CBRL Stock Forecast & Price Target

Cracker Barrel Old Country Store Inc. is expected to experience an increase in stock value as its turnaround initiatives, including menu innovation and service improvements, are likely to enhance financial performance and valuation metrics. The company has seen a positive trend in traffic, particularly with its loyalty program growing significantly, and is positioned to regain momentum following a recent rebranding setback. Furthermore, the authorization of a $100 million share repurchase plan reinforces Cracker Barrel's commitment to returning capital to shareholders, highlighting its potential for sustainable financial growth and improved relevance among various customer demographics.

Cracker Barrel Old Country Store Inc. has significantly reduced its fiscal 2026 adjusted EBITDA guidance to a range of $70 to $110 million, down from previous expectations of $150 to $190 million, indicating ongoing financial struggles. The company reported a 7.3% decline in traffic for Fiscal 1Q26, which worsened to an 11% drop in Fiscal 2Q26 to date, reflecting challenges in attracting customers amidst rising operational costs. Additionally, the company's adjusted EBITDA margin is guided at 5.0%, a decline of 140 basis points year over year, while the anticipated sales decrease of approximately 2.4% underscores the adverse business environment facing Cracker Barrel.