S&P Equity Research Reiterates 'Sell' on CBRL Group (CBRL)

May 6, 2008 1:21 PM EDT

S&P Equity Research reiterates a 'Sell' rating on CBRL Group (Nasdaq: CBRL).

S&P analyst, M. Basham, says, "CBRL reports comparable-restaurant sales for 5-weeks to 5/4 fell 0.9% on 5.3% drop in traffic, offset by 4.4% higher average check. In contrast to most restaurants saying shift of Easter into March aided April, CBRL's April results were hurt by timing of Easter. For Apr-Q traffic fell 3.3%, nearly offsetting 3.5% higher average check, while comparable retail store sales fell 2.1%. We see lower traffic as indicative of the effect high gas prices are having on American dining behavior. We lower our FY 08 (July) EPS estimate by $0.05 to $2.80, but leave our target price at $31."

CBRL Group, Inc. is a holding company that, through its subsidiaries, is principally engaged in the operation and development of the Cracker Barrel Old Country Store restaurant and retail concept. [SM]

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