Cracker Barrel $CRBL Breaks Below 200 Day Moving Average On EPS Miss

  • Post category:Stock Trading
  • Reading time:2 mins read
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Cracker Barrel $CRBL stock broke below its 200 day moving average on December 2, 2022, after the company reported an EPS miss and lowered FY23 revenue guidance. The stock is now in a technical weak downtrend.

Cracker Barrel stock chart on December 2 2022 with a break below the 200 day moving average as momentum turns negative
Cracker Barrel stock chart on December 2 2022 with a break below the 200 day moving average as momentum turns negative

On December 2, 2022, Cracker Barrel reported Q1 adjusted EPS of 99c versus the consensus estimate of $1.22. The company reported Q1 revenue of $839.5M versus the consensus estimate of $835.72M. Comparable store restaurant sales increased 7.1%, while comparable store retail sales increased 4.3%.

The quarterly report was not that bad but because Cracker Barrel is a consumer discretionary stock, investors took the EPS miss to be a signal that the slowing economy will negatively affect Cracker Barrel in 2023.

In the earnings release, Cracker Barrel narrowed its FY23 total revenue growth view to 6%-8% from 7%-8%. The company expects the near-term consumer environment will remain challenged due to continued inflation, low consumer confidence, and macroeconomic uncertainty.

Restaurant stocks serve up some outsized gains

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