Form 10-Q - Quarterly report [Sections 13 or 15(d)]

CBRL Cracker Barrel Old Country Store Inc

CBRL Cracker Barrel Old Country Store Inc

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended November 01, 2024

☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission file number: 001-25225

Cracker Barrel Old Country Store, Inc.

(Exact name of registrant as specified in its charter)


Tennessee (State or other jurisdiction of incorporation or organization)		62-0812904 (I.R.S. Employer Identification Number)

305 Hartmann Drive, Lebanon, Tennessee (Address of principal executive offices)		37087-4779 (Zip code)

Registrant’s telephone number, including area code: (615) 444-5533

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock (Par Value $0.01)
Rights to Purchase Series A Junior Participating
Preferred Stock (Par Value $0.01)

CBRL

The Nasdaq Stock Market LLC
(Nasdaq Global Select Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☑	Accelerated filer ☐	Non-accelerated filer ☐
Smaller reporting company ☐	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☑

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

22,259,168 Shares of Common Stock

Outstanding as of November 22, 2024

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CRACKER BARREL OLD COUNTRY STORE, INC.

INDEX

	Page
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements (Unaudited)

Condensed Consolidated Balance Sheets	3

Condensed Consolidated Statements of Income	4

Condensed Consolidated Statements of Changes in Shareholders’ Equity	5

Condensed Consolidated Statements of Cash Flows	6

Notes to Condensed Consolidated Financial Statements	7

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	16

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	27

ITEM 4. Controls and Procedures	28

PART II. OTHER INFORMATION

ITEM 1A. Risk Factors	28

ITEM 5. Other Information	28

ITEM 6. Exhibits	29

SIGNATURES	30

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PART I – FINANCIAL INFORMATION

ITEM 1. Financial Statements (Unaudited)

CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)


	November 01,		August 02,
	2024		2024*
ASSETS
Current Assets:
Cash and cash equivalents	$	11,534	$	12,035
Accounts receivable		39,898		39,204
Inventories		201,915		180,958
Prepaid expenses and other current assets		57,029		46,017
Total current assets		310,376		278,214
Property and equipment		2,461,132		2,438,851
Less: Accumulated depreciation and amortization		1,494,575		1,479,030
Property and equipment – net		966,557		959,821
Operating lease right-of-use assets, net		846,166		850,835
Intangible assets		24,406		24,425
Other assets		45,491		48,199
Total assets	$	2,192,996	$	2,161,494

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	159,608	$	162,288
Accrued employee compensation		44,379		60,385
Other current liabilities		244,126		231,534
Total current liabilities		448,113		454,207
Long-term debt		527,023		476,581
Long-term operating lease liabilities		667,182		675,993
Other long-term obligations		109,978		114,564
Commitments and Contingencies (Note 10)

Shareholders’ Equity:
Preferred stock – 100,000,000 shares of $0.01 par value authorized; 300,000 shares designated as Series A Junior Participating Preferred Stock; no shares issued		—		—
Common stock – 400,000,000 shares of $0.01 par value authorized; 22,242,228 shares issued and outstanding at November 01, 2024, and 22,203,043 shares issued and outstanding at August 02, 2024		222		222
Additional paid-in capital		13,961		12,575
Retained earnings		426,517		427,352
Total shareholders’ equity		440,700		440,149
Total liabilities and shareholders’ equity	$	2,192,996	$	2,161,494

See Notes to unaudited Condensed Consolidated Financial Statements.

*	This Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of August 02, 2024, as filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended August 02, 2024.

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CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share data)

(Unaudited)


	Quarter Ended
	November 01,		October 27,
	2024		2023

Total revenue	$	845,089	$	823,839
Cost of goods sold (exclusive of depreciation and rent)		258,901		255,559
Labor and other related expenses		307,225		304,447
Other store operating expenses		211,548		203,685
General and administrative expenses		59,644		48,735
Impairment and store closing costs		700		—
Operating income		7,071		11,413
Interest expense, net		5,822		4,938
Income before income taxes		1,249		6,475
Provision for income taxes (income tax benefit)		(3,595)		1,019
Net income	$	4,844	$	5,456

Net income per share:
Basic	$	0.22	$	0.25
Diluted	$	0.22	$	0.25

Weighted average shares:
Basic		22,217,737		22,165,852
Diluted		22,390,249		22,263,690

See Notes to unaudited Condensed Consolidated Financial Statements.

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CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited and in thousands, except share data)


				Additional				Total
	Common Stock			Paid-In		Retained		Shareholders’
	Shares	Amount		Capital		Earnings		Equity
Balances at August 02, 2024	22,203,043	$	222	$	12,575	$	427,352	$	440,149
Comprehensive Income:
Net income	—		—		—		4,844		4,844
Total comprehensive income	—		—		—		4,844		4,844
Cash dividends declared - $0.25 per share	—		—		—		(5,679)		(5,679)
Share-based compensation	—		—		2,625		—		2,625
Issuance of share-based compensation awards, net of shares withheld for employee taxes	39,185		—		(1,239)		—		(1,239)
Balances at November 01, 2024	22,242,228	$	222	$	13,961	$	426,517	$	440,700


				Additional				Total
	Common Stock			Paid-In		Retained		Shareholders’
	Shares	Amount		Capital		Earnings		Equity
Balances at July 28, 2023	22,153,625	$	221	$	3,886	$	479,718	$	483,825
Comprehensive Income:
Net income	—		—		—		5,456		5,456
Total comprehensive income	—		—		—		5,456		5,456
Cash dividends declared - $1.30 per share	—		—		—		(29,150)		(29,150)
Share-based compensation	—		—		1,622		—		1,622
Issuance of share-based compensation awards, net of shares withheld for employee taxes	31,487		1		(1,502)		—		(1,501)
Balances at October 27, 2023	22,185,112	$	222	$	4,006	$	456,024	$	460,252

See Notes to unaudited Condensed Consolidated Financial Statements.

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CRACKER BARREL OLD COUNTRY STORE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


	Three Months Ended
	November 01,		October 27,
	2024		2023
Cash flows from operating activities:
Net income	$	4,844	$	5,456
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		29,154		26,669
Amortization of debt issuance costs		442		436
Loss on disposition of property and equipment		2,338		1,632
Impairment		700		—
Share-based compensation		2,625		1,622
Noncash lease expense		14,957		15,180
Amortization of asset recognized from gain on sale and leaseback transactions		3,184		3,184
Changes in assets and liabilities:
Inventories		(20,957)		(17,905)
Other current assets		(11,454)		1,358
Accounts payable		(2,680)		(22,190)
Other current liabilities		(3,525)		(4,832)
Other long-term assets and liabilities		(24,023)		(26,407)
Net cash used in operating activities		(4,395)		(15,797)

Cash flows from investing activities:
Purchase of property and equipment		(38,952)		(24,718)
Proceeds from insurance recoveries of property and equipment		65		81
Proceeds from sale of property and equipment		134		39
Net cash used in investing activities		(38,753)		(24,598)

Cash flows from financing activities:
Proceeds from issuance of long-term debt		136,500		156,000
Principal payments under long-term debt		(86,500)		(96,000)
Taxes withheld from issuance of share-based compensation awards		(1,239)		(1,501)
Dividends on common stock		(6,114)		(29,337)
Net cash provided by financing activities		42,647		29,162

Net decrease in cash and cash equivalents		(501)		(11,233)
Cash and cash equivalents, beginning of period		12,035		25,147
Cash and cash equivalents, end of period	$	11,534	$	13,914

Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized	$	4,190	$	3,458
Income taxes	$	113	$	42

*Supplemental schedule of non-cash investing and financing activities:**
Capital expenditures accrued in accounts payable	$	5,979	$	4,316
Dividends declared but not yet paid	$	7,000	$	30,046

*See Note 8 for additional supplemental disclosures related to leases.

See Notes to unaudited Condensed Consolidated Financial Statements.

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CRACKER BARREL OLD COUNTRY STORE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except percentages, share and per share data)

(Unaudited)

1.	Condensed Consolidated Financial Statements

Cracker Barrel Old Country Store, Inc. and its affiliates (collectively, in these Notes to Condensed Consolidated Financial Statements, the “Company”) are principally engaged in the operation and development of the Cracker Barrel Old Country Store® (“Cracker Barrel”) concept in the United States.

The accompanying condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) without audit. In the opinion of management, all adjustments (consisting of normal and recurring items) necessary for a fair presentation of such condensed consolidated financial statements have been made. The results of operations for any interim period are not necessarily indicative of results for a full year.

These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended August 02, 2024 (the “2024 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as described in the 2024 Form 10-K. References to a year in these Notes to Condensed Consolidated Financial Statements are to the Company’s fiscal year unless otherwise noted.

Recent Accounting Pronouncements Not Yet Adopted

Segment Disclosures

In November 2023, the Financial Accounting Standards Boards (“FASB”) issued new reportable segment disclosure requirements which require incremental segment information related to measuring segment performance on an annual and interim basis. These new disclosure requirements are effective for fiscal periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. These disclosure requirements should be applied on a retrospective basis. The Company is currently evaluating the effect of adopting these new disclosure requirements on its annual consolidated financial statements and related disclosures in 2025 as well as interim disclosures beginning in the first quarter of 2026.

Income Tax Disclosures

In December 2023, the FASB issued new income tax disclosure requirements which require disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation and modifies other income tax-related disclosures. These new disclosure requirements are effective for annual periods beginning after December 15, 2024 and allow for adoption on a prospective basis, with a retrospective option. The Company is currently evaluating the effect of adopting these new disclosure requirements on its consolidated financial statements and related disclosures in 2026.

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Disaggregation of Income Statement Expenses

In November 2024, the FASB issued new disclosure requirements which require disaggregated information about certain income statement line items. These new disclosure requirements are effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. These disclosure requirements may be applied either prospectively to financial statements issued for reporting periods after the effective date or retrospectively to any or all periods presented in the financial statements. The Company is currently evaluating the effect of adopting these new disclosure requirements on its consolidated financial statements and related disclosures in 2028 as well as interim disclosures beginning in the first quarter of 2029.

2.	Fair Value Measurements

The Company’s assets measured at fair value on a recurring basis at November 01, 2024 were as follows:


							Total Fair
	Level 1		Level 2		Level 3		Value
Cash equivalents*	$	1,001	$	—	$	—	$	1,001
Total	$	1,001	$	—	$	—	$	1,001
Deferred compensation plan assets**								23,699
Total assets at fair value							$	24,700

The Company’s assets measured at fair value on a recurring basis at August 02, 2024 were as follows:


							Total Fair
	Level 1		Level 2		Level 3		Value
Cash equivalents*	$	1	$	—	$	—	$	1
Total	$	1	$	—	$	—	$	1
Deferred compensation plan assets**								25,719
Total assets at fair value							$	25,720

*Consists of money market fund investments.

**Represents plan assets invested in mutual funds established under a rabbi trust for the Company’s non-qualified savings plan and is included in the Condensed Consolidated Balance Sheets as other assets.

The Company’s money market fund investments are measured at fair value using quoted market prices. The Company’s deferred compensation plan assets are measured based on net asset value per share as a practical expedient to estimate fair value. The fair values of the Company’s accounts receivable and accounts payable approximate their carrying amounts because of their short duration. The Company did not have any liabilities measured at fair value on a recurring basis at November 01, 2024 and August 02, 2024. The fair value of the Company’s variable rate debt, based on quoted market prices, which are considered Level 1 inputs, approximates its carrying amount at November 01, 2024 and August 02, 2024, respectively.

