LEBANON, Tenn.--(BUSINESS WIRE)--
Sandra B. Cochran, President and Chief Executive Officer of Cracker
Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company")
(Nasdaq: CBRL), today reviewed with securities analysts and
institutional investors a series of strategic initiatives underway to
enhance the Company's core business, expand its footprint, and extend
the Cracker Barrel brand to drive total shareholder returns.
"We are intensifying our focus on operational excellence in existing
units and profitable new restaurant growth, while beginning to pursue
opportunities to extend our powerful brand beyond our physical stores,"
Ms. Cochran said. "In doing so, we seek to build on our continued gains
in comparable store traffic, restaurant and retail sales, and the
successful implementation of the six business initiatives we launched
last September.
"The goal of our strategy is to drive average annual total shareholder
return of 15-18%, built on sales growth of 5%, operating income growth
of 8-10%, and earnings per share gains of 12-15%, over the next three
years. We believe these goals are achievable under the leadership of an
energized management team focused on value creation and a work force
committed to pleasing people and to excellence in all aspects of our
operations," Ms. Cochran added.
Ms. Cochran and the management team reported on the three key components
of the strategic plan:
Enhancing the Core: Focusing on increasing average unit volume in
existing stores, with an emphasis on innovation and productivity to
enhance the competitive advantage of the Company's unique and
differentiated brand.
Expanding the Footprint: Continued commitment to profitable new
unit growth, with a new growth target of 2-3% annually, focused on best
locations and flawless execution.
Extending the Brand: Capitalizing on Cracker Barrel's powerful
brand by bringing it beyond the Company's physical stores to create long
term value through e-commerce and licensing.
The Company also informed the investment community that it expects to
continue its strong cash flow generation, allowing it to fully fund
store development at current levels while also reducing debt and
returning substantial capital to shareholders through dividend payments
and share repurchases.
"While executing on this strategic plan, Cracker Barrel will continue to
implement its board succession planning and to deliver on its commitment
to return capital to shareholders, as evident in today's announcement of
a 60% increase in our quarterly dividend," Ms. Cochran said. "With our
truly unique brand and guest experience and an energized leadership team
driving change, we are determined to deliver on our new strategy and
provide a long runway of shareholder value creation."
The Company posted the complete presentation early this morning in the
investor relations section of its website at www.crackerbarrel.com.
The on-line replay of the presentation will remain available through May
20.
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 613 company-owned locations in 42
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 FY12 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
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.
Cracker Barrel Old Country Store, Inc.
Investor:
Lawrence
E. Hyatt, 615-235-4432
Senior Vice President and Chief Financial
Officer
or
Media:
Julie K. Davis, 615-443-9266
Senior
Director, Corporate Communications
Source: Cracker Barrel Old Country Store, Inc.
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