PREVIEW: Cracker Barrel shares ease; results due after the bell

Shares of Cracker Barrel Old Country Store CBRL.O were down 1.2% on Wed, with the restaurant co due to report lower rev and EPS compared with a yr ago when it reports qtrly results after the closing bell

Analysts expect Q4 rev of $854.74 mln vs $894.39 a yr ago, and EPS of 80c vs 98c in the yr-ago period, according to LSEG

Short interest in the stock is elevated since the backlash over the company's logo, and that could set the stage for a "covering rally," wrote Matthew Unterman, managing director at S3 Partners in a note on Wed

"Short interest has climbed to 5.5M shares, up 115% year-to-date. This represents 25% of the float, the highest level in over a year, and signals extreme bearish sentiment heading into earnings," he wrote. "Elevated short interest heading into earnings could set the stage for a potential covering rally, to lock in any recent gains for the fresher bearish positions."

Cracker Barrel in August faced sharp social media criticism, including from U.S. President Donald Trump, and its stock fell after it unveiled a new logo that dispensed with the image of a seated, overall-clad man leaning against a barrel in favor of one that displays the chain's name against a barrel-shaped silhouette

Several days later, the company announced it would stick to its old logo, but its shares remain down 3.8% YTD

Analyst recommendations on the stock include two "strong buy" or "buy" ratings, five "hold" ratings and three "sell" or "strong sell" ratings

The median 12-mo PT on the stock is $55.00; it was last at $50.55

CBRL is underperforming the broader mkt YTD, with the Nasdaq .IXIC up roughly 15% in that period