CRACKER BARREL OLD COUNTRY STORE, INC 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ​ REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of Cracker Barrel Old Country Store, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Cracker Barrel Old Country Store, Inc. and subsidiaries (the "Company") as of August 1, 2025, and August 2, 2024, and the related consolidated statements of income, changes in shareholders’ equity, and cash flows, for each of the three years in the period ended August 1, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of August 1, 2025, and August 2, 2024, and the results of its operations and its cash flows for each of the three years in the period ended August 1, 2025, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of August 1, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated September 26, 2025, expressed an unqualified opinion on the Company’s internal control over financial reporting. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. 56 Table of Contents Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Commitments and Contingencies – Insurance Reserves – Refer to Notes 1 and 14 to the financial statements Critical Audit Matter Description The Company self-insures a significant portion of its workers’ compensation and general liability program and records a reserve for all unresolved claims and an estimate of incurred but not reported (IBNR) claims. These reserves and estimates of IBNR claims are based upon a full scope actuarial study performed annually by management’s specialist during the fourth quarter and are adjusted by the actuarially determined losses and actual claims payments made subsequent to this full scope actuarial study during the fourth quarter. The reserves and losses in the actuarial study represent a range of possible outcomes within which no given estimate is more likely than any other estimate. Using this information, the Company records the expected losses in the lower half of the range, which is discounted to present value using a risk-free interest rate. The Company also monitors actual claims development as another means of estimating the adequacy of the historical reserves. We identified insurance reserves as a critical audit matter because estimating the reserve for all unresolved claims and IBNR claims involves significant estimation by management. This required a high degree of auditor judgment and an increased extent of effort, including the need to involve our actuarial specialists, when performing audit procedures to evaluate whether insurance reserves were appropriately recorded as of August 1, 2025. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to the insurance reserves included the following, among others: ● We tested the effectiveness of controls related to insurance reserves, including management’s controls over the claims data provided to the actuary and those over the estimation of unresolved claims and IBNR claims. ● We evaluated the methods and assumptions used by management to estimate the insurance reserves by: - Reconciling the claims data to the actuarial analysis. - Comparing management’s selected insurance reserve estimates within the range provided by their third-party actuary to historical trends. - Performing a retrospective review by comparing the prior-year recorded amounts to the subsequent claim emergence. - Developing, with the assistance of our actuarial specialists, an independent range of estimates of the insurance reserves, utilizing paid and reported loss development factors from the Company’s historical data and industry loss development factors as deemed necessary, and comparing our estimated range to management’s estimates. /s/ Deloitte & Touche LLP ​ Nashville, Tennessee September 26, 2025 ​ We have served as the Company’s auditor since 1974. ​ 57 Table of Contents CRACKER BARREL OLD COUNTRY STORE, INC. CONSOLIDATED BALANCE SHEETS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands except share data) ​ ​ August 01,2025 August 02,2024 ASSETS ​ ​ ​ ​ ​ ​ Current Assets: ​ ​ ​ Cash and cash equivalents ​ $ 39,643 ​ $ 12,035 Accounts receivable ​ 35,070 ​ 39,204 Income taxes receivable ​ 12,820 ​ 9,882 Inventories ​ 180,585 ​ 180,958 Prepaid expenses and other current assets ​ 44,994 ​ 36,135 Total current assets ​ 313,112 ​ 278,214 Land ​ 252,382 ​ 253,816 Buildings and improvements ​ 848,671 ​ 823,561 Restaurant and other equipment ​ 929,932 ​ 896,258 Leasehold improvements ​ 467,454 ​ 449,507 Construction in progress ​ 22,029 ​ 15,709 Total ​ 2,520,468 ​ 2,438,851 Less: Accumulated depreciation and amortization ​ 1,553,492 ​ 1,479,030 Property and equipment – net ​ 966,976 ​ 959,821 Operating lease right-of-use assets, net ​ 806,084 ​ 850,835 Intangible assets ​ 24,350 ​ 24,425 Other assets ​ 51,362 ​ 48,199 Total assets ​ $ 2,161,884 ​ $ 2,161,494 ​ ​ ​ ​ ​ ​ ​ LIABILITIES AND SHAREHOLDERS’ EQUITY ​ ​ ​ ​ ​ ​ Current Liabilities: ​ ​ ​ Accounts payable ​ $ 169,848 ​ $ 162,288 Current portion of long-term debt ​ 149,178 ​ 75 Current operating lease liabilities ​ 50,948 ​ 49,837 Taxes withheld and accrued ​ 42,532 ​ 41,433 Accrued employee compensation ​ 66,069 ​ 60,385 Accrued employee benefits ​ 29,775 ​ 28,476 Deferred revenues ​ 89,559 ​ 87,488 Dividend payable ​ 6,331 ​ 6,317 Other current liabilities ​ 21,363 ​ 17,908 Total current liabilities ​ 625,603 ​ 454,207 Long-term debt ​ 335,457 ​ 476,581 Long-term operating lease liabilities ​ 644,026 ​ 675,993 Other long-term obligations ​ 46,518 ​ 46,852 Deferred income taxes ​ 48,591 ​ 67,712 Commitments and Contingencies (Note 14) ​ ​ ​ ​ ​ ​ ​ ​ ​ Shareholders’ Equity: ​ ​ Preferred stock – 100,000,000 shares of $ 0.01 par value authorized; 300,000 shares designated as Series A Junior Participating Preferred Stock; no shares issued ​ — ​ — Common stock – 400,000,000 shares of $ 0.01 par value authorized; 2025 – 22,267,724 shares issued and outstanding; 2024– 22,203,043 shares issued and outstanding ​ 223 ​ 222 Additional paid-in capital ​ 10,515 ​ 12,575 Retained earnings ​ 450,951 ​ 427,352 Total shareholders’ equity ​ 461,689 ​ 440,149 Total liabilities and shareholders’ equity ​ $ 2,161,884 ​ $ 2,161,494 ​ See Notes to Consolidated Financial Statements ​ 58 Table of Contents CRACKER BARREL OLD COUNTRY STORE, INC. CONSOLIDATED STATEMENTS OF INCOME ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands except share data) ​ Fiscal years ended ​ August 01, 2025 August 02, 2024 July 28, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenue $ 3,483,684 ​ $ 3,470,762 ​ $ 3,442,808 Cost of goods sold (exclusive of depreciation and rent) ​ 1,081,029 ​ 1,087,631 ​ 1,127,617 Labor and other related expenses ​ 1,254,668 ​ 1,271,555 ​ 1,208,669 Other store operating expenses ​ 855,389 ​ 831,763 ​ 797,815 General and administrative expenses ​ 217,510 ​ 207,062 ​ 174,091 Impairment and store closing costs ​ 20,059 ​ 22,942 ​ 13,999 Goodwill impairment ​ — ​ ​ 4,690 ​ ​ — Operating income ​ 55,029 ​ 45,119 ​ 120,617 Other income: ​ ​ ​ ​ ​ ​ ​ ​ Gain on extinguishment of debt ​ ( 3,186 ) ​ ​ — ​ ​ — Interest expense, net ​ 20,489 ​ 20,933 ​ 17,006 Income before income taxes ​ 37,726 ​ 24,186 ​ 103,611 Provision for income taxes (income tax benefit) ​ ( 8,653 ) ​ ( 16,744 ) ​ 4,561 Net income $ 46,379 ​ $ 40,930 ​ $ 99,050 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share: ​ ​ ​ ​ ​ ​ ​ ​ Basic $ 2.08 ​ $ 1.84 ​ $ 4.47 Diluted $ 2.06 ​ $ 1.83 ​ $ 4.45 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares: ​ ​ ​ ​ ​ ​ ​ ​ Basic 22,252,034 ​ 22,191,961 ​ 22,167,875 Diluted 22,463,943 ​ 22,319,894 ​ 22,265,399 ​ See Notes to Consolidated Financial Statements. ​ 59 Table of Contents CRACKER BARREL OLD COUNTRY STORE, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (In thousands except share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ Total ​ ​ Common Stock ​ Paid-In ​ Retained ​ Shareholders’ ​ ​ Shares Amount Capital Earnings Equity Balances at July 29, 2022 ​ 22,281,443 ​ $ 223 ​ $ — ​ $ 511,256 ​ $ 511,479 Net income — ​ — ​ — ​ 99,050 ​ 99,050 Total comprehensive income — ​ — ​ — ​ 99,050 ​ 99,050 Cash dividends declared - $ 5.20 per share — ​ — ​ — ​ ( 115,852 ) ​ ( 115,852 ) Share-based compensation — ​ — ​ 9,045 ​ — ​ 9,045 Issuance of share-based compensation awards, net of shares withheld for employee taxes 43,974 ​ — ​ ( 2,448 ) ​ — ​ ( 2,448 ) Purchases and retirement of common stock ( 171,792 ) ​ ( 2 ) ​ ( 2,711 ) ​ ( 14,736 ) ​ ( 17,449 ) Balances at July 28, 2023 22,153,625 ​ $ 221 ​ $ 3,886 ​ $ 479,718 ​ $ 483,825 Net income — ​ — ​ — ​ 40,930 ​ 40,930 Total comprehensive income — ​ — ​ — ​ 40,930 ​ 40,930 Cash dividends declared - $ 4.15 per share — ​ — ​ — ​ ( 93,296 ) ​ ( 93,296 ) Share-based compensation — ​ — ​ 10,298 ​ — ​ 10,298 Issuance of share-based compensation awards, net of shares withheld for employee taxes 49,418 ​ 1 ​ ( 1,609 ) ​ — ​ ( 1,608 ) Balances at August 02, 2024 22,203,043 ​ $ 222 ​ $ 12,575 ​ $ 427,352 ​ $ 440,149 Net income — ​ — ​ — ​ 46,379 ​ 46,379 Total comprehensive income — ​ — ​ — ​ 46,379 ​ 46,379 Cash dividends declared - $ 1.00 per share — ​ — ​ — ​ ( 22,780 ) ​ ( 22,780 ) Share-based compensation — ​ — ​ 11,742 ​ — ​ 11,742 Issuance of share-based compensation awards, net of shares withheld for employee taxes 64,681 ​ 1 ​ ( 1,449 ) ​ — ​ ( 1,448 ) Purchase of capped call ​ — ​ ​ — ​ ​ ( 16,491 ) ​ ​ — ​ ​ ( 16,491 ) Deferred tax asset on capped call ​ — ​ ​ — ​ ​ 4,114 ​ ​ — ​ ​ 4,114 Unwinding of bond hedge and warrants ​ — ​ ​ — ​ ​ 52 ​ ​ — ​ ​ 52 Deferred tax impact of unwinding bond hedge ​ — ​ ​ — ​ ​ ( 28 ) ​ ​ — ​ ​ ( 28 ) Balances at August 01, 2025 22,267,724 ​ $ 223 ​ $ 10,515 ​ $ 450,951 ​ $ 461,689 ​ ​ ​ ​ See Notes to Consolidated Financial Statements ​ ​ ​ ​ ​ ​ ​ 60 Table of Contents CRACKER BARREL OLD COUNTRY STORE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) ​ ​ Fiscal years ended ​ ​ August 01, 2025 August 02, 2024 July 28, 2023 Cash flows from operating activities: ​ ​ ​ ​ Net income ​ $ 46,379 ​ $ 40,930 ​ $ 99,050 Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ Depreciation and amortization ​ ​ 122,238 ​ ​ 111,746 ​ ​ 104,485 Amortization of debt issuance costs ​ 1,877 ​ 1,752 ​ 1,730 Gain on extinguishment of debt ​ ​ ( 3,186 ) ​ ​ — ​ ​ — Loss on disposition of property and equipment ​ 8,591 ​ 9,143 ​ 6,600 Impairment ​ 19,772 ​ 17,448 ​ 11,692 Goodwill impairment ​ ​ — ​ ​ 4,690 ​ ​ — Share-based compensation ​ 11,742 ​ 10,298 ​ 9,045 Noncash lease expense ​ 60,712 ​ 59,523 ​ 59,767 Amortization of asset recognized from gain on sale and leaseback transactions ​ ​ 12,735 ​ ​ 12,735 ​ ​ 12,735 Changes in assets and liabilities: ​ ​ ​ ​ Accounts receivable ​ 4,342 ​ ( 7,477 ) ​ 3,404 Income taxes receivable ​ ( 2,938 ) ​ ( 7,820 ) ​ 389 Inventories ​ 373 ​ 8,406 ​ 23,885 Prepaids and other current assets ​ ​ ( 8,859 ) ​ ( 867 ) ​ ​ ( 11,043 ) Other assets ​ ( 1,002 ) ​ ( 3,566 ) ​ ( 848 ) Accounts payable ​ 7,560 ​ ( 3,196 ) ​ ( 4,387 ) Current operating lease liabilities ​ 1,111 ​ 3,501 ​ ( 8,235 ) Taxes withheld and accrued ​ 1,099 ​ 2,598 ​ ( 21,377 ) Accrued employee compensation ​ 5,684 ​ ( 4,448 ) ​ 13,151 Accrued employee benefits ​ 1,299 ​ 4,059 ​ ( 585 ) Deferred revenues ​ 2,071 ​ ( 7,528 ) ​ 1,401 Other current liabilities ​ 3,455 ​ ( 6,583 ) ​ 7,192 Long-term operating lease liabilities ​ ( 61,119 ) ​ ( 62,566 ) ​ ( 49,634 ) Other long-term liabilities ​ ​ ( 2 ) ​ ​ ( 7,254 ) ​ ​ ( 2,023 ) Deferred income taxes ​ ( 15,035 ) ​ ( 6,544 ) ​ ( 5,937 ) Net cash provided by operating activities ​ 