Cracker Barrel Old Country Store (CBRL) 8-K Declares Special Dividend, and Authorizes Share Repurchases

Exhibit 99.1

Investor Contact:	Adam Hanan
	(615)443-9887
Media Contact:	Janella Escobar
	(615)235-4618

CRACKER BARREL REPORTS THIRD QUARTER FISCAL 2019 RESULTS, INCREASES QUARTERLY DIVIDEND,

DECLARES SPECIAL DIVIDEND, AND AUTHORIZES SHARE REPURCHASES

Comparable store restaurant sales growth and traffic outperform the casual dining industry

Board increases regular quarterly dividend to $1.30 per share, declares special dividend of $3.00 per share, and

authorizes share repurchases up to $50 million

LEBANON, Tenn.–June 4, 2019 – Cracker Barrel Old Country Store, Inc. (“Cracker Barrel” or the “Company”) (Nasdaq: CBRL) today reported its financial results for the third quarter of fiscal 2019 ended May 3, 2019.

Third Quarter Fiscal 2019 Highlights

• Comparable store restaurant sales growth of 1.3% and traffic of-1.8% outperformed the casual dining industry.

• Earnings per diluted share were $2.09, a 3.0% increase compared to $2.03 in the prior year third quarter.

• The Company announced its Board of Directors increased the quarterly dividend to $1.30 per share on the Company’s common stock, which represents a 4.0% increase over the Company’s previous quarterly dividend of $1.25 per share.

• The Board of Directors also declared a special dividend of $3.00 per share on the Company’s common stock and authorized new share repurchases for up to $50 million of the Company’s outstanding common stock.

Commenting on the third quarter results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, “I am pleased that we again delivered positive comparable store restaurant sales growth and outperformed the casual dining industry. Our teams continued to make progress on key initiatives, and I am encouraged by our performance, in particular with the early results of our new Signature Fried Chicken initiative.”

Third Quarter Fiscal 2019 Results

Revenue

The Company reported total revenue of $739.6 million for the third quarter of fiscal 2019, representing an increase of 2.5% over the third quarter of the prior year. Cracker Barrel comparable store restaurant sales increased 1.3%, representing a 3.1% increase in average check and a 1.8% decrease in comparable store restaurant traffic. The average menu price increase for the quarter was approximately 1.8%. Comparable store retail sales decreased 2.6% from the prior year quarter.

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Cracker Barrel comparable store restaurant traffic, average check, and comparable store restaurant sales and retail sales for the third quarter were as follows:

	Third Quarter(1)
Comparable restaurant traffic	-1.8%
Average check	3.1%
Comparable restaurant sales	1.3%
Comparable retail sales	-2.6%

(1) The Company estimates third quarter inclement weather reduced traffic by approximately 0.3%.

Operating Income

Operating income in the third quarter was $65.1 million, representing an increase of 2.8% over the prior year quarter operating income of $63.3 million. As a percentage of total revenue, operating income was 8.8%, which was flat to the prior year quarter. As a percentage of total revenue, increases in labor and related expenses, other operating expenses, and general and administrative expenses were offset by reductions in cost of goods sold.

Earnings per Diluted Share

Earnings per diluted share were $2.09, compared to prior year third quarter earnings per diluted share of $2.03.

Quarterly Dividend Increase and Special Dividend

The Company announced that its Board of Directors increased the quarterly dividend to $1.30 per share on the Company’s common stock, which represents a 4.0% increase over the Company’s previous quarterly dividend of $1.25. The quarterly dividend is payable on August 5, 2019 to shareholders of record on July 19, 2019.

The Board of Directors also declared a special dividend of $3.00 per share on the Company’s common stock. This is the Company’s fifth special dividend declaration. The special dividend will be payable on August 2, 2019 to shareholders of record on July 19, 2019.

Share Repurchase Authorization

The Board of Directors authorized share repurchases up to $50 million of the Company’s outstanding common stock. The share repurchase authorization is effective immediately and replaces the prior authorization.