The Company’s financial instruments that are not remeasured at fair value include the 0.625% convertible Senior Notes (see Note 4). The Company estimates the fair value of the Notes through consideration of quoted market prices of similar instruments, classified as Level 2. The estimated fair value of the Notes was $275,625 and $267,939 as of November 01, 2024 and August 02, 2024, respectively.

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Assets Measured at Fair Value on a Nonrecurring Basis

In the first quarter of 2025, two Maple Street Biscuit Company (“MSBC”) locations were determined to be impaired because of declining operating performance. Fair value of these locations was determined by sales prices of comparable assets or estimates of discounted future cash flows considering their highest and best use. Assumptions used in the cash flow model included projected annual revenue growth rates and projected cash flows, which can be affected by economic conditions and management’s expectations. Additionally, changes in the local and national economies and markets for real estate and other assets can impact the sales prices of the assets. The Company has determined that the majority of the inputs used to value its long-lived assets held and used are unobservable inputs, and thus, are considered Level 3 inputs. Based on its analysis, the Company recorded impairment charges of $700 in the first quarter of 2025, which are included in the impairment and store closing costs line on the Condensed Consolidated Statement of Income.

3.	Inventories

Inventories were comprised of the following as of the dates indicated:


	November 01, 2024		August 02, 2024
Retail	$	154,329	$	138,278
Restaurant		29,799		25,829
Supplies		17,787		16,851
Total	$	201,915	$	180,958

4.Debt

On June 17, 2022, the Company entered into a five-year $700,000 revolving credit facility (the “2022 Revolving Credit Facility”). The 2022 Revolving Credit Facility contains an option to increase the revolving credit facility by $200,000. The Company’s outstanding borrowings under the 2022 Revolving Credit Facility were $230,000 and $180,000 on November 01, 2024 and August 02, 2024, respectively.

As of November 01, 2024, the Company had $34,004 of standby letters of credit, which reduce the Company’s borrowing availability under the 2022 Revolving Credit Facility (see Note 10 for more information on the Company’s standby letters of credit). As of November 01, 2024, the Company had $435,996 in borrowing availability under the 2022 Revolving Credit Facility.

In accordance with the 2022 Revolving Credit Facility, outstanding borrowings bear interest, at the Company’s election, either at (1) the Term Secured Overnight Financing Rate (SOFR) or (2) a base rate equal to the greatest of (i) the prime rate, (ii) a rate that is 0.5% in excess of the Federal Funds Rate, and (iii) Term SOFR plus 1.0%, in each case, plus an applicable margin based on the Company’s consolidated total leverage ratio. At November 01, 2024, the weighted average interest rate on the Company’s outstanding borrowings on the 2022 Revolving Credit Facility was 6.63%.

The 2022 Revolving Credit Facility contains customary financial covenants, which include maintenance of a maximum consolidated total senior secured leverage ratio and a minimum consolidated interest coverage ratio. At November 01, 2024, the Company was in compliance with all financial covenants under the 2022 Revolving Credit Facility.

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The 2022 Revolving Credit Facility also imposes restrictions on the amount of dividends the Company is permitted to pay and the amount of shares the Company is permitted to repurchase. Under the 2022 Revolving Credit Facility, provided there is no default existing and the total of the Company’s availability under the 2022 Revolving Credit Facility plus the Company’s cash and cash equivalents on hand is at least $100,000 (the “Cash Availability”), the Company may declare and pay cash dividends on shares of its common stock and repurchase shares of its common stock (1) in an unlimited amount if, at the time such dividend or repurchase is made, the Company’s consolidated total senior secured leverage ratio is 2.75 to 1.00 or less and (2) in an aggregate amount not to exceed $100,000 in any fiscal year if the Company’s consolidated total leverage ratio is greater than 2.75 to 1.00 at the time the dividend or repurchase is made; notwithstanding (1) and (2), so long as immediately after giving effect to the payment of any such dividends, Cash Availability is at least $100,000, the Company may declare and pay cash dividends on shares of its common stock in an aggregate amount not to exceed in any fiscal year the product of the aggregate amount of dividends declared in the fourth quarter of the immediately preceding fiscal year multiplied by four.

Convertible Senior Notes

On June 18, 2021, the Company completed a $300,000 principal aggregate amount private offering of 0.625% convertible Senior Notes due in 2026 (the “Notes”). The Notes are governed by the terms of an indenture (the “Indenture”) between the Company and U.S. Bank National Association as the Trustee. The Notes will mature on June 15, 2026, unless earlier converted, repurchased or redeemed. The Notes bear cash interest at an annual rate of 0.625%, payable semi-annually in arrears on June 15 and December 15 of each year.

The Notes are unsecured obligations and do not contain any financial or operating covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. In an event of default, the principal amount of, and all accrued and unpaid interest on, all of the notes then outstanding will immediately become due and payable. However, notwithstanding the foregoing, the Company may elect, at its option, that the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants in the Indenture will consist exclusively of the right of the noteholders to receive special interest on the Notes for up to 180 calendar days during which such event of default has occurred and is continuing, at a specified rate for the first 90 days of 0.25% per annum, and thereafter at a rate of 0.50% per annum, on the principal amount of the Notes.

The initial conversion rate applicable to the Notes was 5.3153 shares of the Company’s common stock per $1,000 principal amount of Notes, which represented an initial conversion price of approximately $188.14 per share of the Company’s common stock, a premium of 25.0% over the last reported sale price of $150.51 per share on June 15, 2021, the date on which the Notes were priced. The conversion rate is subject to customary adjustments upon the occurrence of certain events, including the payment of dividends to holders of the Company’s common stock. As of November 01, 2024, the conversion rate, as adjusted, was 6.3035 shares of the Company’s common stock per $1,000 principal amount of Notes. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time.

Net proceeds from the Notes offering were approximately $291,000, after deducting the initial purchasers’ discounts and commissions and the Company’s offering fees and expenses.

The Notes are accounted for entirely as a liability, and the issuance costs of the Notes are accounted for wholly as debt issuance costs.

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The following table includes the outstanding principal amount and carrying value of the Notes as of the dates indicated:


	November 01, 2024		August 02, 2024
Liability component
Principal	$	300,000	$	300,000
Less: Debt issuance costs (1)		2,977		3,419
Net carrying amount	$	297,023	$	296,581

(1)	Debt issuance costs are amortized to interest expense using the effective interest method over the expected life of the Notes.

The effective rate of the Notes over their expected life is 1.23%. The following is a summary of interest expense for the Notes for specified periods:


	Quarter Ended
	November 01,		October 27,
	2024		2023
Coupon interest	$	474	$	474
Amortization of issuance costs		442		436
Total interest expense	$	916	$	910

During any calendar quarter commencing after September 30, 2021, in which the closing price of the Company’s common stock exceeds 130% of the applicable conversion price of the Notes on at least 20 of the last 30 consecutive trading days of the quarter, holders may in the quarter immediately following, convert all or a portion of their Notes. The holders of the Notes were not eligible to convert their Notes during the first three months of 2025 or during 2024, 2023, 2022 or 2021. When a conversion notice is received, the Company has the option to pay or deliver the conversion amount entirely in cash or a combination of cash and shares of the Company’s common stock. Accordingly, as of November 01, 2024, the Company could not be required to settle the Notes and, therefore, the Notes are classified as long-term debt.

Convertible Note Hedge and Warrant Transactions

In connection with the offering of the Notes, the Company entered into convertible note hedge transactions (the “Convertible Note Hedge Transactions”) with certain of the initial purchasers of the Notes and/or their respective affiliates and other financial institutions (in this capacity, the “Hedge Counterparties”). Concurrently with the Company’s entry into the Convertible Note Hedge Transactions, the Company also entered into separate, warrant transactions with the Hedge Counterparties collectively relating to the same number of shares of the Company’s common stock, which initially was approximately 1,600,000 shares, subject to customary anti-dilution adjustments, and for which the Company received proceeds that partially offset the cost of entering into the Convertible Note Hedge Transactions (the “Warrant Transactions”).

The Convertible Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the Company’s common stock that initially underlay the Notes and are expected generally to reduce the potential equity dilution, and/or offset any cash payments in excess of the principal amount due, as the case may be, upon conversion of the Notes. By default, the Warrant Transactions could have a dilutive effect on the Company’s common stock to the extent that the price of its common stock exceeds the strike price of the Warrant Transactions. The strike price was initially $263.39 per share and is subject to certain adjustments under the terms of the Warrant Transactions. As of November 01, 2024, the strike price, as adjusted, of the Warrant Transactions was $222.10 per share as a result of dividends declared since the Notes were issued.

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As these transactions meet certain accounting criteria, the Convertible Note Hedge Transactions and Warrant Transactions were recorded in shareholders’ equity, not accounted for as derivatives and are not remeasured each reporting period.

5.	Seasonality

Historically, the revenue and net income of the Company have been lower in the first and third quarters and higher in the second and fourth quarters. Management attributes these variations to the holiday shopping season and the summer vacation and travel season. The Company’s retail sales, which are made substantially to the Company’s restaurant customers, historically have been highest in the Company’s second quarter, which includes the holiday shopping season. Historically, interstate tourist traffic and the propensity to dine out have been higher during the summer months, thereby contributing to higher profits in the Company’s fourth quarter. The Company generally opens additional new locations throughout the year. Therefore, the results of operations for any interim period cannot be considered indicative of the operating results for an entire year.

6.	Segment Information

Cracker Barrel stores represent a single, integrated operation with two related and substantially integrated product lines. The operating expenses of the restaurant and retail product lines of a Cracker Barrel store are shared and are indistinguishable in many respects. Accordingly, the Company currently manages its business on the basis of one reportable operating segment. All of the Company’s operations are located within the United States.

7.	Revenue Recognition

Revenue consists primarily of sales from restaurant and retail operations. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a restaurant guest, retail customer or other customer. The Company’s policy is to present sales in the Condensed Consolidated Statements of Income on a net presentation basis after deducting sales tax.

Disaggregation of revenue

Total revenue was comprised of the following for the specified periods:


	Quarter Ended
	November 01,		October 27,
	2024		2023
Revenue:
Restaurant	$	683,271	$	660,793
Retail		161,818		163,046
Total revenue	$	845,089	$	823,839

Restaurant Revenue

The Company recognizes revenues from restaurant sales when payment is tendered at the point of sale, as the Company’s performance obligation to provide food and beverages is satisfied.

Retail Revenue

The Company recognizes revenues from retail sales when payment is tendered at the point of sale, as the Company’s performance obligation to provide merchandise is satisfied. Ecommerce sales, including shipping revenue, are recorded upon delivery to the customer. Additionally, estimated sales returns are calculated based on return history and sales levels.

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Gift Card Breakage

Included in restaurant and retail revenue is gift card breakage. Customer purchases of gift cards, to be utilized at the Company’s stores, are not recognized as sales until the card is redeemed and the customer purchases food and/or merchandise. Gift cards do not carry an expiration date; therefore, customers can redeem their gift cards indefinitely. A certain number of gift cards will not be fully redeemed. Management estimates unredeemed balances and recognizes gift card breakage revenue for these amounts in the Company’s Condensed Consolidated Statements of Income over the expected redemption period. Gift card breakage is recognized when the likelihood of a gift card being redeemed by the customer is remote, and the Company determines that there is not a legal obligation to remit the unredeemed gift card balance to the relevant jurisdiction.

