Cracker Barrel Old Country Store's (CBRL) unexpected CEO transition should support business recovery over the longer-term through enhanced focus on executing the company's turnaround plan, while prioritizing cost efficiencies and margin management, UBS said in a Tuesday research report.
Shares have rallied this year partly due to improving Q3 trends, but earnings power remains depressed as visibility into a greater traffic recovery trajectory is limited amid macroeconomic headwinds, according to the note.
New CEO David Deno is also likely to work on improving the food offering, enhancing service consistency, and boosting profitability, analysts wrote.
The brokerage said it reiterated its neutral rating on the stock and price target of $37 per share.
Price: $52.34, Change: $-0.09, Percent Change: -0.18%