15 Stocks on Jim Cramer’s Radar

6. Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)

Number of Hedge Fund Holders: 29

Cramer was bullish on Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) as he said:

“I’ve been following this folksy off-highway restaurant/retail chain for a little over a year, and I started pounding the table on the stock last July after speaking to CEO Julie Masino, who I think is orchestrating just one heck of a turnaround… The stock rolled over, especially after Liberation Day, at its April lows, it came all the way back down to 33 bucks. Now, I told you that was an incredible buying opportunity. I hope you took my advice because Cracker Barrel’s now up 38% since I last recommended it in April, climbing back to the mid-50s even after it got hit today. So this has been a big winner for us.

But this morning, Cracker Barrel reported, and Wall Street clearly didn’t like what it saw, and that’s why the stock tumbled over 7% today. I think it was a solid quarter, and the market’s overreacting because Cracker Barrel’s run so much over the past couple of months… Cracker Barrel’s revenue and same-store sales were a bit squishy, but after the company recognized that and clamped down on expenses, it was still able to deliver a blowout earnings number, and that’s what good companies do…

Cracker Barrel will definitely feel the impact of the president’s tariffs on the retail side of the business. Management disclosed that roughly one-third of its retail products are sourced directly from China and said that it had additional indirect exposure to tariffs via products from domestic vendors that also source from China. Oh, that’s going to hurt… Frankly, I never cared much about the retail side of the business, which accounts for only 20% of the company’s sales, but I can’t ignore it as any company that has gotten hit by tariffs bears a sort of scarlet letter going forward…

… Here’s the bottom line: When you see Cracker Barrel coming down like this, you know what I think? I think it’s a buying opportunity. This is a true turnaround story with a great CEO, one that I think will produce terrific results going forward. And even though the quarter wasn’t perfect, the turnaround, it’s very much intact.”

Cracker Barrel (NASDAQ:CBRL) runs restaurants that serve all-day meals and include gift shops offering home goods, seasonal items, apparel, toys, and packaged food. The company provides dine-in, pick-up, and delivery options.