The Cracker Barrel stock is a tough one to crack. A positive earnings report may see it edge higher, but financials suggest a bearish outlook.

Overview

Cracker Barrel Old Country Store, Inc is an American restaurant and gift shop chain with a Southern country theme, it is also known as just Cracker Barrel. Dan Evins established the business in the year 1969. The corporate offices are housed in a different building in the same city as the company's original store, which was in Lebanon, Tennessee.

Financials

Comparing the financial year ending on July 31^st of 2022 against 2021. Revenue rose to $3.3bn from $2.8bn and gross profit rose to $2.2bn from $1.95bn. However, EBITDA saw a decline of $217m and net income fell by $123 for the year. As a result of this decline, earnings per share came in at $5.69 a share, down from $10.74 in the prior year. Total assets fell to $2.3bn from $2.4bn and total liabilities rose by $60m. The company’s cash-on-hand pile also decreased by almost $100m. Due to this, the shareholder equity fell from $663m in 2021 to $511m in 2022.

Technicals

From a technical perspective, its share price is sitting roughly at $114.78. Towards the upside, resistance sits at $115.75 then at $116.88 then at $118.27. A break above these price levels may see the stock climb towards the major resistance resting at $120.76 (red oval). Towards the downside, support sits at $113.70 then at $111.68 then at $109.75. A slip below these points may see the share price slide towards the major support sitting at $106.73 (green oval). Looking at the indicators, MACD is currently negative but RSI is positive as it just reads 55.

Summary

Looking at the trend of this stock, there is a possibility for a slight move lower before potentially continuing back higher. However, this is very much dependent on the earnings report tomorrow and investor sentiment. Technical analysis suggests support is in place and a release of positive earnings could provide the required boost. However, investors should be wary as financially the company is not performing so well. The financials actually suggest the long-term outlook of the stock is bearish. Hence, any uptrend may only be short-term. On June 22^nd 2022, the stock was down 37% for the year, now it is down 13%.