DEFA14A

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of the

Securities Exchange Act of 1934

(Amendment No.     )

 

 

Filed by the Registrant  x                             Filed by a party other than the Registrant  ¨

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¨   Preliminary Proxy Statement
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¨   Definitive Proxy Statement
x   Definitive Additional Materials
¨   Soliciting Material Pursuant to §240.14a-12

Cracker Barrel Old Country Store, Inc.

(Name of Registrant as Specified In Its Charter)

 

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

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Cracker Barrel Old Country Store, Inc. (the “Company”) used the following investor presentation in meetings with investors beginning on April 4, 2014. This investor presentation was also posted to the “Proxy Contest” section of the Company’s Investor Relations website, investor.crakerbarrel.com.


Generating Shareholder Value By Continuing to
Deliver an Outstanding Guest Experience
Spring 2014 –
Investor Presentation


Cracker Barrel, its directors and certain of its executive officers may be deemed to be participants in
the solicitation of proxies from Cracker Barrel shareholders in connection with the matters to be
considered at the special meeting of Cracker Barrel's shareholders to be held on April 23, 2014. On
March 21
, 2014, Cracker Barrel filed a definitive proxy statement (the “Proxy Statement”) with the
U.S. Securities and Exchange Commission (the "SEC") in connection with the solicitation of proxies
from Cracker Barrel shareholders. INVESTORS AND SHAREHOLDERS ARE STRONGLY
ENCOURAGED TO READ THE PROXY STATEMENT AND ACCOMPANYING WHITE PROXY
CARD AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY
WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION.
Shareholders may obtain the Proxy Statement, any amendments or supplements to the Proxy
Statement and other documents filed by Cracker Barrel with the SEC for no charge at the SEC's
website at www.sec.gov. Copies are also available at no charge at the Investor Relations section of
our corporate website at www.crackerbarrel.com.
Important Additional Information
st
1


Table of Contents
I.    Situation Overview and Why We Urge You to Vote Against Both Proposals
II.    Delivering Strong Shareholder Performance Through Focused Execution
Appendix A:  Supplemental Information
2


I.  Situation Overview and Why We Urge You to Vote Against Both
Proposals


Despite Biglari’s Overwhelming Proxy Losses and the
Company’s Continued Strong Business Performance…
We Are
Here, Again…
Generating
superior
returns
for
shareholders
Delivered
~24%
in
Total
Shareholder
Return
in
the
last
twelve
months
and
~160%
since
the
initial
announcement
of
its
six
strategic
priorities
in
September
2011
Returning
~$104mm
in
cash
dividends
to
its
shareholders
since
the
beginning
of
fiscal
year
2012
and
tripling
the
quarterly
dividend
since
September
2011
4
Returning
~$31mm
in
cash
through
share
repurchases
since
the
beginning
of
fiscal
year
2012
4
Nine
consecutive
quarters
of
outperforming
the
Knapp-Track   
casual
dining
index
Leader
in
nine
of
ten
categories
according
to
2013
Technomic
Consumer
Restaurant
Brand
Metrics
Study
Source:  Public filings, Technomic, and Bloomberg as of 28-Mar-2014
Note: See appendix for additional details on Technomic Consumer Restaurant Brand Metrics Study and other industry recognitions.
(1)      Percentages based on number of shares voted excluding shares controlled by Biglari.
(2)      Total Shareholder Return calculated by share price appreciation and dividends paid (assumes dividends paid are re-invested into the stock (purchasing more shares) on the ex-dividend date).
(3)      12-Sep-2011 represents the day prior to announcement of Strategic Priorities on 13-Sep-2011.
(4)      Figures through CBRL’s fiscal Q2 2014.
2011
2012
2013
$20 Special
Dividend Vote:
~90% Against
~8% For
~ 2% Abstentions
Despite Being Rejected by a Significant Margin of Votes Cast by CBRL Shareholders in Each of the Last Three Years,
Sardar
Biglari
Remains
Insistent
in
His
Campaign
Against
Cracker
Barrel…
…While CBRL Continues to Deliver Strong Performance for Shareholders
Biglari
Nominees
~26%
Cracker
Barrel
Nominees
~74%
Cracker
Barrel
Nominees
~90%
Biglari
Nominees
~10%
Biglari
Nominees
~8%
Cracker
Barrel
Nominees
~92%
1
1
1
TM
3
2
4


