Home Restaurants CRACKER BARREL REPORTS FOURTH QUARTER FISCAL 2023 RESULTS

CRACKER BARREL REPORTS FOURTH QUARTER FISCAL 2023 RESULTS

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CRACKER BARREL REPORTS FOURTH QUARTER FISCAL 2023 RESULTS

Board declares $1.30 quarterly dividend per share

LEBANON, Tenn., Sept. 13, 2023 /PRNewswire/ — Cracker Barrel Old Country Store, Inc. (“Cracker Barrel” or the “Company”) (Nasdaq: CBRL) today reported its financial results for the fourth quarter of fiscal 2023 ended July 28, 2023.

Fourth Quarter Fiscal 2023 Highlights

  • The Company reported fourth quarter total revenue of $836.7 million. Compared to the prior year fourth quarter, total revenue increased 0.8%.
    • Comparable store restaurant sales increased 2.4%, while comparable store retail sales decreased 6.8%.
  • GAAP operating income for the fourth quarter was $41.2 million, or 4.9% of total revenue, and adjusted1 operating income was $44.4 million, or 5.3% of total revenue.
  • GAAP net income was $37.5 million, or 4.5% of total revenue, and EBITDA1 was $72.1 million, or 8.6% of total revenue.
  • GAAP earnings per diluted share were $1.68, and adjusted1 earnings per diluted share were $1.79.

Commenting on the fourth quarter and full year results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, “This fiscal year underscored the resiliency of our teams amid continued challenges, and I’m proud of all we accomplished. We made significant progress on key initiatives including catering, our loyalty program, and cost savings, and we generated strong cash flow that allowed us to return more than $133 million to our shareholders in the form of dividends and share repurchases while maintaining a strong balance sheet.

“Although there was much to celebrate in fiscal 2023, our Q4 topline performance fell short of our expectations. We have taken and will continue to take numerous actions to improve our traffic performance on the marketing and operational front which we believe will be effective, particularly as we enter our important holiday season.  We will also launch our much-anticipated loyalty program, Cracker Barrel Rewards, in the next few weeks.

“Despite our recent traffic challenges, we remain confident that our continued focus on our strategic priorities, including delivering an exceptional guest experience, emphasizing and protecting our strong value proposition, accelerating frequency among key growth segments, and enhancing our business model will improve performance in the near term and deliver value creation over the long term.”

Fourth Quarter Fiscal 2023 Results

Revenue
The Company reported total revenue of $836.7 million for the fourth quarter of fiscal 2023, representing an increase of 0.8% compared to the fourth quarter of fiscal 2022.

Cracker Barrel comparable store restaurant sales increased 2.4%, including total menu pricing increases of 8.7%. Comparable store retail sales decreased 6.8% from the prior year quarter.  

Operating Income
GAAP operating income for the fourth quarter was $41.2 million, or 4.9% of total revenue, compared to $33.0 million, or 4.0% of total revenue, in the prior year quarter. Excluding the approximately $3.2 million in non-cash amortization related to the gains on the previously disclosed sale and leaseback transactions, adjusted1 operating income for the fourth quarter was $44.4 million, or 5.3% of total revenue, compared to $36.2 million, or 4.4%, of total revenue in the prior year quarter.

The increase in the Company’s GAAP and adjusted1 operating income as a percentage of total revenue versus the prior year quarter is primarily the result of lower cost of goods sold and other operating expenses, partially offset by higher labor and related expenses and general and administrative expenses in the current year quarter.

Net Income, EBITDA, and Earnings per Diluted Share
GAAP net income for the fourth quarter was $37.5 million, or 4.5% of total revenue. This represented a 12.3%  increase compared to prior year quarter GAAP net income of $33.4 million, or 4.0% of total revenue. EBITDA1 was $72.1 million, or 8.6% of total revenue, a 15.5% increase compared to the prior year quarter EBITDA1 of $62.4 million, or 7.5% of total revenue.

GAAP earnings per diluted share for the fourth quarter were $1.68, a 14.3% increase compared to the prior year quarter GAAP earnings per diluted share of $1.47. Adjusted1 earnings per diluted share were $1.79, a 14.0% increase compared to the prior year quarter adjusted1 earnings per diluted share of $1.57.