218,899 ​ 168,980 ​ 250,457 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from investing activities: ​ ​ ​ Purchase of property and equipment ​ ( 159,144 ) ​ ( 128,295 ) ​ ( 126,987 ) Proceeds from insurance recoveries of property and equipment ​ 497 ​ 834 ​ 1,600 Proceeds from sale of property and equipment ​ 1,945 ​ 3,134 ​ 1,068 Net cash used in investing activities ​ ( 156,702 ) ​ ( 124,327 ) ​ ( 124,319 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities: ​ ​ ​ Proceeds from issuance of long-term debt ​ 548,500 ​ 406,500 ​ 180,000 Principal payments under long-term debt ​ ( 728,575 ) ​ ( 346,575 ) ​ ( 190,124 ) Net proceeds from settlement of bond hedge and warrants ​ ​ 52 ​ ​ — ​ ​ — Repayment of convertible senior notes ​ ​ ( 145,875 ) ​ ​ — ​ ​ — Proceeds from issuance of convertible senior notes ​ ​ 335,238 ​ ​ — ​ ​ — Payment for capped call option related to convertible senior notes ​ ​ ( 16,491 ) ​ ​ — ​ ​ — Taxes withheld from issuance of share-based compensation awards ​ ( 1,448 ) ​ ( 1,608 ) ​ ( 2,448 ) Purchases and retirement of common stock ​ — ​ — ​ ( 17,449 ) Deferred financing costs ​ ( 2,892 ) ​ — ​ — Dividends on common stock ​ ( 23,098 ) ​ ( 116,082 ) ​ ( 116,075 ) Net cash used in financing activities ​ ( 34,589 ) ​ ( 57,765 ) ​ ( 146,096 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash and cash equivalents ​ 27,608 ​ ( 13,112 ) ​ ( 19,958 ) Cash and cash equivalents, beginning of period ​ 12,035 ​ 25,147 ​ 45,105 Cash and cash equivalents, end of period ​ $ 39,643 ​ $ 12,035 ​ $ 25,147 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental disclosures of cash flow information: ​ ​ ​ Cash paid during the period for: ​ ​ ​ Interest, net of amounts capitalized ​ $ 17,242 ​ $ 18,484 ​ $ 13,596 Income taxes ​ 10,328 ​ 9,212 ​ 6,486 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental schedule of non-cash investing and financing activities*: ​ ​ ​ Capital expenditures accrued in accounts payable ​ $ 9,323 ​ $ 9,499 ​ $ 9,633 Dividends declared but not yet paid ​ 7,117 ​ 7,435 ​ 30,233 ​ See Notes to Consolidated Financial Statements. ​ 61 Table of Contents CRACKER BARREL OLD COUNTRY STORE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In thousands except share data) 1. Nature of Operations and Summary of Significant Accounting Policies Cracker Barrel Old Country Store, Inc. and its affiliates (collectively, in the Notes, the “Company”) are principally engaged in the operation and development in the United States (“U.S.”) of the Cracker Barrel Old Country Store® (“Cracker Barrel”) concept. Basis of Presentation Fiscal year – The Company’s fiscal year ends on the Friday nearest July 31st and each quarter consists of thirteen weeks unless noted otherwise. The periods presented in the Company’s financial statements are the fiscal years ended August 01, 2025 (“2025”), August 02, 2024 (“2024”) and July 28, 2023 (“2023”), respectively. Each of these periods has 52 weeks except for 2024, which consisted of 53 weeks. Similarly, references in these Notes to a year or quarter are to the Company’s fiscal year or quarter unless expressly noted or the context clearly indicates otherwise. GAAP – The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). Principles of consolidation – The Consolidated Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All significant intercompany transactions and balances have been eliminated. Use of estimates – Management of the Company has made certain estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting periods to prepare these Consolidated Financial Statements in conformity with GAAP. Management believes that such estimates have been based on reasonable and supportable assumptions and that the resulting estimates are reasonable for use in the preparation of the Consolidated Financial Statements. Actual results, however, could differ from those estimates. Summary of Significant Accounting Policies Cash and cash equivalents – The Company’s policy is to consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Accounts receivable – Accounts receivable represent their estimated net realizable value. Accounts receivable are written off when they are deemed uncollectible. Inventories – Cost of restaurant inventory is determined by the first ‑ in, first ‑ out (“FIFO”) method. Retail inventories are valued using the retail inventory method (“RIM”) except at the retail distribution center which are valued using moving average cost. Approximately 60 % of retail inventories are valued using RIM. Retail inventories valued using RIM are stated at the lower of cost or market. Cost of restaurant inventory and retail inventory valued using moving average cost are stated at the lower of cost and net realizable value. See Note 3 for additional information regarding the components of inventory. 62 Table of Contents Valuation provisions are included for retail inventory obsolescence, retail inventory shrinkage, returns and amortization of certain items. The estimate of retail inventory shrinkage is adjusted upon physical inventory counts. Annual physical inventory counts are conducted based upon a cyclical inventory schedule. An estimate of shrinkage is recorded for the time period between physical inventory counts by using a two-year average of the physical inventories’ results on a store-by-store basis. Property and equipment – Property and equipment are stated at cost. For financial reporting purposes, depreciation and amortization on these assets are computed by use of the straight ‑ line and double ‑ declining balance methods over the estimated useful lives of the respective assets, as follows: ​ ​ ​ ​ ​ Years Buildings and improvements 30 - 45 Restaurant and other equipment 2 - 10 Leasehold improvements 1 - 35 ​ Accelerated depreciation methods are generally used for income tax purposes. Total depreciation expense and depreciation expense related to store operations for each of the three years are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 ​ 2023 ​ Total depreciation expense ​ $ 121,432 ​ $ 110,938 ​ $ 103,691 ​ Depreciation expense related to store operations* ​ 112,698 ​ 103,169 ​ ​ 96,339 ​ ​ *Depreciation expense related to store operations is included in other store operating expenses in the Consolidated Statements of Income. Gain or loss is recognized upon disposal of property and equipment. The asset and related accumulated depreciation and amortization amounts are removed from the accounts. Maintenance and repairs, including the replacement of minor items, are charged to expense and major additions to property and equipment are capitalized. Impairment of long-lived assets – The Company assesses the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets is measured by comparing the carrying value of the asset to the undiscounted future cash flows expected to be generated by the asset. If the total expected future cash flows are less than the carrying value of the asset, the carrying value is written down, for an asset to be held and used, to the estimated fair value or, for an asset to be disposed of, to the fair value, net of estimated costs of disposal. Any loss resulting from impairment is recognized by a charge to income. During 2025, 2024 and 2023, the Company recorded impairment charges of $ 18,391 , $ 15,616 and $ 11,692 , respectively, for long-lived assets which are included in the impairment and store closing costs line on the Consolidated Statements of Income. See Note 8 for additional information regarding impairment charges in 2025 and 2024 related to right-of-use assets. Other intangible assets – Intangibles primarily consist of the MSBC tradename and liquor licenses. The MSBC tradename was capitalized as an indefinite-lived intangible asset and, at both August 01, 2025 and August 02, 2024, was $ 20,960 . The costs of obtaining non-transferable liquor licenses that are directly issued by local government agencies for nominal fees are expensed as incurred. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets. Liquor licenses capitalized as intangible assets were $ 3,365 at both August 01, 2025 and August 02, 2024. 63 Table of Contents Segment reporting – Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Using these criteria, the Company manages its business on the basis of one operating and one reportable operating segment. See Note 6 for additional information regarding segment reporting. Unredeemed gift cards and certificates – Unredeemed gift cards and certificates represent a liability of the Company related to unearned income and are recorded at their expected redemption value. No revenue is recognized in connection with the point-of-sale transaction when gift cards or gift certificates are sold. Any amounts remitted to states under escheat or similar laws reduce the Company’s deferred revenue liability and have no effect on revenue or expense while any amounts that the Company is permitted to retain are recorded as revenue. See “Revenue recognition” section in this Note and Note 7 for information regarding breakage. Revenue recognition – Revenue consists primarily of sales from restaurant and retail operations. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a restaurant guest, retail customer or other customer. The Company recognizes revenues from restaurant sales when payment is tendered at the point of sale, as the Company’s performance obligation to provide food and beverages is satisfied. The Company recognizes revenues from retail sales when payment is tendered at the point of sale, as the Company’s performance obligation to provide merchandise is satisfied. Ecommerce sales, including shipping revenue, are recorded upon delivery to the customer. Additionally, the Company provides for estimated returns based on return history and sales levels. The Company’s policy is to present sales in the Consolidated Statements of Income on a net presentation basis after deducting sales tax. Included in restaurant and retail revenue is gift card breakage. Customer purchases of gift cards, to be utilized at the Company’s stores, are not recognized as sales until the card is redeemed and the customer purchases food and/or merchandise. Gift cards do not carry an expiration date; therefore, customers can redeem their gift cards indefinitely. A certain number of gift cards will not be fully redeemed. Management estimates unredeemed balances and recognizes gift card breakage revenue for these amounts in the Company’s Consolidated Statements of Income over the expected redemption period. Gift card breakage is recognized when the likelihood of a gift card being redeemed by the customer is remote and the Company determines that there is not a legal obligation to remit the unredeemed gift card balance to the relevant jurisdiction. The determination of the gift card breakage rate is based upon the Company’s specific historical redemption patterns. The Company recognizes gift card breakage by applying its estimate of the rate of gift card breakage over the period of estimated redemption. See Note 7 for additional information regarding revenue recognition. Insurance – The Company self-insures a significant portion of its workers’ compensation and general liability programs. The Company purchases insurance for individual workers’ compensation claims that exceed $ 750 or $ 1,000 depending on the state in which the claim originates. The Company purchases insurance for individual general liability claims that exceed $ 500 . The Company records a reserve for workers’ compensation and general liability for all unresolved claims and for an estimate of incurred but not reported claims (“IBNR”). These reserves and estimates of IBNR claims are based upon a full scope actuarial study which is performed annually during the Company’s fourth quarter and is adjusted by the actuarially determined losses and actual claims payments made subsequent to this full scope actuarial study during the fourth quarter. Additionally, the Company performs limited scope actuarial studies on a quarterly basis to verify and/or modify the Company’s reserves. The reserves and losses in the actuarial study represent a range of possible outcomes within which no given estimate is more likely than any other estimate. As such, the Company records the losses at the lower half of that range and discounts them to present value using a risk-free interest rate based on projected timing of payments. The Company also monitors actual claims development, including incurrence or settlement of individual large claims during the interim periods between actuarial studies as another means of estimating the adequacy of its reserves. 