Fiscal 2019 Outlook

For fiscal 2019, the Company continues to expect total revenue of approximately $3.05 billion and the opening of eight new Cracker Barrel stores. The Company now expects comparable store restaurant sales growth of approximately 2%. The Company now anticipates flat to slightly negative comparable store retail sales growth. The Company continues to project food commodity inflation of approximately 2% for the year. The Company continues to project operating income margin in the range of 9.0% to 9.3% as a percentage of total revenue. The Company continues to expect depreciation expense of approximately $110 million and net interest expense of approximately $17 million. The Company continues to project capital expenditures of approximately $150 million. The Company continues to anticipate an effective tax rate for fiscal 2019 of approximately 17%. The Company continues to project earnings per diluted share for fiscal 2019 of between $8.95 and $9.10. This compares to fiscal 2018 GAAP earnings per diluted share of $10.29 and adjusted earnings per diluted share of $8.87, which reflects the $1.06 impact of theone-timenon-cash revaluation of the net deferred tax liability and the $0.36 impact of the 53^rd week (for a reconciliation of GAAP tonon-GAAP financial measures, please see the table accompanying this release).

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The Company reminds investors that its outlook for fiscal 2019 reflects a number of assumptions, many of which are outside the Company’s control.

Fiscal 2019 Third Quarter Conference Call

As previously announced, the live broadcast of Cracker Barrel’s quarterly conference call will be available to the publicon-line at investor.crackerbarrel.com today beginning at 11:00 a.m. (ET). Theon-line replay will be available at 2:00 p.m. (ET) and continue through June 18, 2019.

About Cracker Barrel Old Country Store^®

Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) shares warm welcomes and friendly service while offering guests high-quality homestyle food and unique shopping — all at a fair price. By creating a world filled with hospitality and charm through an experience that combines dining and shopping, guests are cared for like family. Established in 1969 in Lebanon, Tenn., Cracker Barrel and its affiliates operate 660 company-owned Cracker Barrel Old Country Store^® locations in 45 states and own the fast-casual Holler and Dash^® restaurants. For more information about the company, visit crackerbarrel.com.

CBRL-F

Except for specific historical information, certain of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These, and similar statements are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual performance of Cracker Barrel Old Country Store, Inc. and its subsidiaries to differ materially from those expressed or implied by this discussion. All forward-looking statements are subject to completion of our financial procedures for Q3 FY 2019 and are provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “trends,” “assumptions,” “target,” “guidance,” “outlook,” “opportunity,” “future,” “plans,” “goals,” “objectives,” “expectations,” “near-term,” “long-term,” “projection,” “may,” “will,” “would,” “could,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “potential,” “regular,” “should,” “projects,” “forecasts,” or “continue” (or the negative or other derivatives of each of these terms) or similar terminology and include the expected effects of operational improvement initiatives, such as new menu items and retail offerings. Factors which could materially affect actual results include, but are not limited to: the effects of uncertain consumer confidence, higher costs for energy, general or regional economic weakness, and weather on sales and customer travel, discretionary income or personal expenditure activity of our customers; information technology-related incidents, including data privacy and information security breaches, whether as a result of infrastructure failures, employee or vendor errors, or actions of third parties; our ability to identify, acquire and sell successful new lines of retail merchandise and new menu items at our restaurants; our ability to sustain or the effects of plans intended to improve operational or marketing execution and performance; changes in or implementation of additional governmental or regulatory rules, regulations and interpretations affecting tax, wage and hour matters, health and safety, pensions, insurance or other undeterminable areas; the effects of plans intended to promote or protect our

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brands and products; commodity price increases; the ability of and cost to us to recruit, train, and retain qualified hourly and management employees in an escalating wage environment; the effects of increased competition at our locations on sales and on labor recruiting, cost, and retention; workers’ compensation, group health and utility price changes; consumer behavior based on negative publicity or concerns over nutritional or safety aspects of our food or products or those of the restaurant industry in general, including concerns about pandemics, as well as the possible effects of such events on the price or availability of ingredients used in our restaurants; the effects of our indebtedness and associated restrictions on our financial and operating flexibility and ability to execute or pursue our operating plans and objectives; changes in interest rates or capital market conditions affecting our financing costs and ability to refinance all or portions of our indebtedness; the effects of business trends on the outlook for individual restaurant locations and the effect on the carrying value of those locations; our ability to retain key personnel; the availability and cost of suitable sites for restaurant development and our ability to identify those sites; our ability to enter successfully into new geographic markets that may be less familiar to us; changes in land, building materials and construction costs; the actual results of pending, future or threatened litigation or governmental investigations and the costs and effects of negative publicity associated with these activities; practical or psychological effects of natural disasters or terrorist acts or war and military or government responses; disruptions to our restaurant or retail supply chain; changes in foreign exchange rates affecting our future retail inventory purchases; implementation of new or changes in interpretation of existing accounting principles generally accepted in the United States of America (“GAAP”); and other factors described from time to time in our filings with the Securities and Exchange Commission, press releases, and other communications. Any forward-looking statement made by us herein, or elsewhere, speaks only as of the date on which made. We expressly disclaim any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

