Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Oct. 30, 2020 | Nov. 25, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Cracker Barrel Old Country Store, Inc. | |
Entity Central Index Key | 0001067294 | |
Current Fiscal Year End Date | --07-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 23,721,030 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 30, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-25225 | |
Entity Tax Identification Number | 62-0812904 | |
Entity Incorporation, State or Country Code | TN | |
Entity Address, Address Line One | 305 Hartmann Drive | |
Entity Address, City or Town | Lebanon | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37087-4779 | |
City Area Code | 615 | |
Local Phone Number | 444-5533 | |
Title of 12(b) Security | Common Stock (Par Value $0.01) | |
Trading Symbol | CBRL | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Oct. 30, 2020 | Jul. 31, 2020 | [1] |
Current Assets: | |||
Cash and cash equivalents | $ 597,619 | $ 436,996 | |
Accounts receivable | 22,338 | 20,157 | |
Income taxes receivable | 26,533 | 28,852 | |
Inventories | 155,737 | 139,091 | |
Prepaid expenses and other current assets | 22,636 | 17,916 | |
Total current assets | 824,863 | 643,012 | |
Property and equipment | 2,196,537 | 2,363,518 | |
Less: Accumulated depreciation and amortization | 1,190,166 | 1,233,457 | |
Property and equipment - net | 1,006,371 | 1,130,061 | |
Operating lease right-of-use assets, net | 1,009,509 | 691,949 | |
Goodwill | 4,690 | 4,690 | |
Intangible assets | 20,960 | 20,960 | |
Other assets | 53,729 | 53,586 | |
Total assets | 2,920,122 | 2,544,258 | |
Current Liabilities: | |||
Accounts payable | 136,051 | 103,504 | |
Current portion of long-term debt | 39,395 | 39,395 | |
Other current liabilities | 269,170 | 308,157 | |
Total current liabilities | 444,616 | 451,056 | |
Long-term debt | 910,000 | 910,000 | |
Long-term operating lease liabilities | 773,204 | 632,630 | |
Long-term interest rate swap liability | 21,494 | 23,860 | |
Other long-term obligations | 96,471 | 80,605 | |
Deferred income taxes | 82,725 | 27,718 | |
Commitments and Contingencies (Note 12) | |||
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 | 0 | 0 | |
Common stock - 400,000,000 shares of $0.01 par value authorized; 23,720,324 shares issued and outstanding at October 30, 2020, and 23,697,396 shares issued and outstanding at July 31, 2020 | 237 | 237 | |
Additional paid-in capital | 0 | 0 | |
Accumulated other comprehensive loss | (17,745) | (20,346) | |
Retained earnings | 609,120 | 438,498 | |
Total shareholders' equity | 591,612 | 418,389 | |
Total liabilities and shareholders' equity | $ 2,920,122 | $ 2,544,258 | |
[1] | This Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of July 31, 2020, as filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2020. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Oct. 30, 2020 | Jul. 31, 2020 |
Shareholders' Equity: | ||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 23,720,324 | 23,697,396 |
Common stock, shares outstanding (in shares) | 23,720,324 | 23,697,396 |
Series A Junior Participating Preferred Stock [Member] | ||
Shareholders' Equity: | ||
Preferred stock, shares authorized (in shares) | 300,000 | 300,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 30, 2020 | Nov. 01, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) [Abstract] | ||
Total revenue | $ 646,454 | $ 749,040 |
Cost of goods sold (exclusive of depreciation and rent) | 199,044 | 219,814 |
Labor and other related expenses | 227,188 | 263,314 |
Other store operating expenses | 161,274 | 162,908 |
General and administrative expenses | 39,564 | 39,631 |
Gain on sale and leaseback transaction | (217,722) | 0 |
Operating income | 237,106 | 63,373 |
Interest expense, net | 10,715 | 3,580 |
Income before income taxes | 226,391 | 59,793 |
Provision for income taxes | 55,711 | 10,590 |
Loss from unconsolidated subsidiary | 0 | (5,980) |
Net income | $ 170,680 | $ 43,223 |
Net income per share: | ||
Basic (in dollars per share) | $ 7.20 | $ 1.80 |
Diluted (in dollars per share) | $ 7.18 | $ 1.79 |
Weighted average shares: | ||
Basic (in shares) | 23,707,750 | 24,038,354 |
Diluted (in shares) | 23,771,230 | 24,103,922 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 30, 2020 | Nov. 01, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||
Net income | $ 170,680 | $ 43,223 |
Other comprehensive income (loss) before income tax expense: | ||
Change in fair value of interest rate swaps | 3,466 | (545) |
Income tax expense (benefit) | 865 | (107) |
Other comprehensive income (loss), net of tax | 2,601 | (438) |
Comprehensive income | $ 173,281 | $ 42,785 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-In Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated Other Comprehensive Loss [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |
Balances at Aug. 02, 2019 | $ 241 | $ 49,732 | $ (6,913) | $ 561,650 | $ 604,710 | ||||||
Balances (in shares) at Aug. 02, 2019 | 24,049,240 | ||||||||||
Comprehensive Income: | |||||||||||
Net income | $ 0 | 0 | 0 | 43,223 | 43,223 | ||||||
Other comprehensive income (loss), net of tax | 0 | 0 | (438) | 0 | (438) | ||||||
Comprehensive income | 0 | 0 | (438) | 43,223 | 42,785 | ||||||
Cash dividends declared | 0 | 0 | 0 | (31,452) | (31,452) | ||||||
Share-based compensation | 0 | 1,798 | 0 | 0 | 1,798 | ||||||
Issuance of share-based compensation awards, net of shares withheld for employee taxes | $ 0 | (1,994) | 0 | 0 | (1,994) | ||||||
Issuance of share-based compensation awards, net of shares withheld for employee taxes (in shares) | 18,466 | ||||||||||
Purchases and retirement of common stock | $ (1) | (14,187) | 0 | 0 | (14,188) | ||||||
Purchases and retirement of common stock (in shares) | (91,748) | ||||||||||
Balances at Nov. 01, 2019 | $ 240 | 35,349 | (7,351) | 577,546 | 605,784 | ||||||
Balances (Adjustments for New Accounting Pronouncement [Member]) at Nov. 01, 2019 | $ 0 | $ 0 | $ 0 | $ 4,125 | $ 4,125 | ||||||
Balances (in shares) at Nov. 01, 2019 | 23,975,958 | ||||||||||
Balances at Jul. 31, 2020 | $ 237 | 0 | (20,346) | 438,498 | $ 418,389 | [1] | |||||
Balances (in shares) at Jul. 31, 2020 | 23,697,396 | 23,697,396 | |||||||||
Comprehensive Income: | |||||||||||
Net income | $ 0 | 0 | 0 | 170,680 | $ 170,680 | ||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 2,601 | 0 | 2,601 | ||||||
Comprehensive income | 0 | 0 | 2,601 | 170,680 | 173,281 | ||||||
Cash dividends declared | 0 | 0 | 0 | (40) | (40) | ||||||
Share-based compensation | 0 | 1,974 | 0 | 0 | 1,974 | ||||||
Issuance of share-based compensation awards, net of shares withheld for employee taxes | $ 0 | (1,974) | 0 | (18) | (1,992) | ||||||
Issuance of share-based compensation awards, net of shares withheld for employee taxes (in shares) | 22,928 | ||||||||||
Balances at Oct. 30, 2020 | $ 237 | $ 0 | $ (17,745) | $ 609,120 | $ 591,612 | ||||||
Balances (in shares) at Oct. 30, 2020 | 23,720,324 | 23,720,324 | |||||||||
[1] | This Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of July 31, 2020, as filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2020. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) | 3 Months Ended |
Nov. 01, 2019$ / shares | |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) [Abstract] | |
Cash dividends declared (in dollars per share) | $ 1.30 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 30, 2020 | Nov. 01, 2019 | ||
Cash flows from operating activities: | |||
Net income | $ 170,680 | $ 43,223 | |
Net loss from unconsolidated subsidiary | 0 | 5,980 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 26,351 | 28,678 | |
Loss on disposition of property and equipment | 801 | 1,740 | |
Gain on sale and leaseback transaction | (217,722) | 0 | |
Impairment | 0 | 664 | |
Share-based compensation | 1,974 | 1,798 | |
Noncash lease expense | 13,888 | 15,330 | |
Amortization of asset recognized from gain on sale and leaseback transactions | 3,184 | 0 | |
Changes in assets and liabilities: | |||
Inventories | (16,646) | (33,534) | |
Other current assets | (4,582) | (10,875) | |
Accounts payable | 32,547 | 11,848 | |
Other current liabilities | (5,083) | (18,000) | |
Deferred income taxes | 54,142 | 12,211 | |
Other long-term assets and liabilities | (2,543) | (14,228) | |
Net cash provided by operating activities | 56,991 | 44,835 | |
Cash flows from investing activities: | |||
Purchase of property and equipment | (11,431) | (27,901) | |
Proceeds from insurance recoveries of property and equipment | 217 | 73 | |
Proceeds from sale of property and equipment | 149,829 | 1,534 | |
Notes receivable from unconsolidated subsidiary | 0 | (16,000) | |
Acquisition of business, net of cash acquired | (1,500) | (32,971) | |
Net cash provided by (used in) investing activities | 137,115 | (75,265) | |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 0 | 129,000 | |
Taxes withheld from issuance of share-based compensation awards | (1,992) | (1,994) | |
Principal payments under long-term debt | 0 | (44,000) | |
Purchases and retirement of common stock | 0 | (14,188) | |
Dividends on common stock | (31,491) | (32,063) | |
Net cash provided by (used in) financing activities | (33,483) | 36,755 | |
