☒ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Tennessee (State or other jurisdiction of incorporation or organization) | 62-0812904 (I.R.S. Employer Identification Number) | |
305 Hartmann Drive, Lebanon, Tennessee (Address of principal executive offices) | 37087-4779 (Zip code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock (Par Value $0.01) Rights to Purchase Series A Junior Participating Preferred Stock (Par Value $0.01) | CBRL | The Nasdaq Stock Market LLC (Nasdaq Global Select Market) |
Large accelerated filer ☑ | Accelerated filer ☐ | Non-accelerated filer ☐ |
Smaller reporting company ☐ | Emerging growth company ☐ |
PART I. FINANCIAL INFORMATION | Page | ||
ITEM 1. Financial Statements (Unaudited) | |||
3 | |||
4 | |||
5 | |||
6 | |||
7 | |||
15 | |||
PART II. OTHER INFORMATION | |||
| |||
ASSETS | October 27, 2023 | July 28, 2023* | January 26, 2024 | July 28, 2023* | ||||||||||||
Current Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 13,914 | $ | 25,147 | $ | 12,602 | $ | 25,147 | ||||||||
Accounts receivable | 32,218 | 30,446 | 41,524 | 30,446 | ||||||||||||
Inventories | 207,269 | 189,364 | 172,702 | 189,364 | ||||||||||||
Prepaid expenses and other current assets | 34,288 | 37,330 | 40,972 | 37,330 | ||||||||||||
Total current assets | 287,689 | 282,287 | 267,800 | 282,287 | ||||||||||||
Property and equipment | 2,398,254 | 2,380,313 | 2,412,806 | 2,380,313 | ||||||||||||
Less: Accumulated depreciation and amortization | 1,429,813 | 1,408,368 | 1,447,139 | 1,408,368 | ||||||||||||
Property and equipment – net | 968,441 | 971,945 | 965,667 | 971,945 | ||||||||||||
Operating lease right-of-use assets, net | 891,371 | 889,306 | 877,580 | 889,306 | ||||||||||||
Goodwill | 4,690 | 4,690 | 4,690 | 4,690 | ||||||||||||
Intangible assets | 24,517 | 23,426 | 24,498 | 23,426 | ||||||||||||
Other assets | 42,923 | 46,440 | 44,824 | 46,440 | ||||||||||||
Total assets | $ | 2,219,631 | $ | 2,218,094 | $ | 2,185,059 | $ | 2,218,094 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Current Liabilities: | ||||||||||||||||
Accounts payable | $ | 143,294 | $ | 165,484 | $ | 136,388 | $ | 165,484 | ||||||||
Taxes withheld and accrued | 26,336 | 38,835 | ||||||||||||||
Other current liabilities | 318,604 | 323,482 | 296,113 | 284,647 | ||||||||||||
Total current liabilities | 461,898 | 488,966 | 458,837 | 488,966 | ||||||||||||
Long-term debt | 475,340 | 414,904 | 452,278 | 414,904 | ||||||||||||
Long-term operating lease liabilities | 696,871 | 702,413 | 689,499 | 702,413 | ||||||||||||
Other long-term obligations | 125,270 | 127,986 | 122,478 | 127,986 | ||||||||||||
Commitments and Contingencies (Note 10) | ||||||||||||||||
Shareholders’ Equity: | ||||||||||||||||
Preferred stock – 100,000,000 shares of $0.01 par value authorized; 300,000 shares designated as Series A Junior Participating Preferred Stock; no shares issued | — | — | — | — | ||||||||||||
Common stock – 400,000,000 shares of $0.01 par value authorized; 22,185,112 shares issued and outstanding at October 27, 2023, and 22,153,625 shares issued and outstanding at July 28, 2023 | 222 | 221 | ||||||||||||||
Common stock – 400,000,000 shares of $0.01 par value authorized; 22,201,086 shares issued and outstanding at January 26, 2024, and 22,153,625 shares issued and outstanding at July 28, 2023 | 222 | 221 | ||||||||||||||
Additional paid-in capital | 4,006 | 3,886 | 8,541 | 3,886 | ||||||||||||
Retained earnings | 456,024 | 479,718 | 453,204 | 479,718 | ||||||||||||
Total shareholders’ equity | 460,252 | 483,825 | 461,967 | 483,825 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 2,219,631 | $ | 2,218,094 | $ | 2,185,059 | $ | 2,218,094 |
Quarter Ended | ||||||||
October 27, | October 28, | |||||||
2023 | 2022 | |||||||
Total revenue | $ | 823,839 | $ | 839,519 | ||||
Cost of goods sold (exclusive of depreciation and rent) | 255,559 | 281,540 | ||||||
Labor and other related expenses | 304,447 | 291,708 | ||||||
Other store operating expenses | 203,685 | 196,704 | ||||||
General and administrative expenses | 48,735 | 45,948 | ||||||
Operating income | 11,413 | 23,619 | ||||||
Interest expense, net | 4,938 | 3,532 | ||||||