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CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED INCOME STATEMENT

(Unaudited)

(In thousands, except share and per share amounts, percentages and ratios)

	Third Quarter Ended									Nine Months Ended
							Percentage									Percentage
	5/3/19			4/27/18			Change			5/3/19			4/27/18			Change
Total revenue	$	739,603		$	721,413			3	%	$	2,284,853		$	2,219,552			3	%
Cost of goods sold (exclusive of depreciation and rent)		217,073			217,719			(0	)		704,545			689,420			2
Labor and other related expenses		267,641			257,360			4			802,574			769,154			4
Other store operating expenses		152,679			147,616			3			461,976			441,843			5
Store operating income		102,210			98,718			4			315,758			319,135			(1	)
General and administrative expenses		37,125			35,409			5			112,284			108,314			4
Operating income		65,085			63,309			3			203,474			210,821			(3	)
Interest expense		4,111			3,594			14			12,637			10,892			16
Pretax income		60,974			59,715			2			190,837			199,929			(5	)
Provision for income taxes		10,560			10,968			(4	)		32,461			13,663			138
Net income	$	50,414		$	48,747			3		$	158,376		$	186,266			(15	)
Earnings per share – Basic:	$	2.10		$	2.03			3		$	6.59		$	7.76			(15	)
Earnings per share – Diluted:	$	2.09		$	2.03			3		$	6.57		$	7.74			(15	)
Weighted average shares:
Basic		24,041,673			24,003,611			0			24,034,878			24,013,435			0
Diluted		24,104,432			24,065,783			0			24,090,626			24,075,834			0
Ratio Analysis
Total revenue:
Restaurant		82.5	%		82.2	%					80.2	%		79.9	%
Retail		17.5			17.8						19.8			20.1
Total revenue		100.0			100.0						100.0			100.0
Cost of goods sold, (exclusive of depreciation and rent)		29.3			30.2						30.8			31.1
Labor and other related expenses		36.2			35.7						35.1			34.6
Other store operating expenses		20.7			20.4						20.3			19.9
Store operating income		13.8			13.7						13.8			14.4
General and administrative expenses		5.0			4.9						4.9			4.9
Operating income		8.8			8.8						8.9			9.5
Interest expense		0.6			0.5						0.5			0.5
Pretax income		8.2			8.3						8.4			9.0
Provision for income taxes		1.4			1.5						1.5			0.6
Net income		6.8	%		6.8	%					6.9	%		8.4	%

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CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited and in thousands, except share amounts)

	5/3/19		4/27/18
Assets
Cash and cash equivalents	$	167,585	$	174,294
Accounts receivable		22,190		18,630
Inventory		152,582		156,991
Prepaid expenses and other current assets		18,811		20,160
Property and equipment, net		1,166,425		1,126,840
Other long-term assets		67,477		71,416
Total assets	$	1,595,070	$	1,568,331
Liabilities and Shareholders’ Equity
Accounts payable	$	115,317	$	104,702
Other current liabilities		248,439		246,862
Long-term debt		400,000		400,000
Other long-term obligations		132,814		128,389
Deferred income taxes		50,477		47,997
Shareholders’ equity, net		648,023		640,381
Total liabilities and shareholders’ equity	$	1,595,070	$	1,568,331
Common shares issued and outstanding		24,044,402		24,003,611

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CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

(Unaudited and in thousands)