…And Biglari’s Recent Public Statements Show a Questionable
Shift in Narrative
What Biglari Said Before
2011 –
2013
Source:  Public filings
What Biglari Says Now
2014
“Our intention was that even if we
were
to
purchase
additional
stock,
we
would
keep
ownership
well
under
20%.”
“Biglari
Holdings
is
not
seeking
to
acquire
control
of
Cracker
Barrel.
Furthermore, under Tennessee law,
there are strict antitakeover laws.”
“[W]e
have
been
clear
about
our
agenda: We are interested in making
money,
not
controlling
the
Company.”
“If a sale of Cracker Barrel were
approved by the Board, we would also
be
willing
to
submit
a
bid
to
purchase
the
Company
under
a
structure
that
would allow current shareholders the
opportunity to participate in the
Company’s future performance.”
“…we
have
stated
our
willingness
to
enter
into
discussions
to
acquire
the
Company
in
a
transaction
that
we
give
credit to as in the best interests of all
shareholders.”
5


Proposal #1:  Why You Should Vote Against Pursuing All
Potential Extraordinary Transactions
Background
The
Board
Recommends
That
You
Vote
AGAINST
This
Proposal
As shown on Slide 4, at each of the last three annual meetings of the Companys shareholders, Biglari nominees have been defeated by
significant and increasing margins
Moreover, just months ago, at the 2013 Annual Meeting in November 2013, the Companys shareholders also voted, by a wide margin, against
a non-binding proposal publicly made by Biglari recommending that the Board approve the payment of a $20 per share cash special dividend to
all shareholders
Yet, despite Biglaris history of repeated, significant losses in its proxy contests at the Companys annual meetings, Biglari seems bound and
determined to force yet another meeting on the Company
The Company has delivered strong operational performance and shareholder returns that the Board believes are exceptional relative
to the Company’s peers over the last two and a half fiscal years
The Board believes that Biglaris demand for a special meeting may be motivated by Biglaris self-interest in seeking to achieve full
liquidity of its investment through a single extraordinary transaction rather than the long-term interests of all shareholders
The Board believes that the interests of all shareholders are best served by the management team continuing to focus on the
execution of the Company’s current operational and strategic plan
Since the Companys announcement of its strategic priorities in September 2011, the Company has delivered total shareholder return of
approximately
160%,
which
consisted
of
approximately
144%
growth
in
the
Company’s
stock
price
and
approximately
16%
in
quarterly
dividends paid
The Board believes that the interests of a single shareholder should not take priority over the long-term interests of ALL shareholders
Publicly undertaking a sale process at this time would disrupt the Company's progress, which could damage the long-term value of the
Company
6
Why
You
Should
Vote
AGAINST
This
Proposal


Proposal #2: Why You Should Vote Against the Proposal for the
Company to "Take Any Action Necessary" to Amend the
Tennessee Business Corporation Act
The provision of Tennessee law that Biglari desires to amend restricts shareholders holding 10% or more of the voting securities
of a publicly traded Tennessee corporation from engaging in business combinations with that corporation for a period of five years
following the date on which the shareholder acquired the securities crossing the 10% threshold
Biglari crossed the 10% threshold with its CBRL share purchases in January 2012
In
a
letter
to
the
Company’s
Chairman,
Biglari
requested
that
the
Board
support
its
efforts
to
seek
to
amend
applicable
Tennessee
law
to
allow
Biglari
to
seek
to
acquire
the
Company
as
part
of
a
sale
process
Why
You
Should
Vote
AGAINST
This
Proposal
Before acquiring a 10% stake in the Company’s common stock, Biglari had the opportunity either to make an offer
directly to the Company’s shareholders or to approach the Board about a possible business combination transaction,
but chose not to do either
In all three proxy contests, Biglari has vehemently denied any intent to acquire control of the Company and, in fact,
repeatedly cited the Tennessee law’s prohibition as evidence to try to refute the Board’s concerns about Biglari’s
intentions
The Board does not have the power to amend Tennessee law
The Board believes that the interests of all shareholders are best served by the management team continuing to focus
upon the execution of the Company’s current operational and strategic plan, rather than engaging in a time consuming and
potentially expensive lobbying effort
Moreover, there appears to be no evidence to suggest that Biglari has taken any steps of its own to seek an amendment;
given the Tennessee legislative calendar, we believe at this point any proposed amendment could not be considered by
the Tennessee legislature until 2015 at the earliest
Background
The
Board
Recommends
That
You
Vote
AGAINST
This
Proposal
7


