Astera Labs and Cracker Barrel Old Country Store have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – October 6, 2025 – Zacks Equity Research shares Astera Labs ALAB as the Bull of the Day and Cracker Barrel Old Country Store CBRL as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Starbucks Corp. SBUX, and Restaurant Brands International Inc. QSR.

Here is a synopsis of all four stocks:

Bull of the Day:

If Wall Street teaches investors anything, it's that history can be a powerful lesson about the past and an omen for the future if properly understood. During the California Gold Rush of the mid-19^th century, many prospectors moved to California to strike riches. Unfortunately, the vast majority of these prospectors went broke. Conversely, savvy merchants who instead sold the picks and shovels profited the most from the mayhem.

"Picks and shovels" are a perfect metaphor for what is happening today in artificial intelligence, the modern-day gold rush. Companies like Meta Platforms, Microsoft and Alphabetare spending $100s of billions of dollars to vie for AI supremacy. Though it is tough for investors to predict who will ultimately win the AI race, AI infrastructure providers like Zacks Rank #1 (Strong Buy) stock Astera Labs provide the most sure-fire investments as they provide the picks and shovels needed to train large language models (LLMs).

What Does Astera Labs Do?

Astera Labs manufactures high-powered semiconductors and software designed for use in data centers and artificial intelligence applications. Today, AI data centers are filled with large clusters of NvidiaGPUs that must transmit gargantuan amounts of data quickly and reliably. However, the massive quantity of data transmission can lead to bottlenecks. Astera Labs creates specialized solutions to help alleviate these bottlenecks, allowing AI data centers to run seamlessly.

ALAB Boasts Strong Partnerships with AI Leaders

Although a plethora of companies seek to capitalize on the AI revolution, only a select few are responsible for the foundational data infrastructure. These companies include Nvidia, Intel and Advanced Micro Devices.Before going public in March, ALAB disclosed that the company has "trusted relationships" with these industry juggernauts.

ALAB: Explosive Top & Bottom-Line Growth

As the AI buildout snowballs and becomes more competitive, Wall Street analysts expect Astera Labs to benefit. Zacks Consensus Analyst Estimates predict that ALAB will grow top-and-bottom line growth at a double-digit pace through 2026.

ALAB Technical Analysis

ALAB shares have more than doubled in value since July, amid the AI hype. Last week, ALAB retreated to its 50-day moving average for the first time since the meteoric move. The first tag of the 50-day moving average in a leading stock typically offers investors a favorable buy point.

Bottom Line

Astera Labs' position as a key provider of essential "picks and shovels" for AI infrastructure makes it a compelling investment. Though the mainstream AI race remains uncertain, companies providing the foundational tools are poised to benefit from the massive, ongoing investment by tech giants.

Bear of the Day:

Based in Lebanon, TN, and founded in 1969, Zacks Rank #5 (Strong Sell) stock Cracker Barrel Old Country Store owns and operates full-service restaurants with attached retail stores across the United States. The company operates 660 company-owned locations across 43 states. Cracker Barrel is best known for its home-style country food, including meatloaf, homemade chicken n' dumplings, as well as its signature biscuits, which use an old family recipe. Meanwhile, its attached retail stores sell unique gifts and trinkets that have an Americana twist.

Cracker Barrel's Disastrous Rebranding Effort

Over its long history, Cracker Barrel has built a brand that allows its consumers to escape American highways for a piece of coziness and a trademark southern comfort vibe. However, in August, Cracker Barrel management took a considerable risk. The company removed its iconic "Uncle Herschel" man from its logo in an effort to reach a broader customer base. Additionally, the company began removing many of the American trinkets that fill its restaurants, making them far less distinctive.

Following the rebrand, CBRL shares dumped 7% in a single session, erasing $140 million in market cap as customer backlash began to set in. Worse, President Donald Trump weighed in on social media, suggesting the company return to its iconic and well-known branding.

