Cracker Barrel 2005 Annual Report Download - page 36

CBRL GROUP, INC.
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The following discussion and analysis provides infor-
mation which management believes is relevant to an
assessment and understanding of the Company’s
consolidated results of operations and financial condi-
tion. The discussion should be read in conjunction
with the Consolidated Financial Statements and notes
thereto. Except for specific historical information, the
matters discussed in this Annual Report to Shareholders,
as well as the Company’s Annual Report on Form 10-K
filed with the Securities and Exchange Commission
(“SEC”) for the year ended July 29, 2005, contain
forward-looking statements that involve risks, uncer-
tainties and other factors which may cause actual
results and performance of the Company to differ
materially from those expressed or implied by these
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
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 termi-
nology. Factors which could materially affect actual
results include, but are not limited to: the effects of
uncertain consumer confidence, higher costs for
energy, mortgage or other consumer debt payments, or
general or regional economic weakness on sales and
customer travel, discretionary income or personal
expenditure activity; the ability of the Company to
identify, acquire and sell successful new lines of retail
merchandise; competitive marketing and operational
initiatives; the ability of the Company to sustain or the
effects of plans intended to improve operational
execution and performance; the effects of plans
intended to promote or protect the Company’s brands
and products; the effects of increased competition
at Company locations on sales and on labor recruiting,
cost, and retention; the availability and cost of
acceptable sites for development and the Company’s
ability to identify such sites; the ability of the
Company to open and operate new locations successfully;
changes in foreign exchange rates affecting the
Company’s future retail inventory purchases; commodity,
workers’ compensation, group health and utility
price changes; changes in building materials and con-
struction costs; consumer behavior based on negative
publicity or concerns over nutritional or safety aspects
of the Company’s products or restaurant food in
general; changes in or implementation of additional
governmental or regulatory rules, regulations and
interpretations affecting accounting, tax, wage and
hour matters, health and safety, pensions, insurance
or other undeterminable areas; practical or psychologi-
cal effects of terrorist acts or war and military or
government responses; the ability of and cost to the
Company to recruit, train, and retain qualified hourly
and management employees; changes in interest rates
affecting the Company’s financing costs; disruptions
to the company’s restaurant or retail supply chain; the
actual results of pending, future or threatened litiga-
tion or governmental investigations and the costs and
effects of negative publicity associated with these
activities; implementation of new or changes in inter-
pretation of existing accounting principles generally
accepted in the United States of America (“GAAP”);
effectiveness of internal controls over financial
reporting; changes in capital market conditions that
could affect valuations of restaurant companies in
general or the Company’s goodwill in particular; and
other factors described from time to time in the
Company’s filings with the SEC, press releases, and
other communications.
All dollar amounts reported or discussed in
Management’s Discussion and Analysis of Financial
Condition and Results of Operations are shown in
thousands. References in Management’s Discussion and
Analysis of Financial Condition and Results of
Operations to a year or quarter are to the Company’s
fiscal year or quarter unless otherwise noted.
EXECUTIVE OVERVIEW
CBRL Group, Inc. (the “Company,” “our” or “we”) is a
publicly traded (Nasdaq: CBRL) holding company
that, through certain subsidiaries, is engaged in the
operation and development of the Cracker Barrel
Old Country Store® (“Cracker Barrel”) and Logan’s
Roadhouse® (“Logan’s”) restaurant and retail concepts.
The Company was organized under the laws of the
state of Tennessee in August 1998 and maintains an
Internet website at cbrlgroup.com.
Management’s Discussion and Analysis of Financial Condition and Results of Operations