Cracker Barrel Reports Fourth Quarter and Full Year Fiscal 2013 Results and Provides Guidance for Fiscal 2014

  Cracker Barrel Reports Fourth Quarter and Full Year Fiscal 2013 Results and
  Provides Guidance for Fiscal 2014

 Seventh Consecutive Quarter of Positive Comparable Store Traffic, Restaurant
                           Sales, and Retail Sales

  Diluted EPS Increased 19.2% Compared to Adjusted EPS in Prior Year Quarter

Business Wire

LEBANON, Tenn. -- September 18, 2013

Cracker Barrel Old Country Store, Inc. (“Cracker Barrel” or the “Company”)
(Nasdaq:CBRL) today reported its financial results for the fourth quarter and
for the fiscal year ending August 2, 2013. The Company also provided guidance
for its 2014 fiscal year and first quarter:

Fourth Quarter Fiscal 2013 Highlights

  *Compared to the prior year fourth quarter, comparable store traffic
    increased 0.6%; comparable store restaurant sales increased 2.6%; and
    comparable store retail sales increased 1.1%.
  *Seventh consecutive quarter of positive comparable traffic, restaurant
    sales, and retail sales, and outperformance of the Knapp-Track™
    casual-dining index.
  *Earnings per diluted share were $1.43 compared to GAAP EPS of $1.47 in the
    prior year quarter. GAAP EPS in the prior year quarter included a benefit
    of $0.27 for the 53^rd week. Adjusted for the impact of the additional
    week in the prior year, earnings per diluted share increased 19.2%. (See
    non-GAAP reconciliation below.)

Full Year Fiscal 2013 Highlights

  *On a GAAP basis, earnings per diluted share were $4.90 compared to $4.40
    in the prior year. Adjusted for the impact of the extra week in the prior
    year, and certain charges and credits in the current and prior year,
    adjusted earnings per diluted share were $4.97, a 14.5% increase over
    adjusted earnings per diluted share of $4.34 in the prior year.
  *On a GAAP basis, operating income was 7.6% of total revenue. On an
    adjusted basis, operating income was 7.8% of total revenue, compared with
    7.4% in fiscal 2012.
  *During the year, the Company reduced debt by $125.1 million and paid $45.4
    million in dividends.

Commenting on the fourth quarter and full fiscal year results, Cracker Barrel
President and Chief Executive Officer Sandra B. Cochran said, “The fourth
quarter of fiscal 2013 represents the seventh consecutive quarter of
year-over-year improvement in comparable store traffic, restaurant sales, and
retail sales. The financial results of the fourth quarter and full year
reflect the effective execution of our strategic plan. As we begin our 2014
fiscal year, we are poised to capitalize on the achievements of fiscal 2013. I
am proud of our team’s hard work and dedication, especially those in the field
who are committed to serving our Cracker Barrel guests every day.”

Fourth-Quarter Fiscal 2013 Results

Revenue

The Company reported total revenue of $674.1 million for the fourth quarter of
fiscal 2013, representing an increase of 3.9% over the fourth quarter of the
prior year adjusted for the impact of the additional week. Comparable store
restaurant sales increased 2.6% including a 2.0% increase in average check and
0.6% increase in store traffic. The average menu price increase for the
quarter was approximately 1.9%. Comparable store retail sales were up 1.1% for
the quarter. The Company opened two new Cracker Barrel stores during the
quarter, for a total of eight new store openings during the fiscal year.

Comparable store restaurant traffic, average check and comparable store
restaurant sales and retail sales for the fiscal months of May, June and July
and the fourth quarter were as follows:

                                                       
                                                           Fourth
                             May       June      July     Quarter
Comparable restaurant         1.8  %    0.1  %    0.1 %    0.6   %
traffic
Average check                 2.2  %    2.1  %    1.7 %    2.0   %
Comparable restaurant         4.0  %    2.2  %    1.8 %    2.6   %
sales
Comparable retail sales       -0.4 %    -1.5 %    4.4 %    1.1   %
                                                                       

Fiscal 2012 was a 53-week year. For Fiscal 2013, the Company calculates
comparable store traffic, check, and sales using the corresponding prior year
weeks.