64 Table of Contents The Company’s group health plans combine the use of self-insured and fully-insured programs. Benefits for any individual (employee or dependents) in the self-insured program are limited. The Company records a liability for the self-insured portion of its group health program for all unpaid claims based upon a loss development analysis derived from actual group health claims payment experience. The Company also records a liability for unpaid prescription drug claims based on historical experience. Store pre-opening costs – Start-up costs of a new store are expensed when incurred. Leases – The Company’s leases are classified as operating leases. The Company has ground leases for its leased stores and office space leases that are recorded as operating leases under various non-cancellable operating leases. The Company also leases its advertising billboards, vehicle fleets and certain equipment under various non-cancellable operating leases. To determine whether a contract is or contains a lease, the Company determines at contract inception whether it contains the right to control the use of an identified asset for a period of time in exchange for consideration. If the contract has the right to obtain substantially all of the economic benefit from use of the identified asset and the right to direct the use of the identified asset, the Company recognizes a right-of-use asset and lease liability. The Company’s leases all have varying terms and expire at various dates through 2060. Restaurant leases typically have base terms of ten years with four to five optional renewal periods of five years each. The Company uses a lease life that generally begins on the commencement date, including the rent holiday periods, and generally extends through certain renewal periods that can be exercised at the Company’s option. During rent holiday periods, which include the pre-opening period during construction, the Company has possession of and access to the property, but is not obligated to, and normally does not, make rent payments. The Company has included lease renewal options in the lease term for calculations of the right-of-use asset and liability for which at the commencement of the lease it is reasonably certain that the Company will exercise those renewal options. Additionally, some of the leases have contingent rent provisions and others require adjustments for inflation or index. Contingent rent is determined as a percentage of gross sales in excess of specified levels. The Company records a contingent rent liability and corresponding rent expense when it is probable sales have been achieved in amounts in excess of the specified levels. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company elected to not separate lease and non-lease components. Additionally, the Company elected to apply the short term lease exemption to all asset classes and the short term lease expense for the period reasonably reflects the short term lease commitments. As the Company’s leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at the time of commencement or modification date in determining the present value of lease payments. For operating leases that commenced prior to the date of adoption of the new lease accounting guidance, the Company used the incremental borrowing rate as of the adoption date. Assumptions used in determining the Company’s incremental borrowing rate include the Company’s implied credit rating and an estimate of secured borrowing rates based on comparable market data. See Note 8 for additional information regarding leases. Advertising – The Company expenses the costs of producing advertising the first time the advertising takes place. Other advertising costs are expensed as incurred. Advertising expense for each of the three years was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 2023 Advertising expense ​ $ 119,397 ​ $ 112,793 ​ $ 89,798 ​ 65 Table of Contents Share-based compensation – The Company’s share-based compensation consists of nonvested stock awards and units. Share-based compensation is recorded in general and administrative expenses in the Consolidated Statements of Income. Share-based compensation expense is recognized based on the grant date fair value and the achievement of performance conditions for certain awards. The Company recognizes share-based compensation expense on a straight-line basis over the requisite service period, which is generally the award’s vesting period, or to the date on which retirement eligibility is achieved, if shorter. Certain nonvested stock awards and units contain performance conditions. Compensation expense for performance-based awards is recognized when it is probable that the performance criteria will be met. If any performance goals are not met, no compensation expense is ultimately recognized and, to the extent previously recognized, compensation expense is reversed. If a share-based compensation award is modified after the grant date, incremental compensation expense, if any, is recognized in an amount equal to the excess of the fair value of the modified award over the fair value of the original award immediately before the modification. Incremental compensation expense for vested awards is recognized immediately. For unvested awards, the sum of the incremental compensation expense and the remaining unrecognized compensation expense for the original award on the modification date is recognized over the modified service period. Additionally, the Company’s policy is to issue shares of common stock to satisfy exercises of share-based compensation awards. See Note 9 for additional information regarding share-based compensation. Income taxes – The Company’s provision for income taxes (income tax benefit) includes employer tax credits for FICA taxes paid on employee tip income and other employer tax credits which are accounted for using the flow-through method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company recognizes (or derecognizes) a tax position taken or expected to be taken in a tax return in the financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained (or not sustained) upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. The Company recognizes, net of tax, interest and estimated penalties related to uncertain tax positions in its provision for income taxes (income tax benefit). See Note 12 for additional information regarding income taxes. Net income per share – Basic consolidated net income per share is computed by dividing consolidated net income available to common shareholders by the weighted average number of common shares outstanding for the reporting period. Diluted consolidated net income per share reflects the potential dilution that could occur if securities, options or other contracts to issue common stock were exercised or converted into common stock and is based upon the weighted average number of common and common equivalent shares outstanding during the reporting period. Common equivalent shares related to stock options and nonvested stock awards and units issued by the Company are calculated using the treasury stock method. The outstanding stock options and nonvested stock awards and units issued by the Company represent the only dilutive effects on diluted consolidated net income per share. The 2026 Notes, the 2030 Notes and the warrants related to the 2026 Notes are calculated using the net share settlement option under the if-converted method. Because the principal amount of the 2026 Notes and the 2030 Notes will be settled in cash with any excess conversion value settled in cash or shares of common stock, the 2026 Notes and the 2030 Notes have been excluded from the computation of diluted consolidated net income per share because the average market price of the Company’s common stock during the reporting period did not exceed the conversion prices of $ 156.34 and $ 72.23 , respectively. Warrants were excluded from the computation of diluted consolidated net income per share since the warrants’ strike price of $ 218.88 was greater than the average market price of the Company’s common stock during the reporting period. See Note 4 for additional information regarding the 2026 Notes and the 2030 Notes and Note 13 for additional information regarding additional information regarding net income per share. 66 Table of Contents Recent Accounting Pronouncements Adopted Segment Disclosures In November 2023, the Financial Accounting Standards Board (“FASB”) issued new reportable segment disclosure requirements which require incremental segment information related to measuring segment performance on an annual and interim basis. These new disclosure requirements are effective for the fiscal periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. These disclosure requirements should be applied on a retrospective basis. The adoption of this guidance had no impact on the Company’s consolidated financial position or results of operations. See Note 6 for the Company’s segment disclosures. Debt With Conversion and other Options In November 2024, the FASB issued guidance which clarifies the accounting for settlements of convertible debt instruments that include inducement offers, specifically when the consideration transferred includes all amounts (in form and amount) issuable under the original conversion terms of the instrument. Under the new guidance, if the inducement offer includes all consideration issuable under the original conversion privileges, the transaction is accounted for as an induced conversion, and only the fair value of any additional consideration is recognized as an expense. No gain or loss is recognized on the conversion of the original debt. If the criteria are not met, the transaction is accounted for as a debt extinguishment. This guidance is effective for all entities for annual reporting periods. Early adoption is permitted. The Company early adopted this guidance on a retrospective basis in the fourth quarter of 2025. See Note 4 for a discussion of the Company’s repurchase of $ 150,000 aggregate principal amount of the 2026 Notes. This transaction did not qualify as an induced conversion under this new guidance. Recent Accounting Pronouncements Not Yet Adopted Income Tax Disclosures In December 2023, the FASB issued new income tax disclosure requirements which require disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation and modifies other income tax-related disclosures. These