Net increase in cash and cash equivalents | 160,623 | 6,325 | |
Cash and cash equivalents, beginning of period | 436,996 | 36,884 | |
Cash and cash equivalents, end of period | 597,619 | 43,209 | |
Cash paid during the period for: | |||
Interest, net of amounts capitalized | 10,201 | 4,174 | |
Income taxes | 1 | 167 | |
Supplemental schedule of non-cash investing and financing activities: | |||
Capital expenditures accrued in accounts payable | [1] | 2,736 | 4,866 |
Change in fair value of interest rate swaps | [1] | 3,466 | (545) |
Change in deferred tax asset for interest rate swaps | [1] | (865) | 107 |
Dividends declared but not yet paid | [1] | $ 612 | $ 32,248 |
[1] | See Note 10 for additional supplemental disclosures related to leases |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 3 Months Ended |
Oct. 30, 2020 | |
Condensed Consolidated Financial Statements [Abstract] | |
Condensed Consolidated Financial Statements | 1. Condensed Consolidated Financial Statements Cracker Barrel Old Country Store, Inc. and its affiliates (collectively, in these Notes to Condensed Consolidated Financial Statements, the “Company”) are principally engaged in the operation and development in the United States of the Cracker Barrel Old Country Store® (“Cracker Barrel”) concept. The accompanying condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) without audit. In the opinion of management, all adjustments (consisting of normal and recurring items) necessary for a fair presentation of such condensed consolidated financial statements have been made. The results of operations for any interim period are not necessarily indicative of results for a full year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended July 31, 2020 (the “2020 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as described in the 2020 Form 10-K. References to a year in these Notes to Condensed Consolidated Financial Statements are to the Company’s fiscal year unless otherwise noted. COVID-19 Impact The COVID-19 pandemic continues to negatively impact the Company’s sales and traffic due to changes in consumer behavior as federal, state and local governmental authorities have imposed unprecedented restrictions on travel, group gatherings and non-essential activities, such as “social distancing” guidance, shelter-in-place orders and limitations on or full prohibitions of dine-in services. In response to the COVID-19 pandemic, the Company has instituted operational protocols to comply with applicable regulatory requirements to protect the health and safety of employees and guests, and the Company has implemented various strategies to support the recovery of its business and navigate through the uncertain environment. The Company continues to focus on growing its off-premise business and investing in its digital infrastructure to improve the guest experience. Furthermore, the Company continued to maintain and bolster its cash reserves by completing a sale and leaseback transaction in August 2020 in which the Company sold a total of Cracker Barrel owned properties and received net proceeds, after fees and expenses, of $ . See Note 10 for additional information regarding this sale and leaseback transaction. Recent Accounting Pronouncements Adopted Goodwill Impairment In January 2017, the Financial Accounting Standards Board (“FASB”) issued accounting guidance related to the subsequent measurement of goodwill. Under this new guidance, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. This guidance is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. This guidance should be applied on a prospective basis. The adoption of this accounting guidance in the first quarter of 2021 did not have a significant impact on the Company’s consolidated financial position or results of operations. Recent Accounting Pronouncements Not Adopted Accounting for Income Taxes In December 2019, the FASB issued accounting guidance in order to simplify the accounting for income taxes. This new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. This accounting guidance is effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. In general, entities will apply the new guidance on a prospective basis, except for certain items such as the guidance on franchise taxes that are partially based on income. The guidance on franchise taxes that are partially based on income will be applied either retrospectively for all periods presented or using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of adopting this accounting guidance in the first quarter of 2022. |
Maple Street Biscuit Company
Maple Street Biscuit Company | 3 Months Ended |
Oct. 30, 2020 | |
Maple Street Biscuit Company [Abstract] | |
Maple Street Biscuit Company | 2. Maple Street Biscuit Company Effective October 10, 2019, the Company acquired ownership of Maple Street Biscuit Company (“MSBC”), a breakfast and lunch fast casual concept, for a purchase price of $ , of which $ was paid to the sellers in cash with the remaining $ being held as security for the satisfaction of indemnification obligations of the sellers, if any. The first installment of The Company believes that this acquisition supports its strategic initiative to extend the brand by becoming a market leader in the breakfast and lunch-focused fast casual dining segment of the restaurant industry and by providing a platform for growth. At October 30, 2020, MSBC had 35 company-owned and six franchised fast casual locations across seven states. The goodwill of $ arising from the acquisition consisted largely of the Company’s determination of the value of MSBC’s future free cash flows less the value of the identifiable tangible and intangible assets and liabilities. All amounts recorded for the assets acquired, liabilities assumed and goodwill are final. of the goodwill recognized is expected to be deductible for income tax purposes. Acquisition-related costs of $ were recorded in the general and administrative expenses line in the Condensed Consolidated Statement of Income |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Oct. 30, 2020 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The Company’s assets and liabilities measured at fair value on a recurring basis at October 30, 2020 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents* $ 175,001 $ — $ — $ 175,001 Deferred compensation plan assets** 29,119 Total assets at fair value $ 204,120 Interest rate swap liability (see Note 6) $ — $ 24,121 $ — $ 24,121 Total liabilities at fair value $ — $ 24,121 $ — $ 24,121 The Company’s assets and liabilities measured at fair value on a recurring basis at July 31, 2020 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents* $ 132,001 $ — $ — $ 132,001 Deferred compensation plan assets** 28,530 Total assets at fair value $ 160,531 Interest rate swap liability (see Note 6) $ — $ 27,746 $ — $ 27,746 Total liabilities at fair value $ — $ 27,746 $ — $ 27,746 *Consists of money market fund investments. **Represents plan assets invested in mutual funds established under a rabbi trust for the Company’s The Company’s money market fund investments are measured at fair value using quoted market prices. The fair values of the Company’s interest rate swap liabilities are determined based on the present value of expected future cash flows. Since the values of the Company’s interest rate swaps are based on the LIBOR forward curve, which is observable at commonly quoted intervals for the full terms of the swaps, it is considered a Level 2 input. Non-performance risk is reflected in determining the fair value of the interest rate swaps by using the Company’s credit spread less the risk-free interest rate, both of which are observable at commonly quoted intervals for the terms of the swaps. Thus, the adjustment for non-performance risk is also considered a Level 2 input. The Company’s deferred compensation plan assets are measured based on net asset value per share as a practical expedient to estimate fair value. The fair values of the Company’s accounts receivable and accounts payable approximate their carrying amounts because of their short duration. The fair value of the Company’s variable rate debt, based on quoted market prices, which are considered Level 1 inputs, approximates its carrying amount at October 30, 2020 and July 31, 2020. |
Inventories
Inventories | 3 Months Ended |
Oct. 30, 2020 | |
Inventories [Abstract] | |
Inventories | 4. Inventories Inventories were comprised of the following at: October 30, 2020 July 31, 2020 Retail $ 118,377 $ 105,502 Restaurant 23,306 19,636 Supplies 14,054 13,953 Total $ 155,737 $ 139,091 |
Debt
Debt | 3 Months Ended |
Oct. 30, 2020 | |
Debt [Abstract] | |