Operating Income

Operating income in the fourth quarter was $54.8 million, or 8.1% of total
revenue. GAAP operating income in the prior year quarter was 8.6% of total
revenue, or 7.7% when adjusted for the impact of the 53^rd week. A 110 basis
point reduction in labor and related expenses was partially offset by higher
other store operating expenses.

Fiscal 2013 Results

Total revenue for fiscal 2013 was $2.64 billion. Adjusting for the 53^rd week
in the prior fiscal year, total revenue increased 4.6% for the year. Full year
comparable store sales increased 3.0%, while comparable traffic increased
0.6%. Comparable store restaurant sales and retail sales increased by 3.1% and
2.9%, respectively.

Operating income for fiscal 2013 was $201.5 million, or 7.6% of sales compared
to $191 million or 7.4% of sales in the prior year. Adjusted for the impact of
severance charges and proxy contest expenses, operating income for the year
was $207.2 million, or 7.8% of sales. In comparison, adjusted operating income
in the prior fiscal year was $188.1 million, or 7.4% of sales.

GAAP net income was $117.3 million, or $4.90 per diluted share, compared to
$103.1 million or $4.40 per diluted share in the prior year. Adjusted net
income was $119.1 million, or $4.97 per diluted share, compared to adjusted
net income of $101.6 million, or $4.34 per diluted share in the prior year,
representing a year-over-year increase in adjusted EPS of 14.5%.

Net cash flow provided by operating activities was $208.5 million, compared
with $219.8 million in the prior fiscal year. During fiscal 2013, the Company
repurchased 44,300 shares of stock for a total of $3.6 million, paid down
$125.1 million of debt, and paid $45.4 million in dividends.

Fiscal 2014 Outlook

For fiscal 2014, the Company expects total revenue of between $2.7 billion and
$2.75 billion, and earnings per diluted share of between $5.60 and $5.80. The
increased revenue projection for fiscal 2014 reflects the expected opening of
seven or eight new Cracker Barrel stores, and projected increases in
comparable store restaurant sales and retail sales in a range of 2.0% to 3.0%.
The Company projects food commodity inflation of approximately 2% for the
year, with food commodity inflation above 4% in the first quarter. The Company
projects an operating income margin of between 7.8% and 8.0% of total revenue
for fiscal 2014. The Company expects depreciation expense between $68 million
and $70 million; net interest expense between $16 million and $18 million; and
an effective tax rate of between 31% and 32%. The Company expects capital
expenditures during fiscal 2014 to be between $90 million and $100 million.

The Company expects to report earnings per diluted share for the first quarter
of 2014 of between $1.05 and $1.15. The Company’s first quarter guidance
reflects higher commodity costs, projected training and other expenses related
to the roll-out of Wholesome Fixin’s®, and the cost of the Company’s bi-annual
general managers’ meeting in October. The Company notes that its guidance does
not include expenses related to a potential third proxy contest by an
affiliate of Biglari Holdings Inc. at its 2013 annual shareholders’ meeting.
The Company reminds investors that its outlook for fiscal 2014 reflects a
number of assumptions, many of which are outside the Company’s control.

Fiscal 2013 Fourth-Quarter Conference Call

As previously announced, the live broadcast of Cracker Barrel’s quarterly
conference call will be available to the public on-line at
investor.crackerbarrel.com today beginning at 11:00 a.m. (ET). The on-line
replay will be available at 2:00 p.m. (ET) and continue through October 2,
2013.

About Cracker Barrel Old Country Store®

Cracker Barrel Old Country Store, Inc. provides a friendly home-away-from-home
in its old country stores and restaurants. Guests are cared for like family
while relaxing and enjoying real home-style food and shopping that’s
surprisingly unique, genuinely fun and reminiscent of America’s country
heritage…all at a fair price.

