Should You Invest in Cracker Barrel?

PHOTO CREDIT: Cracker Barrel

OVERVIEW

Cracker Barrel Old Country Store Incorporation is a company based in the United States. The company operates a chain of restaurants in the United States, primarily in the southern parts of the country (like Georgia, South Carolina, etc.) In these restaurants, the company offers classic American food as well as some other gift offerings. The company operates 663 stores. It was founded in 1969.

Why You Should?

  1. Cracker Barrel is a great reopening play. As more people get vaccinated and start to travel again, they will be more comfortable to go shop or eat at Cracker Barrel. This will help the company’s recovery from this pandemic as sales will start to rise again. This will also benefit investors in the company.

Why You Should Not?

  1. Cracker Barrel faces tough competition in the restaurant industry. Aside from small business competition, the company faces other competition from companies like Starbucks, McDonald’s, Domino’s Pizza, and many others. This has hurt the company in the past and might continue to hurt the company in the future. This might also hurt investors in the company.

MY OPINION

I think that Cracker Barrel is a decent long-term investment due to the fact that it is a good reopening play, the hopes for more COVID stimulus, and good brand recognition. However, tough competition, a slow recovery, and impacts from the pandemic might continue to hurt the company in the future.