Why Cracker Barrel Stock Slid Another 14% Last Month
Shares of restaurant chain Cracker Barrel (NASDAQ: CBRL) continued their slide in June by dropping 13.6%, according to data from S&P Global Market Intelligence. The company closed out May by reporting lackluster financial results, which resulted in plenty of analyst downgrades. And with nothing happening in June to improve the outlook, the stock continued drifting lower throughout the month.
For perspective on how bad things are for shareholders, Cracker Barrel stock trades below $40 per share as of this writing. The last time it was this low was in late 2011 -- nearly 13 years ago. Over the past decade, the chain has opened new locations and grown revenue. But in its fiscal third quarter of 2024, the period that ended on April 26, it posted a net loss of $9 million, which is a problem for a business this mature.
Truist Securities analyst Jake Bartlett lowered his price target for Cracker Barrel stock on May 31 and called it a "show me" story, according to Investing.com. In other words, Cracker Barrel has shared a turnaround plan. Almost all struggling companies do. But Bartlett believes it should demonstrate progress before investors can believe it.
Source Fool.com
