"CBRL's 1–2 percent SSS guidance range is the lowest in five years for the company and reflects an expectation for continued sector headwind in coming quarters as well as dwindling menu pricing power," Wells Fargo analyst Jeff Farmer wrote in a note.
Cracker Barrel introduced FY17 EBIT margin guidance in the range of 9.5 to 10.0 percent versus the 9.6 percent margin reported in FY16.
"CBRL has guided to 2–3 percent commodity basket deflation and 1–2 percent menu pricing, which when using the middle of the range for both implies the company could see as much as 100bps of COGS favorability," Farmer noted.
However, Farmer cut his FY17 EPS estimate to $8.07 (+7 percent year-over-year and at high end of $7.95–$8.10 guidance range) from $8.36. The analyst, who has a Market Perform rating on the stock, also trimmed his valuation range to $130–$135 from $162–$166.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
