“The difficult decisions announced today were made as part of the annual business planning process for our 2012 fiscal year,” said Chairman and CEO Mike Woodhouse. “Our customers continue to face a challenging economic environment, and our Company will continue to face commodity cost increases next year.”
The company said it expects to save about $10 million a year on a pretax basis as a result of the job cuts.
Cracker Barrel said severance and other expenses related to the cuts will lower its income from operations for the fiscal fourth quarter by $4 million to $5 million, and diluted earnings per share by 14 cents to 17 cents. The charges were not included in the company’s previously issued fiscal fourth quarter guidance.
The company owns and operates 603 locations in 42 states.