Debt | 5. Debt On September 5, 2018, the Company entered into a five-year $950,000 revolving credit facility (“2019 Revolving Credit Facility”). The 2019 Revolving Credit Facility also contains an option to increase the revolving credit facility by $300,000. In the fourth quarter of 2020, the Company drew an additional $39,395 under this option for a one-year period. At both October 30, 2020 and July 31, 2020, the Company had a total of $949,395 of outstanding borrowings under the 2019 Revolving Credit Facility. At October 30, 2020, the Company had $31,804 of standby letters of credit, which reduce the Company’s borrowing availability under the 2019 Revolving Credit Facility (see Note 12 for more information on the Company’s standby letters of credit). At October 30, 2020, the Company had $8,196 in borrowing availability under the 2019 Revolving Credit Facility. In accordance with the 2019 Revolving Credit Facility, outstanding borrowings bear interest, at the Company’s election, either at LIBOR or prime plus a percentage point spread based on certain specified financial ratios under the 2019 Revolving Credit Facility. At October 30, 2020, $400,000 of the Company’s outstanding borrowings were swapped at a weighted average interest rate of 5.36% (see Note 6 for information on the Company’s interest rate swaps). At October 30, 2020, the weighted average interest rate on the remaining $549,395 of the Company’s outstanding borrowings was 3.31%. The 2019 Revolving Credit Facility contains customary financial covenants, which include maintenance of a maximum consolidated total leverage ratio and a minimum consolidated interest coverage ratio. As a result of the uncertainty regarding the impact of the COVID-19 pandemic on the Company’s financial position and results of operations, the Company has obtained a waiver for the financial covenants for the fourth quarter of 2020 and the first and second quarters of 2021 (“Covenant Relief Period”). During this Covenant Relief Period, the Company is required to maintain certain liquidity measures (defined as the availability under the 2019 Revolving Credit Facility plus unrestricted cash and cash equivalents) of at least $140,000. Additionally, during this Covenant Relief Period, the Company’s cash payments with respect to capital expenditures may not exceed $60,000 in the aggregate. The 2019 Revolving Credit Facility also imposes restrictions on the amount of dividends the Company is permitted to pay and the amount of shares the Company is permitted to repurchase. During the Covenant Relief Period described above, the Company is subject to restrictions on its ability to pay dividends (other than the deferred dividend payment that the Company paid on September 2, 2020). Following the Covenant Relief Period described above, under the 2019 Revolving Credit Facility, provided there is no default existing and the total of the Company’s availability under the 2019 Revolving Credit Facility plus the Company’s cash and cash equivalents on hand is at least $100,000 (the “Cash Availability”), the Company may declare and pay cash dividends on shares of its common stock and repurchase shares of its common stock (1) in an unlimited amount if, at the time such dividend or repurchase is made, the Company’s consolidated total leverage ratio is 3.00 to 1.00 or less and (2) in an aggregate amount not to exceed $100,000 in any fiscal year if the Company’s consolidated total leverage ratio is greater than 3.00 to 1.00 at the time the dividend or repurchase is made; notwithstanding (1) and (2), so long as immediately after giving effect to the payment of any such dividends, Cash Availability is at least $100,000, the Company may declare and pay cash dividends on shares of its common stock in an aggregate amount not to exceed in any fiscal year the product of the aggregate amount of dividends declared in the fourth quarter of the immediately preceding fiscal year multiplied by four. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Oct. 30, 2020 | |
Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Instruments and Hedging Activities | 6. Derivative Instruments and Hedging Activities The Company has interest rate risk relative to its outstanding borrowings (see Note 5 for information on the Company’s outstanding borrowings). The Company’s policy has been to manage interest cost using a mix of fixed and variable rate debt. To manage this risk in a cost-efficient manner, the Company uses derivative instruments, specifically interest rate swaps. For each of the Company’s interest rate swaps, the Company has agreed to exchange with a counterparty the difference between fixed and variable interest amounts calculated by reference to an agreed-upon notional principal amount. The interest rates on the portion of the Company’s outstanding debt covered by its interest rate swaps are fixed at the rates in the table below plus the Company’s credit spread. The Company’s credit spread at October 30, 2020 was 3.00%. All of the Company’s interest rate swaps are accounted for as cash flow hedges. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged transaction affects earnings and is presented in the same statement of income line item as the earnings effect of the hedged item. Gains and losses on the derivative instrument representing hedge components excluded from the assessment of effectiveness, if any, will be recognized currently in earnings in the same statement of income line item as the earnings effect of the hedged item. The Company does not hold or use derivative instruments for trading purposes. The Company also does not have any derivatives not designated as hedging instruments and has not designated any non-derivatives as hedging instruments. Companies may elect to offset related assets and liabilities and report the net amount on their financial statements if the right of setoff exists. Under a master netting agreement, the Company has the legal right to offset the amounts owed to the Company against amounts owed by the Company under a derivative instrument that exists between the Company and a counterparty. When the Company is engaged in more than outstanding derivative transaction with the same counterparty and also has a legally enforceable master netting agreement with that counterparty, its credit risk exposure is based on the net exposure under the master netting agreement. If, on a net basis, the Company owes the counterparty, the Company regards its credit exposure to the counterparty as being zero. A summary of the Company’s interest rate swaps at October 30, 2020 is as follows: Trade Date Effective Date Term (in Years) Notional Amount Fixed Rate January 30, 2015 May 3, 2019 2.0 $ 60,000 2.16 % January 30, 2015 May 4, 2021 3.0 120,000 2.41 % January 30, 2015 May 3, 2019 2.0 60,000 2.15 % January 30, 2015 May 4, 2021 3.0 80,000 2.40 % January 16, 2019 May 3, 2019 3.0 115,000 2.63 % January 16, 2019 May 3, 2019 2.0 115,000 2.68 % August 6, 2019 November 4, 2019 2.5 50,000 1.50 % August 7, 2019 May 3, 2021 1.0 35,000 1.32 % August 7, 2019 May 3, 2022 2.0 100,000 1.40 % August 7, 2019 May 3, 2022 2.0 100,000 1.36 % The estimated fair value of the Company’s derivative instruments as of October 30, 2020 and July 31, 2020 were as follows: (See Note 3) Balance Sheet Location October 30, 2020 July 31, 2020 Interest rate swaps Other current liabilities $ 2,627 $ 3,886 Interest rate swaps Long-term interest rate swap liability 21,494 23,860 Total liabilities** $ 24,121 $ 27,746 ** The estimated fair value of the Company’s interest rate swap liabilities incorporates the Company’s non-performance risk (see Note 3). The adjustment related to the Company’s non-performance risk at October 30, 2020 and July 31, 2020 resulted in reductions of $848 and $978, respectively, in the fair value of the interest rate swap liabilities. The offset to the interest rate swap liabilities are recorded in accumulated other comprehensive loss (“AOCL”), net of the deferred tax asset, and will be reclassified into earnings over the term of the underlying debt. As of October 30, 2020, the estimated pre-tax portion of AOCL that is expected to be reclassified into earnings over the next twelve months is $6,016. Cash flows related to the interest rate swaps are included in the interest expense line in the Condensed Consolidated Statements of Income and in operating activities in the Condensed Consolidated Statements of Cash Flows. The following table summarizes the pre-tax effects of the Company’s derivative instruments on AOCL for the three months ended October 30, 2020 and the year ended July 31, 2020: Amount of Income (Loss) Recognized in AOCL on Derivatives Three Months Ended October 30, 2020 Year Ended July 31, 2020 Cash flow hedges: Interest rate swaps $ 3,466 $ (17,740 ) The following table summarizes the pre-tax effects of the Company’s derivative instruments on income for the quarters ended October 30, 2020 and November 1, 2019: Location of Gain Reclassified from AOCL into Income Amount of Gain Reclassified from AOCL into Income Quarter Ended October 30, 2020 November 1, 2019 Cash flow hedges: Interest rate swaps Interest expense $ (1,826) $ (82) The following table summarizes the amounts reclassified out of AOCL related to the Company’s interest rate swaps for the quarter ended Details about AOCL Amount Reclassified from AOCL Affected Line Item in the Condensed Consolidated Statement of Income Gain on cash flow hedges: Interest rate swaps $ (1,826 ) Interest expense Tax expense 455 Provision for income taxes $ (1,371 ) Net of tax No gains or losses representing amounts excluded from the assessment of effectiveness were recognized in earnings for the -months ended October The following table summarizes the changes in AOCL, net of tax, related to the Company’s interest rate swaps for the three months ended Changes in AOCL AOCL balance at July 31, 2020 $ (20,346 ) Other comprehensive income before reclassifications 3,972 Amounts reclassified from AOCL (1,371 ) Other comprehensive income, net of tax 2,601 AOCL balance at October 30, 2020 $ (17,745 ) |