II.  Delivering Strong Shareholder Performance Through Focused
Execution


Since Initial Announcement of Strategic Priorities In 2011,
CBRL’s Share Price Is Up 144%...
Source:  Public filings, Bloomberg, and IBES as of 28-Mar-2014
Note:  12-Sep-2011 represents the day prior to announcement of Strategic Priorities on 13-Sep-2011. Proxy fight related annotations shaded green. Exceeds / Misses IBES
indicates whether quarterly Adj. EPS beat IBES consensus median estimates.  Outperforms / Underperforms Knapp-Track™ indicates whether Quarterly Comparable Restaurant
Sales outperformed the Knapp-Track™ casual dining index. 
(1)
Percentages based on number of shares voted excluding shares controlled by Biglari.
$39.86
$ 97.22
$30
$40
$50
$60
$70
$80
$90
$100
$110
$120
Sep-2011
Feb-2012
Jul-2012
Dec-2012
May-2013
Oct-2013
Mar-2014
12-Sep-2011 to 28-Mar-2014
13-Sep-2011
New CEO Sandy
Cochran announces
Strategic Priorities
22-Nov-2011
CBRL Q1 2012
Results:
Exceeds IBES
Underperforms
P
Knapp-Track™
20-Dec-2011
A majority of votes cast
by shareholders (~74%
of
non-Biglari
shares)
1
are for CBRL's slate of
directors
19-Sep-2012
CBRL Q4 and FY
2012 Results:
Exceeds IBES
Outperforms
P
Knapp-Track™
13-Nov-2013
A majority of votes cast by shareholders (~92% of non-
Biglari shares)¹ are for CBRL's slate of directors. A
majorty of votes cast by shareholders (~90% of non-
Biglari shares)
1
are against a $20 per share special
dividend
29-Nov-2012
CBRL Q1 2013
Results:
Exceeds IBES
Outperforms
P
26-Feb-2013
CBRL Q2 2013
Results:
Exceeds IBES
Outperforms
P
Knapp-Track™
18-Sep-2013
CBRL Q4 and FY
2013 Results: 
Exceeds IBES
Outperforms
P
Knapp-Track™
15-Nov-2012
A majority of votes cast by
shareholders
(~90%
of
non-Biglari
shares)   are
1
for CBRL's slate of directors, an
even higher percentage than 2011
26-Nov-2013
CBRL Q1 2014
Results:
Exceeds IBES
Outperforms
P
Knapp-Track™
03-Jun-2013
CBRL Q3 2013 Results:
Exceeds IBES
Outperforms
P
Knapp-Track™
21-Feb-2012
CBRL Q2 2012
Results:
Exceeds IBES
Outperforms
P
Knapp-Track™
22-May-2012
CBRL Q3 2012
Results:
Exceeds IBES
Outperforms
P
Knapp-Track™
25-Feb-2014
CBRL Q2 2014
Results:
Exceeds IBES
Outperforms
P
Knapp-Track™
9
Knapp-Track™


