CRACKER BARREL OLD COUNTRY STORE, INC

CRACKER BARREL OLD COUNTRY STORE, INC. Annual Investment Guide
(Simplified for Everyday Investors)

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Financial Health Check

The Good ➕

• Cash flow turnaround: Generated $27.6M in cash this year vs. losing $13.1M last year
• Price hikes worked: Menu prices increased 4% to offset food inflation
• Low-cost debt: Carrying two loans with super low rates (0.625% and 1.75%) due in 2026 and 2030

The Concerns ➖

• Debt deadlines: Must refinance $550M in loans by 2026 and 2030
• Cost pressures: Labor, energy, and ingredient costs remain volatile

Cool Feature 🔄
Their loans ("convertible notes") can be repaid in company stock instead of cash if needed – like having a mortgage where you can pay with shares!

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Risks to Watch

1. "All eggs in one basket" risk: 100% of operations are in one segment (restaurants + retail). If either struggles, the whole company feels it.
2. Weather woes: Warm winters = unsold sweaters; cool summers = unsold t-shirts. Retail depends heavily on seasonal timing.

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What’s Next?

• Debt prep: Starting talks to refinance the 2026 loan within 2 years
• Summer experiments: Testing new limited-time menu items to attract road trippers
• Storm prep: Stockpiling frozen meals to keep sales up during bad weather

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The Bottom Line for Investors

✅ Reasons to Consider:

• Strong cash recovery after a tough prior year
• Smart debt structure with low interest rates
• Pricing power shown during inflation

⛔️ Be Aware Of:

• High reliance on seasonal retail sales
• Refinancing deadlines approaching in 2026/2030
• No business diversification (all revenue from one segment)

💡 Investor Takeaway:
Cracker Barrel stabilized financially this year but faces timing risks (weather, debt deadlines) and lack of diversification. Best suited for investors comfortable with "all-in-one-basket" businesses and willing to monitor debt negotiations closely over the next 2 years.

Disclosure: This review reflects only the data provided in the annual report. The company shared limited details about leadership changes or specific operational wins/challenges.