We recently published a list titled Jim Cramer is Recommending These 10 Stocks in June. Since Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) ranks 10th in the list, it deserves a deeper look.
Jim Cramer in a latest program talked about the effect of inflation on US consumers and discussed how it’s impacting the Haves and the Have Nots. Cramer said while everyone is feeling the “pinch of inflation,” the Have Nots are feeling a “heck of a lot more” than the Haves. Cramer said that the difference between these two classes of consumers is very important for investment portfolios. He complained that many retailers don’t even know their consumers and that’s why they have a totally different reading of the current economic situation and its effects on consumers. Cramer criticized those who aren’t careful about the differences between consumers and use “the consumer” as a blanket term.
Cramer talked about several retail companies and how they are directly feeling the effects of inflation as consumers cut back on spending. The CNBC host said that Americans are making tough choices because of rising prices but we usually don’t talk about it.
Jim Cramer said that many strategists demand several rate cuts because “they want stocks higher.”
“I want higher stock prices too but if we get multiple rate cuts and inflation comes roaring back, it’s the Have Nots that will get hurt.”
Jay Powell Is Worried About Tens of Millions of People With Almost Nothing in the Bank, Cramer Says
Jim Cramer said that while many people won’t be happy to see a strong jobs report (because that decreases the chances of rate cuts), they should keep in mind the tough situation the Federal Reserve is in.
“Jay Powell isn’t worried about those of us with big portfolios. He’s worried about the tens of millions of people with almost nothing in the bank.”
For this article we watched several latest programs of Jim Cramer aired recently and picked 10 stocks he’s bullish about and recommending investors to buy or hold. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)
Number of Hedge Fund Investors: 18
Jim Cramer yet again praised Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) in a latest program, saying that he likes the company’s CEO Julie Felss Masino because she is taking all the tough but necessary decisions. Cramer said Masino’s initiatives depict leadership and courage.
“I am with her. I would not sell that stock.”
A few weeks ago, Cramer said that he is “amazed” that Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) stock has “dropped like a rock” and wondered how the company can “cover that dividend.”
Cramer analyzed Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) in detail recently, acknowledging Cracker Barrel Old Country Store, Inc.’s (NASDAQ:CBRL) struggles but saying he’s hopeful of a turnaround amid a new CEO and restructuring plans. At that time Cramer told investors to wait until we get clarity on Cracker Barrel Old Country Store, Inc.’s (NASDAQ:CBRL) dividend future.
Cracker Barrel Old Country Store, Inc.’s (NASDAQ:CBRL) CEO talked in detail about her planned transformation of the company during the latest earnings call:
“We did extensive research and really putting together the transformation plan. We talk to guests all over the country, all different kind of segments, all kinds of backgrounds and also listen to our team members and really took great stock and kind of where we find ourselves. And with traffic down almost 20% to 2019, they’re telling us they’re not choosing us. And so digging into the lives there was really, really important. We heard from them that the experience in Cracker Barrel just isn’t as relevant specifically at dinner. So we — and our dinner sales are down. When you look at that year-over-year, it’s 35% of our mix, and it’s an important daypart for us. We’ve held up quite well at breakfast.
But what guests have told us is that the Cracker Barrel experience, there are more relevant choices for them in the dinner daypart based on the experiential factors. So a lot of that is looking at the comfort of the tables, the lighting, the paint, all of those things.”
Read the full earnings call transcript here.
Overall, Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) ranks 10th on Insider Monkey’s list of Jim Cramer is Recommending These 10 Stocks in June. You can visit Jim Cramer is Recommending These 10 Stocks in June to see other stocks in the list. While we acknowledge the potential of Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.