Income before income taxes | 6,475 | 20,087 | ||||||
Provision for income taxes | 1,019 | 2,958 | ||||||
Net income | $ | 5,456 | $ | 17,129 | ||||
Net income per share: | ||||||||
Basic | $ | 0.25 | $ | 0.77 | ||||
Diluted | $ | 0.25 | $ | 0.77 | ||||
Weighted average shares: | ||||||||
Basic | 22,165,852 | 22,193,774 | ||||||
Diluted | 22,263,690 | 22,292,654 |
Quarter Ended | Six Months Ended | |||||||||||||||
January 26, | January 27, | January 26, | January 27, | |||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Total revenue | $ | 935,401 | $ | 933,868 | $ | 1,759,240 | $ | 1,773,387 | ||||||||
Cost of goods sold (exclusive of depreciation and rent) | 314,851 | 326,555 | 570,410 | 608,095 | ||||||||||||
Labor and other related expenses | 323,196 | 313,967 | 627,643 | 605,675 | ||||||||||||
Other store operating expenses | 214,056 | 208,857 | 417,741 | 405,561 | ||||||||||||
General and administrative expenses | 52,536 | 45,518 | 101,271 | 91,466 | ||||||||||||
Operating income | 30,762 | 38,971 | 42,175 | 62,590 | ||||||||||||
Interest expense, net | 5,067 | 4,408 | 10,005 | 7,940 | ||||||||||||
Income before income taxes | 25,695 | 34,563 | 32,170 | 54,650 | ||||||||||||
Provision for income taxes (income tax benefit) | (839 | ) | 4,072 | 180 | 7,030 | |||||||||||
Net income | $ | 26,534 | $ | 30,491 | $ | 31,990 | $ | 47,620 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 1.20 | $ | 1.38 | $ | 1.44 | $ | 2.15 | ||||||||
Diluted | $ | 1.19 | $ | 1.37 | $ | 1.44 | $ | 2.14 | ||||||||
Weighted average shares: | ||||||||||||||||
Basic | 22,196,758 | 22,173,280 | 22,181,305 | 22,183,527 | ||||||||||||
Diluted | 22,295,532 | 22,251,835 | 22,279,611 | 22,272,244 |
Common Stock | Additional Paid-In | Retained | Total Shareholders’ | |||||||||||||||||
Shares | Amount | Capital | Earnings | Equity | ||||||||||||||||
Balances at July 28, 2023 | 22,153,625 | $ | 221 | $ | 3,886 | $ | 479,718 | $ | 483,825 | |||||||||||
Comprehensive Income: | ||||||||||||||||||||
Net income | — | — | — | 5,456 | 5,456 | |||||||||||||||
Total comprehensive income | — | — | — | 5,456 | 5,456 | |||||||||||||||
Cash dividends declared - $1.30 per share | — | — | — | (29,150 | ) | (29,150 | ) | |||||||||||||
Share-based compensation | — | — | 1,622 | — | 1,622 | |||||||||||||||
Issuance of share-based compensation awards, net of shares withheld for employee taxes | 31,487 | 1 | (1,502 | ) | — | (1,501 | ) | |||||||||||||
Balances at October 27, 2023 | 22,185,112 | $ | 222 | $ | 4,006 | $ | 456,024 | $ | 460,252 | |||||||||||
Comprehensive Income: | ||||||||||||||||||||
Net income | — | — | — | 26,534 | 26,534 | |||||||||||||||
Total comprehensive income | — | — | — | 26,534 | 26,534 | |||||||||||||||
Cash dividends declared - $1.30 per share | — | — | — | (29,354 | ) | (29,354 | ) | |||||||||||||
Share-based compensation | — | — | 4,631 | — | 4,631 | |||||||||||||||
Issuance of share-based compensation awards, net of shares withheld for employee taxes | 15,974 | — | (96 | ) | — | (96 | ) | |||||||||||||
Balances at January 26, 2024 | 22,201,086 | $ | 222 | $ | 8,541 | $ | 453,204 | $ | 461,967 |
Common Stock | Additional Paid-In | Retained | Total Shareholders’ | |||||||||||||||||
Shares | Amount | Capital | Earnings | Equity | ||||||||||||||||
Balances at July 29, 2022 | 22,281,443 | $ | 223 | $ | — | $ | 511,256 | $ | 511,479 | |||||||||||
Comprehensive Income: | ||||||||||||||||||||
Net income | — | — | — | 17,129 | 17,129 | |||||||||||||||
Total comprehensive income | — | — | — | 17,129 | 17,129 | |||||||||||||||
Cash dividends declared - $1.30 per share | — | — | — | (28,689 | ) | (28,689 | ) | |||||||||||||
Share-based compensation | — | — | 2,422 | — | 2,422 | |||||||||||||||
Issuance of share-based compensation awards, net of shares withheld for employee taxes | 34,982 | — | (2,380 | ) | — | (2,380 | ) | |||||||||||||
Purchases and retirement of common stock | (120,958 | ) | (1 | ) | (42 | ) | (12,405 | ) | (12,448 | ) | ||||||||||
Balances at October 28, 2022 | 22,195,467 | $ | 222 | $ | — | $ | 487,291 | $ | 487,513 | |||||||||||
Comprehensive Income: | ||||||||||||||||||||
