Why Cracker Barrel Stock Is Finally Bouncing Back Today
Shares of restaurant chain Cracker Barrel (NASDAQ: CBRL) have been steadily sliding downwards since early 2021. And on Wednesday, the stock was trading close to its lowest price in over a decade. But the company released results for its fiscal 2025 second quarter on Thursday morning and raised its guidance. And that's why Cracker Barrel stock is bouncing back after years of declines, up by as much as 27% early in Thursday's session and up by about 8% as of 12:15 p.m. ET.Sometimes, investors have such low expectations for a business that anything positive can send its shares soaring. I believe that's the situation with Cracker Barrel now. For its fiscal Q2, which ended Jan. 31, revenue was only up 1.5% year over year and its net income actually dropped by 16%. Neither of those metrics is impressive in isolation. But weighed against investors' low expectations, the company's results looked relatively strong.Cracker Barrel's management had been guiding for full-year revenue of $3.4 billion to $3.5 billion. The midpoint of that range would have been a decline from its fiscal 2024 revenue of $3.47 billion. But on Thursday, management raised the low end of its guidance range to $3.45 billion. This suggests that its sales trends are to be stabilizing, which is encouraging news.Continue reading
Shares of restaurant chain Cracker Barrel (NASDAQ: CBRL) have been steadily sliding downwards since early 2021. And on Wednesday, the stock was trading close to its lowest price in over a decade. But the company released results for its fiscal 2025 second quarter on Thursday morning and raised its guidance. And that's why Cracker Barrel stock is bouncing back after years of declines, up by as much as 27% early in Thursday's session and up by about 8% as of 12:15 p.m. ET.
Sometimes, investors have such low expectations for a business that anything positive can send its shares soaring. I believe that's the situation with Cracker Barrel now. For its fiscal Q2, which ended Jan. 31, revenue was only up 1.5% year over year and its net income actually dropped by 16%. Neither of those metrics is impressive in isolation. But weighed against investors' low expectations, the company's results looked relatively strong.
Cracker Barrel's management had been guiding for full-year revenue of $3.4 billion to $3.5 billion. The midpoint of that range would have been a decline from its fiscal 2024 revenue of $3.47 billion. But on Thursday, management raised the low end of its guidance range to $3.45 billion. This suggests that its sales trends are to be stabilizing, which is encouraging news.