Cracker Barrel
Peer Set
S&P 500 Restaurant Index
S&P 600 Restaurant Index
S&P 1,500 Restaurant Index
S&P 500 Index
…Outperforming Benchmarks…
Source:  Bloomberg as of 28-Mar-2014
Note:  12-Sep-2011 represents the day prior to announcement of Strategic Priorities on 13-Sep-2011. Peer Set includes BH, BOBE, EAT, CAKE, DRI, DENN, RT, TXRH. S&P 500 Restaurant
Index includes the restaurant companies in the S&P 500 Index:  CMG, DRI, MCD, SBUX, YUM.  S&P 600 Restaurant Index includes the restaurant companies in the S&P 600 Index:  BJRI,
BH, BWLD, CEC, CBRL, DIN, JACK, PZZA, RRGB, RT, RUTH, SONC, TXRH.  S&P 1,500 Restaurant Index includes the restaurant companies in the S&P 1,500 Index:  BJRI, BH, BOBE,
EAT, BWLD, CEC, CAKE, CMG, CBRL, DRI, DIN, DPZ, JACK, MCD, PNRA, PZZA, RRGB, RT, RUTH, SONC, SBUX, TXRH, WEN, YUM. All indices market capitalization weighted.
144 %
114 %
55 %
60 %
45 %
37 %
70%
100%
130%
160%
190%
220%
250%
280%
Sep-2011
Apr-2012
Dec-2012
Jul-2013
Mar-2014
12-Sep-2011 to 28-March-2014
10


…Driving Significant Shareholder Value
Source:  Public filings and Bloomberg
Note: 12-Sep-2011 represents the day prior to announcement of Strategic Priorities on 13-Sep-2011. Years relate to CBRL fiscal years.  Figures through CBRL’s fiscal Q2 2014.
($ in millions)
$ 916
$ 1,442
$ 104
$ 31
$ 2,492
CBRL Equity
Market Cap.
Increase in
CBRL Equity
Market Cap.
12-Sep-2011
31-Jan-2014
Total
Shareholder
Value
Dividends Paid
Shares
Repurchased
$1,577
11


CBRL’s Total Shareholder Return Since Announcement of
Strategic Priorities Is Almost Double The Peer Median
Source:  Bloomberg as of 28-Mar-2014
Note:  Total Shareholder Return calculated by share price appreciation and dividends paid (assumes dividends paid are re-invested into the stock (purchasing more shares) on the
ex-dividend date).  12-Sep-2011 represents the day prior to announcement of Strategic Priorities on 13-Sep-2011.
12


Cracker Barrel vs. Knapp-Track
Consistent Outperformance of Peers in Comparable Store
Restaurant Sales is an Important Driver of Our Business
Momentum
Cracker Barrel Comparable
Restaurant Sales
(1.6)%
3.5%
3.1%
3.8%
3.3%
3.3%
3.1%
2.6%
2.8%
(0.6)%
Knapp-Track
Casual Dining
Index Comparable Sales
0.9%
2.2%
1.0%
0.3%
(0.3)%
(0.9)%
0.0%
(1.9)%
(1.3)%
(2.6)%
(2.5)%
1.3 %
2.1 %
3.5 %
3.6 %
4.2 %
3.1 %
4.5 %
4.1 %
2.0 %
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2012
2013
2014
Outperformed
Knapp-Track  
Casual
Dining
Index
For
The
Last
Nine
Quarters
Source:  Public filings and Knapp-Track
Note:
Knapp-Track
Casual Dining Index Comparable Sales figure is an approximation based on respective weekly averages.   Quarters relate to Cracker Barrel’s fiscal  year.
TM
TM
13


We Are Keenly Focused on Our Updated Business Priorities to
Continue Driving Performance…
Focus on Better-For-You menu
additions and reinforce everyday
value
Introduced Better-For-You menu items with our
Wholesome Fixin's program launch
Increase value proposition with menu and process
adjustments designed to increase overall guest
satisfaction while maintaining our affordable price points
Continue messaging in support of
the brand, menu and merchandise
Continue
“Handcrafted”
marketing
campaign
with
additional national television during the first quarter to
support the Wholesome Fixin's launch
Drive retail sales with quality,
depth and breadth of the
merchandise assortment
Increase the quality and number of themes
Create consistency with promotions and inventory
pipeline to smooth the sales curve
Focus on improving operations
and margins by applying
technology and process
improvements
Evolve the employee and guest experiences
Implement technology to improve through-put,
efficiencies and food quality
Streamline processes to increase labor productivity
Maximize long-term total
shareholder value
Grow the sustainable quarterly dividend over time
Reinvest capital in the business to support existing
stores and expand the footprint with modest new unit
growth
Extend the brand outside the four walls
14