Quarterly Dividend Declaration
The Company announced that its Board of Directors declared a quarterly dividend of $1.30 per share on the Company’s common stock. The quarterly dividend is payable on November 7, 2023 to shareholders of record as of October 20, 2023.

Fiscal 2023 Results

Revenue
The Company reported total revenue of $3.44 billion for fiscal 2023, representing an increase of 5.4% compared to fiscal 2022. Comparable store restaurant sales for fiscal 2023 increased 6.3% compared to fiscal 2022. Comparable store retail sales for fiscal 2023 decreased 0.4% compared to fiscal 2022.

Operating Income
GAAP operating income in fiscal 2023 was $120.6 million, or 3.5% of total revenue, compared to $153.0 million, or 4.7% of total revenue, in the prior year. Excluding the approximately $12.7 million in non-cash amortization related to the gains on the previously disclosed sale and leaseback transactions, approximately $13.9 million dollars in impairment charges and store closure costs incurred in the third quarter, and approximately $3.2 million in proxy contest and settlement expenses incurred in the first quarter, adjusted1 operating income for fiscal 2023 was $150.4 million, or 4.4% of total revenue, compared to adjusted1 operating income of $165.7 million, or 5.1% of total revenue, in the prior year.

The decline in the Company’s GAAP operating income as a percentage of total revenue versus the prior year is primarily the result of higher cost of goods sold, general and administrative expenses, and impairment charges and store closure expenses in the current year.

The decrease in the Company’s adjusted1 operating income as a percentage of total revenue versus the prior year is primarily the result of higher cost of goods sold and general and administrative expenses in the current year.

Net Income, EBITDA and Earnings per Diluted Share
GAAP net income for fiscal 2023 was $99.1 million, or 2.9% of total revenue compared to prior year GAAP net income of $131.9 million, or 4.0% of total revenue. Adjusted EBITDA1 was $254.9 million, or 7.4% of total revenue, a 5.3% decrease compared to the prior year EBITDA1 of $269.3 million, or 8.2% of total revenue.

GAAP earnings per diluted share for fiscal 2023 were $4.45, a 21.5% decrease compared to the prior year GAAP earnings per diluted share of $5.67. Adjusted1 earnings per diluted share were $5.47, a 10.2% decrease compared to the prior year adjusted1 earnings per diluted share of $6.09.

Fiscal 2024 First Quarter Outlook

The Company provided the following outlook for its first quarter:

  • Total revenue of $800 million to $850 million
  • 1 to 2 new Cracker Barrel stores and 4 to 5 new Maple Street Biscuit Company units
  • Commodity deflation of 1% to 2%
  • Wage inflation of 4% to 5%
  • GAAP operating income margin of 1.55% to 2.55% and adjusted1 operating income margin of 2.25% to 3.25%, which contemplates the amortization of the asset recognized from the gains on sale and leaseback transactions, certain expenses related to the CEO transition, and a corporate restructuring charge
  • Capital expenditures of $27 million to $32 million

The Company reminds investors that its outlook reflects a number of assumptions, many of which are outside the Company’s control.  In particular, uncertainties created by macroeconomic conditions, such as ongoing inflation, low consumer confidence and high interest rates may adversely affect consumer behavior and cause actual results to differ materially from those expected.

1 For Non-GAAP reconciliations, please refer to the Reconciliation of GAAP-Basis Operating Results to Non-GAAP Operating Results section of this release.

Fiscal 2023 Fourth Quarter Conference Call

As previously announced, the live broadcast of Cracker Barrel’s quarterly conference call will be available to the public online at investor.crackerbarrel.com today beginning at 11:00 a.m. (ET). The online replay will be available at 2:00 p.m. (ET) and continue through September 27, 2023.

