1 Stock Is in the Spotlight for All the Right Reasons. Here's Why It's a Buy Now.

Cracker Barrel Old Country Store (CBRL) is a restaurant chain known for its country cooking and gift shops, but it has faced challenges in recent years. The company reported a 5% drop in revenue during fiscal year 2026. However, new CEO David Deno has taken the helm and the stock has surged by around 180% since hitting a low of $24.85 in December 2024.

The latest earnings report, for the fiscal fourth quarter ending July 31, 2026, surpassed analysts' expectations with $849 million in revenue and adjusted earnings of $0.99 per share, compared to the projected $835 million and $0.17 per share. Deno's strategy focuses on doing fewer things better, including offering guests a choice of three sides on their meals to boost profit margins without raising prices.

Management is also exploring cost-cutting measures, which is seen as the primary driver of the positive stock movement. For fiscal year 2027, comparable-store restaurant sales are expected to grow by 3% to 5%, contributing to an anticipated 29% increase in adjusted operating profit compared to the previous year. Analysts have also increased their earnings estimates, resulting in a forward PEG ratio of 1, indicating potential undervaluation.

While traffic declined by about 6% in the latest quarter, gradual improvement suggests that Cracker Barrel's turnaround may depend more on its own execution than on a stronger economy. If management successfully executes its plan and meets fiscal 2027 guidance, the stock could potentially be undervalued and a worthwhile purchase.