The determination of the gift card breakage rate is based upon the Company’s specific historical redemption patterns. The Company recognizes gift card breakage by applying its estimate of the rate of gift card breakage over the period of estimated redemption. For the quarter ended November 01, 2024, gift card breakage was $9,189. For the quarter ended October 27, 2023, gift card breakage was $3,170.

Deferred revenue related to the Company’s gift cards was $72,613 and $84,854, respectively, at November 01, 2024 and August 02, 2024. Revenue recognized in the Condensed Consolidated Statements of Income for the three months ended November 01, 2024 and October 27, 2023, respectively, for the redemption of gift cards which were included in the deferred revenue balance at the beginning of the fiscal year was $14,358 and $14,847.

Loyalty Program

The Company’s customer loyalty program, Cracker Barrel Rewards, allows members to earn points (“pegs”) for each qualifying purchase in store or online. Pegs earned are then converted to rewards upon reaching certain thresholds. These rewards may be redeemed on future restaurant or retail purchases in store or online.

The estimation of the standalone selling price of pegs and other rewards issued to customers involves several assumptions, primarily the estimated value of the product for which the reward is expected to be redeemed and the probability that the pegs or reward will expire. These inputs are subject to change over time due to factors such as increased costs or changes in customer behavior.

The Company defers a portion of the revenue related to the pegs earned at the time of the original transaction based on the estimated value of the item for which the reward is expected to be redeemed, net of estimated unredeemed pegs. Pegs expire after twelve months. Revenue is recognized for these performance obligations upon redemption of pegs or rewards earned by the customer. As of November 01, 2024 and August 02, 2024, deferred revenue related to the loyalty program was $3,062 and $1,544, respectively, and is included in other current liabilities on the Condensed Consolidated Balance Sheet.

8.	Leases

The Company has ground leases for its leased stores and office space leases that are recorded as operating leases under various non-cancellable operating leases. The Company also leases advertising billboards, vehicle fleets, and certain equipment under various non-cancellable operating leases. Additionally, the Company completed sale-leaseback transactions in 2009, 2020 and 2021 (see section below entitled “Sale and Leaseback Transactions”); all the properties qualified for sale and leaseback and operating lease accounting classification. To determine whether a contract is or contains a lease, the Company determines at contract inception whether it contains the right to control the use of an identified asset for a period of time in exchange for consideration. If the contract has the right to obtain substantially all of the economic benefit from use of the identified asset and the right to direct the use of the identified asset, the Company recognizes a right-of-use asset and lease liability.

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The Company’s leases all have varying terms and expire at various dates through 2058. Restaurant real estate leases typically have base terms of ten years with four to five optional renewal periods of five years each. The Company uses a lease life that generally begins on the commencement date, including the rent holiday periods, and generally extends through certain renewal periods that can be exercised at the Company’s option. During rent holiday periods, which include the pre-opening period during construction, the Company has possession of and access to the property, but is not obligated to, and normally does not, make rent payments. The Company has included lease renewal options in the lease term for calculations of the right-of-use asset and liability for which at the commencement of the lease it is reasonably certain that the Company will exercise those renewal options. Additionally, some of the leases have contingent rent provisions and others require adjustments for inflation or index. Contingent rent is determined as a percentage of gross sales in excess of specified levels. The Company records a contingent rent liability and corresponding rent expense when it is probable sales have been achieved in amounts in excess of the specified levels. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company has entered into real estate leases for one Cracker Barrel and two MSBC locations that are not recorded as right-of-use assets or lease liabilities as we have not yet taken possession. These leases are expected to commence in 2025 and 2026 with undiscounted future payments of $1,170 and $10,210, respectively.

The Company has elected not to separate lease and non-lease components. Additionally, the Company has elected to apply the short term lease exemption to all asset classes and the short term lease expense for the period reasonably reflects the short term lease commitments. As the Company’s leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at the time of commencement or modification date in determining the present value of lease payments. For operating leases that commenced prior to the date of adoption of the new lease accounting guidance, the Company used the incremental borrowing rate as of the adoption date. Assumptions used in determining the Company’s incremental borrowing rate include the Company’s implied credit rating and an estimate of secured borrowing rates based on comparable market data.

The following table summarizes the components of lease cost for operating leases for the specified periods:


	Quarter Ended
	November 01,		October 27,
	2024		2023
Operating lease cost	$	27,664	$	27,768
Short term lease cost		520		194
Variable lease cost		961		837
Total lease cost	$	29,145	$	28,799

The following table summarizes supplemental cash flow information and non-cash activity related to the Company’s operating leases for the specified periods:


	Quarter Ended
	November 01,		October 27,
	2025		2023
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	24,456	$	24,347
Noncash information:
Right-of-use assets obtained in exchange for new operating lease liabilities		1,643		3,651
Lease modifications or reassessments increasing right-of-use assets		11,957		16,917
Lease modifications removing right-of-use assets		(127)		(144)

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The following table summarizes the weighted-average remaining lease term and the weighted-average discount rate for operating leases as of dates indicated:


	November 01, 2024		October 27, 2023
Weighted-average remaining lease term	15.54 Years		16.24 Years
Weighted-average discount rate	5.40	%	5.13	%

The following table summarizes the maturities of undiscounted cash flows reconciled to the total operating lease liability as of November 01, 2024:


Year	Total
Remainder of 2025	$	71,809
2026		78,059
2027		70,912
2028		68,086
2029		65,894
Thereafter		739,449
Total future minimum lease payments		1,094,209
Less imputed remaining interest		(369,582)
Total present value of operating lease liabilities	$	724,627

Sale and Leaseback Transactions

In 2009, the Company completed sale and leaseback transactions involving 15 of its owned Cracker Barrel stores and its retail distribution center. Under the transactions, the Company sold the land, buildings and improvements and subsequently leased the land, buildings and improvements for terms of 20 or 15 years. The leases include specified renewal options for up to 20 additional years.

In 2020, the Company completed a sale and leaseback transaction involving 64 Cracker Barrel stores. Under the transaction, the land, buildings and building improvements at the locations were sold and leased back for initial terms of 20 years and renewal options up to 50 years.

In 2021, the Company completed a sale and leaseback transaction involving 62 Cracker Barrel stores. Under the transaction, the land, buildings and building improvements at the locations were sold and leased back for initial terms of 20 years and renewal options up to 50 years.

9.	Net Income Per Share and Weighted Average Shares

Basic consolidated net income per share is computed by dividing consolidated net income available to common shareholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted consolidated net income per share reflects the potential dilution that could occur if securities, options or other contracts to issue shares of common stock were exercised or converted into shares of common stock and is based upon the weighted average number of shares of common stock and common equivalent shares outstanding during the reporting period. Common equivalent shares related to stock options and nonvested stock awards and units issued by the Company are calculated using the treasury stock method. The outstanding stock options and nonvested stock awards and units issued by the Company represent the only dilutive effects on diluted consolidated net income per share. The Company’s convertible senior notes and related warrants are calculated using the net share settlement option under the if converted method. Because the principal amount of the convertible senior notes will be settled in cash with any excess conversion value settled in cash or shares of common stock, the convertible senior notes have been excluded from the computation of diluted earnings per share because the average market price of the Company’s common stock during the reporting period did not exceed the conversion price of $158.64 as of November 01, 2024. Warrants were excluded from the computation of diluted earnings per share since the warrants’ strike price of $222.10 was greater than the average market price of the Company’s common stock during the period. See Note 4 for additional information regarding the Company’s convertible senior notes.

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The following table reconciles the components of diluted earnings per share computations for the specified periods:


	Quarter Ended
	November 01,		October 27,
	2024		2023
Net income per share numerator	$	4,844	$	5,456

Net income per share denominator:
Basic weighted average shares		22,217,737		22,165,852
Add potential dilution:
Nonvested stock awards and units		172,512		97,838
Diluted weighted average shares		22,390,249		22,263,690

10.

10.

Commitments and Contingencies

The Company and its subsidiaries are party to various legal and regulatory proceedings and claims incidental to their business in the ordinary course. In the opinion of management, based upon information currently available, the ultimate liability with respect to these contingencies will not materially affect the Company’s financial statements.

Related to its insurance coverage, the Company is contingently liable pursuant to standby letters of credit as credit guarantees to certain insurers. As of November 01, 2024, the Company had $34,004 of standby letters of credit related to securing reserved claims under workers’ compensation insurance and certain sale and leaseback transactions. All standby letters of credit are renewable annually and reduce the Company’s borrowing availability under its 2022 Revolving Credit Facility. See Note 4 for additional information regarding the Company’s 2022 Revolving Credit Facility.

The Company enters into certain indemnification agreements in favor of third parties in the ordinary course of business. The Company believes that the probability of incurring an actual liability under such indemnification agreements is sufficiently remote that no such liability has been recorded in the Condensed Consolidated Balance Sheet as of November 01, 2024.

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cracker Barrel Old Country Store, Inc., and its subsidiaries (collectively, the “Company,” “our” or “we”) are principally engaged in the operation and development in the United States of the Cracker Barrel Old Country StoreÒ (“Cracker Barrel”) concept. As of November 01, 2024, we operated 658 Cracker Barrel stores in 44 states and 69 Maple Street Biscuit Company (“MSBC”) locations in ten states.

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, except per share amounts and certain statistical information (e.g., number of stores). References to years in MD&A are to our fiscal year unless otherwise noted.

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MD&A provides information which management believes is relevant to an assessment and understanding of our consolidated results of operations and financial condition. MD&A should be read in conjunction with the (i) condensed consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q and (ii) audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 02, 2024 (the “2024 Form 10-K”). Except for specific historical information, many of the matters discussed in this report may express or imply projections of items such as revenues or expenditures, estimated capital expenditures, compliance with debt covenants, plans and objectives for future operations, store economics, inventory shrinkage, growth or initiatives, expected future economic performance or the expected outcome or impact of pending or threatened litigation. These and similar statements regarding events or results which we expect will or may occur in the future are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause our actual results and performance to differ materially from those expressed or implied by such statements. All forward-looking information is provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these risks, uncertainties and other factors. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “trends,” “assumptions,” “target,” “guidance,” “outlook,” “opportunity,” “future,” “plans,” “goals,” “objectives,” “expectations,” “near-term,” “long-term,” “projection,” “may,” “will,” “would,” “could,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “potential,” “”regular,” “should,” “projects,” “forecasts” or “continue” (or the negative or other derivatives of each of these terms) or similar terminology. We believe the assumptions underlying any forward-looking statements are reasonable; however, any of the assumptions could be inaccurate, and therefore, actual results may differ materially from those projected in or implied by the forward-looking statements. In addition to the risks of ordinary business operations, and those discussed or described in this report or in information incorporated by reference into this report, factors and risks that may result in actual results differing from this forward-looking information include, but are not limited to risks and uncertainties associated with inflationary conditions with respect to the price of commodities, ingredients, transportation, distribution and labor; disruptions to our restaurant or retail supply chain; our ability to manage retail inventory and merchandise mix; our ability to sustain or the effects of plans intended to improve operational or marketing execution and performance, including the Company’s strategic transformation plan; the effects of increased competition at our locations on sales and on labor recruiting, cost, and retention; consumer behavior based on negative publicity or changes in consumer health or dietary trends or safety aspects of our food or products or those of the restaurant industry in general, including concerns about outbreaks of infectious disease; the effects of our indebtedness and associated restrictions on our financial and operating flexibility and ability to execute or pursue our operating plans and objectives; changes in interest rates, increases in borrowed capital or capital market conditions affecting our financing costs and ability to refinance our indebtedness, in whole or in part; our reliance on a single distribution facility and certain significant vendors, particularly for foreign-sourced retail products; information technology, disruptions and data privacy and information security breaches, whether as a result of infrastructure failures, employee or vendor errors, or actions of third parties; our compliance with privacy and data protection laws; changes in or implementation of additional governmental or regulatory rules, regulations and interpretations affecting tax, health and safety, animal welfare, pensions, insurance or other undeterminable areas; the actual results of pending, future or threatened litigation or governmental investigations; our ability to manage the impact of negative social media attention and the costs and effects of negative publicity; the impact of activist shareholders; our ability to achieve aspirations, goals and projections related to our environmental, social and governance initiatives; our ability to enter successfully into new geographic markets that may be less familiar to us; changes in land, building materials and construction costs; the availability and cost of suitable sites for restaurant development and our ability to identify those sites; our ability to retain key personnel; the ability of and cost to us to recruit, train, and retain qualified hourly and management employees; uncertain performance of acquired businesses, strategic investments and other initiatives that we may pursue from time to time; the effects of business trends on the outlook for individual restaurant locations and the effect on the carrying value of those locations; general or regional economic weakness, business and societal conditions and the weather impact on sales and customer travel; discretionary income or personal expenditure activity of our customers; implementation of new or changes in interpretation of existing accounting principles generally accepted in the United States of America (“GAAP”), and those factors contained in Part I, Item 1A of the 2024 Form 10-K, as well as other factors described from time to time in our filings with the Securities and Exchange Commission (“SEC”), press releases and other communications.