…While Staying True To Our Core Mission Since 1969
An Outstanding
Employee Experience
An Outstanding
Guest Experience
Improved
Sales & Traffic
Grow same store sales
with menu
development and
retail merchandise
that meet
guests’
evolving needs and
reinforce the brand
Maintain our marketing
message
of quality and value
and deliver a consistent guest
experience while improving
margin
Evolve the store prototype to increase
new unit profitability
Moderate new store growth with a
continued focus on best locations and
consistent execution
Create long-term value
through new
revenue  streams
Extend the power of the Cracker
Barrel
brand beyond the physical
stores
Pleasing People
15


We Believe You Should Vote Against These Proposals
We have accomplished a great deal over two and a half years and have the right Board and
management team in place to continue executing against our stated priorities
The Company has delivered strong operational performance and shareholder returns that the
Board believes are exceptional relative to the Company’s peers
We believe that Biglari’s recent demand for a special meeting may be motivated by the self-
interest of Biglari in seeking to achieve full liquidity of its investment through a single
extraordinary
transaction
and
we
believe
that
the
interest
of
a
single
shareholder
should
not
take priority over the long-term interests of ALL shareholders
The Board believes that the interests of all shareholders are best served by the management
team continuing to focus upon the execution of the Company’s current operational and
strategic plan
16


Appendix A:  Supplemental Information


Technomic Consumer Brand Metrics Study
¹
40¹
42¹
39¹
40¹
44¹
Pleasant, Friendly Service
78
67¹
74¹
68¹
63¹
66¹
73¹
76
75
67¹
Food Taste & Flavor
73
60¹
65¹
61¹
54¹
60¹
69¹
72
74
62¹
Brands
A
B
C
D
E
F
G
H
I
Rank
%
%
%
%
%
%
%
%
%
%
Food Quality
73
59¹
64¹
58¹
52¹
58¹
68¹
69¹
71
59¹
Menu Variety
65
51¹
56¹
50¹
53¹
57¹
57¹
54¹
63
52¹
Availability of Healthy Options
53
46¹
49¹
39¹
40¹
44¹
47¹
42¹
48¹
29¹
Welcoming, Comfortable Atmosphere
72
56¹
60¹
54¹
45¹
50¹
62¹
64¹
63¹
50¹
Kid -
Friendly
62
45¹
53¹
43¹
47¹
51¹
46¹
41¹
43¹
51¹
Portion for Price Paid
66
53¹
57¹
51¹
51¹
53¹
59¹
54¹
56¹
51¹
Ability to Provide Value Through High -
Quality Menu Items
58
43¹
50¹
43¹
40¹
43¹
49¹
50¹
51¹
46¹
Prices Relative to Other, Similar
Restaurants
56
41¹
44¹
39¹
41
Leader in Nine of
Ten Categories
Source:  Technomic Consumer Restaurant Brand Metrics Study Q1 2011 – Q4 2013
Note:  Brands include:  Applebee’s, Bob Evans, Chili’s, Denny’s, IHOP, Olive Garden, Outback, Red Lobster, and Steak ‘n Shake.
(1) Rating significantly lower than Cracker Barrel at the 95 level of confidence (Base: approx. 1440 respondents per chain).
2
nd
18


Selected Industry Recognitions
Winner
in
Food
and
Beverage
category
among
all full
service
chains
Technomic’s
2013
Inaugural
Chain
Restaurant
Consumers’
Choice
Awards
Top
of
the
Full-Service
Restaurants
in
Casual
and
Family
Dining
Consumer
Brand
Metrics Program, Technomic, Inc.
“Best
Breakfast”
among
Family
Dining
Chains
Zagat’s
2010
&
2011
Consumer
Surveys
Named
one
of
Forbes’
America's
100
Most
Trustworthy
Companies
in
2014
Top
“Family
Dining”
Chain
for
19
Consecutive
Years
in
“Choice
in
Chains”
Annual
Consumer
Survey
Restaurants
&
Institutions
Magazine
Best
National Restaurant
Chain
in
Readers’
Choice
awards
Packaged
Travel
Insider
Gold
Award
Courier
Magazine’s
Favorite
Group
Friendly
Restaurant
NTA
Tour
Operators
19


