Should You Invest in Cracker Barrel?

PHOTO CREDIT: Cracker Barrel

OVERVIEW

Why You Should?

  1. Under a Biden administration, there will be a significant amount of stimulus that will be passed. This will benefit the company as consumers will have more disposable income, which they can spend at restaurants like Cracker Barrel. This will also help the company’s recovery and will help the company boost its sales in the short-term. This will also benefit investors in the company.
  2. Cracker Barrel has good brand recognition in the markets that it operates. It is known to serve good and high-quality southern food. Furthermore, people will continue to return to Cracker Barrel for a consistent dining experience. This good brand recognition will help the company’s current recovery and future growth opportunities. This will also benefit investors in the company.

Why You Should Not?

  1. The COVID-19 pandemic has harmed the company. The company has had to shut down or limit operations at all of its locations. Furthermore, the company has had to spend more money in order to maintain high cleaning standards. This has hurt the company’s sales and recovery from this pandemic. This might also hurt investors in the company.
  2. All restaurants have been negatively impacted by this pandemic. Cracker Barrel has seen some recovery from these impacts. However, other companies like Starbucks and McDonald’s have seen a faster recovery than Cracker Barrel. This has caused the stock to still underperform compared to these other restaurant chains. This might also hurt investors in the company.

MY OPINION

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.