Cracker Barrel cuts dividend by 80%: Cramer is still all praise for its CEO

Cracker Barrel Old Country Store Inc (NASDAQ: CBRL) is down 20% after announcing a massive cut to its dividend on Friday. 

Cramer has confidence in $CBRL chief executive

The chain of restaurants and gift stores trimmed its dividend by a whopping 80% to 25 cents a share this morning. 

Still, famed investor Jim Cramer is all praise for Julie Felss Masino – the chief executive of Cracker Barrel. On CNBC’s “Squawk on the Street”, he said today:

She’s going to fix it. They had to slash the dividend because they needed to reapply that money to be able to make the stores look better. She’s going to reinvent this. It’s going to succeed.

Note that $CBRL is now down more than 40% versus its year-to-date high in early February. 

Is Cracker Barrel stock worth buying on the dip?

Jim Cramer is evidently bullish on CEO Masino’s “five point plan to redevelop” Cracker Barrel Old Country Store Inc. 

Who’s not that convinced, however, is Jake Bartlett – a Truist Securities analyst who reiterated his “hold” rating on $CBRL today and lowered the price target to $51. 

The Nasdaq-listed firm expects to grow sales at a compound annualised rate of 3.3% and improve adjusted EBITDA margins as well by some 400 basis points. 

Bartlett agrees the $1.09 billion company based out of Tennessee, United States could deliver on its ambitious targets but recommends caution as the progress remains to be seen. Note that his price objective still suggests about a 6.0% upside from here. 

The post Cracker Barrel cuts dividend by 80%: Cramer is still all praise for its CEO appeared first on Invezz