new disclosure requirements are effective for annual periods beginning after December 15, 2024 and allow for adoption on a prospective basis, with a retrospective option. The Company is currently evaluating the effect of adopting these new disclosure requirements on its consolidated financial statements and related disclosures in 2026. Disaggregation of Income Statement Expense In November 2024, the FASB issued new disclosure requirements which require disaggregated information about certain income statement line items. These new disclosure requirements are effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. These disclosure requirements may be applied either prospectively to financial statements issued for reporting periods after the effective date or retrospectively to any or all periods presented in the financial statements. The Company is currently evaluating the effect of adopting these new disclosure requirements on its consolidated financial statements and related disclosures in 2028 as well as interim disclosures beginning in the first quarter of 2029. ​ ​ ​ 67 Table of Contents 2. Fair Value Measurements Fair value for certain of the Company’s assets and liabilities is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, a three-level hierarchy for inputs is used. These levels are: ● Quoted Prices in Active Markets for Identical Assets (“Level 1”) – quoted prices (unadjusted) for an identical asset or liability in an active market. ● Significant Other Observable Inputs (“Level 2”) – quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. ● Significant Unobservable Inputs (“Level 3”) – unobservable and significant to the fair value measurement of the asset or liability. The Company’s assets and liabilities measured at fair value on a recurring basis at August 01, 2025 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Fair ​ ​ Level 1 ​ Level 2 ​ Level 3 ​ Value Cash equivalents* ​ $ 27,501 ​ $ — ​ $ — ​ $ 27,501 Total ​ $ 27,501 ​ $ — ​ $ — ​ $ 27,501 Deferred compensation plan assets** ​ ​ ​ ​ ​ ​ 22,700 Total assets at fair value ​ ​ ​ ​ ​ ​ $ 50,201 ​ The Company’s assets and liabilities measured at fair value on a recurring basis at August 02, 2024 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Fair ​ ​ Level 1 ​ Level 2 ​ Level 3 ​ Value Cash equivalents* ​ $ 1 ​ $ — ​ $ — ​ $ 1 Total ​ $ 1 ​ $ — ​ $ — ​ $ 1 Deferred compensation plan assets** ​ ​ ​ ​ ​ ​ 25,719 Total assets at fair value ​ ​ ​ ​ ​ ​ $ 25,720 *Consists of money market fund investments. **Represents plan assets invested in mutual funds established under a Rabbi Trust for the Company’s Non-Qualified Savings Plan and is included in the Consolidated Balance Sheets as other assets. See Note 11 for additional information regarding the Company’s Non-Qualified Savings Plan. The Company did no t have any liabilities measured at fair value on a recurring basis at August 01, 2025 and August 02, 2024. The Company’s money market fund investments are measured at fair value using quoted market prices. The Company’s deferred compensation plan assets are measured based on net asset value per share as a practical expedient to estimate fair value. The fair values of accounts receivable and accounts payable at August 01, 2025 and August 02, 2024, approximate their carrying amounts because of their short duration. The fair value of the Company’s variable rate debt, based on quoted market prices, which are considered Level 1 inputs, approximates its carrying amounts at August 01, 2025 and August 02, 2024. The Company’s financial instruments that are not remeasured at fair value include the 2026 Notes and the 2030 Notes. See Note 4 for additional information regarding the 2026 Notes and the 2030 Notes. The Company estimates the fair value of the 2026 Notes and 2030 Notes through consideration of quoted market prices of similar instruments, classified as Level 2 as described above. The estimated fair value of the 2026 Notes was $ 144,075 and $ 267,939 as of August 01, 2025 and August 02, 2024, respectively. The estimated fair value of the 2030 Notes was $ 374,246 as of August 01, 2025. 68 Table of Contents Assets Measured at Fair Value on a Nonrecurring Basis In 2025, seven Cracker Barrel stores and twenty-five MSBC locations were determined to be impaired because of declining operating performance. In 2024, six Cracker Barrel stores and thirteen MSBC locations were determined to be impaired because of declining operating performance. Fair value of these locations was determined by sales prices of comparable assets or estimates of discounted future cash flows considering their highest and best use. Assumptions used in the cash flow model included projected annual revenue growth rates and projected cash flows, which can be affected by economic conditions and management’s expectations. Additionally, changes in the local and national economies and markets for real estate and other assets can impact the sales prices of the assets. The Company has determined that the majority of the inputs used to value its long-lived assets held and used are unobservable inputs, and thus, are considered Level 3 inputs. Based on its analysis, the Company recorded impairment charges of $ 19,772 and $ 17,448 , respectively, in 2025 and 2024, which is included in the impairment and store closing costs line on the Consolidated Statements of Income. In 2024, based on the Company’s analysis of MSBC’s goodwill, the Company concluded that the goodwill was impaired based on changes in the macroeconomic environment, including interest rate and inflationary pressures, and declining financial trends, which resulted in a calculated fair value lower than the goodwill’s carrying value. As part of its analysis, the Company used the discounted cash flow method to estimate fair value. Significant inputs for this method include projected cash flows, growth rate and discount rate. The Company recorded an impairment of the entire goodwill amount of $ 4,690 in 2024; this amount is recorded in the goodwill impairment line on the Consolidated Statements of Income. 3. Inventories Inventories were comprised of the following at: ​ ​ ​ ​ ​ ​ ​ ​ ​ August 01, 2025 August 02, 2024 Retail ​ $ 135,631 ​ $ 138,278 Restaurant ​ 25,482 ​ 25,829 Supplies ​ 19,472 ​ 16,851 Total ​ $ 180,585 ​ $ 180,958 ​ ​ 4. Debt On May 16, 2025, the Company entered into a five-year $ 800,000 revolving credit facility (the “2025 Credit Facility”). The 2025 Credit Facility replaced the five-year $ 700,000 revolving credit facility (the “2022 Revolving Credit Facility”). The 2025 Credit Facility consists of a $ 550,000 revolving credit facility, which includes a $ 25,000 swingline subfacility and a $ 75,000 letter of credit subfacility. The 2025 Credit Facility also provides for an uncommitted accordion feature that allows the Company to increase the revolving credit facility by up to $ 200,000 , plus any additional amount that would not cause the Company to exceed a consolidated total leverage ratio of 3.50 to 1.00 (subject to securing additional commitments from existing lenders or new lending institutions). The 2025 Credit Facility also initially provided for a $ 250,000 delayed draw term loan facility (the “Delayed Draw Term Facility”), which was terminated on June 13, 2025 in connection with the Company’s issuance and sale of $ 345,000 aggregate principal amount of 1.75 % Senior Convertible Notes due in 2030 (the “2030 Notes”). See further information regarding the 2030 Notes described below. 69 Table of Contents In accordance with the 2025 Revolving Credit Facility, outstanding borrowings bear interest, at the Company’s election, either at (1) the Term Secured Overnight Financing Rate (SOFR), plus an applicable margin based on the Company’s consolidated total leverage ratio (the “Applicable Margin”) or (2) a base rate equal to the greatest of (i) the prime rate, (ii) a rate that is 0.5 % in excess of the Federal Funds Rate, and (iii) one-month Term SOFR plus 1.0 %, in each case, plus an Applicable Margin. At August 01, 2025, the Company had no borrowings under the 2025 Revolving Credit Facility. At August 02, 2024, the Company had $ 180,000 in outstanding borrowings with a weighted average interest rate of 7.19 % under the 2022 Revolving Credit Facility. At August 01, 2025, the Company had $ 34,004 of standby letters of credit, which reduce the Company’s borrowing availability under the 2025 Revolving Credit Facility. See Note 14 regarding the standby letters of credit. At August 01, 2025, the Company had $ 515,996 in borrowing availability under the 2025 Revolving Credit Facility. The 2025 Revolving Credit Facility contains customary financial covenants, which include maintenance of a maximum consolidated total leverage ratio and a minimum consolidated interest coverage ratio. At August 01, 2025, the Company was in compliance with all financial covenants under the 2025 Revolving Credit Facility. The 2025 Revolving Credit Facility also imposes restrictions on the amount of dividends the Company is permitted to pay and the amount of shares the Company is permitted to repurchase. Under the 2025 Revolving Credit Facility, provided there is no default existing and the total of the Company’s availability under the 2025 Revolving Credit Facility plus the Company’s cash and cash equivalents on hand is at least $ 100,000 (the “Cash Availability”), the Company may declare and pay cash dividends on shares of its common stock and repurchase shares of its common stock (1) in an unlimited amount if, at the time such dividend or repurchase is made, the Company’s consolidated total leverage ratio is 3.50 to 1.00 or less and (2) in an aggregate amount not to exceed $ 100,000 in any fiscal year if, at the time such dividend or repurchase is made, the Company’s consolidated total leverage ratio is greater than 3.50 to 1.00 at the time the dividend or repurchase is made; notwithstanding (1) and (2), so long as immediately after giving effect to the payment of any such dividends, Cash Availability is at least $ 100,000 , the Company may declare and pay cash dividends on shares of its common stock in an aggregate amount not to exceed in any fiscal year the product of the aggregate amount of dividends declared in the fourth quarter of the immediately preceding fiscal year multiplied by four . Convertible Senior Notes On June 18, 2021, the Company completed a private offering of $ 300,000 aggregate principal amount of its 0.625 % convertible Senior Notes due in 2026 (the “2026 Notes”) which included the exercise in full of the initial purchasers’ option to purchase up to an additional $ 25,000 principal amount of the 2026 Notes. The 2026 Notes are governed by the terms of an indenture between the Company and U.S. Bank National Association as the Trustee. The 2026 Notes will mature on June 15, 2026 , unless earlier converted, repurchased or redeemed. The 2026 Notes bear cash interest at an annual rate of 0.625 %, payable semi-annually in arrears on June 15 and December 15 of each year. The 2026 Notes are unsecured obligations and do not contain any financial or operating covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. Upon the occurrence of an event of default, the principal amount of, and all accrued and unpaid interest on, all of the notes then outstanding will immediately become due and payable. However, notwithstanding the foregoing, the Company may elect, at its option, that the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants in the Indenture will consist exclusively of the right of the noteholders to receive special interest on the 2026 Notes for up to 180 calendar days during which such event of default has occurred and is continuing, at a specified rate for the first 90 days of 0.25 % per annum, and thereafter at a rate of 0.50 % per annum, on the principal amount of the 2026 Notes. 