Cracker Barrel Old Country Store, Inc. · NASDAQ:CBRL
Cracker Barrel Old Country Store — Investor Presentation (January 2023)
24 slides from Cracker Barrel Old Country Store's investor presentation, Jan 9, 2023
Slide 1: January 2023 Investor Presentation
January 2023Investor Presentation
Slide 2: Forward Looking Statements and Safe Harbor Treatment
Forward Looking Statements and Safe Harbor TreatmentAll statements made in this Presentation and in any commentary provided by the Company’s management in connection herewith other than statements of historical fact are “forward-looking statements” within the meaning of Section 27A of the Securities
Slide 3: Who we Are
Who we Are Cracker Barrel was founded in 1969 in Middle Tennessee, where we are still headquartered today.We own and operate two unique brands: Cracker Barrel Old Country Store, which is the core brand, and Maple Street Biscuit Company, which was acquired in 2019.Cracker Barrel provides a friendly h
Slide 4: Cracker Barrel is a unique & differentiated brand
Cracker Barrel is a unique & differentiated brand 45 $4.9M 665 ~20% 3 $12.13 StatesAverage Unit VolumesCompany-Owned StoresRetail RevenueDayparts ServedAverageCheck 4
Slide 5: The Cracker Barrel brand has broad and diverse appeal
18-2411%25-3412%35-4414%45-5420%55-6417%65+26%Guest Mix by Age Breakfast25%Lunch39%Dinner36%Sales by DaypartSource: Sense360 credit card data, Internal Data.Note: Guest age mix data is for three months ending October 2022. 5The Cracker Barrel brand has broad and diverse appealMULTI-GENERATIONAL DRAW
Slide 6: Cracker Barrel has an expansive footprint across states and still has room to grow
Cracker Barrel has an expansive footprint across 45 states and still has room to grow6 *Includes first store opening in 1969 *
Slide 7: Maple Street complements the Cracker Barrel brand
Maple Street complements the Cracker Barrel brand7Identified the fast casual breakfast space as an underserved market, and one where we had the credibility to enter Maple Street shares many commonalities with Cracker Barrel: scratch-made cooking, a culture of hospitality, and craveable, homestyle fo
Slide 8: Strategic Initiatives
Strategic Initiatives 8
Slide 9: Our growth strategy capitalizes on our competitive advantages
9 Our growth strategy capitalizes… …on our competitive advantages: Authentic Experiential Brand Caring Hospitality culture Homestyle Food & Retail Assortment …to deliver the following objectives:Grow traffic by earning one more visit from current guests per yearAttract new customers via new occasion
Slide 10: Reinforcing homestyle craveability and value to a broad guest base
Reinforcing homestyle craveabilityand value to a broad guest base Dinner menu revamp complete (Signature Fried Chicken Platform, etc.) Beer & Wine rollout completed to majority of the system Breakfast menu refresh phase 1 & Barrel BitesSummer202110Summer2022Summer/Fall 2022
Slide 11: Diversified off-premise channel mix
Diversified off-premise channel mix Channel Individual To - Go 3 rd Party Delivery Catering & Occasion Channel mix (~40% of off-premise sales)(~40% of off-premise sales)(~20% of off-premise sales)11
Slide 12: Leveraging technology to enhance the in-store and off-premise guest experience
Leveraging technology to enhance the in-store and off-premise guest experience Digital Marketing Digital Store In - Store Experience Loyalty Transform marketing & media strategy to focus on hyperlocal & personalized communications driving greater efficient marketing spend.Deliver intuitive & frictio
Slide 13: Deliberate Unit Growth
603616624631637639645653660663664664667668247741445166712011201220132014201520162017201820192020202120222023(Low End)2023(High End) CBOCS MSBC Deliberate Unit Growth Maple Street was acquired in 2019, and unit count includes stores opened as Holler & Dash and franchised locations. 13
Slide 14: Deliver a scalable & resilient business model
Deliver a scalable & resilient business model Store Process & Systems Data & Analytics Capabilities Long-term commitment to evolving store process & systems including point-of-sale, food & labor management, manager tools and payment systems to create store efficiencies, enhance guest experience, sim
Slide 15: Business Performance and Capital Allocation
Business Performance and Capital Allocation 15
Slide 16: Q2 results in line with expectations; full-year outlook reiterated
16 To date, Q2 results have been in line with our previous expectations, despite the negative impact of severe weather, and we are reiterating our full-year outlook Full-Year OutlookContinue to expect total revenue growth of 6% to 8% for the full fiscal yearContinue to expect full-year commodity inf
Slide 17: Overall sales recovery from pandemic has been meaningful
Overall sales recovery from pandemic has been meaningful, and key strategic initiatives are expected to support further revenue growthQuarter-EndedYear-Ended *Comparisons for periods ended 4/30/21 to 10/29/21 are vs. FY19. All other periods are vs. prior year. We calculate comparable store restauran
Slide 18: Our retail business has delivered strong performance
Our retail business has delivered strong performance 18*Comparisons for periods ended 4/30/21 to 10/29/21 are vs. FY19. All other periods are vs. prior year. We calculate comparable store retail sales as described in our quarterly reports on Form 10-Q and annual reports on Form 10-K under the headin
Slide 19: Strong free cash flows driven by solid operating cash flows
Strong free cash flows driven by solid operating cash flows and disciplined capital investments Note: Free Cash Flow defined as Net Cash Provided by Operating Activities less Purchase of Property and Equipment, Net. See Appendix for Non-GAAP Reconciliation.*Excludes $199.5M in Purchase of Property a
Slide 20: Balanced approach to capital allocation
Balanced approach to capital allocationBoard and Management Team prioritize use of cash to:•Reinvest in the business to deliver continued success of Cracker Barrel and Maple Street•Invest in long-term growth drivers and new unit development•Return capital to shareholders through compelling dividend
Slide 21: Over $1.6 billion in cash returned to shareholders
Over $1.6 billion in cash returned to shareholders since 2011 21Note: Dividends Paid $53 $37 $49 $84 $96 $270 $197 $222 $193 $150 $67 $246 $0$50$100$150$200$250$300201120122013201420152016201720182019202020212022$MCash Returned to Shareholders Quarterly Dividend Special Dividend Share Repurchases
Slide 22: Appendix
Appendix22
Slide 23: Non-GAAP Reconciliation
Non-GAAP ReconciliationIn the accompanying presentation, the Company provides its current outlook for adjusted operating income margin, a non-GAAP financial measure, for the second quarter and full year fiscal 2023. The Company’s adjusted operating income margin outlook excludes the expected non-cas
Slide 24: Non-GAAP Reconciliation
Non-GAAP ReconciliationIn the accompanying presentation, the Company makes reference to its free cash flow for certain historical periods presented therein. The Company defines free cash flow as GAAP cash provided by operating activities, excluding the Company’s net expense for purchase of property
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