Cracker Barrel Old Country Store, Inc. (Nasdaq:CBRL) was established in 1969
in Lebanon, Tenn. and operates 624 company-owned locations in 42 states. For
more information, visit crackerbarrel.com.

CBRL-F

Except for specific historical information, certain of the matters discussed
in this press release may express or imply projections of revenues or
expenditures, statements of plans and objectives or future operations or
statements of future economic performance. These, and similar statements are
forward-looking statements concerning matters that involve risks,
uncertainties and other factors which may cause the actual performance of
Cracker Barrel Old Country Store, Inc. and its subsidiaries to differ
materially from those expressed or implied by this discussion. All
forward-looking information is subject to completion of our financial
procedures for FY 2013 and 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 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,"
"should," "projects," "forecasts," or "continue" (or the negative or other
derivatives of each of these terms) or similar terminology and include the
expected effects of operational improvement initiatives, such as new menu
items and retail offerings. Factors which could materially affect actual
results include, but are not limited to: the effects of uncertain consumer
confidence, higher costs for energy, general or regional economic weakness,
weather on sales and customer travel, discretionary income or personal
expenditure activity of our customers; our ability to identify, acquire and
sell successful new lines of retail merchandise and new menu items at our
restaurants; our ability to sustain or the effects of plans intended to
improve operational or marketing execution and performance; changes in or
implementation of additional governmental or regulatory rules, regulations and
interpretations affecting tax, wage and hour matters, health and safety,
pensions, insurance or other undeterminable areas; the effects of plans
intended to promote or protect our brands and products; commodity price
increases; the ability of and cost to us to recruit, train, and retain
qualified hourly and management employees in an escalating wage environment;
the effects of increased competition at our locations on sales and on labor
recruiting, cost, and retention; workers' compensation, group health and
utility price changes; consumer behavior based on negative publicity or
concerns over nutritional or safety aspects of our food or products or those
of the restaurant industry in general, including concerns about pandemics, as
well as the possible effects of such events on the price or availability of
ingredients used in our restaurants; the effects of our substantial
indebtedness and associated restrictions on our financial and operating
flexibility and ability to execute or pursue our operating plans and
objectives; changes in interest rates or capital market conditions affecting
our financing costs and ability to refinance all or portions of our
indebtedness; the effects of business trends on the outlook for individual
restaurant locations and the effect on the carrying value of those locations;
our ability to retain key personnel; the availability and cost of suitable
sites for restaurant development and our ability to identify those sites;
changes in land, building materials and construction costs; the actual results
of pending, future or threatened litigation or governmental investigations and
the costs and effects of negative publicity associated with these activities;
practical or psychological effects of natural disasters or terrorist acts or
war and military or government responses; disruptions to our restaurant or
retail supply chain; changes in foreign exchange rates affecting our future
retail inventory purchases; implementation of new or changes in interpretation
of existing accounting principles generally accepted in the United States of
America ("GAAP"); and other factors described from time to time in our filings
with the Securities and Exchange Commission, press releases, and other
communications. Any forward-looking statement made by us herein, or elsewhere,
speaks only as of the date on which made. We expressly disclaim any intent,
obligation or undertaking to update or revise any forward-looking statements
made herein to reflect any change in our expectations with regard thereto or
any change in events, conditions or circumstances on which any such statements
are based.