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Readers are cautioned not to place undue reliance on forward-looking statements made in this report because the statements speak only as of the report’s date. Except as may be required by law, we have no obligation or intention to update or revise any of these forward-looking statements to reflect events or circumstances occurring after the date of this report or to reflect the occurrence of unanticipated events. Readers are advised, however, to consult any future public disclosures that we may make on related subjects in reports that we file with or furnish to the SEC or in our other public disclosures.

Overview

Management believes that Cracker Barrel’s brand remains one of the strongest and most differentiated brands in the restaurant industry, and we plan to continue to leverage and build on that strength as a core competitive component of our business strategy. Our long-term strategy is anchored on three overarching business imperatives: driving relevancy, delivering food and experiences guests love, and growing profitability.

We believe there are significant challenges in the macroeconomic outlook for the coming quarters, including continued volatility of inflation and interest rates, high consumer debt levels and lower savings rates, as well as the potential uncertainty associated with the geopolitical environment, among other factors. However, despite these challenges, we remain focused on delivering long-term growth and returns for shareholders. Our strategic transformation plan is built on the following five pillars of our strategy:

●

Refining the brand: evolving the brand across all touchpoints including refining and strengthening our positioning to best reach existing and new guests.

●

Enhancing the menu: introducing menu innovation focused on craveability and traffic drivers, streamlining processes to improve execution, and optimizing strategic pricing to protect value and improve profitability.

●

Evolving the store and guest experience: delivering an exceptional guest experience through operational excellence and improved store design and atmosphere. We are in the process of testing remodel prototypes and expect to complete 25-30 remodels in 2025 along with 25-30 store refreshes.

●

Winning in digital and off-premise: growing the off-premise business and leveraging technology such as Cracker Barrel Rewards loyalty program. We continue to leverage guest data to better understand consumer behavior and identify ways to drive frequency and engagement.

●

Elevating the employee experience: upgrading training and development programs and tools and simplifying job roles and utilizing technology to improve the employee experience.

Key Performance Indicators

Management uses a number of key performance measures to evaluate our operational and financial performance, including the following:

●

Comparable store restaurant sales increase/(decrease): To calculate comparable store restaurant sales increase/(decrease), we determine total restaurant sales of stores open at least six full quarters before the beginning of the applicable period, measured on comparable calendar weeks. We then subtract total comparable store restaurant sales for the current year period from total comparable store restaurant sales for the applicable historical period to calculate the absolute dollar change. To calculate comparable store restaurant sales increase/(decrease), which we express as a percentage, we divide the absolute dollar change by the comparable store restaurant sales for the historical period.

●

Comparable store retail sales increase/(decrease): To calculate comparable store retail sales increase/(decrease), we determine total retail sales of stores open at least six full quarters before the beginning of the applicable period, measured on comparable calendar weeks. We then subtract total comparable store retail sales for the current year period from total comparable store retail sales for the applicable historical period to calculate the absolute dollar change. To calculate comparable store retail sales increase/(decrease), which we express as a percentage, we divide the absolute dollar change by the comparable store retail sales for the historical period.

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●

Comparable store restaurant and retail sales increase/(decrease): To calculate comparable store restaurant and retail sales increase/(decrease), we determine total restaurant and retail sales of stores open at least six full quarters before the beginning of the applicable period, measured on comparable calendar weeks. We then subtract total comparable store restaurant and retail sales for the current year period from total comparable store restaurant and retail sales for the applicable historical period to calculate the absolute dollar change. To calculate comparable store restaurant and retail sales increase/(decrease), which we express as a percentage, we divide the absolute dollar change by the comparable store restaurant and retail sales for the historical period.

●

Average check increase per guest: To calculate average check per guest, we determine comparable store restaurant sales, as described above, and divide by comparable guest traffic (as described above). We then subtract average check per guest for the current year period from average check per guest for the applicable historical period to calculate the absolute dollar change. The absolute dollar change is divided by the prior year average check number to calculate average check increase per guest, which we express as a percentage.

●

Comparable restaurant guest traffic increase/(decrease): To calculate comparable restaurant guest traffic increase/(decrease), we determine the number of entrees sold in our dine-in and off-premise business from stores open at least six full quarters at the beginning of the applicable period, measured on comparable calendar weeks. We then subtract total entrees sold for the current year period from total entrees sold for the applicable historical period to calculate the absolute numerical change. To calculate comparable restaurant guest traffic increase/(decrease), which we express as a percentage, we divide the absolute numerical change by the total entrees sold for the historical period.

These performance indicators exclude the impact of new store openings and sales related to MSBC.

We use comparable store sales metrics as indicators of sales growth to evaluate how our established stores have performed over time. We use comparable restaurant guest traffic increase/(decrease) to evaluate how established stores have performed over time, excluding growth achieved through menu price and sales mix change. Finally, we use average check per guest to identify trends in guest preferences, as well as the effectiveness of menu changes. We believe these performance indicators are useful for investors by providing a consistent comparison of sales results and trends across comparable periods within our core, established store base, unaffected by results of store openings, closings, and other transitional changes.

Results of Operations

The following table highlights our operating results by percentage relationships to total revenue for the specified periods:


	November 01,		October 27,
	2024		2023
Total revenue	100.0	%	100.0	%
Cost of goods sold (exclusive of depreciation and rent)	30.6		31.0
Labor and other related expenses	36.4		37.0
Other store operating expenses	25.0		24.7
General and administrative expenses	7.1		5.9
Impairment and store closing costs	0.1		—
Operating income	0.8		1.4
Interest expense, net	0.7		0.6
Income before income taxes	0.1		0.8
Provision for income taxes (income tax benefit)	(0.5)		0.1
Net income	0.6	%	0.7	%

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The following table sets forth the change in the number of units in operation for the specified periods:


	Quarter Ended
	November 01,	October 27,
	2024	2023
Net change in units:
Cracker Barrel	—	1
MSBC	3	1

Units in operation at end of the period:
Cracker Barrel	658	661
MSBC	69	60
Total units at end of the period	727	721

Total Revenue

Total revenue for the first quarter of 2025 increased 2.6% as compared to the same period in the prior year.

The following table highlights the key components of revenue for the specified periods:


	Quarter Ended
	November 01,			October 27,
	2024			2023
Revenue in dollars:
Restaurant	$	683,271		$	660,793
Retail		161,818			163,046
Total revenue	$	845,089		$	832,389
Total revenue by percentage relationships:
Restaurant		80.9	%		80.2	%
Retail		19.1	%		19.8	%
Average store volumes⁽¹⁾:
Restaurant	$	1,012.8		$	975.6
Retail		245.6			246.7
Total revenue	$	1,258.4		$	1,222.3
Comparable store sales increase (decrease) ⁽²⁾:
Restaurant		2.9	%		(0.5)	%
Retail		(1.6)	%		(8.1)	%
Restaurant and retail		2.0	%		(2.1)	%
Average check increase		5.8	%		6.6	%
Comparable restaurant guest traffic decrease⁽²⁾:		(2.9)	%		(7.1)	%

(1)	Average unit volumes include sales of all stores except for MSBC.

(2)	Comparable store sales and traffic consist of sales of stores open at least six full quarters at the beginning of the period and are measured on comparable calendar weeks. Comparable store sales and traffic exclude MSBC.

For the first quarter of 2025, our comparable store restaurant sales increase resulted primarily from the average check increase partially offset by the guest traffic decrease. For the first quarter of 2025, the average check increase included an average menu price increase of 4.7%.

Our retail sales are made substantially to our restaurant guests. For the first quarter of 2025, our comparable store retail sales decrease resulted primarily from the guest traffic decrease.

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The decrease in guest traffic is primarily the result of lower consumer demand arising from multiple macroeconomic factors, including inflationary pressures, higher interest rates, higher consumer debt levels and lower savings rates.

Total revenue in the first quarter of 2025 also increased as a result of an increase in gift card breakage as compared to the prior year period. See Note 7 to the Condensed Consolidated Financial Statements for additional information regarding gift card breakage.

Cost of Goods Sold (Exclusive of Depreciation and Rent)

The following table highlights the components of cost of goods sold (exclusive of depreciation and rent) in dollar amounts and as percentages of revenues for the specified periods:


	Quarter Ended
	November 01,			October 27,
	2024			2023
Cost of Goods Sold in dollars:
Restaurant	$	178,407		$	173,441
Retail		80,494			82,118
Total Cost of Goods Sold	$	258,901		$	255,559

Cost of Goods Sold by percentage of revenue:
Restaurant		26.1	%		26.2	%
Retail		49.7	%		50.4	%

Restaurant cost of goods sold as a percentage of restaurant revenue remained relatively constant in the first quarter of 2025 as compared to the same period in the prior year. Commodity inflation was 1.9% in the first quarter of 2025. We presently expect the rate of commodity inflation to be approximately 2% to 3% in 2025.

The decrease in retail cost of goods sold as a percentage of retail revenue in the first quarter of 2025 as compared to the same period in the prior year resulted primarily from higher vendor allowances and higher initial margin partially offset by higher markdowns.


