Cracker Barrel Old Country Store (CBRL) shares soared 13.4% in the last trading session to close at $62.05. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.6% gain over the past four weeks.
Shares of this American restaurant chain operator are likely to have boosted given the implementation of various strategic initiatives. The efforts including menu innovations, sales-building, loyalty program and unit expansion, are likely to have boosted the investors’ sentiments.
This restaurant operator is expected to post quarterly earnings of $1 per share in its upcoming report, which represents a year-over-year change of -27%. Revenues are expected to be $941.1 million, up 0.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Cracker Barrel, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CBRL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Cracker Barrel belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Cheesecake Factory (CAKE), closed the last trading session 6.2% higher at $51.79. Over the past month, CAKE has returned 2.7%.
For Cheesecake Factory
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