Cracker Barrel price target lowered to $79 from $85 at Truist

Truist lowered the firm’s price target on Cracker Barrel to $79 from $85 and keeps a Hold rating on the shares. The company’s Q4 comps missed estimates, while its Q1 margin guidance was “weak”, the analyst tells investors in a research note. Truist adds that while the firm anticipated weak sales trends, the level of margin pressure guided to in Q1 was a surprise, especially given expected commodity deflation and cost cuts, suggesting past under-investment in labor and marketing. While the initiatives such as value marketing and the loyalty launch may revive traffic faster than expected, little visibility warrants a “conservative approach to estimates”, the firm stated.