Fact Book
Q2 FY10
1
Safe-Harbor Statement
The company uses caution in considering its current trends and the earnings disclosed
in this Fact Book. The restaurant industry is highly competitive, and trends and
guidance are subject to numerous factors and influences, some of which are discussed
in the cautionary language other than its periodic filings on Forms 10-K, 10-Q, and 8-K
(and any amendments to those forms) filed with the Securities and Exchange
Commission (“SEC).
Except for specific historical information, many of the matters discussed in this
document may express or imply projections of revenues or expenditures, plans and
objectives for future operations, growth or initiatives, expected future economic
performance, or the expected outcome or impact of pending or threatened litigation.
These and similar statements regarding events or results that Cracker Barrel Old
Country Store, Inc.. (the “Company”) expects will or may occur in the future, are
forward-looking statements that involve risks, uncertainties and other factors which
may cause actual results and performance of the Company to differ materially from
those expressed or implied by those statements. All forward-looking information is
provided pursuant to the safe harbor established under the Private Securities Litigation
Reform Act of 1995 and should be evaluated in the context of these risks, uncertainties
and other factors. Forward-looking statements generally can be identified by the use of
forward-looking terminology such as “trends,” “assumptions,” “target,” “guidance,”
“outlook,” “opportunity”, “future,” “plans,” “goals,” “objectives,” “expectations,”
“near-term,” “long-term,” “projection,” “may,” “will,” “would,” “could,” “expect,”
“intend,” “estimate,” “anticipate,” “believe,” “potential,” “regular,” or “continue” (or the
negative or other derivatives of each of these terms) or similar terminology. The
Company believes the assumptions underlying these forward-looking statements are
reasonable; however, any of the assumptions could be inaccurate, and therefore, actual
results may differ materially from those projected in or implied by the forward-looking
statements. Factors and risks that may result in actual results differing from this
forward-looking information include, but are not limited to, those listed in Part I, Item
1A of the 2009 Annual Report on Form 10-K, as well as other factors including, without
limitation, the factors described under “Critical Accounting Estimates” in that portion of
the 2009 Annual Report that is incorporated by reference into Part II, Item 7 or, from
time to time, in the Company’s filings with the SEC, press releases and other
communications.
Readers are cautioned not to place undue reliance on forward-looking statements made
in this document, since the statements speak only as of the document’s date. The
Company has no obligation, and does not intend, to publicly update or revise any of
these forward-looking statements to reflect events or circumstances occurring after the
date of this document or to reflect the occurrence of unanticipated events. Readers are
advised, however, to consult any future public disclosures the Company may make on
subjects related to those discussed in this document.
2
Corporate Profile
Corporate Profile
The principal activity of Cracker Barrel Old Country Store, Inc.
(“Cracker Barrel,” “our,” and “we”) (Nasdaq: CBRL) is to operate
and develop the Cracker Barrel Old Country Store® restaurant
and retail concept. Cracker Barrel operates more than 590
Cracker Barrel Old Country Store restaurants and gift shops
located in 41 states. The restaurants serve breakfast, lunch and
dinner. The retail area offers a variety of decorative and
functional items specializing in rocking chairs, gifts, toys, apparel
and foods.
The Cracker Barrel Brand
In 1969, Cracker Barrel’s founder, Dan Evins, recognized the
potential to offer interstate highway travelers quality food, service
and value consistently and conveniently by focusing on a mission
of “pleasing people.” The initial success of the concept drove
continued expansion along the interstate system, and today
Cracker Barrel has evolved into an indelible part of the automotive
travel experience. It is now one of the leading and most highly
differentiated restaurant chains in the United States. Cracker
Barrel welcomes 7,000 people each week in each restaurant,
serving meals for three day-parts and offering breakfast all day
through its more than 590 stores. Each location also has one of
our unique retail shops that generated in fiscal 2009 an average of
more than $800,000 in retail sales, or $401 per square foot of
retail selling space, driven primarily by the high level of restaurant
guest traffic.
Cracker Barrel is a recognized guest favorite, having been named
“Best in Family Dining” by Restaurants and Institutions magazine’s
“Choice in Chains” consumer survey for the 19th consecutive year.
The Good Sam Club named Cracker Barrel “the Most RV Friendly
Sit-Down Restaurant in America” for the 8th year in a row.
