Cracker Barrel initiated with a Neutral at UBS

UBS analyst Dennis Geiger initiated coverage of Cracker Barrel with a Neutral rating and $105 price target. Cracker Barrel’s differentiated brands and enhancements to menu, off-premise, and digital highlight improvements in recent years support same-store sales growth, free cash flow generation and capital returns to shareholders, Geiger says in a research note. The analyst thinks Cracker Barrel can accelerate unit development to 2.5%-3% over the next 3 years and a sees potential margin expansion opportunity, but thinks risk/reward is balanced given lingering cost pressures and limited visibility into macro headwinds.