Net income | — | — | — | 30,491 | 30,491 | |||||||||||||||
Total comprehensive income | — | — | — | 30,491 | 30,491 | |||||||||||||||
Cash dividends declared - $1.30 per share | — | — | — | (29,179 | ) | (29,179 | ) | |||||||||||||
Share-based compensation | — | — | 2,689 | — | 2,689 | |||||||||||||||
Issuance of share-based compensation awards, net of shares withheld for employee taxes | 6,167 | — | (20 | ) | — | (20 | ) | |||||||||||||
Purchases and retirement of common stock | (50,834 | ) | (1 | ) | (2,669 | ) | (2,331 | ) | (5,001 | ) | ||||||||||
Balances at January 27, 2023 | 22,150,800 | $ | 221 | $ | — | $ | 486,272 | $ | 486,493 |
Common Stock | Additional Paid-In | Retained | Total Shareholders’ | |||||||||||||||||
Shares | Amount | Capital | Earnings | Equity | ||||||||||||||||
Balances at July 28, 2023 | 22,153,625 | $ | 221 | $ | 3,886 | $ | 479,718 | $ | 483,825 | |||||||||||
Comprehensive Income: | ||||||||||||||||||||
Net income | — | — | — | 5,456 | 5,456 | |||||||||||||||
Total comprehensive income | — | — | — | 5,456 | 5,456 | |||||||||||||||
Cash dividends declared - $1.30 per share | — | — | — | (29,150 | ) | (29,150 | ) | |||||||||||||
Share-based compensation | — | — | 1,622 | — | 1,622 | |||||||||||||||
Issuance of share-based compensation awards, net of shares withheld for employee taxes | 31,487 | 1 | (1,502 | ) | — | (1,501 | ) | |||||||||||||
Balances at October 27, 2023 | 22,185,112 | $ | 222 | $ | 4,006 | $ | 456,024 | $ | 460,252 |
Common Stock | Additional Paid-In | Retained | Total Shareholders’ | |||||||||||||||||
Shares | Amount | Capital | Earnings | Equity | ||||||||||||||||
Balances at July 29, 2022 | 22,281,443 | $ | 223 | $ | — | $ | 511,256 | $ | 511,479 | |||||||||||
Comprehensive Income: | ||||||||||||||||||||
Net income | — | — | — | 17,129 | 17,129 | |||||||||||||||
Total comprehensive income | — | — | — | 17,129 | 17,129 | |||||||||||||||
Cash dividends declared - $1.30 per share | — | — | — | (28,689 | ) | (28,689 | ) | |||||||||||||
Share-based compensation | — | — | 2,422 | — | 2,422 | |||||||||||||||
Issuance of share-based compensation awards, net of shares withheld for employee taxes | 34,982 | — | (2,380 | ) | — | (2,380 | ) | |||||||||||||
Purchases and retirement of common stock | (120,958 | ) | (1 | ) | (42 | ) | (12,405 | ) | (12,448 | ) | ||||||||||
Balances at October 28, 2022 | 22,195,467 | $ | 222 | $ | — | $ | 487,291 | $ | 487,513 |
Three Months Ended | Six Months Ended | |||||||||||||||
October 27, | October 28, | January 26, | January 27, | |||||||||||||
2023 | 2022 | 2024 | 2023 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 5,456 | $ | 17,129 | $ | 31,990 | $ | 47,620 | ||||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 26,669 | 24,791 | 54,428 | 50,361 | ||||||||||||
Amortization of debt issuance costs | 436 | 431 | 874 | 862 | ||||||||||||
Loss on disposition of property and equipment | 1,632 | 683 | 2,898 | 2,225 | ||||||||||||
Share-based compensation | 1,622 | 2,422 | 6,253 | 5,111 | ||||||||||||
Noncash lease expense | 15,180 | 15,013 | 30,162 | 29,845 | ||||||||||||
Amortization of asset recognized from gain on sale and leaseback transactions | 3,184 | 3,184 | 6,368 | 6,368 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Inventories | (17,905 | ) | (17,761 | ) | 16,662 | 25,998 | ||||||||||
Other current assets | 1,358 | (2,470 | ) | (14,195 | ) | (12,567 | ) | |||||||||
Accounts payable | (22,190 | ) | (34,391 | ) | (29,096 | ) | (34,398 | ) | ||||||||
Taxes withheld and accrued | (12,499 | ) | (29,056 | ) | ||||||||||||
Other current liabilities | (4,832 | ) | 2,242 | 11,407 | 32,563 | |||||||||||
Long-term operating lease liabilities | (37,905 | ) | (23,515 | ) | ||||||||||||
Other long-term assets and liabilities | (26,407 | ) | (11,873 | ) | (5,468 | ) | (595 | ) | ||||||||
Net cash used in operating activities | (15,797 | ) | (600 | ) | ||||||||||||
Net cash provided by operating activities | 61,879 | 100,822 | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of property and equipment | (24,718 | ) | (21,779 | ) | (51,453 | ) | (48,878 | ) | ||||||||
Proceeds from insurance recoveries of property and equipment | 81 | 153 | 373 | 509 | ||||||||||||