3
Awards & Accolades
Restaurants and Institutions
“Choice in Chains” Best Family
Dining Restaurant – 19 yearrs
The Good Sam Club Welcome Mat
Award for the Most RV-Friendly
Sit Down Restaurant in America
– 8 years
4
Fun Facts
1.
2.
3.
4.
How many CDs have Cracker Barrel Old
Country Store® retail shops sold?
What is the best selling retail product?
How many miles of thin stick candy do
we sell every year?
How many did we serve last year-approximately?
Bacon?
• 72 million slices
• 102 million slices
• 122 million slices
Eggs?
• 111 million
• 151 million
• 181 million
Chicken ‘N” Dumplins?
5.
6.
7.
• 6 million
• 11 million
• 17 million
How many biscuits do we sell everyday?
How much pancake mix did we sell?
What percentage of our locations are on
the interstate?
5
Answers
1. Over 3 million CDs sold
2. Rockers— 140,000 in fiscal
2009
3. If laid end-to-end, the thin
sticks would stretch 940 miles.
4. 122 million slices of bacon;
151 million eggs, and 11
million orders of Chicken N’
Dumplins
5. Over 750,000 biscuits each
day
6. We sold enough pancake mix
to make 8.7 million
pancakes—a stack 34 miles
high.
7. 85 percent of our locations are
on the interstate
6
Our Vision
To be the best
restaurant
company
in America
Our Mission
Pleasing People
7
Our Familiar Brand
Crosses the Nation with
594 Restaurants in 41 States
2
1
1
4
1
1
5
1
8
1
16
4
13
4
4
21
3
2
22 27 31
4
17
7
11
30
6
30
35
50
22
11 28
43
10
2
1
5
42
9
59
As of Feb. 24, 2010
= areas under development
8
We serve multi-generation
families--Travelers and
neighbors alike™
65+
32%
18-34
11%
35-49
24%
Our mix of age groups
50-64
33%
Our mix of travelers and neighbors
Local
60%
Travelers
40%
Source: 2008 Full Service Restaurant
National Awareness & Usage
Survey conducted by Marketing
Workshop and 2008 Guest
Loyalty Program conducted by
Service Management Group
9
Opportunities in all
3 day-parts
Breakfast
Lunch
23%
38%
39%
Average Check Increase
$8.59
$8.31
Dinner
1.4%
FY07
$8.84
3.4% 2.9%
$9.05
2.0%
FY08 FY09 Q210
10
Strong Performance in
Challenging Environment
Cracker Barrel vs. Knapp-Track™ Traffic
% Change over
Prior Year
Q107
Q307
Q108
Q308
Q109
Q309
Q110
2%
0%
CBOCS
Traffic
-2%
-4%
K-T
Traffic*
-6%
-8%
* Quarterly Knapp-Track traffic figure is an approximation based on
the 13-week average
11
Retail Sales
24%
4%
23%
0%
22.6%
-2%
22%
21.6%
21.5%
-4%
21.2%
20.8%
21%
-6%
Retail SSS Change
Retail % to Total
2%
-8%
20%
-10%
2005
2006
Retail % To Total
2007
2008
Fiscal Year
2009
Comp Store Retail Sales Changes
12
Consolidated Financial HighlightsContinuing Operations
Net Sales
$2,500
$2,000
$2,191
$2,219
$494
$471
$1,697
$1,748
$2,385
$2,367
$507
$512
$492
$1,845
$1,872
$1,876
FY07
FY08
FY09
$2,352*
$ in millions
$1,500
$1,000
$500
$0
FY05
Restaurant
FY06
Retail
* Includes $46 million sales from 53rd week
EPS from Continuing Operations
$3.50
$3.00
$2.79
2.89
FY08
FY09
$2.52*
$2.50
$2.07
$2.04
$2.00
$1.50
$1.00
$0.50
$0.00
FY05
FY06
FY07
•Includes $0.14 per share from 53rd week
13
Consolidated Financial
Highlights-Continuing Operations
Income From Continuing Operations
$ in millions
$120
$105
* Includes $4 million from 53rd week
$95
$100
$76*
$80
$59
$60
$40
$66
$65
$57
$52
$22
$20
$9
$0
FY05
FY06
FY07
FY08
FY09
Income from continuing ops.
