Cracker Barrel Old Country Store (CBRL) Financial Report Summaries

Risks

• We are currently experiencing, and have in the past experienced, inflationary conditions with respect to a variety of costs, including the cost for food, ingredients, retail merchandise, transportation, distribution, labor and utilities, and we may not be able to increase prices or implement operational improvements sufficient to fully offset inflationary pressures on such costs, which may have a material adverse effect on our results of operations.
• Pandemics, epidemics, endemics, and other public health concerns, or government regulation relating to the consumption of food products and widespread infectious diseases could reduce consumer traffic and could have a material adverse effect on our results of operations.
• We face intense competition, and if we are unable to continue to compete effectively, our business, financial condition and results of operations may be adversely affected.
• Unfavorable publicity could harm our business. In addition, our failure to recognize, respond to and effectively manage the impact of social media could materially impact our business.
• The convertible note hedge and warrant transactions may affect the value of the notes and our common stock.
• Our ability to manage our retail inventory levels and changes in merchandise mix may adversely affect our business.
• A material disruption in our information technology, network infrastructure and telecommunication systems could have a material adverse effect on our business and results of operations.
• We outsource certain business processes to third-party vendors that subject us to risks, including disruptions in business and increased costs; our use of third-party technologies has increased and if we are unable to maintain our rights to these technologies our business may be harmed.
• Provisions in our charter, Tennessee law and our shareholder rights agreement may discourage potential acquirers of the Company.
• Failure to adequately address environmental, social and governance (“ESG”) matters, could adversely affect our brand, business, results of operations and financial condition.
• The loss of key executives or difficulties in recruiting and retaining qualified personnel could jeopardize our future growth and success.
• We may pursue strategic investments or initiatives now or in the future, which may not yield their expected benefits, resulting in a loss of some or all of our investment.
• If we fail to execute our business strategy, which includes our ability to find new store locations and open new stores that are profitable, our business could suffer.
• General economic, business and societal conditions as well as those specific to the restaurant or retail industries that are largely out of our control may have a material adverse effect on our business, financial condition and results of operations.
• Our business is somewhat seasonal and also can be affected by extreme weather conditions and natural disasters, social unrest or other catastrophic events.
• Our current insurance programs may expose us to unexpected costs, which could have a material adverse effect on our financial condition and results of operations.
• Our reported results can be affected adversely and unexpectedly by the implementation of new, or changes in the interpretation of existing, accounting principles or financial reporting requirements.
• Failure of our internal control over financial reporting could adversely affect our business and financial results.