70 Table of Contents The initial conversion rate applicable to the 2026 Notes was 5.3153 shares of the Company’s common stock per $ 1,000 principal amount of 2026 Notes, which represented an initial conversion price of approximately $ 188.14 per share of the Company’s common stock, a premium of 25.0 % over the last reported sale price of $ 150.51 per share on June 15, 2021, the date on which the 2026 Notes were priced. The conversion rate is subject to customary adjustments upon the occurrence of certain events, including for the payment of dividends to holders of the Company’s common stock. On August 01, 2025, the conversion rate, as adjusted, was 6.3962 shares of the Company’s common stock per $ 1,000 principal amount of the 2026 Notes. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time. Net proceeds from the 2026 Notes offering were approximately $ 291,000 , after deducting the initial purchasers’ discounts and commissions and the Company’s offering fees and expenses. Contemporaneously with the 2030 Notes offering described below, the Company used approximately $ 145,900 of the net proceeds from the 2030 Notes for the repurchase of $ 150,000 aggregate principal amount of 2026 Notes in separate and privately negotiated transactions and recorded a gain on extinguishment of debt of $ 3,186 . This amount is recorded in the gain on extinguishment of debt line on the Consolidated Statements of Income. During any calendar quarter preceding September 30, 2021, in which the closing price of the Company’s common stock exceeds 130 % of the applicable conversion price of the 2026 Notes on at least 20 of the last 30 consecutive trading days of the quarter, holders may in the immediate quarter following, convert all or a portion of their 2026 Notes. When a conversion notice is received, the Company has the option to pay or deliver the conversion amount entirely in cash or a combination of cash and shares of the Company’s common stock. The holders of the 2026 Notes were not eligible to convert their 2026 Notes during 2025, 2024, 2023 or 2022. Accordingly, as August 02, 2024, the Company could not be required to settle the 2026 Notes in cash and, therefore, the 2026 Notes were classified as long-term debt. As of August 01, 2025, the 2026 Notes are classified as a current liability due to their maturity date in 2026. The following table includes the outstanding principal amount and carrying value of the 2026 Notes as of the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ August 01, 2025 August 02, 2024 Liability component ​ ​ ​ ​ ​ ​ Principal ​ $ 150,000 ​ $ 300,000 Less: Debt issuance costs ​ 822 ​ 3,419 Net carrying amount ​ $ 149,178 ​ $ 296,581 ​ The effective rate of the 2026 Notes over their expected life is 1.23 %. The following is a summary of interest expense for the 2026 Notes for each of the three years: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 2023 Coupon interest ​ $ 1,679 ​ $ 1,932 ​ $ 1,896 Amortization of issuance costs ​ 1,658 ​ 1,752 ​ 1,730 Total interest expense ​ $ 3,337 ​ $ 3,684 ​ $ 3,626 ​ 71 Table of Contents 2030 Notes On June 13, 2025, the Company completed a private offering of $ 345,000 aggregate principal amount of the 2030 Notes, which included the exercise in full of the initial purchasers’ option to purchase up to an additional $ 45,000 principal amount of the 2030 Notes. The 2030 Notes are governed by the terms of an indenture between the Company and U.S. Bank Trust Company, National Association as the Trustee. The 2030 Notes will mature on September 15, 2030, unless earlier converted, repurchased or redeemed. The 2030 Notes bear cash interest at an annual rate of 1.75 %, payable semi-annually in arrears on March 15 and September 15 of each year, commencing on March 15, 2026. The 2030 Notes are unsecured obligations and do not contain any financial or operating covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. Upon the occurrence of an event of default, the principal amount of, and all accrued and unpaid interest on, all of the 2030 Notes then outstanding will immediately become due and payable. However, notwithstanding the foregoing, the Company may elect, at its option, that the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants in the Indenture will consist exclusively of the right of the noteholders to receive special interest on the 2030 Notes for up to 180 calendar days during which such event of default has occurred and is continuing, at a specified rate for the first 90 days of 0.25 % per annum, and thereafter at a rate of 0.50 % per annum, on the principal amount of the 2030 Notes. The initial conversion rate applicable to the 2030 Notes was 13.8455 shares of the Company’s common stock per $ 1,000 principal amount of 2030 Notes, which represented an initial conversion price of approximately $ 72.23 per share of the Company’s common stock, a premium of approximately 32.5 % over the last reported sale price of $ 54.51 per share on June 10, 2025, the date on which the 2030 Notes were priced. The conversion rate is subject to customary adjustments upon the occurrence of certain events. On August 01, 2025, the conversion rate was 13.8455 shares of the Company’s common stock per $ 1,000 principal amount of the 2030 Notes. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time. Net proceeds from the 2030 Notes offering were approximately $ 335,000 , after deducting the initial purchasers’ discounts and commissions and the Company’s offering fees and expenses. During any calendar quarter commencing after the calendar quarter ending on September 30, 2025 (and only during such calendar quarter), if the last reported sale price per share of the Company’s common stock exceeds 130 % of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter, holders may in the immediate quarter following, convert all or a portion of their 2030 Notes. When a conversion notice is received, the Company will settle any conversions by paying or delivering, as applicable, cash or, if applicable and at the Company’s election, a combination of cash (which shall not be less than $1,000 for each $1,000 principal amount of 2030 Notes being settled) and shares of the Company’s common stock, based on the applicable conversion rate(s) at the time of each such conversion. The following table includes the outstanding principal amount and carrying value of the 2030 Notes as of the period indicated: ​ ​ ​ ​ ​ ​ August 01, 2025 Liability component ​ ​ ​ Principal ​ $ 345,000 Less: Debt issuance costs ​ 9,543 Net carrying amount ​ $ 335,457 ​ The effective rate of the 2030 Notes over their expected life is 2.33 %. 72 Table of Contents The following is a summary of interest expense for the 2030 Notes for 2025: ​ ​ ​ ​ ​ 2025 Coupon interest $ 755 Amortization of issuance costs 219 Total interest expense $ 974 ​ Convertible Note Hedge and Warrant Transactions In connection with the offering of the 2026 Notes, the Company entered into convertible note hedge transactions (the “Convertible Note Hedge Transactions”) with certain of the initial purchasers of the 2026 Notes and/or their respective affiliates and other financial institutions (in this capacity, the “Hedge Counterparties”). Concurrently with the Company’s entry into the Convertible Note Hedge Transactions, the Company also entered into separate, warrant transactions with the Hedge Counterparties collectively relating to the same number of shares of the Company’s common stock, which initially is approximately 1,600,000 shares, subject to customary anti-dilution adjustments, and for which the Company received proceeds that partially offset the cost of entering into the Convertible Note Hedge Transactions (the “Warrant Transactions”). The Convertible Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the Company’s common stock that initially underlie the 2026 Notes and are expected generally to reduce the potential equity dilution, and/or offset any cash payments in excess of the principal amount due, as the case may be, upon conversion of the 2026 Notes. By default, the Warrant Transactions are net share settled and the Company has the option to settle in cash or shares. The Warrant Transactions could have a dilutive effect on the Company’s common stock to the extent that the price of its common stock exceeds the strike price of the Warrant Transactions. The strike price was initially $ 263.39 per share and is subject to certain adjustments under the terms of the Warrant Transactions. On August 01, 2025, the strike price, as adjusted, of the Warrant Transactions was adjusted to $ 218.88 per share as a result of dividends declared since the 2026 Notes were issued. As these transactions meet certain accounting criteria, the Convertible Note Hedge Transactions and Warrant Transactions were recorded in shareholders’ equity within additional paid-in capital, not accounted for as derivatives and are not remeasured each reporting period. In connection with the repurchase of the 2026 Notes, on June 16, 2025, the Company entered into partial unwind agreements with the Hedge Counterparties, to unwind a portion of the Convertible Note Hedge Transactions and Warrant Transactions underlying the repurchased 2026 Notes. These transactions were recorded in shareholders’ equity within additional paid-in capital. Capped Call Transactions In connection with the offering of the 2030 Notes, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain of the initial purchasers of the 2030 Notes and/or their respective affiliates and other financial institutions (the “Option Counterparties”). The Capped Call Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the Company’s common stock that initially underlie the 2030 Notes and are expected generally to reduce or offset the potential equity dilution upon any conversion of the 2030 Notes, and/or offset any cash payments that the Company may be required to make in excess of the principal amount of converted 2030 Notes with such reduction and/or offset subject to a cap, based on the cap price of the Capped Call Transactions. The cap price of the Capped Call Transactions is initially approximately $ 87.22 and is subject to certain adjustments under the terms of the Capped Call Transactions. The Capped Call Transactions were accounted for as equity instruments and recorded in shareholders’ equity within additional paid-in capital. These transactions are not subject to remeasurement. 