Though Cracker Barrel rescinded its rebranding plans amid the backlash, the damage was already done as many right-leaning customers saw the move as an appeal to the "woke" movement. Despite the retraction, CBRL shares have underperformed and been weak ever since.

Cracker Barrel's Growth is Stagnant

Cracker Barrel is in the midst of a multi-year turnaround effort, with initiatives spanning food quality kitchen optimization, loyalty expansion, and capital allocation. Thus far, there has been little evidence that Cracker Barrel's turnaround efforts will bear fruit. As a result, Wall Street analysts expect earnings growth to remain stagnant for the foreseeable future.

Bottom Line

Cracker Barrel's attempt to modernize its brand backfired severely, resulting in a significant stock drop and erosion of trust with its customer base. Despite quickly reversing the changes, the damage has been done.

Additional content:

Will Starbucks Upgrades Bolster Customer Connections?

Starbucks Corp. is embarking on a portfolio-wide refresh that aims to redefine both customer experience and unit-level efficiency. The company has introduced a new "coffeehouse uplift" program, allocating roughly $150,000 per store for quick, high-impact upgrades designed to reintroduce seating, enhance warmth and create more welcoming environments with minimal downtime.

The initiative is progressing rapidly, with early work already underway in New York City and Southern California is slated to follow later in the year. By the end of 2026, Starbucks expects to have completed at least 1,000 uplifts across North America. Management views these targeted investments as a cost-disciplined alternative to major renovations while also reinforcing the "Back to Starbucks" strategy focused on restoring community connection.

In tandem, Starbucks is piloting new store prototypes built to improve unit economics. One format, featuring 32 seats and a drive-thru, comes at a roughly 30% lower construction cost. A smaller 10-seat urban model is also in development, which is expected to unlock growth in dense markets. At the same time, the company plans to sunset its mobile-order-only pickup concept by fiscal 2026, citing a lack of brand warmth in the format. The pivot reflects Starbucks' broader ambition to balance convenience with experiential value.

Management believes these moves will reinforce operational improvements from Green Apron Service by aligning physical space with service standards. By combining cost efficiency with renewed customer connection, Starbucks is betting that store design can become a durable lever for both transaction growth and margin recovery.

How It Stacks Up to Competitors

Restaurant Brands International Inc. is positioning remodels as a central lever for system health and profitability. In the second quarter of 2025, Burger King U.S., under Restaurant Brands International, completed roughly 400 remodels, with management highlighting mid-teens sales uplifts net of control.

Restaurant Brands International further emphasized that these remodels enhance guest perception while improving franchisee EBITDA, strengthening the financial case for modernization. Supported by the refranchising of Carrols restaurants, where remodel execution is required for new operators, Restaurant Brands International is tightly linking modernization to operational alignment and long-term value creation.

Cracker Barrel Old Country Store, Inc. is embedding physical refresh within a broader transformation plan aimed at guest relevance. Cracker Barrel management noted that fiscal 2026 will mark the formal rollout of its brand refinement strategy, incorporating updated restaurant designs and presentations across all guest touchpoints. The company is pairing this initiative with menu innovation and loyalty expansion to reinforce brand equity. Overall, Cracker Barrel's refresh activity reflects an approach of aligning physical upgrades with evolving consumer expectations rather than focusing solely on throughput.

SBUX's Price Performance, Valuation & Estimates

Shares of Starbucks have gained 5.7% in the past six months against the industry's 1.2% decline.

SBUX Six-Month Price Performance

From a valuation standpoint, Starbucks trades at a forward price-to-sales ratio of 2.66, below the industry's average of 3.52.

The Zacks Consensus Estimate for SBUX's fiscal 2025 EPS implies a decline of 34.4% year over year, while fiscal 2026 EPS indicates a rise of 23%. The EPS estimates for fiscal 2025 and 2026 have declined 2.7% and 2.2%, respectively, in the past 60 days.

Starbucks stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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