Cracker Barrel Old Country Store, Inc. F4Q09 (Qtr End 07/31/09) Earnings Call Transcript

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2009-09-15 12:36:27.0

Tags: Guidance, Call Transcript, Health Care, Earnings, Sales Strategy, Sales Force Management, Vertical Industries, Benefits, Healthcare, Sales, Human Resources, Seeking Alpha, CBRL Group Inc.

Question-and-Answer Session

Operator

Very good. (Operator Instructions) Your first question comes from Stephen Anderson - MKM Partners LLC.

Stephen Anderson - MKM Partners LLC

A very quick question on the labor cost line that’s been coming up the last couple of quarters, primarily on the health cost side, but as the costs related to the increased enrollment in the new healthcare program start to roll off in January, can you give any guidance in terms of where you see labor costs head for the fiscal year?

Sandra Cochran

We don’t want to, Steve, give any more guidance beyond what we’ve given although we do anticipate making some changes to our health plan and those are built into our guidance for next year.

Operator

Your next question comes from Joseph Buckley - BAS-ML.

Joseph Buckley - BAS-ML

Given that it’s your fourth quarter you’re obviously reporting pretty far into your quarter, the Street is anticipating that casual dining sales or you know got better or less bad I guess you know since the end of your fiscal year. I was wondering if you’d be willing to comment on the quarter to date, what kind of sales progression you’re seeing.

Michael A. Woodhouse

Joe, we would love to do that but our protocol is obviously quarterly reporting and on the fourth quarter as you correctly say we’re further into the year than we normally are. So I really can’t comment. I will point back to how pleased we were with our fourth quarter sales and also that in our guidance we’re not anticipating any major turnaround in the economy to drive sales. I think that you know there are a number of factors going on that are pretty obvious. Again I think this is consumer sentiment may have improved a little bit but on the other side unemployment and therefore ability to spend is getting worse so we want to be cautious with our numbers.

Joseph Buckley - BAS-ML

And then just a question on the CapEx numbers, you made reference to some portion of it being related to Seat to Eat. And could you walk through that in a little bit more detail?

Michael A. Woodhouse

There are several things going on in CapEx and the Seat to Eat piece as I said in my remarks we are satisfied with our test. We are going to start rolling out in October but it’s going to be an extended roll out continuing into 2011. But from a CapEx point of view we will be spending more than half the capital for that whole project during 2010, but relatively late in the year. So that’s driving our capital up. I think that the total expenditures for this year, Sandy, for Seat to Eat are?

 

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