73 Table of Contents 5. Share Repurchases Subject to the limits imposed by the Company’s revolving credit facility, in the fourth quarter of 2022, the Company was authorized by its Board of Directors to repurchase shares of the Company’s outstanding common stock at management’s discretion up to a total value of $ 200,000 . On June 2, 2023, the Company’s Board of Directors renewed this authorization for an additional year which expired on June 2, 2024. In 2025 and 2024, the Company did no t repurchase any shares of its common stock. In 2023, the Company repurchased 171,792 shares of its common stock in the open market at an aggregate cost of $ 17,449 . ​ In the first quarter of 2026, the Board of Directors authorized the Company to repurchase shares of the Company’s outstanding stock at management’s discretion up to a total value of $ 100,000 . ​ 6. Segment Information The Company represents a single, integrated operation with two related and substantially integrated product lines. The operating expenses of the restaurant and retail product lines of a store are shared and are indistinguishable in many respects. As such, the Company has determined it operates as one operating segment and one reportable segment. All of the Company’s operations are located within the United States. The Company’s chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer. The CODM uses consolidated net income to evaluate performance and as a basis for allocating resources. The CODM uses consolidated net income primarily in the forecasting process and periodic reviews of actual performance as compared to forecasts. The CODM reviews balance sheet and capital expenditure information at a consolidated level and, as such, the measure of total assets is reflected at the consolidated balance sheet level. The following table presents information on the Company’s reportable segment and consolidated net income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 2023 Total revenue ​ ​ $ 3,483,684 ​ $ 3,470,762 ​ $ 3,442,808 Restaurant cost of goods sold (exclusive of depreciation and rent) ​ ​ 748,455 ​ 743,390 ​ 769,295 Retail cost of goods sold (exclusive of depreciation and rent) ​ ​ ​ 332,574 ​ ​ 344,241 ​ ​ 358,322 Labor and other related expenses ​ ​ 1,254,668 ​ 1,271,555 ​ 1,208,669 Other store operating expenses (a) ​ ​ ​ 394,621 ​ ​ 375,789 ​ ​ 361,876 Advertising expense ​ ​ ​ 119,397 ​ ​ 112,793 ​ ​ 89,798 Store-level supplies expense ​ ​ ​ 121,972 ​ ​ 122,778 ​ ​ 123,722 Store-level maintenance expense ​ ​ ​ 119,658 ​ ​ 118,585 ​ ​ 116,552 Store-level utilities expense ​ ​ ​ 99,741 ​ ​ 101,818 ​ ​ 105,867 General and administrative expenses ​ ​ 217,510 ​ 207,062 ​ 174,091 Other segment items (b) ​ ​ 20,059 ​ 27,632 ​ 13,999 Gain on extinguishment of debt ​ ​ ​ ( 3,186 ) ​ ​ — ​ ​ — Interest expense, net ​ ​ 20,489 ​ 20,933 ​ 17,006 Income before income taxes ​ ​ 37,726 ​ 24,186 ​ 103,611 Provision for income taxes (income tax benefit) ​ ​ ( 8,653 ) ​ ( 16,744 ) ​ 4,561 Segment profit and consolidated net income ​ ​ $ 46,379 ​ $ 40,930 ​ $ 99,050 (a) Excludes advertising, store-level supplies, store-level maintenance and store-level utilities expenses which are disclosed separately. (b) Consists of impairment costs including goodwill impairment and store closing costs. 74 Table of Contents 7. Revenue Recognition Disaggregation of revenue Total revenue was comprised of the following for each of the three years: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 2023 Revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ Restaurant ​ $ 2,831,289 ​ $ 2,794,128 ​ $ 2,740,866 Retail ​ ​ 652,395 ​ 676,634 ​ 701,942 Total revenue ​ $ 3,483,684 ​ $ 3,470,762 ​ $ 3,442,808 ​ Gift Card Breakage For 2025, 2024 and 2023, gift card breakage was $ 11,653 , $ 11,397 , and $ 10,713 , respectively. Revenue recognized in the Consolidated Statements of Income for 2025, 2024 and 2023, respectively, for the redemption of gift cards which were included in the deferred revenue balance at the beginning of the fiscal year was $ 34,935 , $ 36,958 , and $ 40,103 , respectively. Deferred revenue related to the Company’s gift cards was $ 82,452 and $ 84,854 , respectively, at August 01, 2025 and August 02, 2024, and is included in the deferred revenue on the Consolidated Balance Sheets. Loyalty Program During the first quarter of 2024, the Company launched its customer loyalty program, Cracker Barrel Rewards, which allows members to earn points (“pegs”) for each qualifying purchase in store or online. Pegs earned are then converted to rewards upon reaching certain thresholds. These rewards may be redeemed on future restaurant or retail purchases in store or online. The estimation of the standalone selling price of pegs and other rewards issued to customers involves several assumptions, primarily the estimated value of the product for which the reward is expected to be redeemed and the probability that the pegs or reward will expire. These inputs are subject to change over time due to factors such as increased costs or changes in customer behavior. The Company defers a portion of the revenue related to the pegs earned at the time of the original transaction based on the estimated value of the item for which the reward is expected to be redeemed, net of estimated unredeemed pegs. Pegs expire after twelve months . Revenue is recognized for these performance obligations upon redemption of pegs or rewards earned by the customer. As of August 01, 2025 and August 02, 2024, deferred revenue related to the loyalty program was $ 5,419 and $ 1,544 , respectively, and is included in deferred revenue on the Consolidated Balance Sheets. ​ ​ 8. Leases As of August 01, 2025, the Company had no t entered into any agreements for real estate leases that are not recorded as right-of-use assets or lease liabilities on the Consolidated Balance Sheet. The following table summarizes the components of lease cost for operating leases for each of the three years: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 2023 Operating lease cost ​ $ 111,141 ​ $ 110,661 ​ $ 109,908 Short term lease cost ​ ​ 3,036 ​ 3,509 ​ 2,947 Variable lease cost ​ ​ 3,893 ​ 3,522 ​ 3,669 Total lease cost ​ $ 118,070 ​ $ 117,692 ​ $ 116,524 75 Table of Contents ​ The following table summarizes supplemental cash flow information and non-cash activity related to the Company’s operating leases for each of the three years: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 2023 Operating cash flow information: ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities ​ $ 98,186 ​ $ 97,014 ​ $ 95,294 Noncash information: ​ ​ ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ 7,358 ​ 14,219 ​ 17,378 Lease modifications or reassessments increasing right-of-use assets ​ 23,307 ​ 23,532 ​ 11,320 Lease modifications removing right-of-use assets ​ ( 1,002 ) ​ ( 2,133 ) ​ ( 413 ) Right-of-use asset impairment* ​ ( 1,381 ) ​ ( 1,832 ) ​ — *Included in the Impairment line on the Consolidated Statement of Cash Flows The following table summarizes the weighted-average remaining lease term and the weighted-average discount rate for operating leases as of August 01, 2025, August 02, 2024 and July 28, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 2023 Weighted-average remaining lease term ​ 15.20 Years ​ 15.88 Years ​ 16.88 Years Weighted-average discount rate 5.45 % 5.38 % 5.09 % ​ The following table summarizes the maturities of undiscounted cash flows reconciled to the total operating lease liability as of August 01, 2025: ​ ​ ​ ​ ​ Year Total 2026 ​ $ 86,208 2027 ​ 74,138 2028 ​ 70,024 2029 ​ 66,354 2030 ​ 59,821 Thereafter ​ 687,788 Total future minimum lease payments ​ 1,044,333 Less imputed remaining interest ​ ( 349,359 ) Total present value of operating lease liabilities ​ $ 694,974 ​ Sale and Leaseback Transactions In 2009, the Company completed sale and leaseback transactions involving 15 of its Cracker Barrel stores and its retail distribution center. Under the transactions, the land, buildings and building improvements at the locations were sold and leased back for terms of 20 and 15 years , respectively. The leases include specified renewal options for up to 20 additional years . In 2020, the Company completed a sale and leaseback transaction involving 64 Cracker Barrel stores. Under the transaction, the land, buildings and building improvements at the locations were sold and leased back for initial terms of 20 years and renewal options up to 50 years . In 2021, the Company completed a sale and leaseback transaction involving 62 Cracker Barrel stores. Under the transaction, the land, buildings and building improvements at the locations were sold and leased back for initial terms of 20 years and renewal options up to 50 years . 76 Table of Contents 9. Share-Based Compensation Stock Compensation Plans The Company’s employee compensation plans are administered by the Compensation Committee of the Company’s Board of Directors (the “Committee”). The Committee is authorized to determine, at time periods within its discretion and subject to the direction of the Board of Directors, which employees will be granted awards, the number of shares covered by any awards granted, and within applicable limits, the terms and provisions relating to the exercise and vesting of any awards. On November 19, 2020, the Company’s shareholders approved the 2020 Omnibus Incentive Plan (the “2020 Omnibus Plan”) which became effective on that date. The 2020 Omnibus Plan authorizes the following types of awards for employees and non-employee directors: stock options, stock appreciation rights, nonvested stock, restricted stock units, other share-based awards and performance awards. After the effective date of the 2020 Omnibus Plan, no additional awards could be granted under the Company’s 2010 Omnibus Incentive Stock and Incentive Plan (the “Prior Plan”). The 2020 Omnibus Plan allows the Committee to grant awards for an aggregate of 1,033,441 shares, the number of shares that were available for issuance as of September 24, 2020 (the “Cutoff Date”) pursuant to the Prior Plan, plus the number of shares that became available for issuance pursuant to the terms of the Prior Plan following the Cutoff Date and prior to the effective date. However, this share reserve is increased by shares awarded under this and the Prior Plan which are forfeited, expired, settled for cash and shares withheld by the Company in payment of a tax withholding obligation after the effective date of the 2020 Omnibus Plan. Additionally, this share reserve was decreased by shares granted from the 2020 Omnibus Plan after the effective date. At August 01, 2025, the number of shares authorized for future issuance under the Company’s active plan is 925,994 . At August 01, 2025, the number of outstanding awards under the 2020 Omnibus Plan and the Prior Plan was 544,988 and 1,259 , respectively. In 2025, the Company issued stock options to certain executives. These stock options have a contractual term of ten years and will vest in three equal installments on each anniversary of the grant date, subject to continued employment. A summary of the Company’s stock option activity as of August 01, 2025, and changes during 2025 is presented in the following table: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average Weighted-Average Stock Options Shares ​ Price Fair Value Outstanding at August 02, 2024 ​ — ​ $ — — Granted ​ 119,232 ​ $ 45.96 17.83 Vested — $ — — Forfeited — $ — — Outstanding at August 01, 2025 119,232 ​ $ 45.96 17.83 ​ The weighted-average grant-date fair value of the stock options granted during 2025 was $ 17.83 . The weighted-average remaining contractual term of the stock options outstanding as of August 01, 2025, was 9.2 years, and the aggregate intrinsic value of the outstanding stock options was $ 1,558 . The intrinsic value for stock options is defined as the difference between the current market value and the grant price. As of August 01, 2025, none of the stock options were exercisable and none were exercised during 2025. The fair value of each option award was estimated on the date of grant using the Black-Scholes-Merton option pricing model, which incorporates the assumptions for inputs shown in the following table. The assumptions used are as follows: 77 Table of Contents ● The Company has not granted option awards in several years