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  • The Pantry, Inc.William Blair and Company Growth Stock Conference

    June 19, 2008

  • 1

    Safe Harbor Statement

    Some of the statements in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act

    of 1995. All statements other than those of historical facts included herein, including those related to the companys financial outlook, goals, business

    strategy, projected plans and objectives of management for future operations and liquidity, are forward-looking statements. These forward-looking

    statements are based on the companys plans and expectations and involve a number of risks and uncertainties that could cause actual results to vary

    materially from the results and events anticipated or implied by such forward-looking statements. Please refer to the companys Annual Report on Form

    10-K and its other filings with the SEC for a discussion of significant risk factors applicable to the company. In addition, the forward-looking

    statements included in this presentation are based on the companys estimates and plans as of the date of this presentation. While the company may elect to update these forward-looking statements at some point in the

    future, it specifically disclaims any obligation to do so.

  • 2

    Our Business

    Leading independently operated convenience store chain in the Southeast and 3rd largest in the U.S.

    Over 1,650 stores located across 11 states

    Primarily branded Kangaroo Express

    Last twelve months as of March 27, 2008 sales of $8.1 billion and LTM EBITDA of $221.4 million

    Stores offer a broad selection of merchandise, motor fuel and food service offerings designed to meet convenience needs of consumers

  • 3

    Leading market positions in attractive Southeastern markets

    Significant scale advantages vs. primary competitors

    Benefiting from consumer trends toward convenience formats

    Leveraging infrastructure to drive profitability

    Sector growth and consolidation potential

    Key Investment Highlights

    Strong Cash Flow Generation to Reinvest in Our Business,Strong Cash Flow Generation to Reinvest in Our Business,DeDe--lever and Drive Earnings Growthlever and Drive Earnings Growth

  • 4

    U.S. CU.S. C--Store Sales and Growth Store Sales and Growth (1)(1)

    _____________________(1) Source: NACS 2007 NACS State of the Industry Report and Retail Forward, Inc.(2) Source: Retail Forward, Inc. CAGR for 5-year period from 2001-2006.

    Large and rapidly growing sector

    Defensive growth characteristics

    Increasing consumer demand for smaller-box, fill-in convenience shopping

    Relative to hypermarkets, large supermarkets, etc.

    Increasing amount of food consumed away from home and on the run

    Highly fragmented market with ample consolidation opportunities

    Attractive Industry Fundamentals

    $79 $89 $93 $100 $134$165 $171 $181

    $221$75 $77 $81$86

    $364$330$263

    $109$112$104$100

    $116$132

    $160$145

    $727

    $524$475

    $395$337

    $290$283$269$234

    $186$174$166$154

    0

    100

    200

    300

    400

    500

    600

    $700

    1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2011E

    ($ in Billions)

    Gasoline In Store

    Projected

    CAGR = 6

    .8%

    2.9%

    (1.3%)

    6.0%6.0%6.0%7.4%

    CovenienceStores

    Drug Stores Restaurants Total Retail GroceryStores

    DiscountDepartment

    Stores

    Total Historical

    CAGR = 11.8%

    In-Store Historic

    al CAGR = 7.1%

    55--Year InYear In--Store Sales CAGR vs. Other Sectors Store Sales CAGR vs. Other Sectors (1)(2)(1)(2)

  • 5

    PA0021GM_1.WOR

    IndianaIndianaIndianaIndianaIndianaIndianaIndianaIndianaIndiana

    North CarolinaNorth CarolinaNorth CarolinaNorth CarolinaNorth CarolinaNorth CarolinaNorth CarolinaNorth CarolinaNorth Carolina

    VirginiaVirginiaVirginiaVirginiaVirginiaVirginiaVirginiaVirginiaVirginiaKentuckyKentuckyKentuckyKentuckyKentuckyKentuckyKentuckyKentuckyKentucky

    TennesseeTennesseeTennesseeTennesseeTennesseeTennesseeTennesseeTennesseeTennessee

    MississippiMississippiMississippiMississippiMississippiMississippiMississippiMississippiMississippi

    LouisianaLouisianaLouisianaLouisianaLouisianaLouisianaLouisianaLouisianaLouisiana

    FloridaFloridaFloridaFloridaFloridaFloridaFloridaFloridaFlorida

    AlabamaAlabamaAlabamaAlabamaAlabamaAlabamaAlabamaAlabamaAlabama

    GeorgiaGeorgiaGeorgiaGeorgiaGeorgiaGeorgiaGeorgiaGeorgiaGeorgia

    SouthSouthSouthSouthSouthSouthSouthSouthSouthCarolinaCarolinaCarolinaCarolinaCarolinaCarolinaCarolinaCarolinaCarolina

    IndianapolisIndianapolisIndianapolisIndianapolisIndianapolisIndianapolisIndianapolisIndianapolisIndianapolis

    RaleighRaleighRaleighRaleighRaleighRaleighRaleighRaleighRaleigh

    FrankfortFrankfortFrankfortFrankfortFrankfortFrankfortFrankfortFrankfortFrankfort

    JacksonJacksonJacksonJacksonJacksonJacksonJacksonJacksonJackson

    TallahasseeTallahasseeTallahasseeTallahasseeTallahasseeTallahasseeTallahasseeTallahasseeTallahassee

    Baton RougeBaton RougeBaton RougeBaton RougeBaton RougeBaton RougeBaton RougeBaton RougeBaton Rouge

