menu, particularly its chicken, hamburger and steak offerings, while building on the established strength in breakfast. The company is also refining menu options to encourage customers to add appetizers, shareables, sides and desserts to their orders. These initiatives could improve customer satisfaction while supporting a favorable menu mix and higher margins.
The company’s competitive pricing further strengthens its appeal, particularly among budget-conscious diners. With a lower average check than the broader casual-dining and family-dining categories, Cracker Barrel has an opportunity to attract guests seeking an affordable full-service restaurant experience. The company's retail business and loyalty program provide additional avenues for customer engagement and sales growth. Unlike most full-service restaurant operators, Cracker Barrel combines dining with an in-store shopping experience, giving it another way to differentiate the brand and generate revenues.
Management intends to improve store layouts, product displays and merchandise selection to make shopping more convenient and appealing. Meanwhile, its Cracker Barrel Rewards program has more than 12.5 million members, accounting for over 40% of tracked sales. The company is enhancing personalization and its digital platforms to make interactions more seamless. Leveraging these capabilities could help drive repeat visits, improve marketing effectiveness and generate additional traffic across its restaurants and retail stores.
Improving operations and a stronger balance sheet could support the turnaround. Better guest satisfaction scores and employee retention trends indicate progress in restaurant execution. Management expects fiscal 2027 adjusted EBITDA of $180-$200 million, supported by improving traffic, menu-mix initiatives and cost efficiencies. Lower debt and ample liquidity also provide flexibility to invest in the business and strengthen cash flow.
However, CBRL faces challenges from declining restaurant traffic, persistent commodity inflation and pressure on lower-income consumers. The company must sustain its operational improvements and deliver on the fiscal 2027 outlook to establish a durable recovery.
The Case for BLMN
Bloomin’ Brands is making progress with its turnaround strategy, led by efforts to improve Outback Steakhouse’s food quality, service and overall dining experience. The company has reported year-over-year improvements in Outback’s guest satisfaction scores for four consecutive quarters. Its revised service model, upgraded steak offerings and restaurant refreshes could strengthen customer loyalty and help revive traffic. Management also plans to increase brand-focused marketing and invest in restaurant upgrades, positioning the business for a potential recovery in sales and profitability.
Menu innovation and affordability initiatives offer additional growth opportunities. Bloomin’ Brands is encouraging customers to choose premium steak cuts, combination meals, specialty sides and desserts to improve menu mix. Its Aussie 3-Course offer also helps attract price-conscious diners, with many customers opting for higher-priced selections. Meanwhile, Carrabba’s has delivered six consecutive quarters of positive comparable sales, while Bonefish Grill has shown improving traffic trends. These developments suggest that the company’s recovery efforts extend beyond Outback, providing multiple avenues for improving performance.
However, weak traffic remains a key concern, particularly at Outback, where customer visits continued to decline despite better guest satisfaction scores. Converting these improvements into sustained traffic growth will be critical to the turnaround. Persistent commodity inflation and the cost of restaurant renovations and marketing investments could also weigh on near-term margins and cash flow.
Bloomin’ Brands also faces balance-sheet and earnings pressures. The company reported $636 million in net debt at the end of the second quarter of fiscal 2026 and continues to prioritize debt reduction alongside business investments. Although management raised its full-year adjusted EPS guidance, the expected third-quarter adjusted loss highlights the uneven nature of the recovery.
How Do CBRL and BLMN Compare on Estimates?
For Cracker Barrel, the Zacks Consensus Estimates for fiscal 2027 and 2028 EPS indicate year-over-year growth of 95% and 21.8%, respectively. Earnings estimates for both fiscal years have been revised upward over the past 30 days, signaling improving analyst expectations.
Image Source: Zacks Investment Research
In contrast, the Zacks Consensus Estimates for Bloomin’ Brands project an EPS decline of 22.5% for the current year, followed by growth of 7.7% next year. However, estimates for both periods have moved higher over the past 30 days, indicating that analyst sentiment is improving despite the near-term earnings pressure.
Image Source: Zacks Investment Research
Price Performance & Valuation
CBRL has significantly outperformed the restaurant industry over the past year. Its shares gained 90.5% against the industry's 9.1% decline. BLMN’s shares have also advanced, rising 20.9% over the same period. While both stocks have delivered positive returns, CBRL's stronger share-price performance reflects greater investor optimism about its recovery prospects.
Price Performance
Image Source: Zacks Investment Research
CBRL currently trades at 0.45X forward 12-month sales, above its one-year median of 0.22X. BLMN trades at 0.19X, also above its one-year median of 0.16X.
P/S (F12M)
Image Source: Zacks Investment Research
End Notes
Cracker Barrel appears to be the stronger investment choice at present, supported by more favorable earnings prospects and upward estimate revisions. Its turnaround strategy, improving operational performance, differentiated dining and retail model and focus on restoring profitability provide potential catalysts for further improvement.
In contrast, Bloomin’ Brands is making progress with its Outback Steakhouse turnaround, but persistent traffic weakness, earnings pressure and elevated debt remain concerns. Although CBRL trades at a higher sales multiple relative to the historical valuation, the stronger earnings outlook and Zacks Rank #1 (Strong Buy) make it more attractive than BLMN, which carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.