and does not have adequate historical exercise/cancellation behavior on which to base the expected life assumption. As such, the Company used the simplified method in SEC Staff Accounting Bulletin No. 107 and Staff Accounting Bulletin No. 110 to determine the expected life. Under this method, the expected term equals the vesting term plus original contractual term divided by two. ● The expected volatility was measured using the Company’s daily stock price volatility over the last six years , which is commensurate with the expected term. ● The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the contractual life of the option. ● The expected dividend yield is based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the contractual life of the option. ​ ​ ​ ​ ​ ​ 2025 Expected term (in years) ​ 6.0 ​ Expected volatility ​ 44.9 % Risk-free interest rate 3.6 % Dividend yield 2.2 % ​ The Company’s nonvested stock awards consist of the Company’s common stock, generally accrue dividend equivalents and vest over one to three years . The fair value of the Company’s nonvested stock awards which accrue dividends is equal to the market price of the Company’s stock at the date of the grant. Dividends are forfeited for any nonvested stock awards that do not vest. The Company’s nonvested stock awards include its long-term performance plans which were established by the Committee for the purpose of rewarding certain officers with shares of the Company’s common stock if the Company achieves certain performance targets. The stock awards under the long-term performance plans are calculated or estimated based on achievement of financial performance measures. The following table summarizes the performance periods and vesting periods for the Company’s nonvested stock awards under its long-term performance plans at August 01, 2025: ​ ​ ​ ​ ​ ​ ​ Vesting Period Long-Term Performance Plan (“LTPP”) Performance Period (in Years) 2025 LTPP ​ 2025 – 2027 ​ 3 2024 LTPP ​ 2024 – 2026 ​ 3 2023 LTPP 2023 – 2025 3 ​ The following table summarizes the shares that have been accrued under the 2025 LTPP, 2024 LTPP and 2023 LTPP at August 01, 2025: ​ ​ ​ 2025 LTPP 27,650 2024 LTPP ​ 49,156 2023 LTPP ​ 13,654 ​ ​ 78 Table of Contents A summary of the Company’s nonvested stock activity as of August 01, 2025, and changes during 2025 are presented in the following table: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-Average Grant Nonvested Stock Shares Date Fair Value Unvested at August 02, 2024 ​ 226,155 ​ $ 87.92 Granted ​ 222,064 ​ ​ 46.14 Vested ( 96,204 ) ​ 87.50 Forfeited ( 15,460 ) ​ 57.66 Unvested at August 01, 2025 336,555 ​ $ 61.86 ​ The following table summarizes the total fair value of nonvested stock that vested for each of the three years: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 2023 Total fair value of nonvested stock ​ $ 8,418 ​ $ 8,571 ​ $ 4,947 ​ Compensation Expense The following table highlights the components of share-based compensation expense for each of the three years: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 2023 Total compensation expense ​ $ 11,742 ​ $ 10,298 ​ $ 9,045 ​ The following table highlights the total unrecognized compensation expense related to the outstanding nonvested stock awards and nonvested stock units and the weighted-average periods over which the expense is expected to be recognized as of August 01, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock Option ​ ​ Nonvested ​ ​ Awards ​ ​ Stock Awards Total unrecognized compensation ​ $ 1,031 ​ $ 7,237 Weighted-average period in years ​ 1.54 ​ ​ 1.72 ​ During 2025, the Company issued 64,681 shares of its common stock resulting from the vesting of share-based compensation awards. Related tax withholding payments on these share-based compensation awards resulted in a net reduction to shareholders’ equity of $ 1,448 . 10. Shareholder Rights Agreement On February 22, 2024, the Company’s Board of Directors unanimously determined to extend the Company’s shareholder rights agreement for a further three-year term, which was approved at the Company’s 2024 annual shareholder meeting. In connection with this determination, the Board of Directors declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of common stock, par value $ 0.01 per share, and adopted a shareholder rights agreement, as set forth in the Rights Agreement dated as of February 27, 2024 (the “Rights Agreement”), by and between the Company and Equiniti Trust Company, LLC, as rights agent. The dividend was payable on March 8, 2024 to the shareholders of record on March 8, 2024 . The Rights The Rights initially trade with, and are inseparable from, the Company’s common stock. The Rights are evidenced only by certificates or book entries that represent shares of common stock. New Rights will accompany any new shares of common stock the Company issues after March 8, 2024 until the Distribution Date (as defined below). 79 Table of Contents Exercise Price Each Right will allow its holder to purchase from the Company one one-hundredth of a share of Series A Junior Participating Preferred Stock (“Preferred Share”) for $ 600.00 (the “Exercise Price”) once the Rights become exercisable. This portion of a Preferred Share will give the shareholder approximately the same dividend and liquidation rights as would one share of common stock. Prior to exercise, the Right does not give its holder any dividend, voting or liquidation rights. Exercisability The Rights will not be exercisable until ten days after the public announcement that a person or group has become an “Acquiring Person” by obtaining beneficial ownership of 20 % or more of the Company’s outstanding common stock. Certain synthetic interests in securities created by derivative positions – whether or not such interests are considered to be ownership of the underlying common stock or are reportable for purposes of Regulation 13D of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) – are treated as beneficial ownership of the number of shares of the Company’s common stock equivalent to the economic exposure created by the derivative. The date when the Rights become exercisable is the “Distribution Date.” Until the Distribution Date, the common stock certificates will also evidence the Rights, and any transfer of shares of common stock will constitute a transfer of Rights. After that date, the Rights will separate from the common stock and will be evidenced by book-entry credits or by Rights certificates that the Company will mail to all eligible holders of common stock. Any Rights held by an Acquiring Person will be void and may not be exercised. At August 01, 2025, none of the Rights were exercisable. Consequences of a Person or Group Becoming an Acquiring Person ● Flip in. If a person or group becomes an Acquiring Person, all holders of Rights except the Acquiring Person may, for $ 600.00 , purchase shares of the Company’s common stock with a market value of $ 1,200.00 , based on the market price of the common stock prior to such acquisition. ● Flip Over . If the Company is later acquired in a merger or similar transaction after the Distribution Date, all holders of Rights except the Acquiring Person may, for $ 600.00 , purchase shares of the acquiring corporation with a market value of $ 1,200.00 , based on the market price of the acquiring corporation’s stock prior to such transaction. ● Notional Shares . Shares held by affiliates and associates of an Acquiring Person, and Notional Common Shares (as defined in the Rights Agreement) held by counterparties to a Derivatives Contract (as defined in the Rights Agreement) with an Acquiring Person, will be deemed to be beneficially owned by the Acquiring Person. Preferred Share Provisions Each one one-hundredth of a Preferred Share, if issued: ● will not be redeemable; ● will entitle holders to quarterly dividend payments of $ 0.01 per share, or an amount equal to the dividend paid on one share of common stock, whichever is greater; ● will entitle holders upon liquidation either to receive $ 1.00 per share or an amount equal to the payment made on one share of common stock, whichever is greater; ● will have the same voting power as one share of common stock; and 80 Table of Contents ● if shares of the Company’s common stock are exchanged via merger, consolidation, or a similar transaction, will entitle holders to a per share payment equal to the payment made on one share of common stock. The value of one one-hundredth of a Preferred Share will generally approximate the value of one share of common stock. Redemption The Board of Directors may redeem the Rights for $ 0.01 per Right at any time before any person or group becomes an Acquiring Person. If the Board of Directors redeems any Rights, it must redeem all of the Rights. Once the Rights are redeemed, the only right of the holders of Rights will be to receive the redemption price of $ 0.01 per Right. The redemption price will be adjusted if the Company has a stock split or stock dividends of its common stock. Qualifying Offer Provision The Rights would also not interfere with any all-cash, fully financed tender offer, exchange offer of common stock of the offeror meeting certain terms and conditions further described below, or a combination thereof, in each case for all shares of common stock that remain open for a minimum of 60 business days and subject to a minimum condition of a majority of the outstanding shares and provide for a 20 -business day “subsequent offering period” after consummation (such offers are referred to as “qualifying offers”). If an offer includes shares of common stock of the offeror, the Rights would not interfere with such offer if such consideration consists solely of freely-tradeable common stock of a publicly-owned United States corporation; such common stock is listed or admitted to trading on the New York Stock Exchange, Nasdaq Global Select Market or Nasdaq Global Market; the offeror has already received stockholder approval to issue such common stock prior to the commencement of such offer or no such approval is or will be required; the offeror has no other class of voting stock outstanding; no person (including such person’s affiliated and associated persons) beneficially owns twenty percent ( 20 %) or more of the shares of common stock of the offeror then outstanding at the time of commencement of the offer or at any time during the term of the offer; and the offeror meets the registrant eligibility requirements for use of a registration statement on Form S-3 for registering securities under the Securities Act of 1933, as amended, including the filing of all reports required to be filed pursuant to the Exchange Act in a timely manner during the twelve (12) calendar months prior to the date of commencement, and throughout the term, of such offer. In the event the Company receives a qualifying offer and the Board of Directors has not redeemed the Rights prior to the consummation of such offer, the consummation of the qualifying offer will not cause the offeror or its affiliates to become an Acquiring Person, and the Rights will immediately expire upon consummation of the qualifying offer. Exchange After a person or group becomes an Acquiring Person, but before an Acquiring Person owns 50 % or more of the Company’s outstanding common stock, the Board of Directors may extinguish the Rights by exchanging one share of common stock or an equivalent security for each Right, other than Rights held by the Acquiring Person. Anti-Dilution Provisions The Board of Directors may adjust the purchase price of the Preferred Shares, the number of Preferred Shares issuable and the number of outstanding Rights to prevent dilution that may occur from a stock dividend, a stock split, a reclassification of the Preferred Shares or common stock. No adjustments to the Exercise Price of less than 1 % will be made. 81 Table of Contents Amendments The terms of the Rights Agreement may be amended by the Board of Directors without the consent of the holders of the Rights. After a person or group becomes an Acquiring Person, the Board of Directors may not amend the agreement in a way that adversely affects holders of the Rights . Expiration The Rights will expire on February 27, 2027. 