Cracker Barrel 2010 Annual Report Download - page 21

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• Our risks are heightened because of our single retail
distribution facility; in addition, our reliance on certain
signicant vendors, particularly for foreign-sourced
retail products, subjects us to numerous risks, including
possible interruptions in supply, which could adversely
aect our business.
• Our plans depend signicantly on initiatives designed to
improve the eciencies, costs and eectiveness of our
operations, and failure to achieve or sustain these plans
could aect our performance adversely.
• We have substantial indebtedness, which may decrease our
exibility and increase our borrowing costs.
• Our advertising is heavily dependent on billboards, which
are highly regulated; a shi away from billboard advertising
poses a risk of increased advertising and marketing costs
that could adversely aect our results of operations.
• Our business is somewhat seasonal and also can be aected
by extreme weather conditions and natural disasters.
• If we fail to execute our business strategy, which includes
our ability to nd new restaurant locations and open new
restaurants that are protable, our business could suer.
• Individual restaurant locations are aected by local
conditions that could change and adversely aect the
carrying value of those locations.
• Health concerns, government regulation relating to the
consumption of food products and wide-spread infectious
diseases could aect consumer preferences and could
negatively aect our results of operations.
• Litigation may adversely aect our business, nancial
condition and results of operations.
• Unfavorable publicity could harm our business.
• e loss of key executives or diculties in recruiting and
retaining qualied personnel could jeopardize our success.
• We are subject to a number of risks relating to federal,
state and local regulation of our business including the
areas of health care reform and environmental maers,
and an insucient or ineective response to
government regulation may increase our costs and
decrease our prot margins.
• Our current insurance programs may expose us to
unexpected costs.
• A material disruption in our information technology and
telecommunication systems could adversely aect our
business or results of operations.
• A privacy breach could adversely aect our business.
• Our reported results can be aected adversely and unex-
pectedly by the implementation of new, or changes in the
interpretation of existing, accounting principles or nancial
reporting requirements.
• Failure of our internal control over nancial reporting could
harm our business and nancial results.
• Our annual and quarterly operating results may uctuate
signicantly 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 sucient cash ow 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 aect the value of our securities.
19