What Happened?

A number of stocks traded in opposite directions in the afternoon session after the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Sit-Down Dining company Cracker Barrel (NASDAQ: CBRL) fell 8.3%. Is now the time to buy Cracker Barrel? Access our full analysis report here, it’s free.
• Traditional Fast Food company Dutch Bros (NYSE: BROS) fell 3.2%. Is now the time to buy Dutch Bros? Access our full analysis report here, it’s free.
• Sit-Down Dining company Brinker International (NYSE: EAT) fell 4.8%. Is now the time to buy Brinker International? Access our full analysis report here, it’s free.
• Modern Fast Food company Sweetgreen (NYSE: SG) fell 5.4%. Is now the time to buy Sweetgreen? Access our full analysis report here, it’s free.
• Modern Fast Food company Portillo's (NASDAQ: PTLO) jumped 0.6%. Is now the time to buy Portillo's? Access our full analysis report here, it’s free.

Zooming In On Cracker Barrel (CBRL)

Cracker Barrel’s shares are extremely volatile and have had 43 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 12 months ago when the stock gained 21.9% on the news that the company served up a standout second quarter (fiscal 2025), crushing Wall Street's estimates on revenue, EPS, and EBITDA. Adjusted EBITDA rose by 19.6%, driven by strong restaurant sales growth and pricing optimization that helped offset inflationary pressures. Looking ahead, the company raised its full-year sales and adjusted EBITDA guidance to a range above prior estimates, signaling confidence in growth. With the broader restaurant industry feeling the pinch from economic pressures, execution will be key to keeping this momentum going. Overall, this was a solid quarter, with encouraging outlook for the remainder of the fiscal year.

Cracker Barrel is up 17.9% since the beginning of the year, but at $31.66 per share, it is still trading 55.9% below its 52-week high of $71.86 from July 2025. Investors who bought $1,000 worth of Cracker Barrel’s shares 5 years ago would now be looking at an investment worth $208.29.

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