Cracker Barrel, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Anthony Trainor from Wells Fargo maintained a Hold rating on the stock and has a $42.00 price target.
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Anthony Trainor has given his Hold rating due to a combination of factors affecting Cracker Barrel’s current market position. The company is facing near-term uncertainties, particularly with negative trends in holiday promotions and labor costs, which are seen as potential risks. However, the stock’s valuation, trading at around 8 times the estimated EBITDA for fiscal year 2026, might offer some downside protection.
Investor sentiment is mixed, with some expressing frustration over the company’s strategic direction and others viewing the current challenges as temporary. Management is focusing on improving customer experience and profitability, but the strategy involves costly discounting measures that may not address deeper issues. Despite these challenges, Cracker Barrel’s average check remains competitive, and the company is not considering closing any stores, as most remain profitable.
In another report released on October 22, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $39.00 price target.