Proceeds from sale of property and equipment | 39 | 166 | 91 | 226 | ||||||||||||
Net cash used in investing activities | (24,598 | ) | (21,460 | ) | (50,989 | ) | (48,143 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from issuance of long-term debt | 156,000 | 60,000 | 243,500 | 90,000 | ||||||||||||
Principal payments under long-term debt | (96,000 | ) | — | (207,000 | ) | (60,049 | ) | |||||||||
Taxes withheld from issuance of share-based compensation awards | (1,501 | ) | (2,380 | ) | (1,597 | ) | (2,400 | ) | ||||||||
Purchases and retirement of common stock | — | (12,448 | ) | — | (17,449 | ) | ||||||||||
Dividends on common stock | (29,337 | ) | (29,512 | ) | (58,338 | ) | (58,482 | ) | ||||||||
Net cash provided by financing activities | 29,162 | 15,660 | ||||||||||||||
Net cash used in financing activities | (23,435 | ) | (48,380 | ) | ||||||||||||
Net decrease in cash and cash equivalents | (11,233 | ) | (6,400 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | (12,545 | ) | 4,299 | |||||||||||||
Cash and cash equivalents, beginning of period | 25,147 | 45,105 | 25,147 | 45,105 | ||||||||||||
Cash and cash equivalents, end of period | $ | 13,914 | $ | 38,705 | $ | 12,602 | $ | 49,404 | ||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||
Cash paid during the period for: | ||||||||||||||||
Interest, net of amounts capitalized | $ | 3,458 | $ | 1,378 | $ | 8,351 | $ | 5,415 | ||||||||
Income taxes | $ | 42 | $ | 2,002 | $ | 5,634 | $ | 3,855 | ||||||||
Supplemental schedule of non-cash investing and financing activities*: | ||||||||||||||||
Capital expenditures accrued in accounts payable | $ | 4,316 | $ | 4,594 | $ | 3,563 | $ | 3,257 | ||||||||
Dividends declared but not yet paid | $ | 30,046 | $ | 29,633 | $ | 30,387 | $ | 29,842 |
1. | Condensed Consolidated Financial Statements |
2. | Fair Value Measurements |
Level 1 | Level 2 | Level 3 | Total Fair Value | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||||||||||||
Cash equivalents* | $ | 1 | $ | — | $ | — | $ | 1 | $ | 1 | $ | — | $ | — | $ | 1 | ||||||||||||||||
Deferred compensation plan assets** | 23,581 | 25,204 | ||||||||||||||||||||||||||||||
Total assets at fair value | $ | 23,582 | $ | 25,205 |
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||
Cash equivalents* | $ | 9,001 | $ | — | $ | — | $ | 9,001 | ||||||||
Deferred compensation plan assets** | 27,129 | |||||||||||||||
Total assets at fair value | $ | 36,130 |
* | Consists of money market fund investments. |
** | Represents plan assets invested in mutual funds established under a rabbi trust for the Company’s non-qualified savings plan and is included in the Condensed Consolidated Balance Sheets as other assets. |
3. | Inventories |
October 27, 2023 | July 28, 2023 | January 26, 2024 | July 28, 2023 | |||||||||||||
Retail | $ | 158,352 | $ | 145,175 | $ | 128,344 | $ | 145,175 | ||||||||
Restaurant | 29,274 | 24,427 | 25,285 | 24,427 | ||||||||||||
Supplies | 19,643 | 19,762 | 19,073 | 19,762 | ||||||||||||
Total | $ | 207,269 | $ | 189,364 | $ | 172,702 | $ | 189,364 |
4. | Debt |
October 27, 2023 | July 28, 2023 | January 26, 2024 | July 28, 2023 | |||||||||||||
Liability component | ||||||||||||||||
Principal | $ | 300,000 | $ | 300,000 | ||||||||||||
Liability component Principal | $ | 300,000 | $ | 300,000 | ||||||||||||
Less: Debt issuance costs (1) | 4,735 | 5,171 | 4,297 | 5,171 | ||||||||||||
Net carrying amount | $ | 295,265 | $ | 294,829 | $ | 295,703 | $ | 294,829 |
(1) | Debt issuance costs are amortized to interest expense using the effective interest method over the expected life of the Notes. |
Quarter Ended | Six Months Ended | |||||||||||||||
January 26, 2024 | January 27, 2023 | January 26, 2024 | January 27, 2023 | |||||||||||||
Coupon interest | $ | 474 | $ | 474 | $ | 948 | $ | 948 | ||||||||
Amortization of issuance costs | 438 | 431 | 874 | 862 | ||||||||||||
Total interest expense | $ | 912 | $ | 905 | $ | 1,822 | $ | 1,810 |
Quarter Ended October 27, 2023 | Quarter Ended October 28, 2022 | |||||||
Coupon interest | $ | 474 | $ | 474 | ||||
Amortization of issuance costs | 436 | 431 | ||||||