About Cracker Barrel Old Country Store®

Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) provides a caring and friendly home-away-from-home experience while offering guests high-quality homestyle food to enjoy in-store or to-go and unique shopping — all at a fair price. Established in 1969 in Lebanon, Tenn., Cracker Barrel and its affiliates operate over 660 company-owned Cracker Barrel Old Country Store® locations in 45 states and own the fast-casual Maple Street Biscuit Company. 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 items such as revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These and similar statements regarding events or results that the Company expects will or may occur in the future are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual results and performance of the Company to differ materially from those expressed or implied by such forward-looking statements. All forward-looking information is 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 risks, uncertainties and other 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.  The Company believes that the assumptions underlying any forward-looking statements are reasonable; however, any of the assumptions could be inaccurate, and therefore, actual results may differ materially from those projected in or implied by the forward-looking statements.  In addition to the risks of ordinary business operations, factors and risks that may result in actual results differing from this forward-looking information include, but are not limited to risks and uncertainties associated with inflationary conditions with respect to the price of commodities, transportation, distribution and labor; disruptions to the Company’s restaurant or retail supply chain; the COVID-19 pandemic, including the duration of the COVID-19 pandemic and its ultimate impact on the Company’s business the Company’s ability to identify, acquire and sell successful new lines of retail merchandise and new menu items at its restaurants; the Company’s ability to sustain or the effects of plans intended to improve operational or marketing execution and performance; the effects of increased competition at the Company’s locations on sales and on labor recruiting, cost, and retention; consumer behavior based on negative publicity or changes in consumer health or dietary trends or safety aspects of the Company’s food or products or those of the restaurant industry in general, including concerns about outbreaks of infectious disease, as well as the possible effects of such events on the price or availability of ingredients used in the Company’s restaurants; the effects of the Company’s indebtedness and associated restrictions on the Company’s financial and operating flexibility and ability to execute or pursue its operating plans and objectives; changes in interest rates, increases in borrowed capital or capital market conditions affecting the Company’s financing costs and ability to refinance its indebtedness, in whole or in part; the Company’s reliance on limited distribution facilities and certain significant vendors; 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; changes in or implementation of additional governmental or regulatory rules, regulations and interpretations affecting tax, wage and hour matters, health and safety, animal welfare, pensions, insurance or other undeterminable areas; the effects of plans intended to promote or protect our brands and products; the actual results of pending, future or threatened litigation or governmental investigations and the costs and effects of negative publicity or the Company’s ability to manage the impact of social media associated with these activities; the impact of activist shareholders; the Company’s ability to enter successfully into new geographic markets that may be less familiar to it; changes in land, building materials and construction costs; the availability and cost of suitable sites for restaurant development and the Company’s ability to identify those sites; the Company’s ability to retain key personnel; the ability of and cost to the Company to recruit, train, and retain qualified hourly and management employees; uncertain performance of acquired businesses, strategic investments and other initiatives that the Company may pursue from time to time; the effects of business trends on the outlook for individual restaurant locations and the effect on the carrying value of those locations; general or regional economic weakness, business and societal conditions and the weather impact on sales and customer travel; discretionary income or personal expenditure activity of the Company’s customers; economic or psychological effects of natural disasters or other unforeseen events such as terrorist acts, social unrest or war and the military or government responses to such events; changes in foreign exchange rates affecting the Company’s future retail inventory purchases; workers’ compensation, group health and utility price changes; 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.

CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED INCOME STATEMENT

(Unaudited)

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



Fourth Quarter Ended


Twelve Months Ended


7/28/23

7/29/22

Percentage
Change


7/28/23

7/29/22

Percentage
Change

Total revenue

$836,732

$830,400

1 %


$3,442,808

$3,267,786

5 %

Cost of goods sold, (exclusive of depreciation & rent)

257,331

273,424

(6)


1,127,617

1,049,884

7

Labor and other related expenses

305,111

294,430

4


1,208,669

1,149,077

5

Other store operating expenses

195,368

196,674

(1)


797,815

758,389

5

General and administrative expenses

37,576

32,900

14


174,091

157,433

11

Impairment and store closing costs

109

0


13,999

0

Operating income

41,237

32,972

25


120,617

153,003

(21)

Interest expense

4,530

2,620

73


17,006

9,620

77

Income before income taxes

36,707

30,352

21


103,611

143,383

(28)

Provision for income taxes (income tax benefit)

(755)

(3,012)

75


4,561

11,503

(60)

Net income

$37,462

$33,364

12


$99,050

$131,880

(25)









Earnings per share – Basic:

$1.69

$1.47

15


$4.47

$5.69

(21)

Earnings per share – Diluted:

$1.68

$1.47

14


$4.45

$5.67

(22)









Weighted average shares:








    Basic

22,152,445

22,666,439

(2)


22,167,875

23,164,180

(4)

