Cracker Barrel Old Country Store (NASDAQ:CBRL) analysts remain cautious on the restaurant company amid public backlash on a logo rebrand after the company reported fourth-quarter financial results on Wednesday.
The Cracker Barrel Analysts: Bank of America Securities analyst Sara Senatore reiterated an Underperform rating on Cracker Barrel and lowered the price target from $48 to $42.
Piper Sandler analyst Brian Mullan maintained a Neutral rating on Cracker Barrel and lowered the price target from $56 to $49.
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Bank of America on CBRL: Cracker Barrel's fourth quarter results and forward guidance show the response to the company's rebrand and could hurt the stock, Senatore said in a new investor note.
"Negative rebrand response a setback for turnaround," Senatore said.
The analyst said Cracker Barrel's momentum has stalled due to the backlash.
Senatore said Cracker Barrel's fourth-quarter comparable restaurant sales were +5.4% versus consensus estimates of +3.9%.
The analyst said the sales momentum was "overshadowed" by the backlash to the company's logo change and store décor changes.
"With younger consumers reacting more strongly than older consumers, we see risk that efforts to evolve the brand have been stymied, at least temporarily."
Senatore said the company's reduced EBITDA outlook and sales guidance below estimates could signal lower stock returns ahead.
Piper Sandler on CBRL: Traffic declines in the current quarter and updated guidance will likely lead to a decrease in share price, Mullan said in a new investor note.
The analyst said that Cracker Barrel's fourth quarter traffic was down 1% and remained around that level for the first 18 days of the current first quarter.
"Following the unveiling of the new logo on August 19 and the related media attention, traffic has been running down ~8%," Mullan said.
The analyst said 2026 guidance was below consensus and shows the potential for traffic down 4% to 7% for the full fiscal year. EBITDA guidance was also well below estimates.
"As a result, we'd expect the shares to be under pressure (Thursday)."
Mullan lowered estimates for the company after the results and guidance.
"We will be closely monitoring any signs of recovery in traffic from here, at which time we could envision investors being willing to look out to FY2027e as the year to anchor to for valuation purposes."
CBRL Price Action: Cracker Barrel stock is down 5.3% on Thursday, versus a 52-week trading range of $33.86 to $71.93. Cracker Barrel stock has fallen 14.5% year-to-date in 2025.
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