Total interest expense | $ | 910 | $ | 905 |
5. | Seasonality |
6. | Segment Information |
7. | Revenue Recognition |
Quarter Ended | Quarter Ended | Six Months Ended | ||||||||||||||||||||||
October 27, 2023 | October 28, 2022 | January 26, 2024 | January 27, 2023 | January 26, 2024 | January 27, 2023 | |||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Restaurant | $ | 660,793 | $ | 662,234 | $ | 730,669 | $ | 718,002 | $ | 1,391,462 | $ | 1,380,236 | ||||||||||||
Retail | 163,046 | 177,285 | 204,732 | 215,866 | 367,778 | 393,151 | ||||||||||||||||||
Total revenue | $ | 823,839 | $ | 839,519 | $ | 935,401 | $ | 933,868 | $ | 1,759,240 | $ | 1,773,387 |
8. | Leases |
Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | |||||||||||||||||||||
October 27, 2023 | October 28, 2022 | January 26, 2024 | January 27, 2023 | January 26, 2024 | January 27, 2023 | |||||||||||||||||||
Operating lease cost | $ | 27,768 | $ | 27,526 | $ | 27,644 | $ | 27,363 | $ | 55,412 | $ | 54,889 | ||||||||||||
Short term lease cost | 194 | 227 | 2,881 | 2,270 | 3,075 | 2,497 | ||||||||||||||||||
Variable lease cost | 837 | 1,110 | 846 | 844 | 1,683 | 1,954 | ||||||||||||||||||
Total lease cost | $ | 28,799 | $ | 28,863 | $ | 31,371 | $ | 30,477 | $ | 60,170 | $ | 59,340 |
Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | |||||||||||||||||||||
October 27, 2023 | October 28, 2022 | January 26, 2024 | January 27, 2023 | January 26, 2024 | January 27, 2023 | |||||||||||||||||||
Operating cash flow information: | ||||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | 24,347 | $ | 23,746 | $ | 24,274 | $ | 23,761 | $ | 48,621 | $ | 47,507 | ||||||||||||
Noncash information: | ||||||||||||||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 3,651 | 3,991 | 2,139 | 5,474 | 5,790 | 9,465 | ||||||||||||||||||
Lease modifications or reassessments increasing or (decreasing) right-of-use assets | 16,917 | (516 | ) | |||||||||||||||||||||
Lease modifications or reassessments increasing right-of-use assets | 3,521 | 4,214 | 20,438 | 3,698 | ||||||||||||||||||||
Lease modifications removing right-of-use assets | (144 | ) | (77 | ) | (1,270 | ) | (214 | ) | (1,414 | ) | (291 | ) |
October 27, 2023 | October 28, 2022 | January 26, 2024 | January 27, 2023 | |||||||||||||
Weighted-average remaining lease term | 16.24 Years | 17.31 Years | 16.12 Years | 17.22 Years | ||||||||||||
Weighted-average discount rate | 5.13 | % | 4.97 | % | 5.17 | % | 5.04 | % |
Year | Total | Total | ||||||
Remainder of 2024 | $ | 71,335 | $ | 47,885 | ||||
2025 | 78,101 | 80,076 | ||||||
2026 | 71,410 | 72,223 | ||||||
2027 | 68,069 | 68,583 | ||||||
2028 | 67,235 | 67,441 | ||||||
Thereafter | 780,610 | 784,395 | ||||||
Total future minimum lease payments | 1,136,760 | 1,120,603 | ||||||
Less imputed remaining interest | (382,421 | ) | (376,619 | ) | ||||
Total present value of operating lease liabilities | $ | 754,339 | $ | 743,984 |
9. | Net Income Per Share and Weighted Average Shares |
Quarter Ended | Quarter Ended | Six Months Ended | ||||||||||||||||||||||
October 27, 2023 | October 28, 2022 | January 26, 2024 | January 27, 2023 | January 26, 2024 | January 27, 2023 | |||||||||||||||||||
Net income per share numerator | $ | 5,456 | $ | 17,129 | $ | 26,534 | $ | 30,491 | $ | 31,990 | $ | 47,620 | ||||||||||||
Net income per share denominator: | ||||||||||||||||||||||||
Weighted average shares | 22,165,852 | 22,193,774 | 22,196,758 | 22,173,280 | 22,181,305 | 22,183,527 | ||||||||||||||||||
Add potential dilution: | ||||||||||||||||||||||||
Nonvested stock awards and units | 97,838 | 98,880 | 98,774 | 78,555 | 98,306 | 88,717 | ||||||||||||||||||
Diluted weighted average shares | 22,263,690 | 22,292,654 | 22,295,532 | 22,251,835 | 22,279,611 | 22,272,244 |
10. | Commitments and Contingencies |
• | Comparable store restaurant sales increase/(decrease): To calculate comparable store restaurant sales increase/(decrease), we determine total restaurant sales of stores open at least six full quarters before the beginning of the applicable period, measured on comparable calendar weeks. We then subtract total comparable store restaurant sales for the current year period from total comparable store restaurant sales for the applicable historical period to calculate the absolute dollar change. To calculate comparable store restaurant sales increase/(decrease), which we express as a percentage, we divide the absolute dollar change by the comparable store restaurant sales for the historical period. |