    Diluted

22,262,598

22,756,685

(2)


22,265,399

23,246,010

(4)









Ratio Analysis








Total revenue:








    Restaurant

81.2 %

79.7 %



79.6 %

78.5 %


    Retail

18.8

20.3



20.4

21.5


Total revenue

100.0

100.0



100.0

100.0


Cost of goods sold, (exclusive of depreciation & rent)

30.8

32.9



32.8

32.1


Labor and other related expenses

36.5

35.5



35.1

35.2


Other store operating expenses

23.3

23.7



23.2

23.2


General and administrative expenses

4.5

3.9



5.0

4.8


Impairment and store closing costs

0.0

0.0



0.4

0.0


Operating income

4.9

4.0



3.5

4.7


Interest expense

0.5

0.3



0.5

0.3


Income before income taxes

4.4

3.7



3.0

4.4


Provision for income taxes (income tax benefit)

(0.1)

(0.3)



0.1

0.4


Net income

4.5 %

4.0 %



2.9 %

4.0 %


CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited and in thousands, except share amounts)


7/28/23


7/29/22


Assets





   Cash and cash equivalents

$25,147


$45,105


   Accounts receivable

30,446


32,246


   Inventories

189,364


213,249


   Prepaid expenses and other current assets

37,330


26,676


   Property and equipment, net

971,945


969,609


   Operating lease right-of-use assets, net

889,306


933,524


   Intangible Assets

23,426


21,210


   Other assets

46,440


48,602


   Goodwill

4,690


4,690


           Total assets

$2,218,094


$2,294,911







Liabilities and Shareholders’ Equity





   Accounts payable

$165,484


$169,871


   Other current liabilities

323,482


332,453


   Long-term debt

414,904


423,249


   Long-term operating lease liabilities

702,413


722,159


   Other long-term obligations

53,730


55,507


   Deferred income taxes

74,256


80,193


   Shareholders’ equity, net

483,825


511,479


          Total liabilities and shareholders’ equity

$2,218,094


$2,294,911







Common shares issued and outstanding

22,153,625


22,281,443


CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

(Unaudited and in thousands)


Twelve Months Ended


7/28/23


7/29/22

Cash flows from operating activities:




             Net income

$99,050


$131,880

             Depreciation and amortization

104,485


103,568

             Amortization of debt issuance costs

1,730


1,755

             Loss on disposition of property and equipment

6,600


5,637

             Impairment

11,692


0

             Share-based compensation

9,045


8,198

             Noncash lease expense

59,767


58,498

             Amortization of asset recognized from gain on sale and leaseback transaction

12,735


12,735

             (Increase) decrease in inventories

23,885


(74,929)

             (Increase) decrease in accounts payable

(4,387)


34,695

             Net changes in other assets and liabilities

(74,145)


(76,784)

                           Net cash provided by operating activities

250,457


205,253

Cash flows from investing activities:




             Purchase of property and equipment, net of insurance recoveries

(125,387)


(97,104)

             Proceeds from sale of property and equipment

1,068


105

             Acquisition of business, net of cash acquired

0


(1,500)

                           Net cash used in investing activities

(124,319)


(98,499)

Cash flows from financing activities:




              Net proceeds (payments) under long-term debt

(10,124)


44,876

              Taxes withheld from issuance of share-based compensation awards

(2,448)


(2,599)

              Purchases and retirement of common stock

(17,449)


(131,542)

              Deferred financing costs

0


(2,148)

              Dividends on common stock

(116,075)


(114,829)

                           Net cash used in financing activities

(146,096)


(206,242)





Net decrease in cash and cash equivalents

(19,958)


(99,488)

Cash and cash equivalents, beginning of period

45,105


144,593

Cash and cash equivalents, end of period

$25,147


$45,105

CRACKER BARREL OLD COUNTRY STORE, INC.

