Cracker Barrel 2015 Annual Report Download - page 7

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•Our reliance on certain signicant vendors, particularly
for foreign-sourced retail products, subjects us to numerous
risks,including possible interruptions in supply, which
could adversely aectour business.
•Our risks are heightened becauseof our single retail
distribution facility and our potential inability or failure to
execute on a comprehensive business continuity plan
following a major disasterat or near our corporate facility
could adversely aectour business.
•Our abilityto manage our retail inventory levelsand changes
in merchandise mix may adversely aectour business.
•A materialdisruption in our information technology,
network infrastructure and telecommunication systems could
adversely aectour business and results of operations.
•Our capital structure contains substantialindebtedness,
which may decrease our exibility, increase our borrowing
costs and adversely aectour liquidity. In addition,
we cannot provide any guaranty of future cash dividend
payments or that we willbe able to repurchase our
common stock pursuant to our share repurchase program.
•Our advertisingis heavily dependent on billboards,
which are highly regulated;our evolving marketing strategy
poses a riskof increased advertisingandmarketing
costs thatcould adversely aectour results of operations.
•A privacybreachcould adversely aectour business.
•If we fail to execute our business strategy,which includes
our ability to nd new store locations and open new stores
that are protable, our business could suer.
•Our business is somewhatseasonal and also can be aected
by extremeweather conditions and naturaldisasters.
•We outsource certain business processes to third-party
vendorsthat subject us to risks, includingdisruptions in
business and increased costs; our use of third party tech-
nologies has increased and if we are unableto maintain our
rightsto these technologies our business may be harmed.
•Health concerns, government regulation relating to the
consumption of food products and widespread infectious
diseases could aectconsumer preferencesand could
negatively aectour results of operations.
•Unfavorable publicitycould harmour business. In
addition, our failure to recognize, respond to and eectively
manage the impact of socialmedia could materially
impact our business.
•Individual store locations are aected by local conditions
that could change andadversely aectthe carrying value of
those locations.
•We aresubject to a numberof risks relating to federal,
state andlocal regulation of our business including the
areas of minimum wageincreases, health care reformand
environmental maers, and an insucient or ineective
response to government regulation may increaseour costs
anddecreaseour prot margins.
•Failure to maximizeor to successfully assert our intellectual
propertyrights could adversely aectour business and
results of operations.
•Litigation may adversely aectour business,nancial
condition and results of operations.
•e lossof key executives or diculties in recruiting and
retaining qualied personnelcould jeopardizeour future
growthand success.
•Our current insurance programsmay expose us to
unexpected costs, which could have a materialadverse eect
on our nancial condition and results of operations.
•Our annual and quarterly operating results may uctuate
signicantly and could fall below the expectations of
investors and securities analysts due to a number of factors,
some of which are beyond our control,resulting either in
volatility or a decline in the price of our securities.
•Failure of our internal control over nancial reporting could
adversely aectour business and nancial results.
•Our reported results can be aected adverselyand unexpect-
edly by the implementation of new, or changes in the
interpretation of existing,accounting principles or nancial
reporting requirements.
•Our business could be negatively aected as a result of
actions of activistshareholders.
•Provisions in our charter, Tennesseelaw and our share-
holder rights plan maydiscourage potential acquirers of
our company.
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