Why Cracker Barrel Stock Dropped Like a Rock Today

Shares of restaurant chain Cracker Barrel Old Country Store (NASDAQ: CBRL) dropped like a rock on Friday after the company provided a business update and slashed its dividend. As of noon ET today, Cracker Barrel stock was down a disheartening 13% and now trades at its lowest price in 12 years.

On the surface, it would seem like business is fine for Cracker Barrel. After all, its trailing-12-month revenue of $3.4 billion is close to an all-time high. And its comparable-restaurant sales were modestly up in the second quarter of its fiscal 2024, it's most recent quarter. But the company's earnings per share (EPS) are currently lower than they were 10 years ago, which is a problem.