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Cracker Barrel to Host Analyst and Institutional Investor Meeting; Provides Business Update

  Cracker Barrel to Host Analyst and Institutional Investor Meeting; Provides
  Business Update

 Provides Third Quarter Update and Revises Guidance Announces 33% Increase in
                              Quarterly Dividend

Business Wire

LEBANON, Tenn. -- April 30, 2014

On May 1, 2014, Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or
the "Company") (Nasdaq:CBRL) will hold a meeting for securities analysts and
institutional investors at its home office in Lebanon, Tennessee. As part of
the presentation, senior executives from the Company will present an update to
the priorities and initiatives underlying Cracker Barrel’s “Enhance, Expand,
Extend” strategy in order to continue to generate long-term value for
shareholders:

  *Enhance the Core: Continue to drive traffic at its existing stores by
    continuing the focus on the diversity of its menu offerings, expanding the
    demographic reach of the Cracker Barrel brand, leveraging technology to
    enhance its guests’ experience, and utilizing more targeted advertising
    campaigns and channels; continue to increase the average check by
    selectively adopting tiered pricing across its geographies; and further
    increase its operating margins by re-engineering certain store processes
  *Expand the Footprint: Continue prudent, yet profitable new growth
    employing proven site selection tools; introduce a new, more efficient
    “Fusion” store prototype
  *Extend the Brand: Build on the initial success of Cracker Barrel’s
    licensing initiative to expand the products offered and channels served

As part of these initiatives, Cracker Barrel will also outline a new
three-year cost optimization program intended to generate at least $50 million
in annual operational expense savings by fiscal year 2017. This program is
focused on enhancing labor productivity, further improving store management
and operations, and capturing utilities savings.

The Company believes the above initiatives will result in approximately 4%
annual top line growth and, net of higher advertising, wages and benefits
costs, an approximate 100 basis point improvement in operating margin by
fiscal year 2017.

Comparable Stores Sales and Guidance Update

In conjunction with the May 1 Analyst and Institutional Investor Meeting, the
Company also reported today its comparable store sales through April 28, 2014
for the 13-week third quarter ending May 2, 2014. Comparable store restaurant
traffic, average check and comparable store restaurant and retail sales were
as follows:

                               February   March   April MTD   Q3 QTD
Comparable restaurant traffic   -4.9%      -4.0%   -0.3%       -2.9%
Average check                   2.2%       2.0%    2.5%        2.2%
Comparable restaurant sales     -2.7%      -2.0%   2.2%        -0.7%
Comparable retail sales         -5.8%      -5.0%   11.5%       0.7%

The Company believes a continued challenging consumer environment, an
increasingly promotional competitive landscape, particularly within the dinner
daypart, and an overall reduction in vehicle travel – due both to weather and
shortened vacation periods – impacted comparable store traffic, restaurant
sales and retail sales during the quarter to date. Comparable store traffic
and sales in March and April also reflect the later Easter holiday compared to
the prior year period. As a result of these impacts, the Company is lowering
its previous third quarter earnings guidance, and now expects to report
earnings per diluted share of between $1.18 and $1.23. The Company notes that
this guidance does not include expenses related to the Special Meeting of
Cracker Barrel Shareholders on April 23, 2014.

Dividend Increase

As a result of the Board and management’s confidence in the Company’s
strategy, and in keeping with its focus on delivering shareholder value, the
Company also announced today that its Board of Directors declared a quarterly
dividend of $1.00 per share on the Company’s common stock, reflecting an
increase of 33% over the previous quarter’s dividend, and a more than 350%
increase over the last dividend prior to the announcement of the Company’s
strategic priorities in September 2011. The dividend is payable on August 5,
2014 to shareholders of record as of July 18, 2014.

"As we discussed in our second quarter conference call, the severe winter
weather continued into our third quarter, negatively impacting our traffic and
sales,” said Sandra B. Cochran, President and Chief Executive Officer of
Cracker Barrel. “Additionally, we believe consumers remain economically
challenged, our competitors have become increasingly promotional, and overall
automobile travel – which disproportionally affects our business – continues
to be soft. Nevertheless the continued execution of our strategic plan, along
with our strong cash flow generation, provided the Board with the confidence
to increase the quarterly dividend for the fifth consecutive year. We look
forward to discussing these plans at tomorrow’s Analyst and Institutional
Investor Meeting.”

Tomorrow’s presentations are scheduled to begin at 9:00 a.m. CDT (10:00 a.m.
EDT). The Company expects the presentations to conclude by approximately 12:30
p.m. CDT (1:30 p.m. EDT). A live webcast of the presentation will be available
on-line in the Events area of the Company’s website at
investor.crackerbarrel.com. An on-line replay of the webcast will be available
until May 15.

About Cracker Barrel

Cracker Barrel Old Country Store restaurants provide 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. The restaurants serve up
delicious, home-style country food such as meatloaf and homemade chicken n’
dumplins as well as our signature biscuits using an old family recipe. The
authentic old country retail store is fun to shop and offers unique gifts and
self-indulgences.

Cracker Barrel Old Country Store, Inc.(Nasdaq:CBRL) was established in 1969
in Lebanon, Tenn.and operates 627 company-owned locations in42 states. Every
Cracker Barrel unit is open seven days a week with hours Sunday through
Thursday, 6:00 a.m. – 10:00 p.m., and Friday and Saturday, 6:00 a.m. – 11:00
p.m. 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 Q3 FY14 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, and 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 successfully implement or sustain 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; our ability to successfully
implement 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;
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; 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.

Contact:

Cracker Barrel Old Country Store
Investors:
Lawrence E. Hyatt, 615-235-4432
or
Media:
Andy Merrill, 212-886-9304
 
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