Cracker Barrel price target raised to $42 from $40 at BofA

BofA raised the firm’s price target on Cracker Barrel to $42 from $40 and keeps an Underperform rating on the shares. Q4 Restaurant same-store sales growth of 0.4%, while in line with expectations, was “notable” as its composition highlights sequentially improving mix and traffic, the analyst tells investors. However, although mix is improving and spending trends are stable among the greater than $60,000 income cohorts, the firm sees risk to traffic/mix trends against incremental pricing, particularly as casual dining peers are increasing value messaging, the analyst tells investors.