                                                                   
CRACKER BARREL OLD COUNTRY STORE, INC.
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited)
(In thousands, except share and per share amounts, percentages and ratios)
                                                                        
                   Fourth Quarter Ended                                 Twelve Months Ended
                                    (1)              Percentage                      (1)              Percentage
                   8/2/13             8/3/12             Change         8/2/13             8/3/12             Change
Total revenue      $ 674,101          $ 700,010          (4    )%       $ 2,644,630        $ 2,580,195        3
Cost of goods       210,657          216,171         (3    )         854,684          827,484         3
sold
Gross profit         463,444            483,839          (4    )          1,789,946          1,752,711        2
Labor and
other related        243,085            260,259          (7    )          962,559            951,435          1
expenses
Other store
operating           127,742          126,003         1               482,601          464,130         4
expenses
Store
operating            92,617             97,577           (5    )          344,786            337,146          2
income
General and
administrative      37,770           37,671          0               143,262          146,171         (2     )
expenses
Operating            54,847             59,906           (8    )          201,524            190,975          6
income
Interest            4,543            11,354          (60   )         35,742           44,687          (20    )
expense
Pretax income        50,304             48,552           4                165,782            146,288          13
Provision for       16,001           13,856          16              48,517           43,207          12
income taxes
Net income         $ 34,303          $ 34,696          (1    )        $ 117,265         $ 103,081         14
                                                                                                              
Earnings per       $ 1.44            $ 1.49            (3    )        $ 4.95            $ 4.47            11
share – Basic:
Earnings per
share –            $ 1.43            $ 1.47            (3    )        $ 4.90            $ 4.40            11
Diluted:
                                                                                                              
Weighted
average
shares:
Basic                23,786,103         23,282,127       2                23,708,875         23,067,566       3
Diluted              24,053,608         23,627,908       2                23,948,321         23,408,126       2
                                                                                                              
Ratio Analysis
Total revenue:
Restaurant           81.5       %       81.3       %                      79.6       %       79.6       %
Retail              18.5             18.7                            20.4             20.4       
Total revenue        100.0              100.0                             100.0              100.0
Cost of goods       31.3             30.9                            32.3             32.1       
sold
Gross profit         68.7               69.1                              67.7               67.9
Labor and
other related        36.1               37.2                              36.5               36.8
expenses
Other store
operating           18.9             18.0                            18.2             18.0       
expenses
Store
operating            13.7               13.9                              13.0               13.1
income
General and
administrative      5.6              5.3                             5.4              5.7        
expenses
Operating            8.1                8.6                               7.6                7.4
income
Interest            0.6              1.7                             1.3              1.7        
expense
Pretax income        7.5                6.9                               6.3                5.7
Provision for       2.4              1.9                             1.9              1.7        
income taxes
Net income          5.1        %      5.0        %                     4.4        %      4.0        %
                                                                                                              

      Fiscal year 2012 was a 53-week year and the fourth quarter of fiscal
(1)  2012 was a 14-week quarter. The impact of this additional week is shown
      on page 10 of this press release.
      

                                                       
CRACKER BARREL OLD COUNTRY STORE, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited and in thousands, except share amounts)
                                                                  
                                               8/2/13             8/3/12
Assets
Cash and cash equivalents                      $ 121,718          $ 151,962
Property held for sale                           883                884
Accounts receivable                              15,942             14,609
Inventory                                        146,687            143,267
Prepaid expenses                                 12,648             11,405
Deferred income taxes                            4,316              15,181
Property and equipment, net                      1,026,369          1,022,370
Other long-term assets                          59,743            59,314
Total assets                                   $ 1,388,306        $ 1,418,992
                                                                  
Liabilities and Shareholders’
Equity
Accounts payable                               $ 110,637          $ 101,271
Other current liabilities                        205,430            217,788
Long-term debt                                   400,000            525,036
Interest rate swap liability                     11,644             14,166
Other long-term obligations                      120,073            114,897
Deferred income taxes                            56,496             63,159
Shareholders’ equity, net                       484,026           382,675
Total liabilities and                          $ 1,388,306        $ 1,418,992
shareholders’ equity
                                                                  
Common shares issued and                         23,795,327         23,473,024
outstanding
                                                                    

                                            
CRACKER BARREL OLD COUNTRY STORE, INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
(Unaudited and in thousands)
                                                
