Jim Cramer is Talking About These 12 Stocks

10. Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)

Number of Hedge Fund Holders: 17

In his September 30’s Mad Money episode, Cramer said not to sell Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) and highlighted that the stock lifted in the previous week. It went up 13.35% between September 23 and September 27.

Established in 1969, the company runs a distinctive chain of restaurants combined with gift shops across the United States. These establishments serve a variety of meals, including breakfast, lunch, and dinner, while also offering dine-in, pick-up, and delivery options.

The gift shops feature an eclectic range of items, from rocking chairs and seasonal gifts to apparel and specialty foods, which offer a unique shopping experience alongside dining.

Cramer made a specific note of the CEO, Julie Felss Masino, saying that “she’s doing a good job.” Recently, under the leadership of the new CEO, Cracker Barrel (NASDAQ:CBRL) is navigating a period of transformation. In May during a conference call, Masino acknowledged that the company “has lost some of its shine” and requires changes to attract both current and new customers.

During the fiscal Q4 earnings call, Masino articulated five strategic pillars that will guide the company’s future: refining the brand, enhancing the menu, evolving the in-store and guest experience, excelling in digital and off-premise services, and elevating the employee experience. These initiatives show management’s comprehensive approach to revitalizing the brand.

During the call, Masino highlighted the company’s optimized pricing initiative, which has been positively received as it contributed to increased customer traffic and sales, particularly in remodeled pilot stores.

A significant aspect of Cracker Barrel’s (NASDAQ:CBRL) strategy has been the introduction of its loyalty program, Cracker Barrel Rewards, which launched just a year ago. With 6 million members already, the program has exceeded management’s expectations and is a reminder of the brand’s value proposition.

Masino said that members tend to visit the restaurants 50% more frequently and spend 10% more per visit compared to nonmembers. Additionally, these loyal customers show a strong inclination toward retail purchases, with average spending on gift shop items about 40% higher than that of non-members.