Earnings Outlook: Cracker Barrel Old Country Store (CBRL) Anticipates Lower Q2 Results

Cracker Barrel Old Country Store Q1 2026 Earnings Preview

Cracker Barrel Old Country Store (CBRL) is anticipated to report lower earnings and revenue for the quarter ending January 2026 compared to the previous year. While market consensus provides a general outlook, the actual results could significantly influence the company's share price in the short term, depending on whether they surpass or fall short of expectations.

The upcoming earnings announcement, scheduled for March 4, could drive the stock higher if the company delivers results above forecasts. Conversely, disappointing figures may put downward pressure on the stock.

Although management’s commentary during the earnings call will play a crucial role in shaping investor sentiment and future projections, understanding the likelihood of an earnings surprise can offer valuable perspective.

Zacks Consensus Forecast

Analysts expect Cracker Barrel to post a quarterly loss of $0.10 per share, reflecting a year-over-year decline of 107.3%. Revenue is projected to reach $895.83 million, representing a 5.7% decrease from the same period last year.

Trends in Estimate Revisions

Over the past month, the consensus estimate for earnings per share has been revised upward by 41.36%. This shift indicates that analysts have recently become more optimistic about the company’s performance. However, it’s important to note that the overall change may not capture the direction of every individual analyst’s revision.

Understanding Earnings ESP

Changes in analyst estimates ahead of earnings releases can reveal insights into the company’s current business environment. The Zacks Earnings ESP (Expected Surprise Prediction) model is designed to predict potential earnings surprises by comparing the Most Accurate Estimate to the Zacks Consensus Estimate. The Most Accurate Estimate reflects the latest analyst updates, which may incorporate more current information than earlier forecasts.

A positive Earnings ESP suggests a higher likelihood of an earnings beat, especially when paired with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold). According to Zacks research, stocks with this combination deliver a positive surprise nearly 70% of the time, and a strong Zacks Rank further enhances the model’s predictive power.

It’s important to remember that a negative ESP does not necessarily mean the company will miss estimates. Predicting an earnings beat becomes much less reliable for stocks with a negative ESP or a Zacks Rank of #4 (Sell) or #5 (Strong Sell).

Recent Performance for Cracker Barrel

For Cracker Barrel, the Most Accurate Estimate currently exceeds the Zacks Consensus Estimate, indicating that analysts have recently become more positive about the company’s outlook. This results in an Earnings ESP of +275.61%. However, the stock holds a Zacks Rank of #4, making it challenging to confidently predict an earnings beat this quarter.

Does Past Earnings Surprise Matter?

Analysts often look at a company’s track record of meeting or exceeding consensus estimates when forecasting future results. In the previous quarter, Cracker Barrel was expected to report a loss of $0.78 per share but actually posted a narrower loss of $0.74, resulting in a positive surprise of 5.13%. Over the last four quarters, the company has exceeded consensus EPS estimates three times.

Key Takeaways

While beating or missing earnings estimates can influence a stock’s movement, other factors often play a role in post-earnings performance. Some stocks may decline despite an earnings beat due to other concerns, while others may rise even after missing expectations if positive catalysts emerge.

Nonetheless, focusing on companies likely to outperform earnings forecasts can improve investment outcomes. Checking a company’s Earnings ESP and Zacks Rank before earnings releases is a useful strategy. Use the Earnings ESP Filter to identify promising stocks before they report results.

Cracker Barrel may not be the strongest candidate for an earnings beat this quarter, but investors should consider additional factors before making investment decisions around its earnings release.

Stay updated on upcoming earnings announcements with the Zacks Earnings Calendar.

Is Cracker Barrel Old Country Store (CBRL) a Good Investment?

Before investing in Cracker Barrel Old Country Store, Inc. (CBRL), you may want to explore the top stock picks for the next month. Zacks Investment Research offers a complimentary report on the 7 best stocks to buy now.

Since 1978, Zacks Investment Research has provided independent analysis and tools for investors. Over more than 25 years, the Zacks Rank stock-rating system has outperformed the S&P 500, delivering an average annual return of 24.08% from January 1, 1988, through May 6, 2024.

For the latest stock recommendations from Zacks Investment Research, you can download the 7 Best Stocks for the Next 30 Days. Get the free report here.

Cracker Barrel Old Country Store, Inc. (CBRL): Free Stock Analysis Report

Read the original article on Zacks Investment Research

Zacks Investment Research