Cracker Barrel Old Country Store, Inc (CBRL) stock analysis

P/E above its 5-year median

Cracker Barrel Old Country Store's P/E of 47.2 is above its own 5-year median of 21.3.

P/E above the industry

Cracker Barrel Old Country Store's P/E of 47.2 is above the Eating and Drinking Places median of 28.5.

EV/EBITDA above its 5-year median

Cracker Barrel Old Country Store's EV/EBITDA of 16.1 is above its 5-year median of 9.9.

P/B below the industry

Cracker Barrel Old Country Store's price-to-book of 3.09 is below the Eating and Drinking Places median of 3.13.

Trading above fair value

The share price of $66.13 is above our fair value estimate of $40.35.

Margin of safety under 20%

The price is 63.9% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -1.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -32.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -31.7% over the last twelve months, against a 5-year average of -34.1% a year.

Growing slower than the industry

Revenue grew -4.7% over the last twelve months; the Eating and Drinking Places median is 5.9%.

Guidance lowered

Cracker Barrel Old Country Store lowered its fiscal 2027 Hourly wage inflation outlook on Sep 23, 2026.

Gross margin improving

Gross margin was 69.1% over the last twelve months, against 69.0% a year earlier.

Return on equity under 15%

Return on equity was 6.7% over the last twelve months and averaged 13.6% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -1.5%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Cracker Barrel Old Country Store's return on equity of 6.7% is below the Eating and Drinking Places median of 7.9%.

Earnings shrank over 5 years

Net income shrank 34.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 1.0% over the last twelve months, against a 5-year average of 2.1%.

Net margin below the industry

Cracker Barrel Old Country Store's net margin of 1.0% is below the Eating and Drinking Places median of 1.9%.

High debt

Debt is 70.5% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 49.3% five years ago to 70.5%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 61.1% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.58 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.39; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Cracker Barrel Old Country Store paid dividends worth 1.5% of the share price over the last twelve months.

Yield below Treasuries

The 1.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Cracker Barrel Old Country Store yields 1.5%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 73.1% of net income.

Covered by free cash flow

Dividends take 26.2% of free cash flow.