	First Quarter
	(Decrease) Increase
	as a Percentage of
	Total Retail Revenue
Vendor allowances	(0.5)	%
Higher initial margin	(0.4)	%
Markdowns	0.3	%

Labor and Related Expenses

Labor and related expenses include all direct and indirect labor and related costs incurred in store operations. The following table highlights labor and related expenses as a percentage of total revenue for the specified periods:


	Quarter Ended
	November 01,		October 27,
	2024		2023
Labor and related expenses	36.4	%	37.0	%

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This percentage change for the first quarter of 2025 as compared to the same period in the prior year resulted primarily from the following:


	First Quarter
	(Decrease) Increase
	as a Percentage of
	Total Revenue
Store hourly labor	(0.6)	%
Store management compensation	(0.5)	%
Employee health care expense	(0.1)	%
Other wages	0.4	%
Workers' compensation expense	0.3	%

The decreases in store hourly labor and store management compensation as a percentage of total revenue for the first quarter of 2025 as compared to the same period in the prior year resulted primarily from menu price increases being higher than wage inflation. Additionally, store hourly labor benefited from improved productivity.

We presently expect the rate of wage inflation to be approximately 3% to 4% in 2025.

The decrease in employee health care expense as a percentage of total revenue for the first quarter of 2025 as compared to the same period in the prior year resulted primarily from favorable medical claim experience and lower enrollment.

The increase in workers’ compensation expense as a percentage of total revenue for the first quarter of 2025 as compared to the same period in the prior year resulted primarily from unfavorable claim development due to the increasing cost of claims.

The increase in other wages as a percentage of total revenue for the first quarter of 2025 as compared to the same period in the prior year resulted primarily from a revision in our employee benefits policy that resulted in a reduction in other wages expense in the first quarter of 2024.

Other Store Operating Expenses

Other store operating expenses include all store-level operating costs, the major components of which are occupancy costs, operating supplies, advertising, third-party delivery fees, credit and gift card fees, real and personal property taxes and general insurance. Occupancy costs include maintenance, utilities, depreciation and rent.

The following table highlights other store operating expenses as a percentage of total revenue for the specified periods:


	Quarter Ended
	November 01,		October 27,
	2024		2023
Other store operating expenses	25.0	%	24.7	%

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This percentage changes for the first quarter of 2025 as compared to the same period in the prior year resulted primarily from the following:


	First Quarter
	Increase (Decrease)
	as a Percentage
	of Total Revenue
Other store expenses	0.4	%
General insurance expense	0.2	%
Store occupancy costs	(0.2)	%

The increase in other store operating expense as a percentage of total revenue for the first quarter of 2025 as compared to the same period in the prior year resulted primarily from higher conference expense due to a biennial district manager conference held in the first quarter of 2025, costs associated with our off-premise business and hurricane-related expenses incurred in the first quarter of 2025.

The increase in general insurance expense as a percentage of total revenue for the first quarter of 2025 as compared to the same period in the prior year resulted primarily from unfavorable claim development.

The decrease in store occupancy costs as a percentage of total revenue for the first quarter of 2025 as compared to the same period in the prior year period resulted primarily from lower utilities expense partially offset by higher depreciation. The decrease in utilities expense for the first quarter of 2025 as compared to the prior year period resulted primarily from lower electricity, natural gas and water usage. The increase in depreciation expense for the first quarter of 2025 as compared to the prior year period resulted primarily from higher capital expenditures.

General and Administrative Expenses

The following table highlights general and administrative expenses as a percentage of total revenue for the specified periods:


	Quarter Ended
	November 01,		October 27,
	2024		2023
General and administrative expenses	7.1	%	5.9	%

This percentage change for the first quarter of 2025 as compared to the same period in the prior year resulted primarily from higher professional fees. The increase in professional fees as a percentage of total revenue in the first quarter of 2025 as compared to the prior year period resulted primarily from an approximate $3,300 charge in connection with our settlement of a series of wage and hour arbitrations, $2,958 in costs related to a proxy contest in connection with the Company’s 2024 annual shareholders meeting held on November 21, 2024 and $3,298 in costs associated with the Company’s strategic transformation plan.

Impairment and Store Closing Costs

During the first quarter of 2025, we recorded impairment charges of $700 as a result of the deterioration in operating performance in two MSBC locations. No impairment was recorded in the first quarter of 2024. No stores were closed in the first quarter of 2025 or in the first quarter of 2024.

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Interest Expense, Net

The following table highlights interest expense in dollars for the specified periods:

The increase in interest expense for the first quarter of 2025 as compared to the same period in the prior year resulted primarily from higher weighted average debt levels under our 2022 Revolving Credit Facility (as defined below).

Provision for Income Taxes (Income Tax Benefit)

The following table highlights the provision for income taxes as a percentage of income before income taxes (“effective tax rate”) for the specified periods:


	Quarter Ended
	November 01,		October 27,
	2024		2023
Effective tax rate	(287.8)	%	15.7	%

The decrease in the effective tax rate from the first quarter of 2024 to the first quarter of 2025 is primarily due to the disproportionate benefit of employment credits in relation to income before taxes in the current year period.

The Company’s quarterly provision (benefit) for income taxes has historically been calculated using the annualized effective tax rate method (“AETR method”) which applies an estimated annual effective tax rate to pre-tax income or loss. However, the Company recorded its interim income tax provision (benefit) using the discrete-period computation method as of November 01, 2024, as allowed under Accounting Standards Codification 740-240, Accounting for Income Taxes – Interim Reporting. Use of the AETR method would have resulted in an unreliable tax rate as small changes in the projected ordinary annual income would have resulted in significant changes in the annualized effective tax rate.

We presently expect our effective tax rate for 2025 to be approximately (7%) to (11%).

Liquidity and Capital Resources

Our primary sources of liquidity are cash generated from our operations and our borrowing capacity under our 2022 Revolving Credit Facility. Cash generated from operations, together with our borrowing capacity under the 2022 Revolving Credit Facility, were sufficient to finance all of our growth, dividend payments, working capital needs, interest payments on long-term debt obligations and other cash payment obligations in the first three months of 2025. We believe that cash on hand at November 01, 2024, along with cash expected to be generated from our operating activities and the borrowing capacity under our revolving credit facility, will be sufficient to finance our continuing operations, our strategic transformation initiative and continuing expansion plans, debt service, dividend payments, capital expenditures and working capital needs for the next twelve months and thereafter. Our ability to draw on our 2022 Revolving Credit Facility is subject to the satisfaction of the provisions of the credit facility, as amended, and we believe we will be able to refinance our 2022 Revolving Credit Facility and other debt instruments prior to maturity.

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Cash Used in Operations

Our operating activities used net cash of $4,395 for the first three months of 2025 as compared to $15,797 net cash used during the first three months of 2024. This change resulted primarily from the timing of payments for accounts payable and certain taxes partially offset by higher bonus payments made in the first quarter of 2025 as a result of the prior year’s performance.

Capital Expenditures and Proceeds from Sale of Property and Equipment

Capital expenditures (purchase of property and equipment) net of proceeds from insurance recoveries were $38,887 for the first three months of 2025 as compared to $24,637 for the same period in the prior year. Our capital expenditures consisted primarily of capital investments for existing stores, new store locations and capital expenditures for strategic initiatives. The increase in capital expenditures in the first three months of 2025 as compared to the first three months of 2024 resulted primarily from our maintenance and remodel initiatives, including as part of our strategic transformation plan.

As part of our strategic transformation plan, we have modified our capital allocation policy and currently expect to increase our capital expenditures over the three-year period from 2025 to 2027 to approximately $600,000 to $700,000, of which we expect to expend $160,000 to $180,000 in 2025. This increase includes expansion of our maintenance and remodel initiatives as well as additional technology improvements. This increase also includes the acquisition of sites and construction costs of new Cracker Barrel and MSBC locations that have opened or that we expect to open during 2025. We intend to fund our capital expenditures with cash generated by operations and borrowings under our 2022 Revolving Credit Facility, as necessary.

Borrowing Capacity, Debt Covenants and Notes

On June 17, 2022, we entered into a five-year $700,000 revolving credit facility (the “2022 Revolving Credit Facility”). The 2022 Revolving Credit Facility contains an option for the Company to increase the revolving credit facility by $200,000.

At November 01, 2024, we had $230,000 of outstanding borrowings under the 2022 Revolving Credit Facility and $34,004 of standby letters of credit related to securing reserved claims under our workers’ compensation insurance and certain sale and leaseback transactions, which reduce our borrowing availability under the 2022 Revolving Credit Facility. At November 01, 2024, we had $435,996 in borrowing availability under our 2022 Revolving Credit Facility. During the first three months of 2025, we borrowed $136,500 and repaid $86,500 under the 2022 Revolving Credit Facility.

Our 2022 Revolving Credit Facility contains customary financial covenants, which include maintenance of a maximum consolidated total senior secured leverage ratio and a minimum consolidated interest coverage ratio. We were in compliance with the 2022 Revolving Credit Facility’s financial covenants at November 01, 2024, and we expect to be in compliance with the 2022 Revolving Credit Facility’s financial covenants for the remaining term of the facility.

Our $300,000 aggregate principal amount of 0.625% Convertible Senior Notes (the “Notes”) mature on June 15, 2026, unless earlier converted, repurchased or redeemed. The Notes are senior, unsecured obligations of the Company and bear cash interest at a rate of 0.625% per annum, payable semi-annually in arrears on June 15 and December 15 of each year.

See Note 4 to our Condensed Consolidated Financial Statements for further information on our long-term debt.

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Dividends and Share-Based Compensation Awards

Our 2022 Revolving Credit Facility imposes restrictions on the amount of dividends we are permitted to pay and the amount of shares we are permitted to repurchase. Under the 2022 Revolving Credit Facility, provided there is no default existing and the total of our availability under the 2022 Revolving Credit Facility plus our cash and cash equivalents on hand is at least $100,000 (the “Cash Availability”), we may declare and pay cash dividends on shares of our common stock and repurchase shares of our common stock (1) in an unlimited amount if at the time the dividend or the repurchase is made our consolidated total senior secured leverage ratio is 2.75 to 1.00 or less and (2) in an aggregate amount not to exceed $100,000 in any fiscal year if our consolidated total leverage ratio is greater than 2.75 to 1.00 at the time the dividend or repurchase is made; notwithstanding (1) and (2), so long as immediately after giving effect to the payment of any such dividends, Cash Availability is at least $100,000, we may declare and pay cash dividends on shares of our common stock in an aggregate amount not to exceed in any fiscal year the product of the aggregate amount of dividends declared in the fourth quarter of the immediately preceding fiscal year multiplied by four.

During the first three months of 2025, we paid a regular dividend of $0.25 per share and declared a dividend of $0.25 per share that was subsequently paid on November 13, 2024, to shareholders of record on October 18, 2024. In addition, in the second quarter of 2025, our Board of Directors approved a regular dividend payable on February 12, 2025 to shareholders of record as of January 17, 2025 of $0.25 per share.

During the first three months of 2025, we issued 39,185 shares of our common stock resulting from the vesting of share-based compensation awards. Related tax withholding payments on these share-based compensation awards resulted in a net use of cash of $1,239.

Working Capital

In the restaurant industry, substantially all payments received on sales are made by credit card, debit card or cash. Restaurant inventories purchased through our principal food distributor are on terms of net zero days, while restaurant inventories purchased locally are generally financed from normal trade credit. Because of our retail gift shops, which have a lower product turnover than the restaurants, we carry larger inventories than many other companies in the restaurant industry. Retail inventories are generally financed through trade credit. These various trade terms are aided by the rapid turnover of the restaurant inventory. Employees generally are paid once every week or every two weeks except for bonuses that are paid either quarterly or annually in arrears. Many other operating expenses have normal trade terms and certain expenses, such as certain taxes and some benefits, are deferred for longer periods of time.