    RichmondRichmondRichmondRichmondRichmondRichmondRichmondRichmondRichmond

    MontgomeryMontgomeryMontgomeryMontgomeryMontgomeryMontgomeryMontgomeryMontgomeryMontgomery

    AtlantaAtlantaAtlantaAtlantaAtlantaAtlantaAtlantaAtlantaAtlanta

    ColumbiaColumbiaColumbiaColumbiaColumbiaColumbiaColumbiaColumbiaColumbia

    DurhamDurhamDurhamDurhamDurhamDurhamDurhamDurhamDurham

    ChesapeakeChesapeakeChesapeakeChesapeakeChesapeakeChesapeakeChesapeakeChesapeakeChesapeake

    PaducahPaducahPaducahPaducahPaducahPaducahPaducahPaducahPaducah

    ClintonClintonClintonClintonClintonClintonClintonClintonClintonVicksburgVicksburgVicksburgVicksburgVicksburgVicksburgVicksburgVicksburgVicksburg

    MeridianMeridianMeridianMeridianMeridianMeridianMeridianMeridianMeridian

    TampaTampaTampaTampaTampaTampaTampaTampaTampa

    OrlandoOrlandoOrlandoOrlandoOrlandoOrlandoOrlandoOrlandoOrlando

    GulfportGulfportGulfportGulfportGulfportGulfportGulfportGulfportGulfport

    NorfolkNorfolkNorfolkNorfolkNorfolkNorfolkNorfolkNorfolkNorfolk

    HamptonHamptonHamptonHamptonHamptonHamptonHamptonHamptonHampton

    ArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlingtonArlington

    WilmingtonWilmingtonWilmingtonWilmingtonWilmingtonWilmingtonWilmingtonWilmingtonWilmington

    St. PetersburgSt. PetersburgSt. PetersburgSt. PetersburgSt. PetersburgSt. PetersburgSt. PetersburgSt. PetersburgSt. Petersburg

    Daytona BeachDaytona BeachDaytona BeachDaytona BeachDaytona BeachDaytona BeachDaytona BeachDaytona BeachDaytona Beach

    JacksonvilleJacksonvilleJacksonvilleJacksonvilleJacksonvilleJacksonvilleJacksonvilleJacksonvilleJacksonville

    NashvilleNashvilleNashvilleNashvilleNashvilleNashvilleNashvilleNashvilleNashville

    Boca RatonBoca RatonBoca RatonBoca RatonBoca RatonBoca RatonBoca RatonBoca RatonBoca Raton

    MiamiMiamiMiamiMiamiMiamiMiamiMiamiMiamiMiami

    Bowling GreenBowling GreenBowling GreenBowling GreenBowling GreenBowling GreenBowling GreenBowling GreenBowling Green

    CovingtonCovingtonCovingtonCovingtonCovingtonCovingtonCovingtonCovingtonCovington

    1,659 Stores Located in Eleven Southeastern States

    Leading Convenience Store Retailer Concentrated in the Southeastern United States

    NY0010DP_1.WOR

    Pantry Store Locations

    _____________________Note: Map as of fiscal year ended September 27, 2007.

  • 6

    Key Markets Possess Highly Attractive Growth Characteristics

    _____________________Note: Pantrys store counts as of quarter ended March 27, 2008.Source: U.S. Census Bureau and 2007 NACS State of the Industry Report.

    Core Markets Projected to Experience Rapid Growth Throughout NexCore Markets Projected to Experience Rapid Growth Throughout Next Several Years; t Several Years; High Degree of Fragmentation Provides Continued Consolidation OpHigh Degree of Fragmentation Provides Continued Consolidation Opportunitiesportunities

    21.1%

    15.0%

    9.5% 9.0% 9.1%

    0.0

    5.0

    10.0

    15.0

    20.0

    25.0%

    Florida NorthCarolina

    SouthCarolina

    Tennessee U.S.

    54%9%

    31%6%

    58%

    21%

    14% 7%

    52%21%

    17% 10%

    60%20%

    17%3%

    Pantry

    1 StoreOperators

    2-50 StoreOperators

    >50 StoreOperators

    Pantry

    1 StoreOperators

    2-50 StoreOperators

    >50 StoreOperators

    Pantry

    1 StoreOperators

    2-50 StoreOperators

    >50 StoreOperators

    Pantry

    1 StoreOperators

    2-50 StoreOperators

    >50 StoreOperators

    FloridaFlorida(7,356 stores)(7,356 stores)

    North CarolinaNorth Carolina(5,447 stores)(5,447 stores)

    South CarolinaSouth Carolina(2,872 stores)(2,872 stores)

    TennesseeTennessee(3,697 stores)(3,697 stores)

    Population Growth CAGRs (2005-2015)

    Pantry Stores: 457 387 281 104 1,659

    Market Fragmentation

  • 7

    $1,642$1,576

    $1,386$1,229

    $1,170

    $1,010

    0

    500

    1,000

    1,500

    $2,000

    2003 2004 2005 2006 2007 LTM

    Merchandise RevenueMerchandise Revenue

    2,1432,033

    1,758

    1,4971,372

    1,161

    0

    500

    1,000

    1,500

    2,000

    2,500

    2003 2004 2005 2006 2007 LTM

    (Gallons in mm)($ in mm)

    CAGR 03

    07 = 11

    .8%

    CAGR 03

    07 = 15

    .0%

    Fiscal Year Fiscal Year_____________________Note: Fiscal year ends in September. Last twelve months as