Seasonality
Seasonality | 3 Months Ended |
Oct. 30, 2020 | |
Seasonality [Abstract] | |
Seasonality | 7. Seasonality Historically, the net income of the Company has been lower in the first and third quarters and higher in the second and fourth quarters. Management attributes these variations to the holiday shopping season and the summer vacation and travel season. The Company’s retail sales, which are made substantially to the Company’s restaurant customers, historically have been highest in the Company’s second quarter, which includes the holiday shopping season. Historically, interstate tourist traffic and the propensity to dine out have been higher during the summer months, thereby contributing to higher profits in the Company’s fourth quarter. The Company generally opens additional new locations throughout the year. Therefore, the results of operations for any interim period cannot be considered indicative of the operating results for an entire year. Currently, the Company is not able to predict the impact that the COVID-19 pandemic may have on these historical consumer demand patterns or, as a result, on the seasonality of its business generally. |
Segment Information
Segment Information | 3 Months Ended |
Oct. 30, 2020 | |
Segment Information [Abstract] | |
Segment Information | 8. Segment Information Cracker Barrel stores represent a single, integrated operation with two related and substantially integrated product lines. The operating expenses of the restaurant and retail product lines of a Cracker Barrel store are shared and are indistinguishable in many respects. Accordingly, the Company currently manages its business on the basis of one reportable operating segment. All of the Company’s operations are located within the United States. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Oct. 30, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 9. Revenue Recognition Revenue consists primarily of sales from restaurant and retail operations. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a restaurant guest, retail customer or other customer. The Company’s policy is to present sales in the Condensed Consolidated Statements of Income on a net presentation basis after deducting sales tax. Disaggregation of revenue Total revenue was comprised of the following for the specified periods: Quarter Ended October 30, 2020 November 1, 2019 Revenue: Restaurant $ 515,224 $ 607,079 Retail 131,230 141,961 Total revenue $ 646,454 $ 749,040 Restaurant Revenue The Company recognizes revenues from restaurant sales when payment is tendered at the point of sale, as the Company’s performance obligation to provide food and beverages is satisfied. Retail Revenue The Company recognizes revenues from retail sales when payment is tendered at the point of sale, as the Company’s performance obligation to provide merchandise is satisfied. Ecommerce sales, including shipping revenue, are recorded upon delivery to the customer. Additionally, estimated sales returns are calculated based on return history and sales levels. Gift Card Breakage Included in restaurant and retail revenue is gift card breakage. Customer purchases of gift cards, to be utilized at the Company's stores, are not recognized as sales until the card is redeemed and the customer purchases food and/or merchandise. Gift cards do not carry an expiration date; therefore, customers can redeem their gift cards indefinitely. A certain number of gift cards will not be fully redeemed. Management estimates unredeemed balances and recognizes gift card breakage revenue for these amounts in the Company's Condensed Consolidated Statements of Income over the expected redemption period. Gift card breakage is recognized when the likelihood of a gift card being redeemed by the customer is remote and the Company determines that there is not a legal obligation to remit the unredeemed gift card balance to the relevant jurisdiction. The determination of the gift card breakage rate is based upon the Company’s specific historical redemption patterns. The Company recognizes gift card breakage by applying its estimate of the rate of gift card breakage over the period of estimated redemption. For the quarter ended October 30, 2020, gift card breakage was $940. For the quarter ended November 1, 2019, gift card breakage was $1,238. Deferred revenue related to the Company’s gift cards was $89,237 and $94,754, respectively, at October 30, 2020 and July 31, 2020. Revenue recognized in the Condensed Consolidated Statements of Income for the three months ended October 30, 2020 and November 1, 2019, respectively, for the redemption of gift cards which were included in the deferred revenue balance at the beginning of the fiscal year was $16,242 and $17,947. |
Leases
Leases | 3 Months Ended |
Oct. 30, 2020 | |
Leases [Abstract] | |
Leases | 10. Leases The Company has ground leases for its leased stores and office space leases that are recorded as operating leases under various non-cancellable operating leases. The Company also leases advertising billboards, vehicle fleets, and certain equipment under various non-cancellable operating leases. Additionally, the Company completed sale-leaseback transactions in 2009, 2020 and 2021 (see section below entitled “Sale and Leaseback Transactions”). To determine whether a contract is or contains a lease, the Company determines at contract inception whether it contains the right to control the use of an identified asset for a period of time in exchange for consideration. If the contract has the right to obtain substantially all of the economic benefit from use of the identified asset and the right to direct the use of the identified asset, the Company recognizes a right-of-use asset and lease liability. The Company’s leases all have varying terms and expire at various dates through 2055. Restaurant leases typically have base terms of ten years with four to five optional renewal periods of five years each. The Company uses a lease life that generally begins on the commencement date, including the rent holiday periods, and generally extends through certain renewal periods that can be exercised at the Company’s option. The Company has included lease renewal options in the lease term for calculations of the right-of-use asset and liability for which at the commencement of the lease it is reasonably certain that the Company will exercise those renewal options. Additionally, some of the leases have contingent rent provisions and others require adjustments for inflation or index. Contingent rent is determined as a percentage of gross sales in excess of specified levels. The Company records a contingent rent liability and corresponding rent expense when it is probable sales have been achieved in amounts in excess of the specified levels. The Company has entered into agreements for real estate leases that are not recorded as right-of-use assets or lease liabilities as we have not yet taken possession. These leases are expected to commence in 2021 with undiscounted future payments of $16,677. The Company has elected to not separate lease and non-lease components. Additionally, the Company has elected to apply the short term lease exemption to all asset classes and the short term lease expense for the period reasonably reflects the short term lease commitments. As the Company’s leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at the time of commencement or modification date in determining the present value of lease payments. For operating leases that commenced prior to the date of adoption of the new lease accounting guidance, the Company used the incremental borrowing rate as of the adoption date. Assumptions used in determining the Company’s incremental borrowing rate include the Company’s implied credit rating and an estimate of secured borrowing rates based on comparable market data. The following table summarizes the components of lease cost for operating leases for the quarters ended October 30, 2020 and November 1, 2019 Quarter Ended October 30, 2020 Quarter Ended November 1, 2019 Operating lease cost $ 26,472 $ 19,856 Short term lease cost 322 384 Variable lease cost 527 451 Total lease cost $ 27,321 $ 20,691 The following table summarizes supplemental cash flow information and non-cash activity related to the Company’s operating leases for the quarters ended October 30, 2020 and November 1, 2019 Quarter Ended October 30, 2020 Quarter Ended November 1, 2019 Operating cash flow information: Gain on sale and leaseback transaction $ 217,722 $ — Cash paid for amounts included in the measurement of lease liabilities 22,266 19,546 Noncash information: Right-of-use assets obtained in exchange for new operating lease liabilities 311,633 3,838 Lease modifications or reassessments increasing or decreasing right-of-use assets 23,257 6,826 Lease modifications removing right-of-use assets (259 ) (649 ) The following table summarizes the weighted-average remaining lease term and the weighted-average