• | Comparable store average restaurant sales: To calculate comparable store average restaurant sales, we determine total restaurant sales of stores open at least six full quarters before the beginning of the applicable period, measured on comparable calendar weeks, and divide by the number of comparable stores for the applicable period. |
• | Comparable store retail sales increase/(decrease): To calculate comparable store retail sales increase/(decrease), we determine total retail sales of stores open at least six full quarters before the beginning of the applicable period, measured on comparable calendar weeks. We then subtract total comparable store retail sales for the current year period from total comparable store retail sales for the applicable historical period to calculate the absolute dollar change. To calculate comparable store retail sales increase/(decrease), which we express as a percentage, we divide the absolute dollar change by the comparable store retail sales for the historical period. |
• | Comparable store retail average weekly sales: To calculate comparable store average retail sales, we determine total retail sales of stores open at least six full quarters before the beginning of the applicable period, measured on comparable calendar weeks, and divide by the number of comparable stores for the applicable period. |
• | Comparable restaurant guest traffic increase/(decrease): To calculate comparable restaurant guest traffic increase/(decrease), we determine the number of entrees sold in our dine-in and off-premise business from stores open at least six full quarters at the beginning of the applicable period, measured on comparable calendar weeks. We then subtract total entrees sold for the current year period from total entrees sold for the applicable historical period to calculate the absolute numerical change. To calculate comparable restaurant guest traffic increase/(decrease), which we express as a percentage, we divide the absolute numerical change by the total entrees sold for the historical period. |
• | Average check increase per guest: To calculate average check per guest, we determine comparable store restaurant sales, as described above, and divide by comparable guest traffic (as described above). We then subtract average check per guest for the current year period from average check per guest for the applicable historical period to calculate the absolute dollar change. The absolute dollar change is divided by the prior year average check number to calculate average check increase per guest, which we express as a percentage. |
Quarter Ended | Quarter Ended | Six Months Ended | ||||||||||||||||||||||
October 27, | October 28, | January 26, | January 27, | January 26, | January 27, | |||||||||||||||||||
2023 | 2022 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Total revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
Cost of goods sold (exclusive of depreciation and rent) | 31.0 | 33.5 | 33.7 | 35.0 | 32.4 | 34.3 | ||||||||||||||||||
Labor and other related expenses | 37.0 | 34.8 | 34.5 | 33.6 | 35.7 | 34.1 | ||||||||||||||||||
Other store operating expenses | 24.7 | 23.4 | 22.9 | 22.4 | 23.7 | 22.9 | ||||||||||||||||||
General and administrative expenses | 5.9 | 5.5 | 5.6 | 4.8 | 5.8 | 5.2 | ||||||||||||||||||
Operating income | 1.4 | 2.8 | 3.3 | 4.2 | 2.4 | 3.5 | ||||||||||||||||||
Interest expense, net | 0.6 | 0.4 | 0.6 | 0.5 | 0.6 | 0.4 | ||||||||||||||||||
Income before income taxes | 0.8 | 2.4 | 2.7 | 3.7 | 1.8 | 3.1 | ||||||||||||||||||
Provision for income taxes | 0.1 | 0.4 | ||||||||||||||||||||||
Provision for income taxes (income tax benefit) | (0.1 | ) | 0.4 | — | 0.4 | |||||||||||||||||||
Net income | 0.7 | % | 2.0 | % | 2.8 | % | 3.3 | % | 1.8 | % | 2.7 | % |
Quarter Ended | Quarter Ended | Six Months Ended | ||||||||||||||||||||||
