Exhibit 99.2
Investor Fact Sheet
July 23, 2019
Overview
Cracker Barrel will invest up to approximately $140 million to acquire its initialnon-controlling stake in Punch Bowl Social and to provide growth capital for future development, although a portion of this amount is anticipated to be offset by third-party financing, which Punch Bowl Social is presently arranging.
The agreement includes provisions for Cracker Barrel to potentially acquire a controlling or full ownership position in Punch Bowl Social in the future.
While Punch Bowl Social expects to have positive store-level and company-level EBITDA in its fiscal 2020, Cracker Barrel anticipates Punch Bowl Social’s operating income will be negative in the near-term due to growth andpre-opening expenses. The investment will be accounted for using the equity method.
Robert Thompson and the management team will continue to manage theday-to-day operations of Punch Bowl Social.
Punch Bowl Social will remain headquartered in Denver, Colorado.
Business model
Current unit count: | 17 units open as of July 23, 2019 | |
Expected new unit openings: | 11 new units expected before end of calendar year 2020, this includes the grand opening of the Fort Worth, Texas location on July 27, 2019 | |
Unit growth potential: | Over 100 locations within continental United States; international expansion possible but unplanned | |
Average unit square footage: | 23,000+ square feet in current prototype, with plans to open units in smaller markets using a12,000-16,000 square foot “small box” design. | |
Guest demographics: | Millennials and Gen Z are core guests, majority of guests under 40 years old | |
Average sales mix: | 89% food & beverage, 11% activities | |
Average group sales: | 25% - 35% of net sales | |
Average unit volumes: | $7.0 to $8.0 million, with newer units performing above system average | |
Target unit store-level EBITDA, excludingpre-opening: | 17+% of net sales |