- Truist securities analyst Jake Bartlett reiterated a Hold rating on the shares of Cracker Barrel Old Country Store Inc (NASDAQ:CBRL) and lowered the price target from $105 to $103.
- The analyst lowered FY23 and FY24 adjusted EPS estimates to $5.87 and $7.02, respectively, from $6.06 and $7.42.
- The analyst estimated a total sales growth of +6.8% in FY23, slightly below the low end of +7-9% guidance.
- The analyst expects favorable commodity price movements to partially offset the impact of lower-than-expected sales.
- With the data pointing to weaker sales trends in May, creating risk to FY23 guidance, the analyst sees a slight EPS beat.
- In addition to the analyst’s expectation of muted same-store-sales trends, Cracker Barrel has closed at least 6 stores in FY23 and Maple Street has closed 2.
- Store closures, according to the analyst, are likely to affect sales.
- The analyst believes commodities have become more favorable but has lowered FY23 operating margin estimates to 4.7% from 4.8% due to lower sales.
- Price Action: CBRL shares are trading lower by 1.17% at $101.14 on the last check Wednesday.
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