discount rate for operating leases as of October 30, 2020 and November 1, 2019 October 30, 2020 November 1, 2019 Weighted-average remaining lease term 18.59 Years 18.11 Years Weighted-average discount rate 4.79 % 3.85 % The following table summarizes the maturities of undiscounted cash flows reconciled to the total lease liability as of October 30, 2020: Year Total Remainder of 2021 $ 64,255 2022 79,760 2023 75,785 2024 62,188 2025 60,685 Thereafter 936,670 Total future minimum lease payments 1,279,343 Less imputed remaining interest (458,422 ) Total present value of operating lease liabilities $ 820,921 Sale and Leaseback Transactions In 2009, the Company completed sale-leaseback transactions involving 15 of its owned stores and its retail distribution center. Under the transactions, the land, buildings and improvements at the locations were sold and leased back for terms of 20 and 15 years, respectively. Equipment was not included. The leases include specified renewal options for up to 20 additional years. On July 29, 2020, the Company entered into an agreement with the original lessor and a third party financier to obtain ownership of 64 of the 65 Cracker Barrel properties previously covered in the original sale and leaseback arrangement and simultaneously entered into a sale and leaseback transaction with the financier for an aggregate purchase price, net of closing costs, of $198,083. The Company purchased the remaining property for approximately $3,200. In connection with this sale and leaseback transaction, the Company entered into lease agreements for each of the properties for initial terms of 20 years and renewal options up to 50 years. The aggregate initial annual rent payment for the properties is approximately $14,379 and includes 1% annual rent increases over the initial lease terms. All the properties qualified for sale and leaseback and operating lease accounting classification and the Company recorded a gain on the sale and leaseback transaction of $69,954 in the fourth quarter of 2020. The Company recorded operating lease right-of-use assets, including a non-cash asset recognized as a part of accounting for the transaction of $79,049, and corresponding operating lease liabilities of $261,698 and $182,649, respectively. On August 4, 2020, the Company completed a subsequent sale and leaseback transaction involving 62 of its owned Cracker Barrel stores for an aggregate purchase price, net of closing costs, of $146,357. Under the transaction, the land, buildings and building improvements at the locations were sold and leased back for initial terms of 20 years and renewal options up to 50 years. The aggregate initial annual rent payment for the properties is approximately $10,393 and includes 1% annual rent increases over the initial lease terms. All of the properties qualified for sale and leaseback and operating lease accounting classification, and the Company recorded a gain of $217,722 which is recorded in the gain on sale and leaseback transaction line in the Condensed Consolidated Statement of Income in the first quarter of 2021. The Company also recorded operating lease right-of-use assets, including a non-cash asset recognized as part of accounting for the transaction of $175,960 and corresponding operating lease liabilities of $309,624 and $133,663, respectively. On November 11, 2020, Cracker Barrel Old Country Store, Inc. and related affiliate entities entered into the First Amendment to Amended and Restated Master Lease (the “Amendment”) to bifurcate the existing Amended and Restated Master Lease (the “Original Lease”) into two separate lease pools. The Amendment removed 35 sites from the Original Lease and placed them in a new pool governed by the terms of a new Master Lease (the “New Master Lease”). This bifurcation was completed as an accommodation for the landlord to facilitate the landlord’s securitization of the properties. The terms and conditions of the Original Lease and New Master Lease are the same and no material changes were made to the terms thereof. |
Net Income Per Share and Weight
Net Income Per Share and Weighted Average Shares | 3 Months Ended |
Oct. 30, 2020 | |
Net Income Per Share and Weighted Average Shares [Abstract] | |
Net Income Per Share and Weighted Average Shares | 11. Net Income Per Share and Weighted Average Shares Basic consolidated net income per share is computed by dividing consolidated net income available to common shareholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted consolidated net income per share reflects the potential dilution that could occur if securities, options or other contracts to issue shares of common stock were exercised or converted into shares of common stock and is based upon the weighted average number of shares of common stock and common equivalent shares outstanding during the reporting period. Common equivalent shares related to nonvested stock awards and units issued by the Company are calculated using the treasury stock method. The outstanding nonvested stock awards and units, issued by the Company represent the only dilutive effects on diluted consolidated net income per share. The following table reconciles the components of diluted earnings per share computations: Quarter Ended October 30, 2020 November 1, 2019 Net income per share numerator $ 170,680 $ 43,223 Net income per share denominator: Weighted average shares 23,707,750 24,038,354 Add potential dilution: Nonvested stock awards and units 63,480 65,568 Diluted weighted average shares 23,771,230 24,103,922 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Oct. 30, 2020 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies The Company and its subsidiaries are party to various legal and regulatory proceedings and claims incidental to their business in the ordinary course. In the opinion of management, based upon information currently available, the ultimate liability with respect to these contingencies will not materially affect the Company’s financial statements. Related to its workers’ compensation insurance coverage, the Company is contingently liable pursuant to standby letters of credit as credit guarantees to certain insurers. As of October 30, 2020, the Company had $31,804 of standby letters of credit related to securing reserved claims under workers’ compensation insurance and the July 29, 2020 and August 4, 2020 sale and leaseback transactions At October 30, 2020, the Company has recorded a provision of $ in the Condensed Consolidated Balance Sheet for amounts to be paid as of result of non-performance by the primary obligor for lease payments associated with properties occupied by a third party. The Company enters into certain indemnification agreements in favor of third parties in the ordinary course of business. The Company believes that the probability of incurring an actual liability under such indemnification agreements is sufficiently remote that no such liability has been recorded in the Condensed Consolidated Balance Sheet as of October 30, 2020. |
Condensed Consolidated Financ_2
Condensed Consolidated Financial Statements (Policies) | 3 Months Ended |
Oct. 30, 2020 | |
Condensed Consolidated Financial Statements [Abstract] | |
COVID-19 Impact | COVID-19 Impact The COVID-19 pandemic continues to negatively impact the Company’s sales and traffic due to changes in consumer behavior as federal, state and local governmental authorities have imposed unprecedented restrictions on travel, group gatherings and non-essential activities, such as “social distancing” guidance, shelter-in-place orders and limitations on or full prohibitions of dine-in services. In response to the COVID-19 pandemic, the Company has instituted operational protocols to comply with applicable regulatory requirements to protect the health and safety of employees and guests, and the Company has implemented various strategies to support the recovery of its business and navigate through the uncertain environment. The Company continues to focus on growing its off-premise business and investing in its digital infrastructure to improve the guest experience. Furthermore, the Company continued to maintain and bolster its cash reserves by completing a sale and leaseback transaction in August 2020 in which the Company sold a total of Cracker Barrel owned properties and received net proceeds, after fees and expenses, of $ . See Note 10 for additional information regarding this sale and leaseback transaction. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Goodwill Impairment In January 2017, the Financial Accounting Standards Board (“FASB”) issued accounting guidance related to the subsequent measurement of goodwill. Under this new guidance, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. This guidance is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. This guidance should be applied on a prospective basis. The adoption of this accounting guidance in the first quarter of 2021 did not have a significant impact on the Company’s consolidated financial position or results of operations. Recent Accounting Pronouncements Not Adopted Accounting for Income Taxes In December 2019, the FASB issued accounting guidance in order to simplify the accounting for income taxes. This new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. This accounting guidance is effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. In general, entities will apply the new guidance on a prospective basis, except for certain items such as the guidance on franchise taxes that are partially based on income. The guidance on franchise taxes that are partially based on income will be applied either retrospectively for all periods presented or using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of adopting this accounting guidance in the first quarter of 2022. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Oct. 30, 2020 | |