Like many other restaurant companies, we are able to, and often do, operate with negative working capital. We had negative working capital of $137,737 at November 01, 2024 as compared to negative working capital of $175,993 at August 02, 2024. The change in working capital at November 01, 2024 as compared to August 02, 2024 primarily resulted from higher inventory levels which reflect our normal seasonal build to support our expected holiday sales and lower incentive compensations accruals due to the payment of annual and long-term incentive bonuses and the timing of payments for payroll.

Off-Balance Sheet Arrangements

We have no material off-balance sheet arrangements.

Material Commitments

There have been no material changes in our material commitments other than in the ordinary course of business since the end of 2024. Refer to the section entitled “Liquidity and Capital Resources” presented in the MD&A of our 2024 Form 10-K for additional information regarding our material commitments.

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Recent Accounting Pronouncements Not Yet Adopted

See Note 1 to the accompanying Condensed Consolidated Financial Statements for a discussion of recent accounting guidance not yet adopted. We are currently evaluating the impact of adopting the accounting guidance.

Critical Accounting Estimates

We prepare our Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and assumptions about future events and apply judgments that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. We base our estimates and judgments on historical experience, current trends, outside advice from parties believed to be experts in such matters, and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. However, because future events and their effects cannot be determined with certainty, actual results could differ from those assumptions and estimates, and such differences could be material.

Our critical accounting estimates are described under the heading “Critical Accounting Estimates” in Part II, Item 7 of the 2024 Form 10-K. Judgments and uncertainties affecting the application of those policies may result in materially different amounts being reported under different conditions or using different assumptions.

Critical accounting estimates are those that:

●

management believes are most important to the accurate portrayal of both our financial condition and operating results, and

●

require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.

We consider the following accounting estimates to be most critical in understanding the judgments that are involved in preparing our Consolidated Financial Statements:

●

Impairment of Long-Lived Assets

●

Insurance Reserves

●

Retail Inventory Valuation

●

Lease Accounting

Management has reviewed these critical accounting estimates and related disclosures with the Audit Committee of our Board of Directors. There have been no material changes in our critical accounting estimates from those described in the 2024 Form 10-K.

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes in our quantitative and qualitative market risks since August 02, 2024. For a discussion of the Company’s exposure to market risk, refer to the Company’s market risk disclosures set forth in Part II, Item 7A “Quantitative and Qualitative Disclosures About Market Risk” of the 2024 Form 10-K.

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Interest Rate Risk. We have interest rate risk relative to our outstanding borrowings under our revolving credit facility. At November 01, 2024, our outstanding borrowings totaled $230,000 under our 2022 Revolving Credit Facility (see Note 4 to the Condensed Consolidated Financial Statements). In accordance with the 2022 Revolving Credit Facility, outstanding borrowings bear interest, at our election, either at (1) the Term Secured Overnight Financing Rate (SOFR) or (2) a base rate equal to the greatest of (i) the prime rate, (ii) a rate that is 0.5% in excess of the Federal Funds Rate, and (iii) Term SOFR plus 1.0%, in each case plus an applicable margin based on the Company’s consolidated total leverage ratio. Our policy has been to manage interest cost using a mix of fixed and variable rate debt (see Note 4 to our Condensed Consolidated Financial Statements). Additionally, the Notes bear interest at a fixed rate of 0.625% per annum.

The impact of a one-percentage point increase or decrease in the $230,000 of our outstanding borrowings under our revolving credit facility is approximately $2,326 on a pre-tax annualized basis.

Credit Risk. In the fourth quarter of 2021, the Company issued the Notes and entered into the Convertible Note Hedge Transactions and the Warrant Transactions with the Hedge Counterparties. Subject to the changes in the market price of the Company’s common stock price, the Company could be exposed to credit risk arising out of the net settlement of the Convertible Note Hedge Transactions and the Warrant Transactions in its favor. Based on the Company’s review of the possible net settlements and the creditworthiness of the Hedge Counterparties and their affiliates, the Company believes it does not have a material exposure to credit risk as a result of these transactions at this time.

ITEM 4. Controls and Procedures

Our management, including our principal executive and principal financial officers, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act) as of the end of the period covered by this report. Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer each concluded that as of November 01, 2024, our disclosure controls and procedures were effective for the purposes set forth in the definition thereof in Exchange Act Rule 13a-15(e).

There have been no changes (including corrective actions with regard to significant deficiencies and material weaknesses) during the quarter ended November 01, 2024 in our internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1A. Risk Factors

There have been no material changes in the risk factors previously disclosed in Part I, Item 1A “Risk Factors” of our 2024 Form 10-K.

ITEM 5. Other Information

During the quarter ended November 01, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” (in each case, as defined in Item 408 of Regulation S-K).

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ITEM 6. Exhibits

INDEX TO EXHIBITS



Exhibit
3.1		Amended and Restated Charter of Cracker Barrel Old Country Store, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed under the Exchange Act on April 10, 2012 (Commission File No. 001-25225)

3.2		Second Amended and Restated Bylaws of Cracker Barrel Old Country Store, Inc. (incorporated by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q filed under the Exchange Act on June 7, 2022)

31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

32.1		Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)

32.2		Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)

101.INS		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)

101.SCH		Inline XBRL Taxonomy Extension Schema

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase

104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CRACKER BARREL OLD COUNTRY STORE, INC.


Date: December 4, 2024		By: /s/Craig A. Pommells
		Craig A. Pommells, Senior Vice President, Chief Financial Officer


Date: December 4, 2024		By: /s/Brian T. Vaclavik
		Brian T. Vaclavik, Vice President, Corporate Controller and
		Principal Accounting Officer

EXHIBIT 31.1

CERTIFICATION

I, Julie Masino, certify that:

I have reviewed this Quarterly Report on Form 10-Q of Cracker Barrel Old Country Store, Inc.;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


Date:	December 4, 2024

/s/Julie Masino
Julie Masino, President
and Chief Executive Officer

EXHIBIT 31.2

CERTIFICATION

I, Craig A. Pommells, certify that:

I have reviewed this Quarterly Report on Form 10-Q of Cracker Barrel Old Country Store, Inc.;

(a)

(b)

(c)

(d)

(a)

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


Date:	December 4, 2024

/s/Craig A. Pommells
Craig A. Pommells, Senior Vice President
and Chief Financial Officer

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cracker Barrel Old Country Store, Inc. (the “Issuer”) on Form 10-Q for the fiscal quarter ended November 1, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Julie Masino, President and Chief Executive Officer of the Issuer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer.


Date:	December 4, 2024	By:	/s/Julie Masino
			Julie Masino
			President and Chief Executive Officer

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cracker Barrel Old Country Store, Inc. (the “Issuer”) on Form 10-Q for the fiscal quarter ended November 1, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Craig A. Pommells, Senior Vice President and Chief Financial Officer of the Issuer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer.


Date:	December 4, 2024	By:	/s/Craig A. Pommells
			Craig A. Pommells
			Senior Vice President and Chief Financial Officer

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Nov. 01, 2024	Nov. 22, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Nov. 01, 2024
Document Transition Report	false
Entity File Number	001-25225
Entity Registrant Name	Cracker Barrel Old Country Store, Inc.
Entity Incorporation, State or Country Code	TN
Entity Tax Identification Number	62-0812904
Entity Address, Address Line One	305 Hartmann Drive
Entity Address, City or Town	Lebanon
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37087-4779
City Area Code	615
Local Phone Number	444-5533
Title of 12(b) Security	Common Stock (Par Value $0.01)
Trading Symbol	CBRL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		22,259,168
Entity Central Index Key	0001067294
Current Fiscal Year End Date	--08-01
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands

Nov. 01, 2024

Aug. 02, 2024

^[1]

Current Assets:

Cash and cash equivalents

$ 11,534

$ 12,035

Accounts receivable

39,898

39,204

Inventories

201,915

180,958

Prepaid expenses and other current assets

57,029

46,017

Total current assets

310,376

278,214

Property and equipment

2,461,132

2,438,851

Less: Accumulated depreciation and amortization

1,494,575

1,479,030

Property and equipment - net

966,557

959,821

Operating lease right-of-use assets, net

846,166

850,835

Intangible assets

24,406

24,425

Other assets

45,491

48,199

Total assets

2,192,996

2,161,494

Current Liabilities:

Accounts payable

159,608

162,288

Accrued employee compensation

44,379

60,385

Other current liabilities

244,126

231,534

Total current liabilities

448,113

454,207

Long-term debt

527,023

476,581

Long-term operating lease liabilities

667,182

675,993

Other long-term obligations

109,978

114,564

Commitments and Contingencies (Note 10)

Shareholders' Equity:

Preferred stock - 100,000,000 shares of $0.01 par value authorized; 300,000 shares designated as Series A Junior Participating Preferred Stock; no shares issued

Common stock - 400,000,000 shares of $0.01 par value authorized; 22,242,228 shares issued and outstanding at November 01, 2024, and 22,203,043 shares issued and outstanding at August 02, 2024

222

Additional paid-in capital

13,961

12,575

Retained earnings

426,517

427,352

Total shareholders' equity

440,700

440,149

Total liabilities and shareholders' equity

$ 2,192,996

$ 2,161,494

[1]	This Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of August 02, 2024, as filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended August 02, 2024.

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Nov. 01, 2024	Aug. 02, 2024
Shareholders' Equity:
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares issued (in shares)	0	0
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	22,242,228	22,203,043
Common stock, shares outstanding (in shares)	22,242,228	22,203,043
Series A Junior Participating Preferred Stock
Shareholders' Equity:
Preferred stock, shares authorized (in shares)	300,000	300,000

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Nov. 01, 2024	Oct. 27, 2023
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Total revenue	$ 845,089	$ 823,839
Cost of goods sold (exclusive of depreciation and rent)	258,901	255,559
Labor and other related expenses	307,225	304,447
Other store operating expenses	211,548	203,685
General and administrative expenses	59,644	48,735
Impairment and store closing costs	700
Operating income	7,071	11,413
Interest expense, net	5,822	4,938
Income before income taxes	1,249	6,475
Provision for income taxes (income tax benefit)	(3,595)	1,019
Net income	$ 4,844	$ 5,456
Net income per share:
Basic (in dollars per share)	$ 0.22	$ 0.25
Diluted (in dollars per share)	$ 0.22	$ 0.25
Weighted average shares:
Basic (in shares)	22,217,737	22,165,852
Diluted (in shares)	22,390,249	22,263,690

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)
$ in Thousands

Common Stock

Additional Paid-In Capital

Retained Earnings

Total

Balances at Jul. 28, 2023

$ 221

$ 3,886

$ 479,718

$ 483,825

Balances (in shares) at Jul. 28, 2023

22,153,625

Comprehensive Income:

Net income

5,456

Total comprehensive income

5,456

Cash dividends declared

(29,150)

Share-based compensation

1,622

Issuance of share-based compensation awards, net of shares withheld for employee taxes

$ 1

(1,502)

(1,501)

Issuance of share-based compensation awards, net of shares withheld for employee taxes (in shares)

31,487

Balances at Oct. 27, 2023

$ 222

4,006

456,024

460,252

Balances (in shares) at Oct. 27, 2023

22,185,112

Balances at Aug. 02, 2024

$ 222

12,575

427,352

$ 440,149

^[1]

Balances (in shares) at Aug. 02, 2024

22,203,043

Comprehensive Income:

Net income

4,844

$ 4,844

Total comprehensive income

4,844

Cash dividends declared

(5,679)

