Post Office Box 787
Lebanon, Tennessee
37088-0787
Phone 615.443.9869
[Logo of CBRL Group, Inc.]
Contact: Lawrence E. White
Senior Vice President/
Finance and Chief Financial Officer
(615) 443-9869
CBRL GROUP, INC. REPORTS SEPTEMBER SALES AND REAFFIRMS EARNINGS GUIDANCE FOR
FISCAL 2005 FIRST QUARTER
LEBANON, Tenn. (September 28, 2004) -- CBRL Group, Inc. (the "Company") (NASDAQ:
CBRL) today reported comparable store sales for the four-week period ending
September 24, 2004 and reaffirmed earnings guidance for the first fiscal quarter
of 2005.
The Company reported that comparable store restaurant sales for the four
weeks ending Friday, September 24, 2004 in its Cracker Barrel Old Country
Store(R) ("Cracker Barrel") units were up 2.9% from the comparable period last
year, with approximately 2.8% higher average check, including approximately 1.7%
higher menu pricing. Cracker Barrel comparable store retail sales in September
were down 6.4%. Comparable restaurant sales in the Company's Logan's
Roadhouse(R) restaurants in September were up 3.9%, including approximately 4.6%
higher average check, including approximately 3% higher menu pricing. The
Company noted that sales were affected unfavorably in September by Hurricanes
Frances and Ivan. The Company estimated that comparable store restaurant sales
were reduced by approximately 0.5% at both Cracker Barrel and Logan's as a
result of net lost sales from the two hurricanes. Retail sales appear to have
been affected by a greater amount, approximately 2.5%, because of the lost or
reduced porch sales in many locations during the Labor Day weekend. In addition,
both concepts experienced lost sales at locations that are not part of the
comparable store base. These estimates reflected the net effect of lost sales
from closings and shorter hours and the estimated partial offset from gains at
Cracker Barrel stores that apparently benefited from evacuation activity, an
effect that was not previously estimable.
The Company urges caution in considering its current trends and the
earnings guidance disclosed in this press release. The restaurant industry is
highly competitive, and trends and guidance are subject to numerous factors and
influences, some of which are discussed in the cautionary language at the end of
this press release. The Company disclaims any obligation to update disclosed
information on trends or targets other than in its periodic filings on Forms
10-K, 10-Q, and 8-K with the Securities and Exchange Commission.
The Company reaffirmed its guidance for the first fiscal quarter of 2005,
which ends on October 29, 2004. The Company presently expects a percentage
increase in diluted net income per share up to the mid-single digits over $0.56
in the year-ago quarter. The Company's present guidance reflects expectations
for restaurant sales generally in line with previous guidance, lower
expectations for retail sales, reflecting weaker trends primarily in seasonal
product lines, and a more favorable outlook for costs.
Headquartered in Lebanon, Tennessee, CBRL Group, Inc. presently operates
506 Cracker Barrel Old Country Store restaurants and gift shops located in 41
states and 113 company-operated and 20 franchised Logan's Roadhouse restaurants
in 18 states.
Except for specific historical information, many 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 CBRL Group, Inc. and
its subsidiaries to differ materially from those expressed or implied by this
discussion. All forward-looking information is provided by the Company 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 "assumptions," "target," "guidance,"
"outlook," "plans," "projection," "may," "will," "would," "expect," "intend,"
"estimate," "anticipate," "believe," "potential" or "continue" (or the negative
or other derivatives of each of these terms) or similar terminology. Factors
which could materially affect actual results include, but are not limited to:
changes in or implementation of additional governmental or regulatory rules,
regulations and interpretations affecting accounting (including but not limited
to, accounting for convertible debt under EITF Issue Abstract No. 04-08), tax,
wage and hour matters, health and safety, pensions, insurance or other
undeterminable areas; the effects of uncertain consumer confidence or general or
regional economic weakness on sales and customer travel activity; the ability of
the Company to identify, acquire and sell successful new lines of retail
merchandise; commodity, workers' compensation, group health and utility price
changes; consumer behavior based on concerns over nutritional or safety aspects
of the Company's products or restaurant food in general; competitive marketing
and operational initiatives; the effects of plans intended to improve
operational execution and performance; the actual results of pending or
threatened litigation or governmental investigations or charges and the costs
and effects of negative publicity associated with these activities; practical or
psychological effects of terrorist acts or war and military or government
responses; the effects of increased competition at Company locations on sales
and on labor recruiting, cost, and retention; the ability of and cost to the
Company to recruit, train, and retain qualified restaurant hourly and management
employees; disruptions to the company's restaurant or retail supply chain;
changes in foreign exchange rates affecting the Company's future retail
inventory purchases; the availability and cost of acceptable sites for
development and the Company's ability to identify such sites; changes in
generally accepted accounting principles in the United States of America or
changes in capital market conditions that could affect valuations of restaurant
companies in general or the Company's goodwill in particular; increases in
construction costs; changes in interest rates affecting the Company's financing
costs; and other factors described from time to time in the Company's filings
with the SEC, press releases, and other communications.
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