Cracker Barrel 2009 Annual Report Download - page 35

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The price and availability of food, ingredients,
merchandise and utilities used by our restaurants or
merchandise sold in our retail shop could adversely
affect our revenues and results of operations.
•
We are dependent on attracting and retaining qualified
employees while also controlling labor costs.
•
Our distribution risks are heightened because of our
single retail distribution facility; in addition, our
reliance on certain significant vendors, particularly for
foreign-sourced retail products, subjects us to
numerous risks, including possible interruptions in
supply, which could adversely affect our business.
•
Our plans depend significantly on initiatives designed to
improve the efficiencies, costs and effectiveness of
our operations, and failure to achieve or sustain these
plans could affect our performance adversely.
•
We have substantial indebtedness, which may decrease
our flexibility and increase our borrowing costs.
•
Our advertising is heavily dependent on billboards,
which are highly regulated; a shift away from billboard
advertising poses a risk of increased advertising and
marketing costs that could adversely affect our results
of operations.
•
Our business is somewhat seasonal and also can be
affected by extreme weather conditions and natural
disasters.
•
If we fail to execute our business strategy, which
includes our ability to find new restaurant locations and
open new restaurants that are profitable, our business
could suffer.
•
Individual restaurant locations are affected by local
conditions that could change and adversely affect the
carrying value of those locations.
•
Health concerns, government regulation relating to
the consumption of food products and wide-spread
infectious diseases could affect consumer preferences
and could negatively affect our results of operations.
•
Our private brands may not achieve or maintain broad
market acceptance which increases the risks we face.
•
Litigation may adversely affect our business, financial
condition and results of operations.
•
Unfavorable publicity could harm our business.
•
The loss of key executives or difficulties in recruiting
and retaining qualified personnel could jeopardize
our success.
•
We are subject to a number of risks relating to federal,
state and local regulation of our business that
may increase our costs and decrease our profit margins.
•
Our current insurance programs may expose us to
unexpected costs.
•
A material disruption in our information technology
and telecommunication systems could adversely affect
our business or results of operations.
•
A privacy breach could adversely affect our business.
•
Our reported results can be affected adversely and
unexpectedly by the implementation of new, or changes
in the interpretation of existing, accounting principles
or financial reporting requirements.
•
Failure of our internal control over financial reporting
could harm our business and financial results.
•
Our annual and quarterly operating results may fluctuate
significantly and could fall below the expectations of
investors, securities analysts and rating agencies 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.
•
We are a holding company and depend on our
subsidiaries to generate sufficient cash flow to pay
dividends and meet our debt service obligations.
•
Provisions in our charter and Tennessee law may
discourage potential acquirors of our company, which
could adversely affect the value of our securities.