Share-based compensation

2,625

Issuance of share-based compensation awards, net of shares withheld for employee taxes

(1,239)

Issuance of share-based compensation awards, net of shares withheld for employee taxes (in shares)

39,185

Balances at Nov. 01, 2024

$ 222

$ 13,961

$ 426,517

$ 440,700

Balances (in shares) at Nov. 01, 2024

22,242,228

[1]	This Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of August 02, 2024, as filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended August 02, 2024.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Nov. 01, 2024	Oct. 27, 2023
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Cash dividends declared (in dollars per share)	$ 0.25	$ 1.30

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

3 Months Ended

Nov. 01, 2024

Oct. 27, 2023

Cash flows from operating activities:

Net income

$ 4,844

$ 5,456

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

29,154

26,669

Amortization of debt issuance costs

442

436

Loss on disposition of property and equipment

2,338

1,632

Impairment

700

Share-based compensation

2,625

1,622

Noncash lease expense

14,957

15,180

Amortization of asset recognized from gain on sale and leaseback transactions

3,184

Changes in assets and liabilities:

Inventories

(20,957)

(17,905)

Other current assets

(11,454)

1,358

Accounts payable

(2,680)

(22,190)

Other current liabilities

(3,525)

(4,832)

Other long-term assets and liabilities

(24,023)

(26,407)

Net cash used in operating activities

(4,395)

(15,797)

Cash flows from investing activities:

Purchase of property and equipment

(38,952)

(24,718)

Proceeds from insurance recoveries of property and equipment

Proceeds from sale of property and equipment

134

Net cash used in investing activities

(38,753)

(24,598)

Cash flows from financing activities:

Proceeds from issuance of long-term debt

136,500

156,000

Principal payments under long-term debt

(86,500)

(96,000)

Taxes withheld from issuance of share-based compensation awards

(1,239)

(1,501)

Dividends on common stock

(6,114)

(29,337)

Net cash provided by financing activities

42,647

29,162

Net decrease in cash and cash equivalents

(501)

(11,233)

Cash and cash equivalents, beginning of period

12,035

25,147

Cash and cash equivalents, end of period

11,534

13,914

Cash paid during the period for:

Interest, net of amounts capitalized

4,190

3,458

Income taxes

113

Supplemental schedule of non-cash investing and financing activities:

Capital expenditures accrued in accounts payable

^[1]

5,979

4,316

Dividends declared but not yet paid

^[1]

$ 7,000

$ 30,046

[1]	See Note 8 for additional supplemental disclosures related to leases.

Condensed Consolidated Financial Statements

3 Months Ended

Nov. 01, 2024

Condensed Consolidated Financial Statements

Condensed Consolidated Financial Statements

1.	Condensed Consolidated Financial Statements

Recent Accounting Pronouncements Not Yet Adopted

Segment Disclosures

Income Tax Disclosures

Disaggregation of Income Statement Expenses

Fair Value Measurements

3 Months Ended

Nov. 01, 2024

Fair Value Measurements

Fair Value Measurements

2.	Fair Value Measurements

The Company’s assets measured at fair value on a recurring basis at November 01, 2024 were as follows:


							Total Fair
	Level 1		Level 2		Level 3		Value
Cash equivalents*	$	1,001	$	—	$	—	$	1,001
Total	$	1,001	$	—	$	—	$	1,001
Deferred compensation plan assets**								23,699
Total assets at fair value							$	24,700

The Company’s assets measured at fair value on a recurring basis at August 02, 2024 were as follows:


							Total Fair
	Level 1		Level 2		Level 3		Value
Cash equivalents*	$	1	$	—	$	—	$	1
Total	$	1	$	—	$	—	$	1
Deferred compensation plan assets**								25,719
Total assets at fair value							$	25,720

*Consists of money market fund investments.

Assets Measured at Fair Value on a Nonrecurring Basis

Inventories

3 Months Ended

Nov. 01, 2024

Inventories

Inventories

3.	Inventories

Inventories were comprised of the following as of the dates indicated:


	November 01, 2024		August 02, 2024
Retail	$	154,329	$	138,278
Restaurant		29,799		25,829
Supplies		17,787		16,851
Total	$	201,915	$	180,958

Debt

3 Months Ended

Nov. 01, 2024

Debt

Debt

4.Debt

Convertible Senior Notes

Net proceeds from the Notes offering were approximately $291,000, after deducting the initial purchasers’ discounts and commissions and the Company’s offering fees and expenses.

The Notes are accounted for entirely as a liability, and the issuance costs of the Notes are accounted for wholly as debt issuance costs.

The following table includes the outstanding principal amount and carrying value of the Notes as of the dates indicated:


	November 01, 2024		August 02, 2024
Liability component
Principal	$	300,000	$	300,000
Less: Debt issuance costs (1)		2,977		3,419
Net carrying amount	$	297,023	$	296,581

(1)	Debt issuance costs are amortized to interest expense using the effective interest method over the expected life of the Notes.

The effective rate of the Notes over their expected life is 1.23%. The following is a summary of interest expense for the Notes for specified periods:


	Quarter Ended
	November 01,		October 27,
	2024		2023
Coupon interest	$	474	$	474
Amortization of issuance costs		442		436
Total interest expense	$	916	$	910

Convertible Note Hedge and Warrant Transactions

Seasonality

3 Months Ended

Nov. 01, 2024

Seasonality

Seasonality

5.	Seasonality

Segment Information

3 Months Ended

Nov. 01, 2024

Segment Reporting

Segment Information

6.	Segment Information

Revenue Recognition

3 Months Ended

Nov. 01, 2024

Revenue Recognition

Revenue Recognition

7.	Revenue Recognition

Disaggregation of revenue

Total revenue was comprised of the following for the specified periods:


	Quarter Ended
	November 01,		October 27,
	2024		2023
Revenue:
Restaurant	$	683,271	$	660,793
Retail		161,818		163,046
Total revenue	$	845,089	$	823,839

Restaurant Revenue

The Company recognizes revenues from restaurant sales when payment is tendered at the point of sale, as the Company’s performance obligation to provide food and beverages is satisfied.

Retail Revenue

Gift Card Breakage

Loyalty Program

Leases

3 Months Ended

Nov. 01, 2024

Leases

Leases

8.	Leases

The following table summarizes the components of lease cost for operating leases for the specified periods:


	Quarter Ended
	November 01,		October 27,
	2024		2023
Operating lease cost	$	27,664	$	27,768
Short term lease cost		520		194
Variable lease cost		961		837
Total lease cost	$	29,145	$	28,799

The following table summarizes supplemental cash flow information and non-cash activity related to the Company’s operating leases for the specified periods:


	Quarter Ended
	November 01,		October 27,
	2025		2023
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	24,456	$	24,347
Noncash information:
Right-of-use assets obtained in exchange for new operating lease liabilities		1,643		3,651
Lease modifications or reassessments increasing right-of-use assets		11,957		16,917
Lease modifications removing right-of-use assets		(127)		(144)

The following table summarizes the weighted-average remaining lease term and the weighted-average discount rate for operating leases as of dates indicated:


	November 01, 2024		October 27, 2023
Weighted-average remaining lease term	15.54 Years		16.24 Years
Weighted-average discount rate	5.40	%	5.13	%

The following table summarizes the maturities of undiscounted cash flows reconciled to the total operating lease liability as of November 01, 2024:


Year	Total
Remainder of 2025	$	71,809
2026		78,059
2027		70,912
2028		68,086
2029		65,894
Thereafter		739,449
Total future minimum lease payments		1,094,209
Less imputed remaining interest		(369,582)
Total present value of operating lease liabilities	$	724,627

Sale and Leaseback Transactions

Net Income Per Share and Weighted Average Shares

3 Months Ended

Nov. 01, 2024

Net Income Per Share and Weighted Average Shares

Net Income Per Share and Weighted Average Shares

9.	Net Income Per Share and Weighted Average Shares

The following table reconciles the components of diluted earnings per share computations for the specified periods:


	Quarter Ended
	November 01,		October 27,
	2024		2023
Net income per share numerator	$	4,844	$	5,456

Net income per share denominator:
Basic weighted average shares		22,217,737		22,165,852
Add potential dilution:
Nonvested stock awards and units		172,512		97,838
Diluted weighted average shares		22,390,249		22,263,690

10.

Commitments and Contingencies

3 Months Ended

Nov. 01, 2024

Commitments and Contingencies.

Commitments and Contingencies

10.

Commitments and Contingencies

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Nov. 01, 2024	Oct. 27, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 4,844	$ 5,456

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Nov. 01, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Condensed Consolidated Financial Statements (Policies)

3 Months Ended

Nov. 01, 2024

Condensed Consolidated Financial Statements

Recent Accounting Pronouncements Not Yet Adopted

Recent Accounting Pronouncements Not Yet Adopted

Segment Disclosures

Income Tax Disclosures

Disaggregation of Income Statement Expenses

Fair Value Measurements (Tables)

3 Months Ended

Nov. 01, 2024

Fair Value Measurements

Schedule of assets and liabilities measured at fair value on a recurring basis

The Company’s assets measured at fair value on a recurring basis at November 01, 2024 were as follows:


							Total Fair
	Level 1		Level 2		Level 3		Value
Cash equivalents*	$	1,001	$	—	$	—	$	1,001
Total	$	1,001	$	—	$	—	$	1,001
Deferred compensation plan assets**								23,699
Total assets at fair value							$	24,700

The Company’s assets measured at fair value on a recurring basis at August 02, 2024 were as follows:


							Total Fair
	Level 1		Level 2		Level 3		Value
Cash equivalents*	$	1	$	—	$	—	$	1
Total	$	1	$	—	$	—	$	1
Deferred compensation plan assets**								25,719
Total assets at fair value							$	25,720

*Consists of money market fund investments.

Inventories (Tables)

3 Months Ended

Nov. 01, 2024

Inventories

Schedule of inventories


	November 01, 2024		August 02, 2024
Retail	$	154,329	$	138,278
Restaurant		29,799		25,829
Supplies		17,787		16,851
Total	$	201,915	$	180,958

Debt (Tables)

3 Months Ended

Nov. 01, 2024

Debt

Schedule of outstanding principal and carrying value of notes


	November 01, 2024		August 02, 2024
Liability component
Principal	$	300,000	$	300,000
Less: Debt issuance costs (1)		2,977		3,419
Net carrying amount	$	297,023	$	296,581

(1)	Debt issuance costs are amortized to interest expense using the effective interest method over the expected life of the Notes.

