CBRL Stock On Track To Post Best Single-Day Gains – Wells Fargo Says Cheap Valuation, 27% Short Interest Set Stage For Further Upside

• Wells Fargo upgraded the stock to ‘Overweight’ from ‘Equal Weight’ with a price target of $50, up from $35, according to The Fly
• UBS raised its price target for the stock but said growth visibility is limited.
• Cracker Barrel’s third-quarter revenue came in at $797.4 million, well ahead of analysts’ estimates of $776.6 million, according to Fiscal.ai.

Shares of Cracker Barrel Old Country Store Inc. (CBRL) surged 26% on Wednesday, on track for their largest one-day gain in the stock’s history, as a stronger-than-expected third-quarter performance sparked a wave of optimism on Wall Street, fueling expectations of further upside.

CBRL shares were trading at their highest levels since September 2025.

Wall Street Sees Near-Term Upside In CBRL Stock

On Wednesday, Wells Fargo upgraded the stock to ‘Overweight’ from ‘Equal Weight’ with a price target of $50, up from $35, according to The Fly. Cracker Barrel appears to be turning a corner despite a challenging consumer and macroeconomic backdrop, the firm said.

The brokerage added that the stock still trades at a “cheap” valuation, with short interest standing at 27% and easier year-over-year comparisons expected in fiscal 2027, factors it believes could support additional gains.

Despite raising the price target to $34 from $28, Citi kept a ‘Sell’ rating. The firm said that while the share price may be boosted in the near term, overall traffic trends remain challenging.

UBS analyst Dennis Geiger said the third-quarter (Q3) results indicated stronger-than-expected same-store sales, aided by an ongoing recovery in customer traffic and improved execution of strategic initiatives. While “recovery traction” could lead to further upside, he cautioned that visibility into the recovery remains limited.

Disciplined Cost Management Drives Q3 Earnings

Cracker Barrel topped Street expectations in Q3, reporting revenue of $797.4 million, well ahead of analysts’ estimates of $776.6 million, according to Fiscal.ai. Adjusted earnings came in at $0.29 per share, compared to an expected loss of $0.48 per share.

CEO Julie Masino credited stronger guest ratings and disciplined cost management for the quarter’s upbeat performance and raised the company’s fiscal 2026 revenue outlook.

What is Retail’s Take On CBRL?

Retail sentiment for CBRL on Stocktwits turned ‘extremely bullish’ from ‘bullish’ a day earlier, while message volumes surged by 4,600% over a 24-hour period. 

The stock has gained around 74% so far this year.

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