CBRL Group, Inc. Reports Fiscal 2009 First Quarter Results

CBRL Group, Inc. (Nasdaq: CBRL):

• Fully diluted income from continuing operations per share of $0.57 for the first quarter fiscal 2009 compared with $0.57 in the prior-year quarter

• Revenue for the first quarter declined 1.2% to $573.9 million compared with the prior year quarter

• Comparable store restaurant sales for the first quarter of fiscal 2009 decreased 3.2% from prior year quarter for Cracker Barrel Old Country Store(R) ('Cracker Barrel') while comparable store retail sales were down 2.3%

• Operating income margin from continuing operations in the first quarter was 5.7% of total revenue compared with 6.2% in the prior year quarter

CBRL Group, Inc. (the 'Company') (Nasdaq: CBRL) today reported income from continuing operations of $0.57 per diluted share for the first quarter of fiscal 2009, compared with $0.57 per diluted share from continuing operations in the first quarter of fiscal 2008. Income from continuing operations was $12.8 million compared with $14.0 million in the first quarter of fiscal 2008, which reflects lower operating income for the first quarter of fiscal 2009, partially offset by lower interest expense and a lower effective tax rate in fiscal 2009.

First-Quarter Fiscal 2009 Results

Revenue from continuing operations

Total revenue from continuing operations of $573.9 million during the first quarter decreased 1.2% from the first quarter of fiscal 2008. Comparable store restaurant sales for the period decreased 3.2%, including a 3.3% higher average check. The average menu price increase for the quarter was approximately 3.2% compared with last year. Comparable store retail sales were down 2.3% for the quarter. During the quarter, the Company opened four new Cracker Barrel Old Country Store units.

Operating Income

Operating income of $32.6 million was 5.7% of total revenue during the first quarter of fiscal 2009 compared with $36.0 million, or 6.2% of total revenue, in the first quarter of fiscal 2008. Operating income for the first quarter of fiscal 2009 compared with the first quarter of fiscal 2008 was negatively affected by lower revenue and higher food and retail costs and higher operating expenses including utilities. Labor costs and general and administrative expenses were lower as a percentage of revenues than the first quarter of fiscal 2008, and lower advertising benefited operating expenses in the first quarter of fiscal 2009.

Commenting on the first-quarter results, CBRL Group, Inc. Chairman, President and Chief Executive Officer Michael A. Woodhouse said, 'Despite an extremely challenging consumer environment, we are pleased that we were able to maintain the same level of earnings per share as in the prior year. We, once again, outperformed the Knapp-Track(TM) index, especially in October, and we remain focused on our initiatives to drive restaurant traffic and retail sales and reduce costs without compromising the guest experience. By providing ample portions of high quality food at a fair price, we will continue to deliver on the Cracker Barrel brand promise.'

Fiscal 2009 Outlook

The Company urges caution in considering its current trends and the outlook disclosed in this press release. The restaurant industry is highly competitive, and trends and guidance are subject to numerous factors, risks and influences, some of which are discussed in the cautionary language at the end of this press release and others that are described in the Company's Annual Report on Form 10-K for the fiscal year ended August 1, 2008, which can be found on the Securities and Exchange Commission's website, sec.gov, and the Company's website, cbrlgroup.com. The Company disclaims any obligations to update disclosed information on trends or targets other than in its periodic filings with the Securities and Exchange Commission.

The Company commented that its outlook for fiscal 2009 reflects many assumptions, the accuracy of which is not yet known. Based on current trends and estimates, the Company presently expects the percentage change in fiscal 2009 total revenue compared to fiscal 2008 to range from a decrease of 0.5% to an increase of 1.5%. The revenue estimate reflects the projected opening of 11 new Cracker Barrel units during the year, comparable store restaurant sales to be down 1% to 3%, including approximately 3.5% increase in menu pricing, and comparable store retail sales to be flat to down 2% compared to fiscal 2008. The Company also presently expects fiscal 2009 operating income margin as a percent of revenues from continuing operations to range from 5.8% to 6.2%, compared with 6.3% in fiscal 2008. Commodity cost inflation for fiscal 2009 is expected to be 3.5% to 4.5% with an estimated 75% of product needs currently contracted for the remainder of fiscal 2009. Depreciation for the year is expected to be approximately $59 to $60 million. Net interest expense is estimated to be approximately $53 to $54 million and diluted shares outstanding are expected to average approximately 23 million. The Company has suspended its share repurchase plans for fiscal 2009 and, as a result, does not expect to repurchase any of its outstanding common shares. The Company will consider applying excess cash flow to paying down debt beyond minimum-scheduled payments. The Company expects its full year 2009 effective tax rate to be between 27.5% and 28.5%. Income from continuing operations per diluted share is projected to be in the range of $2.65 to $3.00 per share. The Company presently expects full year fiscal 2009 capital expenditures to be between $73 and $75 million.

Commenting on the outlook, Mr. Woodhouse said, 'With the continued uncertainty in the economy and how it is impacting casual dining, we have lowered our sales growth to include the possibility of a decrease in revenues for fiscal 2009. This uncertainty also leads us to broaden our range of earnings expectations. We aren't just sitting still waiting for the economy to improve. We are focused on improving productivity in the restaurants and retail shops and in our use of G&A dollars. At the same time, we will continue to introduce exciting new food items. In the second quarter, we have launched radio advertising aimed at increasing guest traffic through greater awareness of our new menu offerings. Finally, our strong cash flow makes it possible for us to maintain our dividend pay-out and also consider paying down additional debt.'

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