Cracker Barrel raises annual targets as shares surge on earnings rebound

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Cracker Barrel raises outlook

Highlights

Cracker Barrel raises annual revenue guidance to $3.27 billion–$3.30 billion and adjusted EBITDA forecast to $120 million–$125 million for 2024.
Q3 adjusted profit at 29 cents per share beats analyst consensus of a 45-cent loss, driving shares up as much as 34.7% to $48.91.
Wells Fargo upgrades Cracker Barrel to overweight, citing a turnaround as shares rise 42% year-to-date despite high short interest and a P/E ratio of 103.14.

Upgraded guidance and improving traffic

As reported by Reuters, Cracker Barrel says customer visits are improving gradually, while consumers are responding to add-ons and value-focused bundled menu items, according to executives on a post-earnings call on Tuesday.

The company now expects annual revenue of $3.27 billion to $3.30 billion, up from its previous target of $3.24 billion to $3.27 billion. It also raises its adjusted EBITDA forecast to $120 million to $125 million from $85 million to $100 million.

For the third quarter ended May 1, Cracker Barrel reports adjusted profit of 29 cents per share, versus analysts' expectations for a loss of 45 cents per share, according to LSEG data.

Market reaction and turnaround outlook

Wells Fargo upgrades the stock to overweight and says the latest results confirm that a turnaround is gaining ground. Cracker Barrel shares jump as much as 34.7% on Wednesday to a near nine-month high of $48.91.

The company had faced criticism from conservatives, including U.S. President Donald Trump, after changing its decades-old logo showing the overalls-clad character known as Uncle Herschel leaning against a barrel. The new logo, announced on August 19, remained in place for about a week, and the stock is still down about 40% since that change, as of the last close.

Even so, the shares are up about 42% this year and carry a high level of short interest. Cracker Barrel's 12-month forward price-to-earnings ratio stands at 103.14, compared with an industry median of 14.85, according to LSEG.

Our earlier analysis of Dutch Bros (BROS) focused on the stock’s strong technical setup, with shares trading above key moving averages while momentum indicators flashed overbought conditions. We also noted that trend strength looked fragile, meaning the rally could either extend on a breakout or cool quickly if momentum fades—an approach that helps frame how investors are reacting to company-specific catalysts and shifting sentiment in consumer-facing names.

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