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Cracker Barrel Old Country Store, Inc. (CBRL) Hits Fresh High: Is There Still Room to Run?

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Shares of Cracker Barrel Old Country Store (CBRL - Free Report) have been strong performers lately, with the stock up 40.1% over the past month. The stock hit a new 52-week high of $73.5 in the previous session. Cracker Barrel has gained 185.2% since the start of the year compared to the -0.5% move for the Zacks Retail-Wholesale sector and the -5.2% return for the Zacks Retail - Restaurants industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on September 23, 2026, Cracker Barrel reported EPS of $0.99 versus consensus estimate of $0.2 while it beat the consensus revenue estimate by 2.19%.

For the current fiscal year, Cracker Barrel is expected to post earnings of $1.56 per share on $3.37 in revenues. This represents a 95% change in EPS on a 1.49% change in revenues. For the next fiscal year, the company is expected to earn $1.9 per share on $3.53 in revenues. This represents a year-over-year change of 21.79% and 4.75%, respectively.

Valuation Metrics

Though Cracker Barrel has recently hit a 52-week high, what is next for Cracker Barrel? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Cracker Barrel has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 46.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 21.8X. On a trailing cash flow basis, the stock currently trades at 10.3X versus its peer group's average of 10.3X. Additionally, the stock has a PEG ratio of 1.72. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Cracker Barrel currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cracker Barrel passes the test. Thus, it seems as though Cracker Barrel shares could have potential in the weeks and months to come.

How Does CBRL Stack Up to the Competition?

Shares of CBRL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Yum China (YUMC - Free Report) . YUMC has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of C.

Earnings were strong last quarter. Yum China beat our consensus estimate by 1.45%, and for the current fiscal year, YUMC is expected to post earnings of $2.95 per share on revenue of $13 billion.

Shares of Yum China have gained 10.4% over the past month, and currently trade at a forward P/E of 15.31X and a P/CF of 11.86X.

The Retail - Restaurants industry may rank in the bottom 59% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for CBRL and YUMC, even beyond their own solid fundamental situation.

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