                                                Twelve Months Ended
                                                8/2/13          8/3/12
Cash flows from operating activities:
Net income                                      $ 117,265          $ 103,081
Depreciation and amortization                     66,120             64,467
Loss on disposition of property and               4,057              2,702
equipment
Share-based compensation, net of excess           15,507             9,918
tax benefit
(Increase) in inventories                         (3,420   )         (1,720  )
Increase in accounts payable                      9,366              1,592
Net changes in other assets and                  (396     )        39,782  
liabilities
Net cash provided by operating activities        208,499          219,822 
Cash flows from investing activities:
Purchase of property and equipment, net           (73,961  )         (80,170 )
of insurance recoveries
Proceeds from sale of property and               555              623     
equipment
Net cash used in investing activities            (73,406  )        (79,547 )
Cash flows from financing activities:
Net payments for credit facilities and            (125,153 )         (25,133 )
other long-term obligations
Proceeds from exercise of share-based             6,454              17,602
compensation awards
Excess tax benefit from share-based               2,332              4,502
compensation
Purchase and retirement of common stock           (3,570   )         (14,923 )
Deferred financing costs                          0                  (263    )
Dividends on common stock                        (45,400  )        (22,372 )
Net cash used in financing activities            (165,337 )        (40,587 )
                                                                   
Net (decrease) increase in cash and cash          (30,244  )         99,688
equivalents
Cash and cash equivalents, beginning of          151,962          52,274  
period
Cash and cash equivalents, end of period        $ 121,718         $ 151,962 
                                                                   

                                            
CRACKER BARREL OLD COUNTRY STORE, INC.
Supplemental Information
(Unaudited)

                       Fourth Quarter Ended        Twelve Months Ended
                       8/2/13      8/3/12        8/2/13        8/3/12
                                                                   
Units in
operation:
Open at
beginning of             622           613           616             603
period
Opened during           2            3            8              13
period
Open at end of           624           616           624             616
period
                                                                   
Total revenue: (In thousands, on comparable 13 and 52 week
periods)
Restaurant             $ 549,657     $ 526,917     $ 2,104,768     $ 2,011,982
Retail                  124,444      122,034      539,862        517,154
Total revenue           674,101     $ 648,951      2,644,630     $ 2,529,136
                                                                   
Cost of goods sold: (In thousands, on comparable 13 and 52
week periods)
Restaurant             $ 148,687     $ 140,855     $ 571,825       $ 542,308
Retail                  61,970       60,012       282,859        269,872
Total cost of          $ 210,657     $ 200,867     $ 854,684       $ 812,180
goods sold
                                                                     
Average unit volume: (In thousands, on comparable 13 and 52
week periods)
Restaurant             $ 883.3       $ 856.8       $ 3,389.8       $ 3,300.5
Retail                  200.0        198.4        869.5          848.4
Total                  $ 1,083.3     $ 1,055.2     $ 4,259.3       $ 4,148.9
                                                                   
Operating weeks: (on comparable 13 and 52 week periods)
                         8,090         7,995         32,287          31,699
                                                                   
                       Q4 2013 vs. Q4 2012         12 mo. 2013 vs. 12 mo. 2012
                                                                   
Comparable store sales period to period increase:
Restaurant             2.6%                        3.1%
Retail                 1.1%                        2.9%
                                                                   
Number of
locations in           606                         596
comparable
store base
                                                                   

                    CRACKER BARREL OLD COUNTRY STORE, INC.
Reconciliation of GAAP basis operating results to adjusted non-GAAP operating
                                   results
                         (Unaudited and in thousands)

The Company makes reference in this release to “adjusted revenue”, “adjusted
operating income,” “adjusted net income,” “adjusted earnings per diluted
share,” and “adjusted general and administrative expenses” before the impact
of proxy contest expenses, severance and restructuring charges and the benefit
of store dispositions net of an impairment. The Company believes that
excluding these items and their related tax effects from its financial results
reflects operating results that are more indicative of the Company's ongoing
operating performance while improving comparability to prior periods, and, as
such, may provide investors with an enhanced understanding of the Company's
past financial performance and prospects for the future. This information is
not intended to be considered in isolation or as a substitute for operating
income, net income, or earnings per share or expense information prepared in
accordance with GAAP.