Fair Value Measurements [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The Company’s assets and liabilities measured at fair value on a recurring basis at October 30, 2020 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents* $ 175,001 $ — $ — $ 175,001 Deferred compensation plan assets** 29,119 Total assets at fair value $ 204,120 Interest rate swap liability (see Note 6) $ — $ 24,121 $ — $ 24,121 Total liabilities at fair value $ — $ 24,121 $ — $ 24,121 The Company’s assets and liabilities measured at fair value on a recurring basis at July 31, 2020 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents* $ 132,001 $ — $ — $ 132,001 Deferred compensation plan assets** 28,530 Total assets at fair value $ 160,531 Interest rate swap liability (see Note 6) $ — $ 27,746 $ — $ 27,746 Total liabilities at fair value $ — $ 27,746 $ — $ 27,746 *Consists of money market fund investments. **Represents plan assets invested in mutual funds established under a rabbi trust for the Company’s |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Oct. 30, 2020 | |
Inventories [Abstract] | |
Inventories | Inventories were comprised of the following at: October 30, 2020 July 31, 2020 Retail $ 118,377 $ 105,502 Restaurant 23,306 19,636 Supplies 14,054 13,953 Total $ 155,737 $ 139,091 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Oct. 30, 2020 | |
Derivative Instruments and Hedging Activities [Abstract] | |
Interest Rate Swaps | A summary of the Company’s interest rate swaps at October 30, 2020 is as follows: Trade Date Effective Date Term (in Years) Notional Amount Fixed Rate January 30, 2015 May 3, 2019 2.0 $ 60,000 2.16 % January 30, 2015 May 4, 2021 3.0 120,000 2.41 % January 30, 2015 May 3, 2019 2.0 60,000 2.15 % January 30, 2015 May 4, 2021 3.0 80,000 2.40 % January 16, 2019 May 3, 2019 3.0 115,000 2.63 % January 16, 2019 May 3, 2019 2.0 115,000 2.68 % August 6, 2019 November 4, 2019 2.5 50,000 1.50 % August 7, 2019 May 3, 2021 1.0 35,000 1.32 % August 7, 2019 May 3, 2022 2.0 100,000 1.40 % August 7, 2019 May 3, 2022 2.0 100,000 1.36 % |
Estimated Fair Value of Derivative Instruments | The estimated fair value of the Company’s derivative instruments as of October 30, 2020 and July 31, 2020 were as follows: (See Note 3) Balance Sheet Location October 30, 2020 July 31, 2020 Interest rate swaps Other current liabilities $ 2,627 $ 3,886 Interest rate swaps Long-term interest rate swap liability 21,494 23,860 Total liabilities** $ 24,121 $ 27,746 ** |
Pre-tax Effects of Derivative Instruments on AOCL and Income | The following table summarizes the pre-tax effects of the Company’s derivative instruments on AOCL for the three months ended October 30, 2020 and the year ended July 31, 2020: Amount of Income (Loss) Recognized in AOCL on Derivatives Three Months Ended October 30, 2020 Year Ended July 31, 2020 Cash flow hedges: Interest rate swaps $ 3,466 $ (17,740 ) The following table summarizes the pre-tax effects of the Company’s derivative instruments on income for the quarters ended October 30, 2020 and November 1, 2019: Location of Gain Reclassified from AOCL into Income Amount of Gain Reclassified from AOCL into Income Quarter Ended October 30, 2020 November 1, 2019 Cash flow hedges: Interest rate swaps Interest expense $ (1,826) $ (82) |
Amounts Reclassified Out of AOCL Related to Interest Rate Swaps | The following table summarizes the amounts reclassified out of AOCL related to the Company’s interest rate swaps for the quarter ended Details about AOCL Amount Reclassified from AOCL Affected Line Item in the Condensed Consolidated Statement of Income Gain on cash flow hedges: Interest rate swaps $ (1,826 ) Interest expense Tax expense 455 Provision for income taxes $ (1,371 ) Net of tax |
Changes in AOCL, Net of Tax, Related to Interest Rate Swaps | The following table summarizes the changes in AOCL, net of tax, related to the Company’s interest rate swaps for the three months ended Changes in AOCL AOCL balance at July 31, 2020 $ (20,346 ) Other comprehensive income before reclassifications 3,972 Amounts reclassified from AOCL (1,371 ) Other comprehensive income, net of tax 2,601 AOCL balance at October 30, 2020 $ (17,745 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Oct. 30, 2020 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | Total revenue was comprised of the following for the specified periods: Quarter Ended October 30, 2020 November 1, 2019 Revenue: Restaurant $ 515,224 $ 607,079 Retail 131,230 141,961 Total revenue $ 646,454 $ 749,040 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Oct. 30, 2020 | |
Leases [Abstract] | |
Components of Lease Cost for Operating Leases | The following table summarizes the components of lease cost for operating leases for the quarters ended October 30, 2020 and November 1, 2019 Quarter Ended October 30, 2020 Quarter Ended November 1, 2019 Operating lease cost $ 26,472 $ 19,856 Short term lease cost 322 384 Variable lease cost 527 451 Total lease cost $ 27,321 $ 20,691 |
Supplemental Cash Flow Information and Non-cash Activity Related to Operating Leases | The following table summarizes supplemental cash flow information and non-cash activity related to the Company’s operating leases for the quarters ended October 30, 2020 and November 1, 2019 Quarter Ended October 30, 2020 Quarter Ended November 1, 2019 Operating cash flow information: Gain on sale and leaseback transaction $ 217,722 $ — Cash paid for amounts included in the measurement of lease liabilities 22,266 19,546 Noncash information: Right-of-use assets obtained in exchange for new operating lease liabilities 311,633 3,838 Lease modifications or reassessments increasing or decreasing right-of-use assets 23,257 6,826 Lease modifications removing right-of-use assets (259 ) (649 ) |
Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate for Operating Leases | The following table summarizes the weighted-average remaining lease term and the weighted-average discount rate for operating leases as of October 30, 2020 and November 1, 2019 October 30, 2020 November 1, 2019 Weighted-average remaining lease term 18.59 Years 18.11 Years Weighted-average discount rate 4.79 % 3.85 % |
Maturities of Undiscounted Cash Flows Reconciled to Total Lease Liability | The following table summarizes the maturities of undiscounted cash flows reconciled to the total lease liability as of October 30, 2020: Year Total Remainder of 2021 $ 64,255 2022 79,760 2023 75,785 2024 62,188 2025 60,685 Thereafter 936,670 Total future minimum lease payments 1,279,343 Less imputed remaining interest (458,422 ) Total present value of operating lease liabilities $ 820,921 |
Net Income Per Share and Weig_2
Net Income Per Share and Weighted Average Shares (Tables) | 3 Months Ended |
Oct. 30, 2020 | |
Net Income Per Share and Weighted Average Shares [Abstract] | |
Reconciliation of Components of Diluted Earnings per Share Computations | The following table reconciles the components of diluted earnings per share computations: Quarter Ended October 30, 2020 November 1, 2019 Net income per share numerator $ 170,680 $ 43,223 Net income per share denominator: Weighted average shares 23,707,750 24,038,354 Add potential dilution: Nonvested stock awards and units 63,480 65,568 Diluted weighted average shares 23,771,230 24,103,922 |
Condensed Consolidated Financ_3
Condensed Consolidated Financial Statements (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Aug. 31, 2020USD ($)Property | Oct. 30, 2020USD ($) | Nov. 01, 2019USD ($) | |
Covid-19 Impact [Abstract] | |||
Net proceeds from sale of properties | $ 149,829 | $ 1,534 | |
COVID-19 Impact [Member] | |||
Covid-19 Impact [Abstract] | |||
Number of properties sold under sale and leaseback transaction | Property | 62 | ||
Net proceeds from sale of properties | $ 146,357 |
Maple Street Biscuit Company (D
Maple Street Biscuit Company (Details) $ in Thousands | Oct. 10, 2019USD ($) | Oct. 30, 2020USD ($)LocationState | Nov. 01, 2019USD ($) | Jul. 31, 2020USD ($) | [1] |
Acquisition [Abstract] | |||||
Goodwill | $ 4,690 | $ 4,690 | |||
Maple Street Biscuit Company [Member] | |||||
Acquisition [Abstract] | |||||
Ownership interest acquired | 100.00% | ||||
Purchase price | $ 36,000 | ||||
Cash paid to sellers | 32,000 | $ 1,500 | |||
Cash held for satisfaction of indemnification obligations | 4,000 | ||||
Period of remaining installment payment held as security | 2 years | ||||
Number of states in which the entity operates | State | 7 | ||||
Goodwill expected to be deductible for income tax purposes | $ 0 | ||||
Goodwill | $ 4,690 | ||||
Acquisition-related costs | $ 1,269 | ||||