Pretax Interest Expense
Average Shares Outstanding
60
53.4
Million shares
50
40
47.8
48.0
42.9
31.8
30
23.4
20
22.8
27.6
22.8
10
22.5
0
FY05
FY06
Basic
FY07
FY08
FY09
Diluted
14
Free Cash Flow*
$250
Net cash provided by operating activities
$230
Cash used to purchase
property and equipment
$200
$ in Millions
$175
Includes $94 million
of cash used on Logan’s $164
disposition & taxes/expenses
for LYONs redemption
$ 15 0
$125
$125
Cash used
for dividends
$97 $97
$ 10 0
$90
$88
$68
$50
$23
$24
$16
$16
$18
$0
F Y0 5
F Y0 6
F Y0 7
F Y0 8
F Y0 9
•Free Cash Flow is a non-GAAP financial measure derived from indicated GAAP components
found on Statement of Cash Flow
15
Quarterly Results—FY2007
Consolidated Income Statement
($ in 000s)
Q1 FY 07
Net sales:
Restaurant
$442,327
Retail
115,936
Q2 FY 07
Q3 FY 07
$447,782
164,352
Q4 FY 07
$444,923
104,127
$509,772
122,357
FY 2007
$1,844,804
506,772
Total revenue
$ 558,263 $ 612,134 $ 549,050 $ 632,129 $ 2,351,576
Cost of goods sold
Gross Profit
Labor and related expenses
Other operating expenses
Impairment & store closing costs
172,856
385,407
212,174
97,722
-
210,352
401,782
219,594
105,932
-
167,928
381,122
219,012
100,511
-
193,139
438,990
242,059
105,966
-
744,275
1,607,301
892,839
410,131
-
75,511
37,260
76,256
34,022
61,599
31,536
90,965
33,368
304,331
136,186
Operating income
38,251
Interest expense
15,177
Interest income
598
Income before income taxes
23,672
Income taxes
8,510
Income from continuing operations
15,162
(Loss)Income from discontinued operations
4,265
Net income
$19,427
42,234
14,609
3,857
31,482
10,981
20,501
82,011
$102,512
30,063
13,801
2,199
18,461
6,350
12,111
214
$12,325
57,597
15,851
1,120
42,866
14,657
28,209
(408)
$27,801
168,145
59,438
7,774
116,481
40,498
75,983
86,082
$162,065
Store operating income
General & administrative
Earnings per share - Basic
Income from continuing operations$
Income from discontinued operations
$
$
Earnings per share - Diluted
Income from continuing operations$
Income from discontinued operations
$
$
Weighted average shares - basic
Weighted average shares - diluted
Restaurant % of total sales
Retail % of total sales
Cost of goods sold
Gross profit
Labor and other related expenses
Other store operating expenses
Impairment and store closing charges
Store operating income
General and administrative expense
Operating income
0.49 $
0.14 $
0.66 $
2.66 $
0.48 $
0.01 $
1.18 $
(0.02) $
2.75
3.11
0.63 $
3.32 $
0.49 $
1.16 $
5.86
0.45 $
0.12 $
0.60 $
2.28 $
0.44 $
0.01 $
1.15 $
(0.02) $
2.52
2.71
0.57 $
30,997
36,012
2.88 $
30,839
36,016
0.45 $
24,984
30,183
1.13 $
24,030
25,058
5.23
27,643
31,757
79.2%
20.8%
31.0%
69.0%
38.0%
17.5%
0.0%
13.5%
6.7%
6.9%
73.2%
26.8%
34.4%
65.6%
35.9%
17.3%
0.0%
12.5%
5.6%
6.9%
81.0%
19.0%
30.6%
69.4%
39.9%
18.3%
0.0%
11.2%
5.7%
5.5%
80.6%
19.4%
30.6%
69.4%
38.3%
16.8%
0.0%
14.4%
5.3%
9.1%
78.4%
21.6%
31.7%
68.3%
38.0%
17.4%
0.0%
12.9%
5.8%
7.2%
16
Quarterly Results—FY2008
Consolidated Income Statement
($ in 000s)
Net sales:
Restaurant
Retail
Total revenue
Q1FY08
Q2FY08
Q3FY08
$462,753
118,412
$465,105
169,348
$460,406 $
106,732
$ 581,165 $ 634,453 $ 567,138 $
Q4FY08
483,888
117,877
FY 2008
$1,872,152
512,369
601,765 $ 2,384,521
Cost of goods sold
180,228
223,735
180,588
189,206
773,757
Gross Profit
400,937
410,718
386,550
412,559
1,610,764
Labor and related expenses
Other operating expenses
Impairment & store closing costs