11. Employee Savings Plans The Company sponsors a qualified defined contribution retirement plan (“401(k) Savings Plan”) covering salaried and hourly employees who have completed ninety days of service and have attained the age of twenty-one . This plan allows eligible employees to defer receipt of up to 50 % of their compensation, as defined in the plan. The Company also sponsors a non-qualified defined contribution retirement plan (“Non-Qualified Savings Plan”) covering highly compensated employees, as defined in the plan. This plan allows eligible employees to defer receipt of up to 50 % of their base compensation and 100 % of their eligible bonuses, as defined in the plan. Contributions under both plans may be invested in various investment funds at the employee’s discretion. Such contributions, including the Company’s matching contributions described below, may not be invested in the Company’s common stock. In 2025, 2024 and 2023, the Company matched 50 % of employee contributions for each participant in the 401(k) Savings Plan up to a total of 5 % of the employee’s compensation and matched 25 % of employee contributions in the Non-Qualified Savings Plan up to a total of 6 % of the employee’s compensation. Employee contributions vest immediately while Company contributions vest 20 % annually beginning on the first anniversary of a contribution date and are vested 100 % on the fifth anniversary of such contribution date. At the inception of the Non-Qualified Savings Plan, the Company established a Rabbi Trust to fund the plan’s obligations. The market value of the trust assets for the Non-Qualified Savings Plan of $ 22,700 is included in other assets and the related liability to the participants of $ 22,700 is included in other long-term obligations in the Consolidated Balance Sheets. Company contributions under both plans are recorded as either labor and other related expenses or general and administrative expenses in the Consolidated Statements of Income. The following table summarizes the Company’s contributions for each plan for each of the three years: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 2023 401(k) Savings Plan ​ $ 5,242 ​ $ 5,121 ​ $ 4,963 Non-Qualified Savings Plan ​ 309 ​ 237 ​ 230 ​ ​ ​ ​ 82 Table of Contents 12. Income Taxes The components of the provision for income taxes (income tax benefit) for each of the three years were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 2023 Current: ​ ​ ​ Federal ​ $ 3,655 ​ $ ( 10,448 ) ​ $ 6,925 State ​ 2,727 ​ 247 ​ 3,573 Deferred: ​ ​ ​ Federal ​ ( 14,275 ) ​ ( 3,526 ) ​ ( 4,902 ) State ​ ( 760 ) ​ ( 3,017 ) ​ ( 1,035 ) Total provision for income taxes (income tax benefit) ​ $ ( 8,653 ) ​ $ ( 16,744 ) ​ $ 4,561 ​ A reconciliation of the Company’s provision for income taxes (income tax benefit) and income taxes based on the statutory U.S. federal rate of 21.0 % in 2025, 2024 and 2023 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 2023 Provision computed at federal statutory income tax rate ​ $ 7,922 ​ $ 5,079 ​ $ 21,758 State and local income taxes, net of federal benefit ​ 2,148 ​ 874 ​ 2,069 Employer tax credits for FICA taxes paid on employee tip income ​ ( 17,769 ) ​ ( 16,926 ) ​ ( 16,772 ) Other employer tax credits ​ ( 3,002 ) ​ ( 3,476 ) ​ ( 3,673 ) Tax audit settlement ​ ( 299 ) ​ ( 2,718 ) ​ — Carryback of federal tax credits ​ ​ ( 1,040 ) ​ ​ ( 1,545 ) ​ ​ — Non-deductible executive compensation ​ ​ 1,879 ​ ​ 1,254 ​ ​ 936 Share-based compensation ​ ​ 599 ​ ​ 548 ​ ​ 338 Other-net ​ 909 ​ 166 ​ ( 95 ) Total provision for income taxes (income tax benefit) ​ $ ( 8,653 ) ​ $ ( 16,744 ) ​ $ 4,561 ​ The Company’s income tax benefit decreased in 2025 primarily due to the increase in income before income taxes and fewer favorable audit settlements as compared to 2024. The decrease in the Company’s provision for income taxes (income tax benefit) in 2024 as compared to 2023 is primarily due to the decrease in income before income taxes and favorable audit settlements in 2024. H.R.1., also known as the One Big Beautiful Bill Act (OBBBA), was enacted on July 4, 2025. The OBBBA includes significant tax law changes with effective dates in 2025 and continuing through 2027. The provisions effective during 2025 did not have a material impact on the Company’s 2025 financial statements. ​ 83 Table of Contents Significant components of the Company’s net deferred tax liability consisted of the following at: ​ ​ ​ ​ ​ ​ ​ ​ ​ August 01, 2025 August 02, 2024 Deferred tax assets: ​ ​ Compensation and employee benefits ​ $ 7,054 ​ $ 5,677 Accrued liabilities ​ 12,728 ​ 14,202 Operating lease liabilities ​ 173,396 ​ 181,094 Insurance reserves ​ 9,304 ​ 8,760 Inventory ​ 3,816 ​ 3,515 Deferred tax credits and carryforwards ​ 52,035 ​ 33,979 Other ​ 5,064 ​ 7,132 Deferred tax assets ​ $ 263,397 ​ $ 254,359 ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities: ​ ​ Property and equipment ​ $ 95,793 ​ $ 97,014 Inventory ​ 6,502 ​ 6,217 Operating lease right-of-use asset ​ 201,118 ​ 211,826 Other ​ 8,575 ​ 7,014 Deferred tax liabilities ​ 311,988 ​ 322,071 Net deferred tax liability ​ $ 48,591 ​ $ 67,712 ​ The Company has a deferred tax asset of $ 28,556 reflecting federal income tax credit carryforwards that expire in 2044. The Company has state income tax net operating loss carryforwards (“NOL”) of $ 110,534 and has recorded a deferred tax asset of $ 5,737 reflecting this benefit. These state NOLs generally expire in years beginning 2037 and after. The Company believes that adequate amounts of tax, interest and penalties have been provided for potential tax uncertainties; these amounts are included in other long-term liabilities in the Consolidated Balance Sheets. As of August 01, 2025 and August 02, 2024, the Company’s gross liability for uncertain tax positions, exclusive of interest and penalties, was $ 6,703 and $ 7,404 , respectively. Summarized below is a tabular reconciliation of the beginning and ending balance of the Company’s total gross liability for uncertain tax positions exclusive of interest and penalties: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ August 01, 2025 August 02, 2024 July 28, 2023 Balance at beginning of year ​ $ 7,404 ​ $ 9,675 ​ $ 10,858 Tax positions related to the current year: ​ ​ ​ ​ ​ ​ ​ ​ Additions ​ ​ 470 ​ 276 ​ 710 Reductions ​ — ​ — ​ — Tax positions related to the prior year: ​ ​ ​ ​ ​ ​ ​ ​ Additions ​ ​ 19 ​ 43 ​ 52 Reductions ​ ( 40 ) ​ ( 674 ) ​ ( 298 ) Settlements ​ ( 580 ) ​ ( 1,433 ) ​ — Expiration of statute of limitations ​ ( 570 ) ​ ( 483 ) ​ ( 1,647 ) Balance at end of year ​ $ 6,703 ​ $ 7,404 ​ $ 9,675 ​ If the Company were to prevail on all uncertain tax positions, the reversal of this accrual would be a tax benefit to the Company and impact the effective tax rate. The following table highlights the amount of uncertain tax positions, exclusive of interest and penalties, which, if recognized, would affect the effective tax rate for each of the three years: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 2023 Uncertain tax positions ​ $ 5,296 ​ $ 5,849 ​ $ 7,644 ​ 84 Table of Contents The Company had $ 8,672 , $ 7,913 , and $ 7,896 in interest and penalties accrued as of August 01, 2025, August 02, 2024, and July 28, 2023, respectively. The Company recognized accrued interest and penalties related to unrecognized tax benefits of $ 760 , $ 17 and $ 764 in its provision for income taxes (income tax benefit) on August 01, 2025, August 02, 2024 and July 28, 2023, respectively. In many cases, the Company’s uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. Based on the outcome of these examinations or as a result of the expiration of the statutes of limitations for specific taxing jurisdictions, it is reasonably possible that the related uncertain tax positions taken regarding previously filed tax returns could decrease from those recorded as liabilities for uncertain tax positions in the Company’s financial statements at August 01, 2025 by approximately $ 300 to $ 1,200 within the next twelve months. At August 01, 2025, the Company was subject to income tax examinations for its U.S. federal income taxes after 2018 and for state and local income taxes generally after 2019. 13. Net Income Per Share and Weighted Average Shares The following table reconciles the components of diluted earnings per share computations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 2023 Net income per share numerator ​ $ 46,379 ​ $ 40,930 ​ $ 99,050 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share denominator: ​ ​ ​ Basic weighted average shares ​ 22,252,034 ​ 22,191,961 ​ 22,167,875 Add potential dilution: ​ ​ ​ Nonvested stock awards and units and stock options ​ 211,909 ​ 127,933 ​ 97,524 Diluted weighted average shares ​ 22,463,943 ​ 22,319,894 ​ 22,265,399 ​ ​ 14. Commitments and Contingencies The Company and its subsidiaries are party to various legal and regulatory proceedings and claims incidental to their business in the ordinary course. In the opinion of management, based upon information currently available, the ultimate liability with respect to these proceedings and claims will not materially affect the Company’s consolidated results of operations or financial position. The Company maintains insurance coverage for various aspects of its business and operations. The Company has elected, however, to retain all or a portion of losses that occur through the use of various deductibles, limits and retentions under its insurance programs. This situation may subject the Company to some future liability for which it is only partially insured, or completely uninsured. The Company intends to mitigate any such future liability by continuing to exercise prudent business judgment in negotiating the terms and conditions of its contracts. See Note 1 for a further discussion of insurance and insurance reserves. Related to its insurance coverage, the Company is contingently liable pursuant to standby letters of credit as credit guarantees to certain insurers. As of August 01, 2025, the Company had $ 34,004 of standby letters of credit related to securing reserved claims under workers’ compensation insurance and certain sale and leaseback transactions. All standby letters of credit are renewable annually and reduce the Company’s borrowing availability under its 2025 Revolving Credit facility. See Note 4 for additional information regarding the 2025 Revolving Credit Facility. The Company enters into certain indemnification agreements in favor of third parties in the ordinary course of business. The Company believes that the probability of incurring an actual liability under other indemnification agreements is sufficiently remote so that no liability has been recorded in the Consolidated Balance Sheets. ​ 85 Table of Contents ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.