Wells Fargo Resumes Coverage on Cracker Barrel (CBRL) at Market Perform; Expecting SSS Outperformance, But Shares Fairly Valued

Wells Fargo resumes coverage on Cracker Barrel (NASDAQ: CBRL) with a Market Perform. PT range $62-66.

Analyst, Jeff Farmer, said, "We expect to see continued same-store sales (SSS)
outperformance in FY2013, but we are on the sidelines, with CBRL shares
materially outperforming both the peer group and the market in recent months."

"The FY2013 Street estimate needs to come down, in our view. The current FY2013 consensus estimate stands at $4.70, up 9% versus FY2012, at $4.32. The FY2012 estimate includes a $0.25 per share benefit from a fifty-third week, and that CBRL has guided to 4-6% commodity inflation in FY2013. This implies that the Street is looking for 15% EPS growth in FY2013 on a 52-week/52-week basis, which is unlikely given the expected commodity inflation."

For an analyst ratings summary and ratings history on Cracker Barrel click here. For more ratings news on Cracker Barrel click here.

Shares of Cracker Barrel closed at $58.08 yesterday.

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