Cracker Barrel Old Country Store, Inc. · NASDAQ:CBRL
Cracker Barrel Old Country Store — CBRL Group — Investor Presentation (October 2007)
12 slides from Cracker Barrel Old Country Store's investor presentation, Oct 3, 2007
Slide 1: Purchasing Overview
Purchasing Overview MISSION To Ensure that our Restaurants are Continuously Supplied with the Specified Products and Services at the Best Possible Cost
Slide 2: Restaurant Supply Chain
Restaurant Supply Chain 150 Suppliers 6 Distribution Centers Raw Materials Processing Margins Freight Distribution Fee 565 Locations
Slide 3: Approach
Approach Develop and Implement Purchasing Strategies Which Suppliers, How Many, Why? What Length of Term, Why? What Pricing Structure, Why? What Other Provisions, Why? Manage Supplier Performance Leverage Supplier Relationships Manage Commodity Price Risk
Slide 4: Leverage Supplier Relationships
Leverage Supplier Relationships New Product Development Value Engineering Market Research and Consumer Insights Diversity and Inclusion Sustainability Initiatives
Slide 5: Commodity Price Risk Management
Commodity Price Risk Management OBJECTIVE Buy Against Price Expectations to Capture Margin Improvement Opportunities and Mitigate Risk APPROACH Establish Pricing Formulas by Product Competitively Bid and Negotiate Formulas Take Commodity Positions Through Suppliers Based on Risk/Reward Analysis
Slide 6: Chicken Tenderloin Market Pricing
Chicken Tenderloin Market Pricing $ Per Pound Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 2004 2.02 2.35 2.69 2.78 2.79 2.8 2.81 2.61 2.31 1.82 1.7 1.7 2005 1.71 1.87 1.98 2.09 1.94 1.81 1.8 1.8 1.88 1.65 1.51 1.51 2006 1.46 1.46 1.48 1.48 1.55 1.67 1.85 2.06 2.01 1.63 1.58 1.78 2007 2.04 2.3
Slide 7: FY08 Expected Food Purchases
FY08 Expected Food Purchases Beef Pork Poultry Dairy (Incl. Eggs) Fruits & Vegetables Seafood Grains Oils Other Sugars & Sweeteners Beverages East 0.14 0.11 0.11 0.13 0.14 0.07 0.07 0.04 0.05 0.08 0.05 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9
Slide 8: FY08 Locked Pricing as of 9/12/07
FY08 Locked Pricing as of 9/12/07 Locked Unlocked 3rd Qtr 4th Qtr East 0.65 0.35 90 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9
Slide 9: Purchasing Overview
Purchasing Overview MISSION To Ensure that our Restaurants are Continuously Supplied with the Specified Products and Services at the Best Possible Cost
Slide 10: Commodity Situation
Commodity Situation Agriculture and Energy Resources and Markets are Converging - Ethanol, Bio-diesel, Crop-Based Plastics/ Industrial Goods Global Demand Increasing for Food and Energy Driven by Strong Economic Growth in Developing Countries U.S. Food Industry is Built on Corn - Primary Cost Driver
Slide 11: Corn Market: World Ending Stocks and Ratio of Stocks/Total Use
Corn H89 Market WORLD ENDING STOCKS AND RATIO OF STOCKS /TOTAL USE fending Eracke Goh) “PSrashe Mee (ish
Slide 12: Corn Futures - Long Term
Corn Futures - Long Term Nearby Futures Contract 5-Yr Moving Avg. 10-Yr Moving Avg. Cents Per Bushel Year