Ticker
Company Name
Logo
BH
Biglari Holdings
BOBE
Bob Evans Farms
EAT
Brinker International
CAKE
The Cheesecake Factory
DRI
Darden Restaurants
DENN
Denny’s Corporation
RT
Ruby Tuesday
TXRH
Texas Roadhouse
For purposes of consistency, we are
using the same peer set as previously
shown in 2012 and 2013 Annual
Meeting related investor presentations
We believe this subset of casual and
family dining restaurants represents the
most comparable set of companies to
benchmark Cracker Barrel’s operational
performance
Leading casual / family dining
concepts
Operational comparability
Similar scale
Geographical proximity
A Note on Peer Set Used for Benchmarking
Peer Set
Rationale for Inclusion
20


S&P Restaurant Indices Composition
Ticker
Company Name
Logo
S&P
500
S&P
600
S&P
1,500
BJRI
BJ’s Restaurants
BH
Biglari Holdings
BOBE
Bob Evans Farms
BWLD
Buffalo Wild Wings
CAKE
The Cheesecake Factory
CBRL
Cracker Barrel Old Country Store
CEC
CEC Entertainment
CMG
Chipotle Mexican Grill
DIN
DineEquity
DPZ
Domino’s Pizza
DRI
Darden Restaurants
EAT
Brinker International
Ticker
Company Name
Logo
S&P
500
S&P
600
S&P
1,500
JACK
Jack in the Box
MCD
McDonald’s
PNRA
Panera Bread Company
PZZA
Papa John’s International
RRGB
Red Robin Gourmet Burgers
RT
Ruby Tuesday
RUTH
Ruth’s Hospitality Group
SBUX
Starbucks
SONC
Sonic
TXRH
Texas Roadhouse
WEN
The Wendy’s Company
YUM
Yum! Brands
Source:  Standard & Poor‘s
Respective S&P Restaurant Index Constituents
21


Cracker Barrel Old Country Store, Inc. (the “Company”) used the following addendum to its investor presentation in meetings with investors beginning on April 4, 2014. This addendum was also posted to the “Proxy Contest” section of the Company’s Investor Relations website, investor.crakerbarrel.com.


Addendum To Spring 2014 Investor Presentation


Cracker Barrel Comparable
Restaurant Traffic
(3.8)%
1.1%
0.6%
1.4%
0.8%
0.2%
0.7%
0.6%
(0.1)%
(2.9)%
Knapp-Track
Casual Dining
Index Guest Traffic
(0.8)%
(0.2)%
(1.7)%
(2.0)%
(2.4)%
(2.5)%
(1.2)%
(3.2)%
(3.0)%
(4.3)%
Cracker Barrel Relative to Knapp-Track
Traffic
Outperformed Knapp-Track
TM
Guest Traffic For The Last Nine Quarters
TM
(3.0)%
1.3 %
2.3 %
3.4 %
3.2 %
2.7 %
1.9 %
3.8 %
2.9 %
1.4 %
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2012
2013
2014
TM
Source:  Public filings and Knapp-Track
Note: Knapp-Track
Casual Dining Index Weekly Guest Traffic figures are an approximation based on respective weekly averages.  Quarters relate to Cracker Barrel’s fiscal year.


