CBRL - Cracker Barrel gains after attracting buy rating from Argus

2023-03-24 07:15:18 ET

Argus upgraded Cracker Barrel Old Country Store ( NASDAQ: CBRL ) to a Buy rating on Friday after having the restaurant stock set at Hold.

Analyst Kristina Ruggeri said Cracker Barrel ( CBRL ) has seen success with new menu items. In particular, alcoholic beverages and appetizers are noted to appeal to younger customers and helping to raise the chain's average check.

CBRL is noted to have also increased sales by expanding off-premise catering and attracted customers on a budget with value offerings, including $5 takeout meal specials.

Ruggeri and team expect meaningful margin improvement in the second half of the fiscal yea and raise the FY23 EPS estimate on CRBL to $5.90 vs. a prior view for $5.72 and the consensus mark of $5.88.

The kicker on CBRL from Argus is the stock pays an annualized dividend of $5.20 per share and the company continues to buy back stock.

Argus assigned a price target of $126 to Cracker Barrel ( CBRL ) to rep 12% upside potential. Shares of CRBL moved up 0.66% in premarket action on Friday to $113.15.

See all the valuation metrics on Cracker Barrel Old Country Store.

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