                                                         
                   Fourth Quarter ended August 2, 2013        Fourth Quarter ended August 3, 2012
                   As Reported  Adjust      As Adjusted     As Reported  Adjust      53rd week    As Adjusted
                                                                                                       
Total Revenue      $ 674,101                  $ 674,101       $ 700,010                    (51,059 )   $ 648,951
                                                                                                       
Store
operating            92,617        -            92,617          97,577        -            (11,093 )     86,484
income
General and
administrative       37,770        -            37,770          37,671                     (1,370  )     36,301
expenses
Impairment and
store               -           -         -              -           -         -          -
dispositions,
net
Operating            54,847        -            54,847          59,906        -            (9,723  )     50,183
income
Interest            4,543       -         4,543          11,354      -         (811    )   10,543
Expense
Pretax income        50,304        -            50,304          48,552        -            (8,912  )     39,640
Provision for       16,001      -         16,001         13,856      -         (2,632  )   11,224
income taxes
Net income         $ 34,303     $ -        $ 34,303        $ 34,696     $ -        $ (6,280  )  $ 28,416
                                                                                                       
Earning per        $ 1.44        $ -          $ 1.44          $ 1.49        $ -          $ (0.27   )   $ 1.22
share - Basic
Earning per
share -            $ 1.43        $ -          $ 1.43          $ 1.47        $ -          $ (0.27   )   $ 1.20
Diluted
                                                                                                       
                   Twelve months ended August 2, 2013         Twelve months ended August 3, 2012
                   As Reported   Adjust       As Adjusted     As Reported   Adjust       53rd week     As Adjusted
                                 (1) (2)                                    (1) (2)
                                 (3)
Total Revenue      $ 2,644,630                $ 2,644,630     $ 2,580,195                  (51,059 )   $ 2,529,136
                                                                                                       
Store
operating            344,786       -            344,786         337,146       -            (11,093 )     326,053
income
General and
administrative       143,262       (5,634 )     137,628         146,171       (6,863 )     (1,370  )     137,938
expenses
Impairment and
store               -           -         -              -           -         -          -
dispositions,
net
Operating            201,524       5,634        207,158         190,975       6,863        (9,723  )     188,115
income
Interest            35,742      -         35,742         44,687      -         (811    )   43,876
Expense
Pretax income        165,782       5,634        171,416         146,288       6,863        (8,912  )     144,239
Provision for       48,517      3,847     52,364         43,207      2,027     (2,632  )   42,602
income taxes
Net income         $ 117,265    $ 1,787    $ 119,052       $ 103,081    $ 4,836    $ (6,280  )  $ 101,637
                                                                                                       
Earning per        $ 4.95        $ 0.08       $ 5.02          $ 4.47        $ 0.21       $ (0.27   )   $ 4.41
share - Basic
Earning per
share -            $ 4.90        $ 0.07       $ 4.97          $ 4.40        $ 0.21       $ (0.27   )   $ 4.34
Diluted
                                                                                                       

(1)  Charges and tax effects of the proxy contest concluded at the Company's
      annual meeting of shareholders.
(2)   Severance, other charges and tax effects related to organizational
      changes.
      Provision for taxes adjusted to exclude the $2.1 million prior year
(3)   favorable effect of the retroactive reinstatement of the work
      opportunity tax credit.
      

Contact:

Cracker Barrel Old Country Store, Inc.
Investors:
Lawrence E. Hyatt, 615-235-4432
or
Media:
Jeanne Ludington, 615-443-9115
 
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