Cracker Barrel (CBRL) Shares Rise—Here’s What’s Driving the Increase

Recent Developments at Cracker Barrel

Cracker Barrel (NASDAQ:CBRL) saw its stock price surge by 6.8% during the afternoon trading session after Sardar Biglari, a well-known activist investor, expanded his holdings in the company. This increase in ownership occurred alongside a rise in bearish sentiment, as more traders began betting against the stock.

Biglari Holdings Inc., led by Sardar Biglari, purchased an additional 50,100 shares, raising its stake in Cracker Barrel to over 16.3%. This substantial acquisition demonstrated strong confidence from a major shareholder. Meanwhile, short interest in the company jumped by 17.43%, with short positions now representing 37.66% of all available shares. The combination of a significant buy from an activist investor and elevated short interest likely contributed to upward momentum in the stock, as short sellers may have been compelled to cover their positions.

Market Reaction and Outlook

Cracker Barrel’s stock is known for its volatility, having experienced 41 price swings greater than 5% over the past year. Today’s movement suggests that investors view the recent news as noteworthy, though not transformative for the company’s overall outlook.

The last significant price jump occurred nine days ago, when shares climbed 8.5% after Bernstein analysts pointed to a possible industry rebound in 2026.

Following a difficult 2025, which saw consumer confidence decline, analysts expect a slow recovery in customer traffic. Several upcoming events could boost demand, such as a new Tax Bill and the Soccer World Cup being hosted in the U.S., with positive effects anticipated as early as spring. This optimistic perspective is further supported by restaurant valuations reaching their lowest levels in a decade, indicating potential for substantial gains if consumer spending picks up. After a period where many households reduced dining out due to inflation, larger tax refunds could also help revive the casual dining sector.

Since the start of the year, Cracker Barrel’s stock has risen 35.2%. However, at $36.31 per share, it remains 49.5% below its 52-week high of $71.86, set in July 2025. For context, an investor who put $1,000 into Cracker Barrel five years ago would now have an investment valued at just $257.43.

Spotlight on Emerging Opportunities

Major companies like Microsoft, Alphabet, Coca-Cola, and Monster Beverage all began as lesser-known growth stories that capitalized on major trends. We have identified a promising AI semiconductor company that Wall Street has yet to fully recognize.