- Although the fundamentals look great the stock has traded sideways for the past 5 years.
- Valuations are getting a bit ahead though, with the company trading at 30x and 16x forward earnings for FY 2021 and 22’ respectively.
- The market might be pricing in a return to “normal”, but also it could be pricing in a positive outcome from a recent board room battle with Biglari Capital.
- A slow down in growth assumptions could deflate expectations and multiple contraction becomes a risk.
For further details see:
The Market Is Already Pricing In A Rebound In Cracker Barrel