Cracker Barrel Announces Reduction of Management and Staff Positions
LEBANON, Tenn.--(BUSINESS WIRE)--
Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) announced today
that a cost reduction and organization streamlining initiative has
resulted in the elimination of approximately 60 management and staff
positions. Most of the employees affected by the layoff worked in the
Company's home office in Lebanon, Tennessee.
"The difficult decisions announced today were made as part of the annual
business planning process for our 2012 fiscal year," said Michael A.
Woodhouse, the Chairman of the Board and Chief Executive Officer of
Cracker Barrel Old Country Store, Inc. "Our customers continue to face a
challenging economic environment, and our Company will continue to face
commodity cost increases next year. We believe that the actions
announced today will generate annual pretax savings of approximately $10
million, improve our organizational effectiveness, and help position our
Company for continued success."
Woodhouse added, "As we managed through the economic downturn, we have
improved the efficiency of many corporate administrative functions,
while continuing to make delivering an outstanding guest experience our
top priority. The changes announced today do not affect any store
positions. With our continued new-store growth, we have added over 1,200
store positions this year, and expect to continue adding new stores and
new jobs in future years." In recognizing the personal impact of this
initiative on those affected, Woodhouse said, "We thank them for their
commitment and contribution, in some cases over many years, as the
Company moves to a smaller and more efficient corporate staff."
All affected employees will receive severance pay and outplacement
assistance in accordance with the Company's policies. The Company
estimates that severance and other charges related to its cost reduction
initiative will reduce income from operations in the fourth quarter of
the 2011 fiscal year by between $4 and $5 million, and reduce net
earnings per diluted share by between $0.14 and $0.17. These charges
were not included in the Company's previously issued guidance for the
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 the Company's 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 603 company-owned locations in 42
states. Every Cracker Barrel unit is open seven days a week with hours
Sunday through Thursday, 6 a.m. — 10 p.m., and Friday and Saturday, 6
a.m. - 11 p.m. For more information, visit: crackerbarrel.com.
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 Q4 FY11 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.
Cracker Barrel Old Country Store, Inc.
E. Hyatt, 615-235-4432
Source: Cracker Barrel Old Country Store, Inc.
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