Maple Street Biscuit Company [Member] | Company-Owned Fast Food Casual Locations [Member] | |||||
Acquisition [Abstract] | |||||
Number of locations opened | Location | 35 | ||||
Maple Street Biscuit Company [Member] | Franchised Fast Food Casual Locations [Member] | |||||
Acquisition [Abstract] | |||||
Number of locations opened | Location | 6 | ||||
[1] | This Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of July 31, 2020, as filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2020. |
Fair Value Measurements, Assets
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Thousands | Oct. 30, 2020 | Jul. 31, 2020 | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Abstract] | |||
Cash equivalents | [1] | $ 175,001 | $ 132,001 |
Deferred compensation plan assets | [2] | 29,119 | 28,530 |
Total assets at fair value | 204,120 | 160,531 | |
Interest rate swap liability (see Note 6) | 24,121 | 27,746 | |
Total liabilities at fair value | 24,121 | 27,746 | |
Level 1 [Member] | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Abstract] | |||
Cash equivalents | [1] | 175,001 | 132,001 |
Interest rate swap liability (see Note 6) | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Level 2 [Member] | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Abstract] | |||
Cash equivalents | [1] | 0 | 0 |
Interest rate swap liability (see Note 6) | 24,121 | 27,746 | |
Total liabilities at fair value | 24,121 | 27,746 | |
Level 3 [Member] | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Abstract] | |||
Cash equivalents | [1] | 0 | 0 |
Interest rate swap liability (see Note 6) | 0 | 0 | |
Total liabilities at fair value | $ 0 | $ 0 | |
[1] | Consists of money market fund investments. | ||
[2] | 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. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Oct. 30, 2020 | Jul. 31, 2020 | |
Inventories [Abstract] | |||
Retail | $ 118,377 | $ 105,502 | |
Restaurant | 23,306 | 19,636 | |
Supplies | 14,054 | 13,953 | |
Total | $ 155,737 | $ 139,091 | [1] |
[1] | This Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of July 31, 2020, as filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2020. |
Debt (Details)
Debt (Details) $ in Thousands | 3 Months Ended | ||
Oct. 30, 2020USD ($) | Jul. 31, 2020USD ($) | Sep. 05, 2018USD ($) | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Abstract] | |||
Amount drawn from debt instrument | $ 39,395 | ||
Debt instrument, term of option | 1 year | ||
2019 Revolving Credit Facility [Member] | |||
Line of Credit Facility [Abstract] | |||
Line of credit facility, term | 5 years | ||
Maximum borrowing capacity | $ 950,000 | ||
Option to increase revolving credit facility | $ 300,000 | ||
Outstanding borrowings | $ 949,395 | $ 949,395 | |
Amount of standby letters of credit | 31,804 | ||
Remaining borrowing capacity | 8,196 | ||
Liquidity requirements | 100,000 | ||
Dividends threshold | $ 100,000 | ||
Leverage ratio, maximum | 3 | ||
Multiplier used in calculating aggregate amount of cash dividends on shares of common stock in any fiscal year | 4 | ||
2019 Revolving Credit Facility [Member] | Covid-19 [Member] | |||
Line of Credit Facility [Abstract] | |||
Liquidity amount | $ 140,000 | ||
Maximum cash payments for capital expenditures | 60,000 | ||
2019 Revolving Credit Facility, Swapped Portion [Member] | |||
Line of Credit Facility [Abstract] | |||
Outstanding borrowings | $ 400,000 | ||
Weighted average interest rates | 5.36% | ||
2019 Revolving Credit Facility, Remaining Portion [Member] | |||
Line of Credit Facility [Abstract] | |||
Outstanding borrowings | $ 549,395 | ||
Weighted average interest rates | 3.31% |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Details) $ in Thousands | 3 Months Ended |
Oct. 30, 2020USD ($) | |
Derivative Instruments [Abstract] | |
Credit spread | 3.00% |
Interest Rate Swap January 30, 2015 [Member] | |
Derivative Instruments [Abstract] | |
Trade date | Jan. 30, 2015 |
Effective date | May 3, 2019 |
Term | 2 years |
Notional amount | $ 60,000 |
Fixed rate | 2.16% |
Interest Rate Swap January 30, 2015 [Member] | |
Derivative Instruments [Abstract] | |
Trade date | Jan. 30, 2015 |
Effective date | May 4, 2021 |
Term | 3 years |
Notional amount | $ 120,000 |
Fixed rate | 2.41% |
Interest Rate Swap January 30, 2015 [Member] | |
Derivative Instruments [Abstract] | |
Trade date | Jan. 30, 2015 |
Effective date | May 3, 2019 |
Term | 2 years |
Notional amount | $ 60,000 |
Fixed rate | 2.15% |
Interest Rate Swap January 30, 2015 [Member] | |
Derivative Instruments [Abstract] | |
Trade date | Jan. 30, 2015 |
Effective date | May 4, 2021 |
Term | 3 years |
Notional amount | $ 80,000 |
Fixed rate | 2.40% |
Interest Rate Swap January 16, 2019 [Member] | |
Derivative Instruments [Abstract] | |
Trade date | Jan. 16, 2019 |
Effective date | May 3, 2019 |
Term | 3 years |
Notional amount | $ 115,000 |
Fixed rate | 2.63% |
Interest Rate Swap January 16, 2019 [Member] | |
Derivative Instruments [Abstract] | |
Trade date | Jan. 16, 2019 |
Effective date | May 3, 2019 |
Term | 2 years |
Notional amount | $ 115,000 |
Fixed rate | 2.68% |
Interest Rate Swap August 6, 2019 [Member] | |
Derivative Instruments [Abstract] | |
Trade date | Aug. 6, 2019 |
Effective date | Nov. 4, 2019 |
Term | 2 years 6 months |
Notional amount | $ 50,000 |
Fixed rate | 1.50% |
Interest Rate Swap August 7, 2019 [Member] | |
Derivative Instruments [Abstract] | |
Trade date | Aug. 7, 2019 |
Effective date | May 3, 2021 |
Term | 1 year |
Notional amount | $ 35,000 |
Fixed rate | 1.32% |
Interest Rate Swap August 7, 2019 [Member] | |
Derivative Instruments [Abstract] | |
Trade date | Aug. 7, 2019 |
Effective date | May 3, 2022 |
Term | 2 years |
Notional amount | $ 100,000 |
Fixed rate | 1.40% |
Interest Rate Swap August 7, 2019 [Member] | |
Derivative Instruments [Abstract] | |
Trade date | Aug. 7, 2019 |
Effective date | May 3, 2022 |
Term | 2 years |
Notional amount | $ 100,000 |
Fixed rate | 1.36% |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities, Estimated Fair Value of Derivative Instruments (Details) - Interest Rate Swaps [Member] - USD ($) $ in Thousands | Oct. 30, 2020 | Jul. 31, 2020 | |
Estimated Fair Value of Derivative Instruments [Abstract] | |||
Fair value, liability | [1] | $ 24,121 | $ 27,746 |
Other Current Liabilities [Member] | |||
Estimated Fair Value of Derivative Instruments [Abstract] | |||
Fair value, liability | [1] | 2,627 | 3,886 |
Long-term Interest Rate Swap Liability [Member] | |||
Estimated Fair Value of Derivative Instruments [Abstract] | |||
Fair value, liability | [1] | $ 21,494 | $ 23,860 |
[1] | These interest rate swap liabilities are recorded gross at both October 30, 2020 and July 31, 2020 since there were no offsetting assets under the Company’s master netting agreements. |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities, Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands | Oct. 30, 2020 | Jul. 31, 2020 |
Derivative Instruments by Risk Exposure [Abstract] | ||
Estimated pre-tax portion of AOCL that is expected to be reclassified into earnings over the next twelve months | $ 6,016 | |
Interest Rate Swaps [Member] | ||
Derivative Instruments by Risk Exposure [Abstract] | ||
Offsetting assets | 0 | $ 0 |
Reduction in fair value of interest rate swap liabilities due to adjustment related to non-performance risk | $ 848 | $ 978 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities, Pre-tax Effects of Derivative Instruments on AOCL and Income (Details) - Interest Rate Swaps [Member] - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Oct. 30, 2020 | Nov. 01, 2019 | Jul. 31, 2020 | |
Interest Rate Cash Flow Hedges [Abstract] | |||
Amount of income (loss) recognized in AOCL on derivatives (effective portion) | $ 3,466 | $ (17,740) | |
Interest Expense [Member] | |||
Interest Rate Cash Flow Hedges [Abstract] | |||
Amount of gain reclassified from AOCL into income | $ (1,826) | $ (82) |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities, Amounts Reclassified out of AOCL Related to Interest Rate Swaps (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 30, 2020 | Nov. 01, 2019 | |
Amounts Reclassified Out of AOCL Related to Interest Rate Swaps [Abstract] | ||
Interest expense | $ 10,715 | $ 3,580 |
Provision for income taxes | 55,711 | 10,590 |
Net of tax | 170,680 | $ 43,223 |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | ||
Amounts Reclassified Out of AOCL Related to Interest Rate Swaps [Abstract] | ||
Gains or losses representing amounts excluded from assessment of effectiveness | 0 | |
Gain on Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | Cash Flow Hedging [Member] | ||
Amounts Reclassified Out of AOCL Related to Interest Rate Swaps [Abstract] | ||
Provision for income taxes | 455 | |
Net of tax | (1,371) | |
Gain on Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | Cash Flow Hedging [Member] | ||
Amounts Reclassified Out of AOCL Related to Interest Rate Swaps [Abstract] | ||
Interest expense | $ (1,826) |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities, Changes in AOCL, Net of Tax, Related to Interest Rate Swaps (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 30, 2020 | Nov. 01, 2019 | ||
