Why Cracker Barrel (CBRL) Shares Are Plunging Today

Jabin Bastian /
2023/11/30 2:14 pm EST

What Happened:

Shares of restaurant company Cracker Barrel (NASDAQ:CBRL) fell 5.2% in the morning session after the company reported first quarter results that missed analysts' revenue and EPS expectations. Same-store sales were in line, though they declined in absolute terms as traffic declined and more than offset the positive contribution from pricing growth. Adding to the negatives was the fact that Cracker Barrel initiated fiscal 2024 guidance below Wall Street Consensus for revenue and operating margin. Overall, it was a weaker quarter for the company, and the results could have been better.

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What is the market telling us:

Cracker Barrel's shares are somewhat volatile and over the last year have had 9 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Cracker Barrel is down 26.9% since the beginning of the year, and at $69.01 per share it is trading 42.6% below its 52-week high of $120.13 from April 2023. Investors who bought $1,000 worth of Cracker Barrel's shares 5 years ago would now be looking at an investment worth $381.70.

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