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Cracker Barrel Old Country Store, recovering from an ill-fated image makeover, is expected to report a drop in fiscal fourth-quarter revenue and profit when it reports results after the markets close on Wednesday. Analysts said its projections for 2026 are key, although the expectations are low.
Shares of the company were up over 0.5% in early premarket trading on Wednesday.
The iconic country store and restaurant chain was in the news recently, after its plans to change its logo and remodel stores faced backlash from some customers and the While House. The criticism stemmed from what some, including U.S. President Donald Trump, saw as the company's attempt to surrender the brand's country roots.
It ultimately shelved the new logo and store remodel; however, it is going ahead with the planned changes to its menus.
In an investor note, Truist analysts projected a highly uncertain but positive setup heading into the quarter, given very low investor expectations. Even though the short interest for the stock is near a 17-year high, singaling expectations of the stock falling, shelving the remodel plan frees up cash that can be used elsewhere.
However, Citi, which has a 'Sell' rating on the stock, sees the turnaround momentum being stalled as a result, likely curbing growth.
Cracker Barrel is expected to report a 4.4% decline in revenue in the last quarter, according to analysts' consensus estimate from Koyfin. Sales rose in the preceding four quarters. Adjusted per share profit is seen declining 21.4%.
On Stocktwits, the retail sentiment for CBRL was 'bullish' as of early Wednesday. The stock is down 3.1% year-to-date.
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