CBRL Group, Inc. Plans Exit of Gourmet Market Business; Closes Seven Other Restaurants; Announces Related Charge of Approximately $0.38-0.42 Per Share - Diluted.

Business Editors

LEBANON, Tenn.--(BUSINESS WIRE)--July 19, 2001

CBRL Updates Sales Trends and Reiterates Pre-Charge

Earnings Guidance for Fiscal Fourth Quarter

CBRL Group, Inc. (Nasdaq:CBRL) today announced that it has determined to exit its Carmine Giardini's Gourmet Market(TM) business. The Company presently is in discussions regarding a transaction that would involve certain of the assets of the gourmet market business including the trademarks and other associated assets. The Company also has announced the closing of four Cracker Barrel Old Country Store(R) units and three Logan's Roadhouse(R) units. As a result of the disposition of the Carmine Giardini's Gourmet Market business and the closing of the other stores, the Company expects to take an after-tax charge of approximately $22-24 million, or $0.38-0.42 per share (diluted), in its fiscal fourth quarter ending August 3, 2001. The Company also announced an update of its fiscal 2001 fourth quarter sales trends and reiterated its pre-charge earnings guidance for the fourth quarter

Commenting on the announcement, Dan W. Evins, chairman and chief executive officer, said, "Over the last two years, we have made significant improvements to our core business, improvements readily seen in our operating results. Our venture into the gourmet market segment, however, has not shown the potential for a meaningful contribution to our future growth. The gourmet market business is just better suited to an entrepreneurial style than to ownership by a large chain operation. We decided it was time to exit the Carmine's business and concentrate our efforts and management resources on our more developed concepts. Our commitment to our core concepts is demonstrated by the 15 new Cracker Barrel Old Country Store units and the 13 new Logan's Roadhouse units that we have opened this fiscal year.

"The Cracker Barrel Old Country Store and Logan's Roadhouse sites we are closing were originally selected at a time of rapid growth for each concept (1994-1998 for Cracker Barrel Old Country Store; and, in the case of Logan's, prior to its acquisition in 1999). The decision to close the units was made after a thorough review of unit level performance in both concepts, and we believe that this pruning is another important step in the continuous improvement of the performance and profitable growth of our core businesses."

The Company reported that quarter-to-date comparable store restaurant sales in its Cracker Barrel Old Country Store(R) units are up almost 4% compared with the same period a year ago. The increase includes an average check approximately 3.5% higher than a year earlier. Quarter-to-date retail sales in the comparable units are down 1.5-2%. Retail sales comparisons early in the quarter were affected significantly by the non-recurrence of sales of a highly popular novelty item in the prior year period. Quarter-to-date comparable store sales in the Company's Logan's Roadhouse(R) units are down approximately 2-2.5%, with average check up about 0.5%.

The Company reiterated its previously disclosed guidance that, compared with $0.42 in the year ago quarter, it expects diluted earnings per share for the fourth quarter of fiscal 2001, which will end on August 3, to be in the high $0.40's range before the $0.38-0.42 per share (diluted) charge. The Company urges caution in considering its current trends and the earnings targets disclosed in this press release. The restaurant industry is highly competitive, and trends and targets are subject to numerous factors and influences, some of which are discussed in the cautionary language at the end of this press release. The Company assumes no obligation to update disclosed information on trends or targets other than in its periodic filings under Forms 10-K, 10-Q, and 8-K with the Securities and Exchange Commission.

Headquartered in Lebanon, Tennessee, CBRL Group, Inc. presently operates 437 Cracker Barrel Old Country Store restaurants and gift shops located in 40 states, 75 company operated and eight franchised Logan's Roadhouse restaurants in 15 states, and three Carmine Giardini's Gourmet Market(TM) units in Florida.

Except for specific historical information, the matters discussed in this press release are forward-looking statements that involve risks, uncertainties and other factors that may cause actual results and performance of CBRL Group, Inc. to differ materially from those expressed or implied by this discussion. All forward-looking information is provided by the Company pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "target", "plans", "may", "will", "would", "expect", "intend", "estimate", "anticipate", "believe", "potential", or "continue" (or the negative of each of these terms) or similar terminology. Factors which will affect actual results include, but are not limited to: commodity, group health and utility price increases; the effect of plans intended to improve operational execution and performance; the effects of increased competition at company locations on sales and on labor recruiting, cost, and retention; the ability of and cost to the Company to recruit, train, and retain qualified restaurant hourly and management employees; the ability of the Company to identify successful new lines of retail merchandise; the results of pending or threatened litigation; the availability and costs of acceptable sites for development; adverse weather conditions; the acceptance of the Company's concepts as the Company expands into new markets and geographic regions; adverse general economic conditions including high or escalating gasoline prices; changes in interest rates affecting the Company's financing costs; changes in or implementation of additional governmental rules and regulations affecting wage and hour matters, health and safety, pensions and insurance; other undeterminable areas of government actions or regulations; and other factors described from time to time in the Company's filings with the Securities and Exchange Commission and press releases.