	Nine Months Ended
	5/3/19			4/27/18
Cash flows from operating activities:
Net income	$	158,376		$	186,266
Depreciation and amortization		78,499			68,297
Loss on disposition of property and equipment		7,522			4,757
Share-based compensation, net of excess tax benefit		5,672			6,063
Decrease (increase) in inventories		3,671			(624	)
Decrease in accounts payable		(7,015	)		(13,693	)
Net changes in other assets and liabilities		5,861			(30,091	)
Net cash provided by operating activities		252,586			220,975
Cash flows from investing activities:
Purchase of property and equipment, net of insurance recoveries		(103,259	)		(101,685	)
Proceeds from sale of property and equipment		134			393
Net cash (used in) investing activities		(103,125	)		(101,292	)
Cash flows from financing activities:
(Taxes withheld) from exercise of share-based compensation awards, net		(2,220	)		(3,360	)
Purchases and retirement of common stock		0			(14,772	)
Deferred Financing Costs		(3,022	)		0
Dividends on common stock		(91,290	)		(88,258	)
Net cash (used in) financing activities		(96,532	)		(106,390	)
Net increase in cash and cash equivalents		52,929			13,293
Cash and cash equivalents, beginning of period		114,656			161,001
Cash and cash equivalents, end of period	$	167,585		$	174,294

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CRACKER BARREL OLD COUNTRY STORE, INC.

Supplemental Information

(Unaudited)

	Third Quarter Ended				Nine Months Ended
	5/3/19		4/27/18		5/3/19		4/27/18
Units in operation:
Open at beginning of period		664		654		660		649
Opened during period		2		5		7		10
Closed during period		0		0		1		0
Open at end of period		666		659		666		659
Total revenue: (In thousands)
Restaurant	$	610,120	$	592,677	$	1,832,273	$	1,774,112
Retail		129,483		128,736		452,580		445,440
Total revenue	$	739,603	$	721,413	$	2,284,853	$	2,219,552
Cost of goods sold (exclusive of depreciation and rent): (In thousands)
Restaurant	$	153,947	$	151,953	$	468,996	$	453,016
Retail		63,126		65,766		235,549		236,404
Total cost of goods sold	$	217,073	$	217,719	$	704,545	$	689,420
Average unit volume: (In thousands)
Restaurant	$	916.3	$	902.7	$	2,760.2	$	2,715.5
Retail		194.5		196.1		681.8		681.8
Total	$	1,110.8	$	1,098.8	$	3,442.0	$	3,397.3
Operating weeks:		8,656		8,535		25,889		25,480

	Q3 2019 vs. Q3 2018			9 mo. 2019 vs. 9 mo. 2018
Comparable store sales period to period increase (decrease):
Restaurant		1.3	%		2.2	%
Retail		-2.6	%		0.0	%
Number of locations in comparable store base:
		644			640

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CRACKER BARREL OLD COUNTRY STORE, INC.

Reconciliation of GAAP basis operating results to adjustednon-GAAP operating results

(Unaudited)

In the accompanying press release the Company makes reference to its full year 2018 adjusted earnings per share which excluded theone-timenon-cash revaluation of a net deferred tax liability and the impact of the 53^rd week during the 2018 fiscal year. The Tax Cuts and Jobs Act of 2017, which became effective on January 1, 2018 and prior to the end of our fiscal 2018 second quarter, lowered the federal corporate income tax rate to 21%. During the second quarter of fiscal 2018, the Company recorded a provisional tax benefit forre-measurement of deferred tax liabilities due to this rate change of approximately $25 million. The Company believed that excluding this item from its financial results reflected the cash impact of tax reform for fiscal 2018, and as such provided investors with an enhanced understanding of the Company’s financial results. This information is not intended to be considered in isolation or as a substitute for net income or earnings per share information prepared in accordance with GAAP.

	Twelve months ended August 3, 2018
	As Reported		Adjust			53rd week			As Adjusted
			(1)
Total Revenue	$	3,030,445	$	—			(58,353	)	$	2,972,092
Store operating income		437,348		—			(13,309	)		424,039
General and administrative expenses		143,756		—			(2,071	)		141,685
Operating income		293,592		—			(11,238	)		282,354
Interest Expense		15,169		—			(323	)		14,846
Pretax income		278,423		—			(10,915	)		267,508
Provision for income taxes		30,803		25,596			(2,383	)		54,016
Net income	$	247,620	$	(25,596	)	$	(8,532	)	$	213,492
Earnings per share - Basic	$	10.31		(1.06	)		(0.36	)	$	8.89
Earnings per share - Diluted	$	10.29		(1.06	)		(0.36	)	$	8.87

(1) One-timeNon-Cash Revaluation of Net Deferred Tax Liability

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