Cramer says he likes Cracker Barrel, but investors should wait for more information before buying

CNBC's Jim Cramer on Friday analyzed Cracker Barrel's business over the past few years, telling investors they should wait to buy the stock until the company gives a progress update on its conference call in two weeks.
"Until we get more clarity on the dividend, you have to wait, ok?" he said. "But there is a good chance we'll find out what they're doing in two weeks, and whether they cut the dividend or keep it, then we'll make up our minds."

CNBC's Jim Cramer on Friday analyzed Cracker Barrel's business over the past few years, telling investors they should wait to buy the stock until the company gives a progress update on its conference call in two weeks.

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"Until we get more clarity on the dividend, you have to wait, ok?" he said. "But there is a good chance we'll find out what they're doing in two weeks, and whether they cut the dividend or keep it, then we'll make up our minds."

Cracker Barrel's stock has suffered since the Covid-19 pandemic, and Cramer said he contributes some of these issues to the company's failure to adapt to a new economic landscape. Cracker Barrel's customers skew older, and many are on fixed incomes. So as the competition raises prices to combat inflation, Cracker Barrel has less room to do so. Also, the company has not had much success bringing in a younger crowd, and it only just introduced a loyalty program late last year.

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But Cramer said he is optimistic about new CEO Julie Felss Masino, who was formerly an executive at Taco Bell. According to Cramer, the company is already showing signs of improvement, with stronger traffic trends and better-than-expected same-stores sales in the last quarter. Masino has laid out more turnaround initiatives, making plans to reposition the brand, bolster marketing and reduce labor costs.

Cramer also said he wants to know whether the company will cut its dividend. A cut could hurt the stock, but if management "reaffirms its commitment to the dividend," the stock could soar, he said.

"I want to recommend Cracker Barrel, I really do," Cramer said. "But I'm not quite there yet."