Supplemental Information

(Unaudited)


Fourth Quarter Ended




7/28/23


7/29/22



Net Change in Company-Owned Units During Quarter:






     Cracker Barrel

(1)


0



     Maple Street Biscuit Company

3


10



Company-Owned Units in Operation at End of Quarter:






     Cracker Barrel

660


664



     Maple Street Biscuit Company

59


51





Fourth Quarter Ended


Twelve Months Ended


7/28/23


7/29/22


7/28/23


7/29/22

Total revenue*: (In thousands)








      Restaurant

$663,265


$647,462


$2,678,685


$2,516,334

      Retail

157,405


168,339


701,563


701,621

      Total revenue

$820,670


$815,801


$3,380,248


$3,217,955









Cost of goods sold* (exclusive of depreciation and rent): (In thousands)








      Restaurant

$176,790


$186,338


$754,131


$693,810

      Retail

76,717


83,095


358,054


343,379

      Total cost of goods sold

$253,507


$269,433


$1,112,185


$1,037,189









  Average unit volume*: (In thousands)








      Restaurant

1,004.9


975.1


4,040.2


3,789.7

      Retail

238.5


253.5


1,058.2


1,056.6

      Total

1,243.4


1,228.6


5,098.4


4,846.3

Operating weeks*:

8,580


8,632


34,476


34,528


Note*: This information is for Cracker Barrel stores only and excludes Maple Street Biscuit Company

CRACKER BARREL OLD COUNTRY STORE, INC.
Reconciliation of GAAP-Basis Operating Results to Non-GAAP Operating Results
(Unaudited and in thousands, except per share amounts)

Adjusted Operating Income and Earnings Per Share
In the accompanying press release, the Company makes reference to its fourth quarter fiscal 2022 and fiscal 2023 adjusted operating income and earnings per share. In regard to fiscal 2022, this reconciliation excludes non-cash amortization of the asset recognized from the gains on the sale and leaseback transactions and the related tax impact. In regard to fiscal 2023, this reconciliation excludes non-cash amortization of the asset recognized from the gains on the sale and leaseback transactions, impairment charges and store closing costs incurred in the third quarter, expenses related to proxy contest and settlement expenses in connection with the Company’s 2022 annual meeting of shareholders incurred in the first quarter, and the related tax impacts of these items. The Company believes excluding these items from its financial results provides investors with an enhanced understanding of the Company’s financial results and enhances comparability across periods. This information is not intended to be considered in isolation or as a substitute for operating income or earnings per share information prepared in accordance with GAAP.


Fourth Quarter Ended July 28, 2023


Twelve Months Ended July 28, 2023


As Reported

Adjustment

As Adjusted


As Reported

Adjustments

As Adjusted




(1)




(1) (2) (3)



Total Revenue

$836,732

$0

$836,732


$3,442,808

$0

$3,442,808


Store operating expense

757,810

(3,184)

754,626


3,134,101

(12,735)

3,121,366


General and administrative expense

37,576

0

37,576


174,091

(3,198)

170,893


Impairment and store closing costs

109

0

109


13,999

(13,890)

109


Operating income

41,237

3,184

44,421


120,617

29,823

150,440


Interest expense

4,530

0

4,530


17,006

0

17,006


Income before income taxes

36,707

3,184

39,891


103,611

29,823

133,434


Provision for income taxes

(755)

748

(7)


4,561

7,008

11,569


Net income

$37,462

$2,436

$39,898


$99,050

$22,815

$121,865


Earnings per share – basic

$1.69

$0.11

$1.80


$4.47

$1.03

$5.50


Earnings per share – diluted

$1.68

$0.11

$1.79


$4.45

$1.02

$5.47



(1) Adjusted for the non-cash amortization of asset recognized from the gain on sale and leaseback transactions and related tax impacts

(2) Adjusted for expenses related to proxy contest and settlement expenses and related tax impacts

(3) Adjusted for impairment charges and store closing costs and related tax impacts


Fourth Quarter Ended July 29, 2022


Twelve Months Ended July 29, 2022


As Reported

Adjustment

As Adjusted


As Reported

Adjustments

As Adjusted




(1)




(1)



Total Revenue

$830,400

$0

$830,400


$3,267,786

$0

$3,267,786


Store operating expense

764,528

(3,184)

761,344


2,957,350

(12,735)

2,944,615


General and administrative expense

32,900

0

32,900


157,433

0

157,433


Impairment and store closing costs

0

0

0


0

0

0


Operating income

32,972

3,184

36,156


153,003

12,735

165,738


Interest expense

2,620

0

2,620


9,620

0

9,620


Income before income taxes

30,352

3,184

33,536


143,383

12,735

156,118


Provision for income taxes

(3,012)