October 27, | October 28, | January 26, | January 27, | January 26, | January 27, | |||||||||||||||||||
2023 | 2022 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Net change in units: | ||||||||||||||||||||||||
Cracker Barrel | 1 | — | 1 | 1 | 2 | 1 | ||||||||||||||||||
MSBC | 1 | 3 | 3 | 2 | 4 | 5 | ||||||||||||||||||
Units in operation at end of the period: | ||||||||||||||||||||||||
Cracker Barrel | 661 | 664 | 662 | 665 | 662 | 665 | ||||||||||||||||||
MSBC | 60 | 54 | 63 | 56 | 63 | 56 | ||||||||||||||||||
Total units at end of the period | 721 | 718 | 725 | 721 | 725 | 721 |
Quarter Ended | Quarter Ended | Six Months Ended | ||||||||||||||||||||||
October 27, 2023 | October 28, 2022 | January 26, 2024 | January 27, 2023 | January 26, 2024 | January 27, 2023 | |||||||||||||||||||
Revenue in dollars: | ||||||||||||||||||||||||
Restaurant | $ | 660,793 | $ | 662,234 | $ | 730,669 | $ | 718,002 | $ | 1,391,462 | $ | 1,380,236 | ||||||||||||
Retail | 163,046 | 177,285 | 204,732 | 215,866 | 367,778 | 393,151 | ||||||||||||||||||
Total revenue | $ | 823,839 | $ | 839,519 | $ | 935,401 | $ | 933,868 | $ | 1,759,240 | $ | 1,773,387 | ||||||||||||
Total revenue by percentage relationships: | ||||||||||||||||||||||||
Restaurant | 80.2 | % | 78.9 | % | 78.1 | % | 76.9 | % | 79.1 | % | 77.8 | % | ||||||||||||
Retail | 19.8 | % | 21.1 | % | 21.9 | % | 23.1 | % | 20.9 | % | 22.2 | % | ||||||||||||
Average unit volumes(1): | ||||||||||||||||||||||||
Restaurant | $ | 975.6 | $ | 974.9 | $ | 1,079.0 | $ | 1,057.3 | $ | 2,054.7 | $ | 2,032.2 | ||||||||||||
Retail | 246.7 | 266.8 | 309.0 | 324.6 | 555.7 | 591.5 | ||||||||||||||||||
Total revenue | $ | 1,222.3 | $ | 1,241.7 | $ | 1,388.0 | $ | 1,381.9 | $ | 2,610.4 | $ | 2,623.7 | ||||||||||||
Comparable store sales increase (decrease)(2): | ||||||||||||||||||||||||
Restaurant | (0.5 | %) | 7.1 | % | 1.2 | % | 8.4 | % | 0.4 | % | 7.7 | % | ||||||||||||
Retail | (8.1 | %) | 4.3 | % | (5.3 | %) | 4.1 | % | (6.6 | %) | 4.2 | % | ||||||||||||
Restaurant and retail | (2.1 | %) | 6.5 | % | (0.3 | %) | 7.4 | % | (1.2 | %) | 6.9 | % | ||||||||||||
Average check increase | 6.6 | % | 8.9 | % | 5.2 | % | 10.1 | % | 5.9 | % | 9.5 | % | ||||||||||||
Comparable restaurant guest traffic decrease(2): | (7.1 | %) | (1.8 | %) | ||||||||||||||||||||
Comparable restaurant guest traffic (decrease)(2): | (4.0 | %) | (1.7 | %) | (5.5 | %) | (1.8 | %) |
Quarter Ended | Quarter Ended | Six Months Ended | ||||||||||||||||||||||
October 27, 2023 | October 28, 2022 | January 26, 2024 | January 27, 2023 | January 26, 2024 | January 27, 2023 | |||||||||||||||||||
Cost of Goods Sold in dollars: | ||||||||||||||||||||||||
Restaurant | $ | 173,441 | $ | 192,516 | $ | 205,870 | $ | 210,070 | $ | 379,311 | $ | 402,586 | ||||||||||||
Retail | 82,118 | 89,024 | 108,981 | 116,485 | 191,099 | 205,509 | ||||||||||||||||||
Total Cost of Goods Sold | $ | 255,559 | $ | 281,540 | $ | 314,851 | $ | 326,555 | $ | 570,410 | $ | 608,095 | ||||||||||||
Cost of Goods Sold by percentage of revenue: | ||||||||||||||||||||||||
Restaurant | 26.2 | % | 29.1 | % | 28.2 | % | 29.3 | % | 27.3 | % | 29.2 | % | ||||||||||||
Retail | 50.4 | % | 50.2 | % | 53.2 | % | 54.0 | % | 52.0 | % | 52.3 | % |
(Decrease) Increase as a Percentage of Total Retail Revenue | ||||
Higher initial margin | (1.3 | %) | ||
Markdowns | 0.6 | % |
First Six Months (Decrease) Increase as a Percentage of Total Revenue | ||||
Higher initial margin | (1.5 | %) | ||
Discounts | 0.3 | % | ||
Markdowns | 0.3 | % | ||
Inventory shrinkage | 0.3 | % | ||
Freight expense | % | |||
Quarter Ended | ||||||||
October 27, 2023 | October 28, 2022 | |||||||
Labor and related expenses | 37.0 | % | 34.8 | % |
Quarter Ended | Six Months Ended | |||||||||||||||
January 26, 2024 | January 27, 2023 | January 26, 2024 | January 27, 2023 | |||||||||||||
Labor and related expenses | 34.5 | % | 33.6 | % | 35.7 | % | 34.1 | % |
Increase (Decrease) as a Percentage of Total Revenue | ||||
Store hourly labor | % | |||
Store management compensation | % | |||
Other wages | (0.6 | %) |
First Six Months Increase (Decrease) as a Percentage of Total Revenue | ||||