225,668
105,220
809
229,133
106,473
68
226,851
103,157
-
227,894
107,443
-
909,546
422,293
877
Store operating income
69,240
75,044
56,542
77,222
278,048
General & administrative
33,218
29,623
28,800
35,632
127,273
Operating income
36,022
45,421
27,742
41,590
150,775
Interest expense
Interest income
14,909
57
14,454
128
14,215
-
13,867
0
57,445
185
Income before income taxes
21,170
31,095
13,527
27,723
93,515
7,187
10,861
3,048
7,116
28,212
13,983
(94)
20,234
(17)
10,479
(35)
20,607
396
65,303
250
$21,003
$65,553
Income taxes
Income from continuing operations
(Loss)Income from discontinued operations
Net income
Earnings per share - Basic
Income from continuing operations
Income from discontinued operations
Earnings per share - Diluted
Income from continuing operations
Income from discontinued operations
Weighted average shares - basic
Weighted average shares - diluted
Restaurant % of total sales
Retail % of total sales
Cost of goods sold
Gross profit
Labor and other related expenses
Other store operating expenses
Impairment and store closing charges
Store operating income
General and administrative expense
Operating income
$13,889
$20,217
$10,444
$
$
0.59 $
(0.00) $
0.87 $
(0.00) $
0.47 $
(0.00) $
0.93
0.02
2.87
0.01
$
0.59 $
0.87 $
0.47 $
0.95
2.88
$
$
0.57 $
(0.00) $
0.85 $
(0.00) $
0.46 $
(0.00) $
0.91 $
0.02 $
2.79
0.01
$
0.57 $
0.85 $
0.46 $
0.93 $
2.80
23,706
24,445
23,133
23,758
22,141
22,812
22,151
22,608
22,783
23,406
79.6%
20.4%
31.0%
69.0%
38.8%
18.1%
0.1%
11.9%
5.7%
6.2%
73.3%
26.7%
35.3%
64.7%
36.1%
16.8%
0.0%
11.8%
4.7%
7.2%
81.2%
18.8%
31.8%
68.2%
40.0%
18.2%
0.0%
10.0%
5.1%
4.9%
80.4%
19.6%
31.4%
68.6%
37.9%
17.9%
0.0%
12.8%
5.9%
6.9%
78.5%
21.5%
32.4%
67.6%
38.1%
17.7%
0.0%
11.7%
5.3%
6.3%
17
Quarterly Results –FY2009
($ in 000s)
Net sales:
Restaurant
Retail
Total revenue
Cost of goods sold
Q1FY09
Q2FY09
Q3FY09
Q4FY09
$455,967
117,965
$468,919
161,263
$466,562
101,006
$484,240
111,363
FY09
$1,875,688
491,597
$ 573,932 $ 630,182 $ 567,568 $ 595,603 $ 2,367,285
181,357
222,493
176,327
184,732
764,909
Gross Profit
Labor and related expenses
Other operating expenses
Impairment & store closing costs
392,575
222,433
105,966
-
407,689
234,118
105,740
-
391,241
230,014
104,235
-
410,871
229,691
105,653
2,088
1,602,376
916,256
421,594
2,088
Store operating income
General & administrative
64,176
31,618
67,831
28,558
56,992
27,979
73,439
32,044
262,438
120,199
Operating income
Interest expense
Interest income
32,558
14,033
0
39,273
13,281
0
29,013
12,737
0
41,395
12,126
0
142,239
52,177
-
Income before income taxes
Income taxes
18,525
5,693
25,992
7,630
16,276
4,328
29,269
6,454
90,062
24,105
Income from continuing operations
12,832
(Loss)Income from discontinued operations
0
18,362
0
11,948
0
22,815
(35)
65,957
(35)
$18,362
$11,948
Net income
$12,832
$22,780
$65,922
Earnings per share - Basic
Income from continuing operations $
Income from discontinued operations $
0.57 $
$
0.82 $
$
0.53 $
$
1.01
(0.00)
2.94
(0.00)
$
0.57 $
0.82 $
0.53 $
1.01
2.94
Earnings per share - Diluted
Income from continuing operations $
Income from discontinued operations $
0.57 $
$
0.81 $
$
0.52 $
$
0.99 $
(0.00) $
0.57 $
22,350
22,666
0.81 $
22,390
22,597
0.52 $
22,467
22,831
0.99 $
22,629
23,056
$
Weighted average shares - basic
Weighted average shares - diluted
Restaurant % of total sales
Retail % of total sales
Cost of goods sold
