Cracker Barrel 2009 Annual Report Download - page 38

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The following discussion and analysis provides information
which management believes is relevant to an assessment
and understanding of our consolidated results of
operations and financial condition. The discussion should
be read in conjunction with the Consolidated Financial
Statements and notes thereto. Readers also should
carefully review the information presented under the
section entitled “Risk Factors” in our Annual Report on
Form 10-K filed with the Securities and Exchange
Commission (“SEC”) and other cautionary statements in
this report. All dollar amounts reported or discussed in
this Management’s Discussion and Analysis of Financial
Condition and Results of Operations (“MD&A”) are shown
in thousands. References in MD&A to a year or quarter
are to our fiscal year or quarter unless otherwise noted.
This overview summarizes the MD&A, which includes
the following sections:
•
Executive Overview – a general description of our
business, the restaurant industry and our key
performance indicators.
•
Results of Operations – an analysis of our consolidated
statements of income for the three years presented in
our consolidated financial statements.
•
Liquidity and Capital Resources – an analysis of our
primary sources of liquidity, capital expenditures and
material commitments.
•
Critical Accounting Estimates – a discussion of
accounting policies that require critical judgments and
estimates.
EXECUTIVE OVERVIEW
Cracker Barrel Old Country Store, Inc. (the “Company,”
“our” or “we”) is a publicly traded (Nasdaq: CBRL)
company that, through certain subsidiaries, is engaged in
the operation and development of the Cracker Barrel Old
Country Store®(“Cracker Barrel”) restaurant and retail
concept. As of September 22, 2009, the Company operated
591 Cracker Barrel restaurants and gift shops located in
41 states. The restaurants serve breakfast, lunch and
dinner. The retail area offers a variety of decorative and
functional items specializing in rocking chairs, holiday
gifts, toys, apparel and foods. Until December 6, 2006, we
also owned the Logan’s Roadhouse®(“Logan’s”) restaurant
concept, but we divested Logan’s at that time (see Note
16 to our Consolidated Financial Statements). As a result,
Logan’s is presented as discontinued operations in the
Consolidated Financial Statements and the accompanying
notes to the Consolidated Financial Statements for all
periods presented. Unless otherwise noted, this MD&A
relates only to results from continuing operations.
Effective December 8, 2008, the Company changed its
name from “CBRL Group, Inc.” to “Cracker Barrel Old
Country Store, Inc.”
Restaurant Industry
Cracker Barrel stores operate in the full-service segment
of the restaurant industry in the United States. The
restaurant business is highly competitive with respect to
quality, variety and price of the food products offered.
The industry is often affected by changes in the taste and
eating habits of the public, local and national economic
conditions affecting spending habits and the consumer’s
ability to spend, population and traffic patterns. There
are many segments within the restaurant industry which
often overlap and provide competition for widely
diverse restaurant concepts. Competition also exists in
securing prime real estate locations for new restaurants,
in hiring qualified employees, in advertising, in the
attractiveness of facilities and with competitors having
similar menu offerings or convenience.
Additionally, economic, seasonal, and weather conditions
affect the restaurant business. Adverse economic
conditions affect consumer discretionary income and
CR AC KER BARR EL OLD COUN TRY STORE, I NC.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
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