Store hourly labor | 1.3 | % | ||
Store management compensation | 0.3 | % | ||
Payroll taxes | 0.1 | % | ||
Employee health care expense | % | |||
Other wages | (0.3 | %) |
Quarter Ended | ||||||||
October 27, 2023 | October 28, 2022 | |||||||
Other store operating expenses | 24.7 | % | 23.4 | % |
Quarter Ended | Six Months Ended | |||||||||||||||
January 26, 2024 | January 27, 2023 | January 26, 2024 | January 27, 2023 | |||||||||||||
Other store operating expenses | 22.9 | % | 22.4 | % | 23.7 | % | 22.9 | % |
Increase (Decrease) as a Percentage of Total Revenue | ||||
Advertising expense | % | |||
Store occupancy costs | % | |||
Quarter Ended | Six Months Ended | |||||||||||||||
January 26, 2024 | January 27, 2023 | January 26, 2024 | January 27, 2023 | |||||||||||||
General and administrative expenses | 5.6 | % | 4.8 | % | 5.8 | % | 5.2 | % |
Quarter Ended | ||||||||
October 27, 2023 | October 28, 2022 | |||||||
General and administrative expenses | 5.9 | % | 5.5 | % |
Second Quarter Increase as a Percentage of Total Revenue | ||||
Professional fees | 0.5 | % | ||
Incentive compensation expense | 0.2 | % |
First Six Months Increase as a Percentage of Total Revenue | ||||
Professional fees | 0.3 | % | ||
Payroll and related expense | 0.2 | % |
Quarter Ended | Six Months Ended | |||||||||||||||
January 26, 2024 | January 27, 2023 | January 26, 2024 | January 27, 2023 | |||||||||||||
Interest expense, net | $ | 5,067 | $ | 4,408 | $ | 10,005 | $ | 7,940 |
Quarter Ended | ||||||||
October 27, 2023 | October 28, 2022 | |||||||
Interest expense, net | $ | 4,938 | $ | 3,532 |
Quarter Ended | Six Months Ended | |||||||||||||||
January 26, 2024 | January 27, 2023 | January 26, 2024 | January 27, 2023 | |||||||||||||
Effective tax rate | (3.3 | %) | 11.8 | % | 0.6 | % | 12.9 | % |
Quarter Ended | ||||||||
October 27, 2023 | October 28, 2022 | |||||||
Effective tax rate | 15.7 | % | 14.7 | % |
• | Flip In. If a person or group becomes an Acquiring Person, all holders of Rights except the Acquiring Person may, for $600, purchase shares of the Company’s common stock with a market value of $1,200, based on the market price of the common stock prior to such acquisition. |
• | Flip Over. If the Company is later acquired in a merger or similar transaction after the Distribution Date, all holders of Rights except the Acquiring Person may, for $600, purchase shares of the acquiring corporation with a market value of $1,200, based on the market price of the acquiring corporation’s stock prior to such transaction. |
• | Notional Shares. Shares held by affiliates and associates of an Acquiring Person, and Notional Common Shares (as defined in the Rights Agreement) held by counterparties to a Derivatives Contract (as defined in the Rights Agreement) with an Acquiring Person, will be deemed to be beneficially owned by the Acquiring Person. |
INDEX TO EXHIBITS | ||
Exhibit | ||
3.1 | Amended and Restated Charter of Cracker Barrel Old Country Store, Inc. (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed under the Exchange Act on April 10, 2012 (Commission File No. 001-25225) | |
3.2 | Second Amended and Restated Bylaws of Cracker Barrel Old Country Store, Inc. (incorporated by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q filed under the Exchange Act on June 7, 2022) |
Amendment and Termination of Rights Agreement, dated as of February 27, 2024, between Cracker Barrel Old Country Store, Inc. and Equiniti Trust Company, LLC (filed herewith) | |
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith) | |
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith) | |
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith) | |
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith) | |
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) |
101.SCH | Inline XBRL Taxonomy Extension Schema |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
Date: | By: | /s/Craig A. Pommells | |
Craig A. Pommells, Senior Vice President, Chief Financial Officer | |||
Date: | By: | /s/Brian T. Vaclavik | |
Brian T. Vaclavik, Vice President, Corporate Controller and | |||
Principal Accounting Officer |