Gross profit
Labor and other related expenses
Other store operating expenses
Impairment and store closing charges
Store operating income
General and administrative expense
Operating income
79.4%
20.6%
31.6%
68.4%
38.8%
18.5%
0.0%
11.2%
5.5%
5.7%
74.4%
25.6%
35.3%
64.7%
37.2%
16.8%
0.0%
10.8%
4.5%
6.2%
82.2%
17.8%
31.1%
68.9%
40.5%
18.4%
0.0%
10.0%
4.9%
5.1%
81.3%
18.7%
31.0%
69.0%
38.6%
17.7%
0.4%
12.3%
5.4%
7.0%
2.89
(0.00)
2.89
22,459
22,788
79.2%
20.8%
32.3%
67.7%
38.7%
17.8%
0.1%
11.1%
5.1%
6.0%
18
Quarterly Results –FY2010
($ in 000s)
Net sales:
Restaurant
Retail
Q1FY10
Q2FY10
$466,832
114,351
$473,953
158,663
581,183
$632,616
Cost of goods sold
Gross Profit
177,471
403,712
211,898
420,718
Labor and related expenses
Other operating expenses
Impairment & store closing costs
224,760
105,466
-
228,594
105,501
2,263
Store operating income
73,486
84,360
General & administrative
35,501
34,975
Operating income
37,985
49,385
Interest expense
Interest income
Income before income taxes
11,770
0
26,215
13,293
0
36,092
8,191
10,699
$18,024
$25,393
Total revenue
$
Income taxes
Net income
Earnings per share - Basic
Net income per share
$
0.79 $
1.11
Earnings per share - Diluted
Net income per diluted share
$
0.78 $
1.09
Weighted average shares - basic
Weighted average shares - diluted
Restaurant % of total sales
Retail % of total sales
Cost of goods sold
Gross profit
Labor and other related expenses
Other store operating expenses
Impairment and store closing charges
Store operating income
General and administrative expense
Operating income
Tax rate
22,762
23,136
22,832
23,397
80.3%
19.7%
30.5%
69.5%
38.7%
18.1%
0.0%
12.6%
6.1%
6.5%
31.2%
74.9%
25.1%
33.5%
66.5%
36.1%
16.7%
0.4%
13.3%
5.5%
7.8%
29.6%
19
Restaurant Facts
• Store size: 10,000 sq. ft on approximately
2.5 acres of land
• Seats per restaurant: 200
• Average number of employees/store: 103
• Average unit volume: $3.21 million
• Average weekly traffic: 7,000
• Average check: $9.05, up 2.0%
• Meal mix
– Breakfast—23%
– Lunch--38%
– Dinner—39%
• Commodity breakdown in FY09
– Dairy and Eggs
14%
– Beef
12%
– Poultry
11
– Pork
10
– Seafood
7
– Grain-based products
7
• Leased vs owned: 399 locations owned,
67.5%
• % on-interstate vs off: 15.4% off-interstate
– All off-interstate locations planned in
FY10
• Hourly turnover: <80%
20
Retail Facts
• Size of retail
– 20.8% of sales
– 22% of square feet
• $401/sq. ft.
• Average unit volume: $.84 million
• Sales categories
–
–
–
–
–
Apparel:
Food:
Seasonal:
Home:
Toys:
20%
18%
16%
16%
13%
• 32% of customers purchase retail
• Second quarter highest retail sales due to
Christmas holiday shopping
21
Unit Growth
Units
1200
995-1095
1100
1000
900
800
700
600
529
543
562
FY05
FY06
FY07
577
594
588
500
400
300
FY08
FY09
FY10
Possible
22
Fiscal 2010 Outlook
(As of February 23, 2010 Press Release)
• Comparable store restaurant sales
growth: (0.5)% to 1.0%
• Comparable store retail sales growth:
(2.0)% to 0%
• 6 new stores opened in FY10
• Revenue growth: 0% to 2.0%
• Commodity cost inflation: (2-2.5)%
– 76% of products contracted through
remainder of FY10
• Depreciation: $60 to $62 million
• Operating margin: 6.7% to 6.9%
compared with 6.0% in FY09
• Net interest expense: $48 to $50
million
• Annual effective tax rate: 27.5% to
28.5%
• Diluted EPS: $3.35 to $3.50
• Diluted shares: 23 – 23.5 million
• Capital expenditures: $70 to $75
million
23