We recently published a list of Jim Cramer October Calls: Top 10 Stocks. Since Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) ranks 9th on the list, it deserves a deeper look.
Jim Cramer in a latest program on CNBC talked about the ills of “complacency” in investing and how sticking to a specific narrative costs investors money. He was criticizing negative analyst reports that keep downgrading stocks.
“We always hear how the bulls are being complacent and ignore downside risk. We almost never hear that the bears are being complacent and missing out on terrific opportunities, which I find to be absurd. Nobody does complacency like the bears. Remember, last night I spent a lot of time talking about how we had a slew of downgrades yesterday that I did not like, and stocks reacting to negative news already. Today, they seem like fortuitous notes that would end up costing you money if you listen to them.”
Cramer said that some analysts like to “take aim” at long-term winners and scare people out of some “amazing gains.” This, Cramer believes, is “downright wrong.” He said that even if investors want to sell a stock based on a downgrade, they should wait for it to “bounce” before pulling the trigger.
For this article we talked about 10 stocks Jim Cramer is talking about during his programs on CNBC. With each company 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).
A bustling restaurant kitchen, where chefs prepare their signature dishes with fresh ingredients.
Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)
Number of Hedge Fund Investors: 17
A caller recently told Jim Cramer he was getting ‘tired’ of Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL). Here was Cramer’s response.
“I’d rather double down on Cracker Barrel. I’ve got to tell you, I think Julie Masino (company CEO) is doing a good job.”
Cramer said the stock started to “lift” recently and urged the caller to “please” not sell the stock.
Cracker Barrel’s CEO is working on a ‘five-pillar” program to turn around the company. What are these pillars? The executive explained in detail these pillars in the latest earnings call:
“ Refining the brand, enhancing the menu, evolving the store and guest experience, winning in digital and off-premise and elevating the employee experience.”
Read the entire earnings call transcript to see the performance on these targets.
The latest quarterly results missed estimates on both EPS and revenue. However, there was an increase in revenue. The fiscal year’s outlook remains within analysts’ expectations. Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) long-term debt stands at around $476 million, representing a debt-to-EBITDA ratio of 2.7 for the fiscal year.
Restaurant sales were slightly up, with total revenue for the quarter reaching $895 million, a 6.9% increase compared to the prior year. However, this figure was inflated by an extra week in the reporting period, without which sales would have been relatively flat. Restaurant comparable sales edged up 0.4%, but retail sales at its stores dropped 4.2%, reflecting ongoing pressure.
Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) guidance for fiscal 2025 aligns with Wall Street’s expectations. The company anticipates revenue between $3.4 billion and $3.5 billion, similar to fiscal 2024, and projects slight sales growth. Analysts believe with rate cuts now started and the turnaround plan gaining steam, the stock could be fruitful for long-term holders.
Overall, Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) ranks 9th on Insider Monkey’s list titled Jim Cramer October Calls: Top 10 Stocks. 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 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.