Summary of interest expense for the Notes


	Quarter Ended
	November 01,		October 27,
	2024		2023
Coupon interest	$	474	$	474
Amortization of issuance costs		442		436
Total interest expense	$	916	$	910

Revenue Recognition (Tables)

3 Months Ended

Nov. 01, 2024

Revenue Recognition

Schedule of disaggregation of revenue

Total revenue was comprised of the following for the specified periods:


	Quarter Ended
	November 01,		October 27,
	2024		2023
Revenue:
Restaurant	$	683,271	$	660,793
Retail		161,818		163,046
Total revenue	$	845,089	$	823,839

Leases (Tables)

3 Months Ended

Nov. 01, 2024

Leases

Summary of components of lease cost for operating leases


	Quarter Ended
	November 01,		October 27,
	2024		2023
Operating lease cost	$	27,664	$	27,768
Short term lease cost		520		194
Variable lease cost		961		837
Total lease cost	$	29,145	$	28,799

Summary of supplemental cash flow information and non-cash activity related to operating leases


	Quarter Ended
	November 01,		October 27,
	2025		2023
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	24,456	$	24,347
Noncash information:
Right-of-use assets obtained in exchange for new operating lease liabilities		1,643		3,651
Lease modifications or reassessments increasing right-of-use assets		11,957		16,917
Lease modifications removing right-of-use assets		(127)		(144)

Summary of weighted-average remaining lease term and weighted-average discount rate for operating leases


	November 01, 2024		October 27, 2023
Weighted-average remaining lease term	15.54 Years		16.24 Years
Weighted-average discount rate	5.40	%	5.13	%

Summary of maturities of undiscounted cash flows reconciled to total operating lease liability


Year	Total
Remainder of 2025	$	71,809
2026		78,059
2027		70,912
2028		68,086
2029		65,894
Thereafter		739,449
Total future minimum lease payments		1,094,209
Less imputed remaining interest		(369,582)
Total present value of operating lease liabilities	$	724,627

Net Income Per Share and Weighted Average Shares (Tables)

3 Months Ended

Nov. 01, 2024

Net Income Per Share and Weighted Average Shares

Schedule of computation of basic and diluted earnings per share


	Quarter Ended
	November 01,		October 27,
	2024		2023
Net income per share numerator	$	4,844	$	5,456

Net income per share denominator:
Basic weighted average shares		22,217,737		22,165,852
Add potential dilution:
Nonvested stock awards and units		172,512		97,838
Diluted weighted average shares		22,390,249		22,263,690

10.

Fair Value Measurements - Fair value on recurring basis (Details) - Recurring - Estimated Fair Value - USD ($) $ in Thousands	Nov. 01, 2024	Aug. 02, 2024
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Cash equivalents*	$ 1,001	$ 1
Total	1,001	1
Deferred compensation plan assets**	23,699	25,719
Total assets at fair value	24,700	25,720
Level 1
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Cash equivalents*	1,001	1
Total	$ 1,001	$ 1

Fair Value Measurements (Details) $ in Thousands	3 Months Ended
Fair Value Measurements (Details) $ in Thousands	Nov. 01, 2024 USD ($) location	Aug. 02, 2024 USD ($)	Jun. 18, 2021
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Impairment charges	$ 700
0.625% Convertible Senior Notes Due 2026
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Interest rate	0.625%		0.625%
Level 2 \| 0.625% Convertible Senior Notes Due 2026 \| Estimated Fair Value
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Fair value of notes	$ 275,625	$ 267,939
Maple Street Biscuit Company
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Number of locations determined to be impaired \| location	2
Recurring \| Estimated Fair Value
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Liabilities at fair value	$ 0	$ 0

Inventories (Details) - USD ($)
$ in Thousands

Nov. 01, 2024

Aug. 02, 2024

Inventories

Retail

$ 154,329

$ 138,278

Restaurant

29,799

25,829

Supplies

17,787

16,851

Total

$ 201,915

$ 180,958

^[1]

[1]	This Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of August 02, 2024, as filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended August 02, 2024.

Debt - Revolving Credit Facility (Details) - 2022 Revolving Credit Facility - USD ($) $ in Thousands		3 Months Ended
	Jun. 17, 2022	Nov. 01, 2024	Aug. 02, 2024
Line of Credit Facility
Line of credit facility, term	5 years
Maximum borrowing capacity	$ 700,000
Option to increase revolving credit facility	$ 200,000
Outstanding borrowings		$ 230,000	$ 180,000
Amount of standby letters of credit		34,004
Remaining borrowing capacity		$ 435,996
Weighted average interest rate		6.63%
Liquidity requirements		$ 100,000
Maximum leverage ratio		2.75
Dividends threshold		$ 100,000
Multiplier used in calculating aggregate amount of cash dividends on shares of common stock in any fiscal year		4
Federal Funds Rate
Line of Credit Facility
Debt instrument, basis spread on variable rate		0.50%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Line of Credit Facility
Debt instrument, basis spread on variable rate		1.00%

Debt - Convertible Senior Notes (Details) - 0.625% Convertible Senior Notes Due 2026		3 Months Ended
	Jun. 18, 2021 USD ($) $ / shares shares	Nov. 01, 2024 USD ($) D shares	Aug. 02, 2024 USD ($)	Jun. 15, 2021 $ / shares
Convertible Senior Notes
Debt Instrument, Face Amount	$ 300,000,000
Interest rate	0.625%	0.625%
Maturity date	Jun. 15, 2026
Periodic interest payment frequency	semi-annually
Period of special interest to be received in the event of default	180 days
Special interest rate to be received for first 90 days	0.25%
Special Interest rate to be received thereafter	0.50%
Conversion rate of common stock (in shares) \| shares	5.3153	6.3035
Debt instrument, converted amount	$ 1,000	$ 1,000
Conversion price (in dollars per share) \| $ / shares	$ 188.14
Common stock premium percentage	25.00%
Sale price per share (in dollars per share) \| $ / shares				$ 150.51
Net proceeds from notes offering		$ 291,000,000
Threshold percentage of stock price trigger		130.00%
Threshold trading days \| D		20
Threshold consecutive trading days \| D		30
Liability component
Principal		$ 300,000,000	$ 300,000,000
Less: Debt issuance costs		2,977,000	3,419,000
Net carrying amount		$ 297,023,000	$ 296,581,000

Debt - Summary of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 01, 2024	Oct. 27, 2023
Interest Expense
Amortization of issuance costs	$ 442	$ 436
0.625% Convertible Senior Notes Due 2026
Interest Expense
Effective interest rate percentage	1.23%
Coupon interest	$ 474	474
Amortization of issuance costs	442	436
Total interest expense	$ 916	$ 910

Debt - Convertible Note Hedge and Warrant Transactions (Details) - Convertible Note Hedge and Warrant Transactions	Nov. 01, 2024 $ / shares shares
Convertible Note Hedge and Warrant Transactions
Number of shares of common stock included in Warrant Transactions (in shares) \| shares	1,600,000
Strike price (in dollars per share)	$ 263.39
Adjusted strike price (in dollars per share)	$ 222.10

Segment Information (Details)	3 Months Ended
Segment Information (Details)	Nov. 01, 2024 segment
Segment Reporting
Number of product lines	2
Number of reportable operating segments	1

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Nov. 01, 2024	Oct. 27, 2023	Aug. 02, 2024
Disaggregation of Revenue
Total revenue	$ 845,089	$ 823,839
Gift card breakage	9,189	3,170
Deferred revenue related to gift cards	72,613		$ 84,854
Revenue recognized for redemption of gift cards	$ 14,358	14,847
Expiration period for reward points earned in loyalty program	12 months
Other Current Liabilities
Disaggregation of Revenue
Deferred revenue related to loyalty program	$ 3,062		$ 1,544
Restaurant
Disaggregation of Revenue
Total revenue	683,271	660,793
Retail
Disaggregation of Revenue
Total revenue	$ 161,818	$ 163,046

Leases - Summary (Details) $ in Thousands	3 Months Ended
Leases - Summary (Details) $ in Thousands	Nov. 01, 2024 USD ($) agreement period
Leases
Initial lease term	20 years
Maximum
Leases
Lease renewal option	50 years
Restaurant Stores
Leases
Initial lease term	10 years
Lease renewal option	5 years
Undiscounted future payments to begin in next 12 months \| $	$ 1,170
Undiscounted future payments to begin in next 24 months \| $	$ 10,210
Restaurant Stores \| Minimum
Leases
Number of optional renewal periods \| period	4
Restaurant Stores \| Maximum
Leases
Number of optional renewal periods \| period	5
Cracker Barrel Old Country Store
Leases
Number of lease agreements \| agreement	1
Maple Street Biscuit Company
Leases
Number of lease agreements \| agreement	2

Leases - Components of Lease Cost for Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 01, 2024	Oct. 27, 2023
Components of Lease Cost for Operating Leases
Operating lease cost	$ 27,664	$ 27,768
Short term lease cost	520	194
Variable lease cost	961	837
Total lease cost	$ 29,145	$ 28,799

Leases - Supplemental Cash Flow Information and Non-cash Activity Related to Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 01, 2024	Oct. 27, 2023
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$ 24,456	$ 24,347
Noncash information:
Right-of-use assets obtained in exchange for new operating lease liabilities	1,643	3,651
Lease modifications or reassessments increasing right-of-use assets	11,957	16,917
Lease modifications removing right-of-use assets	$ (127)	$ (144)

Leases - Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate for Operating Leases (Details)	Nov. 01, 2024	Oct. 27, 2023
Leases
Weighted-average remaining lease term	15 years 6 months 14 days	16 years 2 months 26 days
Weighted-average discount rate	5.40%	5.13%

Leases - Maturities of Undiscounted Cash Flows Reconciled to Total Lease Liability (Details) $ in Thousands	Nov. 01, 2024 USD ($)
Maturities of Undiscounted Cash Flows Reconciled to Total Lease Liability
Remainder of 2025	$ 71,809
2026	78,059
2027	70,912
2028	68,086
2029	65,894
Thereafter	739,449
Total future minimum lease payments	1,094,209
Less imputed remaining interest	(369,582)
Total present value of operating lease liabilities	$ 724,627

Leases - Sale and Leaseback Transactions (Details) - store	12 Months Ended
	Jul. 30, 2021	Jul. 31, 2020	Jul. 31, 2009	Nov. 01, 2024
Sale Leaseback Transactions
Initial lease term				20 years
Maximum
Sale Leaseback Transactions
Lease renewal option				50 years
Owned Stores
Sale Leaseback Transactions
Number of owned stores involved in sale-lease back transactions	62	64
2009 Sale-leaseback Transactions \| Owned Stores
Sale Leaseback Transactions
Number of owned stores involved in sale-lease back transactions			15
Initial lease term				20 years
2009 Sale-leaseback Transactions \| Owned Stores \| Maximum
Sale Leaseback Transactions
Lease renewal option				20 years
2009 Sale-leaseback Transactions \| Retail Distribution Center
Sale Leaseback Transactions
Initial lease term				15 years
Lease renewal option				20 years
2000 Sale-leaseback Transactions
Sale Leaseback Transactions
Initial lease term				20 years
Lease renewal option				50 years

Net Income Per Share and Weighted Average Shares - Dilutive Securities (Details)	Nov. 01, 2024 $ / shares
Convertible Senior Notes
Antidilutive securities excluded from computation of earnings per share
Conversion price (in dollars per share)	$ 158.64
Warrants
Antidilutive securities excluded from computation of earnings per share
Adjusted strike price (in dollars per share)	$ 222.10

Net Income Per Share and Weighted Average Shares (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 01, 2024	Oct. 27, 2023
Net Income Per Share and Weighted Average Shares
Net Income (Loss)	$ 4,844	$ 5,456
Net income per share denominator:
Basic weighted average shares (in shares)	22,217,737	22,165,852
Add potential dilution:
Nonvested stock awards and units (in shares)	172,512	97,838
Diluted weighted average shares (in shares)	22,390,249	22,263,690

Commitments and Contingencies (Details) $ in Thousands	Nov. 01, 2024 USD ($)
Standby Letters of Credit \| Revolving Credit Facility
Loss Contingencies
Amount of standby letters of credit	$ 34,004

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Quarter Ended

November 01,

October 27,

Interest expense, net