Changes in AOCL, net of tax, related to interest rate swaps [Roll Forward] | |||
Balances | $ 418,389 | [1] | $ 604,710 |
Other comprehensive income before reclassifications | 3,972 | ||
Amounts reclassified from AOCL | (1,371) | ||
Other comprehensive income (loss), net of tax | 2,601 | (438) | |
Balances | 591,612 | 605,784 | |
Accumulated Other Comprehensive Loss [Member] | |||
Changes in AOCL, net of tax, related to interest rate swaps [Roll Forward] | |||
Balances | (20,346) | (6,913) | |
Other comprehensive income (loss), net of tax | 2,601 | (438) | |
Balances | $ (17,745) | $ (7,351) | |
[1] | This Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of July 31, 2020, as filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2020. |
Segment Information (Details)
Segment Information (Details) | 3 Months Ended |
Oct. 30, 2020LineSegment | |
Segment Information [Abstract] | |
Number of product lines | Line | 2 |
Number of reportable operating segments | Segment | 1 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 30, 2020 | Nov. 01, 2019 | Jul. 31, 2020 | |
Disaggregation of Revenue [Abstract] | |||
Revenue | $ 646,454 | $ 749,040 | |
Gift card breakage | 940 | 1,238 | |
Deferred revenue related to gift cards | 89,237 | $ 94,754 | |
Revenue recognized for redemption of gift cards | 16,242 | 17,947 | |
Restaurant [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue | 515,224 | 607,079 | |
Retail [Member] | |||
Disaggregation of Revenue [Abstract] | |||
Revenue | $ 131,230 | $ 141,961 |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended | |
Oct. 30, 2020USD ($)Period | Aug. 04, 2020 | |
Sale Leaseback Transactions [Abstract] | ||
Initial lease term | 20 years | |
Maximum [Member] | ||
Sale Leaseback Transactions [Abstract] | ||
Lease renewal option | 50 years | |
Restaurant [Member] | ||
Sale Leaseback Transactions [Abstract] | ||
Initial lease term | 10 years | |
Lease renewal option | 5 years | |
Undiscounted future payments for leases not yet commenced | $ | $ 16,677 | |
Restaurant [Member] | Minimum [Member] | ||
Sale Leaseback Transactions [Abstract] | ||
Number of optional renewal periods | 4 | |
Restaurant [Member] | Maximum [Member] | ||
Sale Leaseback Transactions [Abstract] | ||
Number of optional renewal periods | 5 | |
Sale-leaseback Transactions in 2009 [Member] | Owned Stores [Member] | ||
Sale Leaseback Transactions [Abstract] | ||
Initial lease term | 20 years | |
Lease renewal option | 20 years | |
Sale-leaseback Transactions in 2009 [Member] | Retail Distribution Center [Member] | ||
Sale Leaseback Transactions [Abstract] | ||
Initial lease term | 15 years | |
Lease renewal option | 20 years | |
Sale-leaseback Transactions in 2000 [Member] | ||
Sale Leaseback Transactions [Abstract] | ||
Initial lease term | 20 years | |
Sale-leaseback Transactions in 2000 [Member] | Maximum [Member] | ||
Sale Leaseback Transactions [Abstract] | ||
Lease renewal option | 50 years |
Leases, Components of Lease Cos
Leases, Components of Lease Cost for Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 30, 2020 | Nov. 01, 2019 | |
Components of Lease Cost for Operating Leases [Abstract] | ||
Operating lease cost | $ 26,472 | $ 19,856 |
Short term lease cost | 322 | 384 |
Variable lease cost | 527 | 451 |
Total lease cost | $ 27,321 | $ 20,691 |
Leases, Supplemental Cash Flow
Leases, Supplemental Cash Flow Information and Non-cash Activity Related to Operating Leases (Details) - USD ($) $ in Thousands | Aug. 04, 2020 | Oct. 30, 2020 | Nov. 01, 2019 |
Operating cash flow information [Abstract] | |||
Gain on sale and leaseback transaction | $ 217,722 | $ 217,722 | $ 0 |
Cash paid for amounts included in the measurement of lease liabilities | 22,266 | 19,546 | |
Noncash information [Abstract] | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | 311,633 | 3,838 | |
Lease modifications or reassessments increasing or decreasing right-of-use assets | 23,257 | 6,826 | |
Lease modifications removing right-of-use assets | $ (259) | $ (649) |
Leases, Weighted-Average Remain
Leases, Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate for Operating Leases (Details) | Oct. 30, 2020 | Nov. 01, 2019 |
Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate for Operating Leases [Abstract] | ||
Weighted-average remaining lease term | 18 years 7 months 2 days | 18 years 1 month 9 days |
Weighted-average discount rate | 4.79% | 3.85% |
Leases, Maturities of Undiscoun
Leases, Maturities of Undiscounted Cash Flows Reconciled to Total Lease Liability (Details) - USD ($) $ in Thousands | Oct. 30, 2020 | Aug. 04, 2020 |
Maturities of Undiscounted Cash Flows Reconciled to Total Lease Liability [Abstract] | ||
Remainder of 2021 | $ 64,255 | |
2022 | 79,760 | |
2023 | 75,785 | |
2024 | 62,188 | |
2025 | 60,685 | |
Thereafter | 936,670 | |
Total future minimum lease payments | 1,279,343 | |
Less imputed remaining interest | (458,422) | |
Total present value of operating lease liabilities | $ 820,921 | $ 133,663 |
Leases, Sale and Leaseback Tran
Leases, Sale and Leaseback Transactions (Details) $ in Thousands | Nov. 11, 2020SitePool | Aug. 04, 2020USD ($)Store | Jul. 29, 2020USD ($)Store | Oct. 30, 2020USD ($) | Nov. 01, 2019USD ($) | Jul. 31, 2009Store | Jul. 31, 2020USD ($) | [1] |
Sale Leaseback Transactions [Abstract] | ||||||||
Initial lease term | 20 years | |||||||
Aggregate purchase price, net of closing costs | $ 146,357 | |||||||
Aggregate initial annual rent payment for lease properties | $ 10,393 | |||||||
Percentage of increase in annual rental payments in initial terms | 1.00% | |||||||
Gain on sale and leaseback transaction | $ 217,722 | $ 217,722 | $ 0 | |||||
Operating lease right-of-use assets | 309,624 | 1,009,509 | $ 691,949 | |||||
Right-of-use assets, non-cash | 175,960 | |||||||
Operating lease liabilities | $ 133,663 | $ 820,921 | ||||||
Subsequent Event [Member] | ||||||||
Sale Leaseback Transactions [Abstract] | ||||||||
Number of separate lease pools | Pool | 2 | |||||||
Number of sites removed from original lease and placed in new master lease | Site | 35 | |||||||
Maximum [Member] | ||||||||
Sale Leaseback Transactions [Abstract] | ||||||||
Lease renewal option | 50 years | |||||||
Owned Stores [Member] | ||||||||
Sale Leaseback Transactions [Abstract] | ||||||||
Number of owned stores involved in sale-lease back transactions | Store | 62 | |||||||
Aggregate purchase price, net of closing costs | $ 198,083 | |||||||
Sale-leaseback Transactions in 2009 [Member] | Owned Stores [Member] | ||||||||
Sale Leaseback Transactions [Abstract] | ||||||||
Number of owned stores involved in sale-lease back transactions | Store | 15 | |||||||
Initial lease term | 20 years | |||||||
Lease renewal option | 20 years | |||||||
Sale-leaseback Transactions in 2009 [Member] | Retail Distribution Center [Member] | ||||||||
Sale Leaseback Transactions [Abstract] | ||||||||
Initial lease term | 15 years | |||||||
Lease renewal option | 20 years | |||||||
Sale-leaseback Transactions in 2000 [Member] | ||||||||
Sale Leaseback Transactions [Abstract] | ||||||||
Initial lease term | 20 years | |||||||
Remaining property purchased | $ 3,200 | |||||||
Aggregate initial annual rent payment for lease properties | $ 14,379 | |||||||
Percentage of increase in annual rental payments in initial terms | 1.00% | |||||||
Gain on sale and leaseback transaction | $ 69,954 | |||||||
Operating lease right-of-use assets | 261,698 | |||||||
Right-of-use assets, non-cash | 79,049 | |||||||
Operating lease liabilities | $ 182,649 | |||||||
Sale-leaseback Transactions in 2000 [Member] | Maximum [Member] | ||||||||
Sale Leaseback Transactions [Abstract] | ||||||||
Lease renewal option | 50 years | |||||||
Sale-leaseback Transactions in 2000 [Member] | Owned Stores [Member] | ||||||||
Sale Leaseback Transactions [Abstract] | ||||||||
Number of owned stores involved in sale-lease back transactions | Store | 65 | |||||||
Number of stores completed in sale leaseback transaction | Store | 64 | |||||||
[1] | This Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of July 31, 2020, as filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2020. |
Net Income Per Share and Weig_3
Net Income Per Share and Weighted Average Shares (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 30, 2020 | Nov. 01, 2019 | |
Net Income Per Share and Weighted Average Shares [Abstract] | ||
Net income per share numerator | $ 170,680 | $ 43,223 |
Net income per share denominator [Abstract] | ||
Weighted average shares (in shares) | 23,707,750 | 24,038,354 |
Add potential dilution [Abstract] | ||
Nonvested stock awards and units (in shares) | 63,480 | 65,568 |
Diluted weighted average shares (in shares) | 23,771,230 | 24,103,922 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Oct. 30, 2020USD ($)Property |
Loss Contingencies [Abstract] | |
Provision for non-performance by primary obligor under lease arrangements | $ 344 |
Standby Letters of Credit [Member] | Revolving Credit Facility [Member] | |
Loss Contingencies [Abstract] | |
Letters of credit outstanding | $ 31,804 |
Lease Performance Guarantee [Member] | |
Loss Contingencies [Abstract] | |
Number of properties for which the Company is liable for lease payments as of result of non-performance by primary obligor | Property | 2 |