Cracker Barrel Old Country Store (CBRL) Investor presentation summary

Strategic priorities

• Three-year strategy centers on enhancing the core, expanding the footprint, and extending the brand, with employee and guest experience supporting sales and traffic.

• Core initiatives include menu and beverage innovation, value offerings, family meals, off-premise convenience, faster service, and $40M in cost savings from FY18–FY20.

• Off-premise sales targeted to grow from 7% to 10%+ of sales, supported by catering, to-go ordering, delivery tests, and holiday heat-and-serve meals.

• Specialty beverage system rollout planned for FY18, with seasonal coffee flavors and dark-roast testing; digital app features include waitlists, mobile ordering, online shopping, and menu information.

Footprint and brand extension

• Plan calls for 30+ new units from FY18–FY20, with 8–12 openings annually, primarily beyond core Southeastern markets; first California location planned for FY18.

• Long-term buildout estimated at 750–800 units; new-unit performance described as strong.

• Holler & Dash had six locations open and one under construction; initial investment target was $750K per location, with a 30%+ cash-on-cash return target.

• Brand-extension opportunities include Holler & Dash, e-commerce growth, acquisitions, and development of additional concepts.

Financial outlook

• FY20 revenue target of $3.3B from FY17 actual of $2.9B, with ~4.5% CAGR; expected drivers include traffic, pricing, retail same-store sales, and new units.

• FY18–FY20 EPS growth target of 5%–6%; FY20 EPS target of $9.70–$10.00 versus FY17 actual of $8.37, assuming no new corporate tax legislation.

• Total shareholder return target of 10%–12% for FY18–FY20, including ~3% annualized regular dividend yield and ~2.5% from additional drivers.

• Commodity inflation expected at 1.5%–2.5% and wage inflation at 2.5%–3.5%; annual cost reductions targeted at $40M by FY20, primarily in cost of goods sold and labor.

• Operating income growth projected at ~5% CAGR over three years; FY20 operating margin shown at ~10.7%, with sales leverage and cost reductions offsetting inflation and investment.