Cracker Barrel Investor Presentation: Brand, Sales, and Growth Strategy, Study notes of Business

Download Cracker Barrel Investor Presentation: Brand, Sales, and Growth Strategy and more Study notes Business in PDF only on Docsity! ® Old Country Store CBRL INVESTOR PRESENTATION Fall 2016 Safe Harbor statement 2 Cracker Barrel Old Country Store, Inc. (“the Company”) urges caution in considering current trends and earnings guidance disclosed in this presentation. Except for specific historical information, matters discussed in this presentation are forward-looking statements that involve risks, uncertainties and other factors that may cause actual results and performance of the Company to differ materially from those expressed or implied in this discussion. All forward-looking information is provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995. More detailed information on risks, uncertainties, and other factors is provided in the Company’s filings with the Securities and Exchange Commission, press releases and other communications. Reconciliations of non-GAAP financial disclosures to comparable GAAP measures found in this presentation may be viewed on the Company’s website, crackerbarrel.com. Assume all numbers presented are unaudited unless noted. The store experience 5 Our typical store…
Serves over 950 guests a day
Employs over 100 people
Open 114 hours a week, 364 days per year
Broad menu including breakfast all day and lunch/dinner options after 11:00 am
Scratch cooking with fresh ingredients
Revenue averages approximately $4.6 million per store
80% restaurant
20% retail consisting of 4,000 SKUs per store … and we have 640 stores with over 70,000 employees Retail is integral to the Cracker Barrel experience
The experience begins with rockers on the front porch… which are also a top seller
The retail shop doubles as a guest waiting area…and produces sales per square foot of approximately $440 and gross margins around 50%
Emphasis on nostalgic and unique merchandise with a large selection of items under $20
Apparel
Accessories
Branded Food
Toys and Games
Music 6 We have widened our gap to the casual dining industry 100.00 100.33 102.59 105.61 106.42 111.50 100.00 101.24 102.32 101.54 100.10 101.50 FY11 FY12 FY13 FY14 FY15 FY16 Note: Sales growth indexed to FY11. CBRL and industry sales figures are an approximation based on weekly averages. Industry comparison is a widely recognized Casual Dining sales index. 7 CapEx $355-$385 Share repurchases (Dilution offset) Dividends Reinvesting in the business Return $355 to $385 million to shareholders Cash Generation ~$850-$900 FY 2015 Beginning Cash Balance We are committed to Maintaining a balanced approach to capital allocation… 10 FY 2017 Ending Cash Balance ($Millions) FY15-FY17 Strategic plan 11 Quarterly Dividend per Share Since Announcement of Strategic Priorities1 $0.22 $0.25 $0.40 $0.50 $0.75 $1.00 26-May-2011 13-Sep-2011 26-Apr-2012 19-Sep-2012 03-Jun-2013 01-May-2014 > 420% Increase $1.10 02-Jun-2015 (1) Quarterly dividends per share shown at declared dates of increases to quarterly dividend since 26-May-2011, which represents dividend per share prior to announcement of Strategic Priorities on 13-Sep-2011. Latest declared quarterly dividend was $1.15 on 26-Sep-2016 $1.15 01-Jun-2016 …and have demonstrated that commitment through quarterly dividend increases Enhance. Expand. Extend. We believe our enhance, expand, extend strategy will continue to drive shareholder value An Outstanding Employee Experience An Outstanding Guest Experience Improved Sales & Traffic Build profitable storesImprove the business model
Reduce operating costs by $15 to $20 million through implementation of cost- saving initiatives Protect current guest base while expanding to a new generation of guests
Shift to external target driven marketing strategy to drive incremental frequency
Grow Off-premise business
Adopt precision targeting strategies
Maintain brand differentiation
Invest in digital and social capabilities Grow Holler & Dash 12