Cracker Barrel Old Country Store, Inc. · NASDAQ:CBRL
Cracker Barrel Old Country Store — ICR Conference January 2022
25 slides from Cracker Barrel Old Country Store's conference presentation, Jan 11, 2022
Slide 1: ICR Conference January 2022
ICR Conference January 2022
Slide 2: Forward Looking Statements and Safe Harbor Treatment
All 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 27 A of the Securities Act of 1933 , as amended, and Section 21 E of th
Slide 3: Since 1969, Cracker Barrel's mission has been Pleasing People
3 Since 1969, Cracker Barrel’s mission has been Pleasing People Founded in 1969 in Middle Tennessee, where still headquartered today 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 * Includes
Slide 4: Cracker Barrel is a Unique, Differentiated, and Complex Brand
4 Cracker Barrel is a Unique, Differentiated, and Complex Brand Retail sales of $426 per square foot at approximately 50% gross margin rate • 664 stores welcome approximately 225 million guests in a normal year with travelers making up about 35% - 40% of those visits • Restaurant sales contribute 80
Slide 5: The Cracker Barrel brand is a leader in the industry
5 The Cracker Barrel brand is a leader in the industry for: • Menu Uniqueness Top 5 Rated • Craveability Top 5 Rated • Menu Variety Top 5 Rated • Value Provided Top 5 Rated • Unit Appearance and Ambiance Top 5 Rated • Service and Hospitality Top 5 Rated • Pleasant, Friendly Service Top 5 Rated Consu
Slide 6: Expansive footprint but room for future growth
* Includes first store opening in 1969 With locations in 45 states, Cracker Barrel has an expansive footprint but room for future growth There is room for both infill in existing markets and continued brand expansion 6
Slide 7: Maple Street complements the Cracker Barrel brand
7 Maple Street complements the Cracker Barrel brand • Identified 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, home
Slide 8: Maple Street performance is strong
8 Maple Street performance is strong • 45 community stores are open 7am - 2pm every day with average annualized 1 sales of $1.2 million • Comparable store sales growth versus pre - COVID levels were 50%+ in the most recent quarter, including the benefit of being open on Sundays • Menu features comfo
Slide 9: Strategic Initiatives
Strategic Initiatives
Slide 10: We plan to leverage our competitive advantages
10 We plan to leverage our competitive advantages to… Competitive Advantages Authentic Experiential Brand Culture of Caring Hospitality Homestyle Food & Retail Assortment …grow traffic with frequency strategy of earning one more visit from current guests per year …attract new customers via new occas
Slide 11: Dinner Menu Refresh, Beer and Wine, Breakfast Menu Refresh
Dinner Menu Refresh: Completed system - wide introduction in summer 2021 • Introduced in a phased approach beginning with the addition of signature fried chicken platform • Redesigned menu reinforced Cracker Barrel’s strong value proposition and underscored our menu variety, both of which are differ
Slide 12: Pandemic accelerated off-premise acceptance
12 Pandemic accelerated off - premise acceptance, and key initiatives are under way to support the long - term success of this business Individual To Go (~50% of business) 3 rd - Party Delivery (~30% of business) Catering & Occasion (~20% of business) Completed Initiatives ▪ Enhanced curbside digita
Slide 13: Learnings from the pandemic support a more optimized retail experience
13 Learnings from the pandemic support a more optimized retail experience • Assortment remains a key point of differentiation • Approximately 50% of non - food retail merchandise is exclusive to Cracker Barrel • Retail shops have evolved to feature a more curated feel over the course of the pandemic
Slide 14: Investing in new technology initiatives to grow traffic
In vesting in new technology initiatives to grow traffic and strengthen the business model Digital Store • Launched a Digital Store in Fall 2020 • Since launch, our digital order mix has grown to more than 55% • Recent enhancements include a more customized experience and more readily accessible ord
Slide 15: Business Performance and Capital Allocation
Business Performance and Capital Allocation
Slide 16: Current and Near-Term Business Performance
16 Current and Near - Term Business Performance • Holiday season/first two months of Q2 as expected • Increased COVID caseloads currently impacting both dine - in traffic and staffing, and pressuring top - line, which may persist into Q3 • Inflationary pressures forecasted to peak in Q3, with commod
Slide 17: Comparable Restaurant Sales
17 0.6% 2.6% 2.1% 3.8% - 41.7% - 39.2% - 16.4% - 21.9% - 8.6% - 6.8% + 1.4% 8/3/18 8/2/19 11/1/19 1/31/20 5/1/20 7/31/20 10/30/20 1/29/21 4/30/21 7/30/21 10/29/21 Comparable Restaurant Sales * * vs PY for periods before 4/30/21, vs FY19 for periods ended 4/30/21 - 10/29/21 Prior to the pandemic, Cra
Slide 18: Successfully pivoted to new and enhanced Off-Premise channels
Successfully pivoted to new and enhanced Off - Premise business channels through quick and decisive operations actions as well as digital and technology enhancements 9% 25% 35% 25% 30% 23% 19% 20% Full Year FY19 5/1/2020 7/31/2020 10/30/2020 1/29/2021 4/30/2021 7/30/2021 10/29/2021 Off - Premise % o
Slide 19: Strong free cash flows driven by solid operating cash flows
19 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 A ppe ndix for Non - GAAP Reconciliation. *Excludes $199.5M in Purchase of Pr
Slide 20: Balanced approach to capital allocation
20 Balanced approach to capital allocation Board 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 compelli
Slide 21: Over $1.4 billion in cash returned to shareholders since 2011
21 $53.4 $37.3 $49.0 $84.0 $95.7 $270.2 $196.9 $221.9 $193.5 $149.6 $66.7 $0 $50 $100 $150 $200 $250 $300 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ($M) Quarterly Dividend Special Dividend Share Repurchase Over $1.4 billion in cash returned to shareholders since 2011 Capital allocation
Slide 22: Cracker Barrel is a company worth investing in
22 Cracker Barrel is a company worth investing in 22 Two highly differentiated and relevant brands Pipeline for growth through strategic sales initiatives and new unit expansion in both brands History of outperformance Board commitment of returning capital to shareholders
Slide 23: Thank you for your interest
Thank you for your interest
Slide 24: Appendix
Appendix 24
Slide 25: Non-GAAP Reconciliation
25 Non - GAAP Reconciliation 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net Cash Provided by Operating Activities 138$ 220$ 208$ 178$ 334$ 271$ 321$ 331$ 363$ 161$ 302$ Purchase of Property and Equipment (PPE), Net 78$ 80$ 74$ 91$ 90$ 113$ 110$ 152$ 138$ 296$ 70$ Excluding PPE, Net relat
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