Cracker Barrel Old Country Store's (CBRL) turnaround is gaining traction, with sales trends suggesting a potential traffic recovery, while attention around Q4 results and fiscal 2027 guidance will focus on sales improvement, margin recovery and new Chief Executive David Deno's commentary, UBS Securities said in a Monday note.

The company is scheduled to report its fiscal Q4 results Wednesday.

UBS projects Q4 restaurant same-store sales to decline about 2.5% and retail same-store sales to fall 0.5%. Trends are expected to improve in Q1 as comparisons ease.

The investment firm now expects restaurant same-store sales to grow 3.8% for 2027. The brokerage points to menu changes, value pricing, the Cracker Barrel Rewards program, marketing and improvements in off-premise and retail sales as potential drivers of the recovery.

The brokerage models fiscal 2027 adjusted EBITDA of about $180 million, while seeking further evidence of sustained traffic improvement and a path to margin expansion.

UBS kept its neutral rating on the stock and raised its price target to $46 from $37.

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