Restaurant/retail store operator Cracker Barrel Old Country
Store, Inc. (
) on Friday received a big downgrade from analysts at KeyBanc.
The firm lowered its rating on CBRL from "Buy" to "Hold," citing
worries about food inflation costs.
A KeyBanc analyst commented, "In the near term, we believe share
appreciation is limited as elevated commodity costs will likely
cause estimates to be revised downward. We lowered our FY13 EPS
estimate to $4.60 from $4.67 (Street $4.70), because we expect
Cracker Barrel's food cost inflation to be toward the high end of
the 4-6% guided range during FY13 (July). We continue to have a
favorable long-term bias toward the Company as management's
sales-building plan should fuel momentum; guest traffic and SRS
have been positive the past two quarters."
Cracker Barrel shares fell $2.17, or -3.3%, in premarket trading
The Bottom Line
Shares of Cracker Barrel (
) have a 2.42% dividend yield, based on last night's closing stock
price of $66.17. The stock has technical support in the $60-$61
price area. The shares are trading at all-time highs.
Cracker Barrel Old Country Store, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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