748

(2,264)


11,503

2,993

14,496


Net income

$33,364

$2,436

$35,800


$131,880

$9,742

$141,622


Earnings per share – basic

$1.47

$0.11

$1.58


$5.69

$0.42

$6.11


Earnings per share – diluted

$1.47

$0.10

$1.57


$5.67

$0.42

$6.09



(1) Adjusted for the non-cash amortization of the asset recognized from the gain on sale and leaseback transactions and related tax impacts

CRACKER BARREL OLD COUNTRY STORE, INC.
Reconciliation of GAAP-Basis Operating Results to Non-GAAP Operating Results
(Unaudited and in thousands)

EBITDA
In the accompanying press release, the Company makes reference to its fourth quarter fiscal 2022 and fiscal 2023 EBITDA. The Company defines EBITDA as net income excluding depreciation and amortization, non-cash amortization of the asset recognized from the gains on sale and leaseback transactions, interest expense and tax expense. The Company further adjusts EBITDA to exclude impairment charges and store closing costs incurred in the third quarter and expenses related to proxy contest and settlement expenses in connection with the Company’s 2022 annual meeting of shareholders incurred in the first quarter. The Company believes that presentation of EBITDA and Adjusted EBITDA provides investors with an enhanced understanding of the Company’s operating performance and debt leverage metrics and enhances comparability with the Company’s historical results, and that the presentation of this non-GAAP financial measure, when combined with the primary presentation of net income, is beneficial to an investor’s complete understanding of its operating performance. This information is not intended to be considered in isolation or as a substitute for net income prepared in accordance with GAAP.












Fourth Quarter Ended
July 28, 2023


Twelve Months
Ended July 28, 2023

Net Income




$37,462


$99,050

 (+) Depreciation & amortization




27,680


104,485

 (+) Amortization of asset recognized from gain on sale and leaseback transactions


3,184


12,735

 (+) Interest expense




4,530


17,006

 (+) Tax expense (income tax benefit)




(755)


4,561

EBITDA




$72,101


$237,837

Adjustments







 (+) Proxy contest-related expenses




0


3,198

 (+) Impairment and store closing costs


0


13,890

Adjusted EBITDA




$72,101


$254,925












Fourth Quarter Ended
July 29, 2022


Twelve Months
Ended July 29, 2022

Net Income




$33,364


$131,880

 (+) Depreciation & amortization




26,280


103,568

 (+) Amortization of asset recognized from gain on sale and leaseback transactions


3,184


12,735

 (+) Interest expense




2,620


9,620

 (+) Tax expense (income tax benefit)




(3,012)


11,503

EBITDA




$62,436


$269,306

 Reconciliation of GAAP-basis Operating Income Margin Outlook to Non-GAAP Operating Income Margin Outlook
In the accompanying press release, the Company provides its current outlook for adjusted operating income margin, a non-GAAP financial measure, for the first quarter fiscal 2024. The Company’s adjusted operating income margin outlook excludes the expected non-cash amortization of the asset recognized from the gains on the sale and leaseback transactions, certain expenses related to our CEO transition, and a corporate restructuring charge. The Company believes presenting its current outlook for adjusted operating income margin that excludes these items provides investors with an enhanced understanding of the Company’s expected margin performance and enhances comparability with the Company’s historical results. This information is not intended to be considered in isolation or as a substitute for operating income margin outlook reported in accordance with GAAP.

Reconciliation of First Quarter Fiscal 2024 Reported to Adjusted Operating Income Margin Outlook

% of Total Revenue

Reported operating income outlook

1.55 %

2.55 %

$3.2 non-cash amortization of the asset recognized from the gain on sale and leaseback transactions

0.4 %

0.4 %

$1.6 expenses related to CEO transition

0.2 %

0.2 %

$1.0 corporate restructuring charge

0.1 %

0.1 %

Adjusted Operating Income Margin Outlook

2.25 %

3.25 %

Investor Contact:         

Adam Hanan


(615) 443-9887

Media Contact:             

Heidi Pearce


(615) 235-4135

SOURCE Cracker Barrel Old Country Store, Inc.

Originally published at https://www.prnewswire.com/news-releases/cracker-barrel-reports-fourth-quarter-fiscal-2023-results-301925511.html
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