YOY Growth
3.9 %
4.6 %
0.7 %
Margin Improvement
50bps
31bps
(10)bps
Store
Operating
Performance
Key
Metrics
Source: Public filings
Margin Improvement
52bps
40bps
(13)bps
EPS
$ 3.81
$ 4.34
$ 4.97
$ 5.22
EPS
Growth
5.2 %
13.9 %
14.5 %
5.0 %
($ in thousands)
Revenue
Adj. EBITDAR
Adj. Operating Income
Adj. Net Income


Revenue CAGR Since Strategic Priorities
Operating Profit CAGR Since Strategic Priorities
Operating Profit Margin
Store
Operating
Performance
Benchmarking
Source: Public filings
Note:  Revenue and Operating Profit CAGR reflects compounded annual growth rate over the last 10 quarters. Operating Profit  margin reflects respective LTM periods. Strategic Priorities
announced in Sep-2011.
7.7 %
10.3 %
9.2 %
8.6 %
8.4 %
5.9 %
3.4 %
(5.2)%
(6.4)%
Median: 7.2 %
8.2 %
11.5 %
10.2 %
9.9 %
(6.5)%
(12.5)%
(14.3)%
NM
NM
Median: 1.7 %
3.6 %
12.8 %
5.6 %
4.4 %
3.6 %
1.4 %
(1.3)%
(2.4)%
(6.5)%
Median: 2.5 %


Cracker Barrel Earnings Per Store vs. Steak ‘n Shake  
Steak
‘n
Shake
Earnings
per
Store
Cracker
Barrel
Earnings
per
Store
Source:  Public filings
Note: Time frames referenced relate to ending month of respective quarter.  Quarters represent latest reported quarters per respective company.  Metrics used to show approximate trend in Earnings per
Store for both businesses, metrics do not use identical methodology due to lack of publicly disclosed information.
(1)  Earnings per Store as measured by Steak ‘n Shake’s earnings before income taxes and noncontrolling interests as reported by BH over period average store count.  Quarters relate to BH fiscal year.
(2)  Earnings per Store as measured by Cracker Barrel’s adjusted operating income as reported by CBRL over period average store count. Quarters relate to CBRL fiscal year.
“We believe
operating
income per
store …
is
the metric
that more
accurately
reflects the
Company’s
underlying
performance
and long-
term
financial
health.”
Biglari
Capital Corp.
(8-Oct-2013)
($ in thousands)
$83,338
$94,961
$66,778
$71,073
$81,665
$88,037
$79,638
$75,358
$94,961
$94,531
FY 2012
(Jan 2012)
FY 2013
(Feb 2013)
FY 2012
(Apr 2012)
FY 2013
(May 2013)
FY 2012
(Aug 2012)
FY 2013
(Aug 2013)
FY 2013
(Nov 2012)
FY 2014
(Nov 2013)
FY 2013
(Feb 2013)
FY 2014
(Jan 2014)
Q2
Q3
Q4
Q1
Q2
$27,855
$17,038
$26,565
$16,557
$18,237
$13,526
$19,909
$8,859
$17,038
$10,716
FY 2012
(Dec 2011)
FY 2013
(Dec 2012)
FY 2012
(Apr 2012)
FY 2013
(Apr 2013)
FY 2012
(Jul 2012)
FY 2013
(Jul 2013)
FY 2012
(Sep 2012)
FY 2013
(Sep 2013)
FY 2013
(Dec 2012)
FY 2014
(Dec 2013)
Q1
Q2
Q3
Q4
Q1
1
2


Important Additional Information
Cracker Barrel, its directors and certain of its executive officers may be deemed to be participants in
the solicitation of proxies from Cracker Barrel shareholders in connection with the matters to be
considered at the special meeting of Cracker Barrel's shareholders to be held on April 23, 2014. On
March
21  ,
2014,
Cracker
Barrel
filed
a
definitive
proxy
statement
(the
“Proxy
Statement”)
with
the
U.S. Securities and Exchange Commission (the "SEC") in connection with the solicitation of proxies
from
Cracker
Barrel
shareholders.
INVESTORS
AND
SHAREHOLDERS
ARE
STRONGLY
ENCOURAGED TO READ THE PROXY STATEMENT AND ACCOMPANYING WHITE PROXY
CARD AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY
WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION.
Shareholders may obtain the Proxy Statement, any amendments or supplements to the Proxy
Statement and other documents filed by Cracker Barrel with the SEC for no charge at the SEC's
website at www.sec.gov. Copies are also available at no charge at the Investor Relations section of
our corporate website at www.crackerbarrel.com.
st