Cracker Barrel: The Road To Relevance Goes Through Five Pillars

Pedro Goulart
574 Followers
(30min)

Summary

  • Cracker Barrel Old Country Store has been facing challenges with declining traffic, stagnant revenue, and rising operating costs.
  • The company is implementing a 'Five Pillar Strategy' to restructure marketing, remodel the menu, invest in lean units, focus on digital sales, and elevate the employee experience.
  • Based on valuation models and comparisons with peers, the target price for Cracker Barrel stock is approximately $54, with a recommendation to 'Hold' due to signs of recovery taking time to materialize.

Localização de Old Country Store em Cracker Barrel

helen89/iStock Editorial via Getty Images

Introduction and operational developments

Today we're going to analyze a chain of full-service restaurants that, according to the CEO herself, "lost some of its shine" in recent years. I'm talking about Cracker Barrel Old Country Store (

This article was written by

574 Followers
Stock analyst, writer (praxeology & Mengerian Theory), accountant, and founder of Goulart Restaurant Stocks—serving up fresh, flavorful investment insights. I also cover casinos and gaming, food companies, consumer discretionary stocks, and IPOs, with a keen eye for hidden gems in micro and small caps.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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