Cracker Barrel Announces Reduction of Management and Staff Positions; Expects Related Charges of $0.14-0.17 per Share

Cracker Barrel Old Country Store, Inc. CBRL announced today that a cost reduction and organization streamlining initiative has resulted in the elimination of approximately 60 management and staff positions. Most of the employees affected by the layoff worked in the Company's home office in Lebanon, Tennessee. All affected employees will receive severance pay and outplacement assistance in accordance with the Company's policies. The Company estimates that severance and other charges related to its cost reduction initiative will reduce income from operations in the fourth quarter of the 2011 fiscal year by between $4 and $5 million, and reduce net earnings per diluted share by between $0.14 and $0.17. These charges were not included in the Company's previously issued guidance for the fourth quarter.