Cracker Barrel 2010 Annual Report Download - page 25

Percentage of retail sales to total sales indicates the relative
proportion of spending by guests on retail product at our
stores and helps identify overall eectiveness of our retail
operations. Management uses this measure to analyze a store’s
ability to convert restaurant trac into retail sales since we
believe that the substantial majority of our retail guests are
also guests in our restaurants.
Average check per person is an indicator which management
uses to analyze the dollars spent in our stores per guest on
restaurant purchases. is measure aids management in
identifying trends in guest preferences as well as the eective-
ness of menu price increases and other menu changes.
Store operating margins are dened as total revenue less
cost of goods sold, labor and other related expenses and other
store operating expenses, all as a percent of total revenue.
Management uses this indicator as a primary measure of
operating protability.
RESULTS OF OPETIONS
e following table highlights operating results over the past
three years:
Period to Period
Increase (Decrease)
Relationship to Total Revenue 2010 2009
2010 2009 2008 vs 2009 vs 2008
Total revenue 100.0% 100.0% 100.0% 2% (1)%
Cost of goods sold 31.0 32.3 32.4 (2) (1)
Gross prot 69.0 67.7 67.6 4 —
Labor and other
related expenses 37.8 38.7 38.2 (1) 1
Impairment and store
closing charges 0.1 0.1 — 34 138
Other store operating
expenses 18.2 17.8 17.7 4 —
Store operating income 12.9 11.1 11.7 18 (6)
General and administrative 6.1 5.1 5.4 21 (6)
Operating income 6.8 6.0 6.3 16 (6)
Interest expense 2.0 2.2 2.4 (6) (9)
Interest income — — — — (100)
Income before income taxes 4.8 3.8 3.9 28 (4)
Provision for income taxes 1.3 1.0 1.2 26 (15)
Income from continuing
operations 3.5 2.8 2.7 29 1
(Loss) income from
discontinued operations,
net of tax — — — 100 (112)
Net income 3.5 2.8 2.7 29 1
Total Revenue
e following table highlights the components of total
revenue by percentage relationships to total revenue for the
past three years:
2010 2009 2008
Total Revenue:
Restaurant 79.5% 79.2% 78.5%
Retail 20.5 20.8 21.5
Total revenue 100.0% 100.0% 100.0%
e following table highlights average weekly sales* over
the past three years:
2010 2009 2008
Restaurant $ 62.0 $ 61.7 $ 63.1
Retail 16.0 16.2 17.3
* Average weekly sales are calculated by dividing net sales by operating weeks
and include all stores.
Total revenue, which increased 1.6% in 2010, decreased
0.7% in 2009 and increased 1.4% in 2008, beneted from the
opening of 6, 11 and 17 stores in 2010, 2009 and 2008,
respectively, partially oset by the closing of two stores in
2008. e closing of one store in the last week of 2010 had no
signicant impact on our 2010 total revenue.
e following table highlights comparable store sales*
results over the past two years:
Period to Period
Increase (Decrease)
2010 vs 2009 2009 vs 2008
(569 Stores) (550 Stores)
Restaurant 0.8% (1.7)%
Retail (0.9) (5.9)
Restaurant & Retail 0.4 (2.6)
* Comparable store sales consist of sales of stores open at least six full
quarters at the beginning of the year and are measured on comparable
calendar weeks.
e following table highlights comparable sales averages
per store* over the past three years:
2010 2009 2008
(569 Stores) (550 Stores) (531 Stores)
Restaurant $ 3,238 $ 3,228 $ 3,293
Retail 829 838 893
Total $ 4,067 $ 4,066 $ 4,186
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