10-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

þ	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended April 28, 2017
OR
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from            to

Commission file number: 0-1667

Bob Evans Farms, Inc.

(Exact name of registrant as specified in its charter)

Delaware	31-4421866
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

8111 Smith's Mill Road, New Albany, Ohio	43054
(Address of principal executive offices)	(Zip Code)

(614) 491-2225

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Exchange Act

Title of Each Class	Name of Each Exchange on Which Registered
Common Stock, $.01 par value per share	The NASDAQ Global Select Market

Securities registered pursuant to Section 12(g) of the Exchange Act:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  þ    No ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.    Yes  ¨    No  þ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  þ    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   þ

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer  þ	Accelerated filer  ¨	Non-accelerated filer  ¨	Smaller reporting company ¨
(Do not check if a smaller reporting company)			Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨   No  þ

As of October 28, 2016 (the last business day of the registrant’s most recently completed second fiscal quarter), the aggregate market value of the registrant’s common stock held by non-affiliates of the registrant was $797,074,534 based on the closing sale price as reported on the NASDAQ Global Select Market^®.

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date:

Class	Outstanding as of June 12, 2017
Common Stock, $.01 par value per share	19,924,672

DOCUMENTS INCORPORATED BY REFERENCE

Document	Parts Into Which Incorporated
Portions of the registrant’s Proxy Statement for the 2017 Annual Meeting of Stockholders	Part III

Table of Contents
PART I	5
ITEM 1. BUSINESS	5
ITEM 1A. RISK FACTORS	12
ITEM 1B. UNRESOLVED STAFF COMMENTS	20
ITEM 2. PROPERTIES	20
ITEM 3. LEGAL PROCEEDINGS	21
ITEM 4. MINE SAFETY DISCLOSURES	21
SUPPLEMENTAL ITEM. EXECUTIVE OFFICERS OF BOB EVANS FARMS, INC.	21
PART II	22
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER REPURCHASES OF EQUITY SECURITIES	22
ITEM 6. SELECTED FINANCIAL DATA	24
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	26
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	35
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA	37
CONSOLIDATED BALANCE SHEETS	37
CONSOLIDATED STATEMENTS OF NET INCOME	38
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY	39
CONSOLIDATED STATEMENTS OF CASH FLOWS	40
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	41
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	60
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	61
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES	62
ITEM 9A. CONTROLS AND PROCEDURES	62
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING	63
ITEM 9B. OTHER INFORMATION	64
PART III	64
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	64
ITEM 11. EXECUTIVE COMPENSATION	65
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	65
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	66
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES	66
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	66
SIGNATURES	68
LIST OF EXHIBITS	70

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Forward-Looking Statements

The Securities and Exchange Commission (“SEC”) encourages companies to disclose forward-looking information so that investors can better understand a company’s future prospects and make informed investment decisions. This Annual Report on Form 10-K and other written or oral statements that we make from time-to-time in this report and in our public disclosures may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). Statements in this Annual Report on Form 10-K, including those contained in "Management’s Discussion and Analysis of Financial Condition and Results of Operations" included in Item 7 of this Annual Report on Form 10-K, that are not historical facts are forward-looking statements. These statements are often indicated by words such as “expects,” “anticipates,” “believes,” “could,” “may,” “will,” “would,” “estimates,” “targets,” “assumes,” “continues,” “intends” and “plans,” and other similar expressions, whether in the negative or the affirmative. Forward-looking statements are not guarantees of future performance and involve various important assumptions, risks and uncertainties. Actual results may differ materially from those predicted by the forward-looking statements because of various factors and possible events. We note these factors for investors as contemplated by the Private Securities Litigation Reform Act of 1995. It is impossible to predict or identify all of the risk factors that we face. Consequently, you should not consider any such list to be a complete set of all potential assumptions, risks or uncertainties. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update any forward-looking statement for circumstances or events that occur after the date on which the statement is made. In addition, it is our policy generally not to endorse any projections regarding future performance that may be made by third parties.

Many important factors could affect our future results and could cause those results to differ materially from those expressed in or implied by the forward-looking statements contained herein. Such factors, all of which are difficult or impossible to predict accurately, and many of which are beyond our control, include, but are not limited to, the following:

• consumers’ perceptions of the relative quality, variety, affordability and value of the food products we offer;

• food safety events, including instances of food-borne illness (such as salmonella, E. coli, listeria, etc.) involving our production plants or our supply chain;

• the effects of negative publicity that can occur from increased use of social media;

• success of operating and marketing initiatives, including advertising and promotional efforts and new product development by us and our competitors;

• changes in consumer tastes and preferences, and in discretionary consumer spending;

• changes in spending patterns and demographic trends;

• changes in commodity costs, labor, supply, fuel, utilities, distribution and other operating costs;

• development costs, including plant construction, acquisition and renovation costs;

• availability of qualified personnel, and the ability to retain such personnel;

• our ability, if necessary, to secure alternative distribution of supplies of food, equipment and other products to our production facilities at competitive rates and in adequate amounts, and the potential financial impact of any interruptions in such production or distribution;

• availability and cost of insurance;

• adverse weather conditions;

• availability, terms (including increases in interest rates) and deployment of capital;

• changes in, and our ability to comply with, legal, regulatory or similar requirements, overtime rules, minimum wage rates, wage and hour laws, government-mandated health care benefits, tax legislation, and accounting standards;

• the costs, uncertainties and other effects of legal, environmental and administrative proceedings;

• the effects of charges for impairment of goodwill or for the impairment of other long-lived assets;

• the effects of war or terrorist activities;

• the ability to generate sufficient cash flow to meet debt service obligations, compliance with operational and financial covenants, and restrictions on the Company’s ability to implement strategic plans in the future;

• the ability to successfully integrate the recently acquired Pineland Farms Potato Company Inc. or other potential future acquisitions into our food production business

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• costs associated with the sale and separation of our Bob Evans Restaurants business, including obligations that may arise under our capacity as guarantor of payment and performance conditions for certain restaurant leases, as well as costs associated with a transition services agreement established as part of the transaction; and

• other risks and uncertainties affecting us and our subsidiaries referred to in this Annual Report on Form 10-K (see “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations”) and in our other current and periodic filings with the SEC.

Readers are cautioned not to place undue reliance on forward-looking statements made in this report, since the statements speak only as of the report’s date. Except as may be required by law, we have no obligation or intention to publicly update or revise any of these forward-looking statements to reflect events or circumstances occurring after the date of this report or to reflect the occurrence of unanticipated events. Readers are advised, however, to consult any future public disclosures that we may make on related subjects in reports that we file with or furnish to the SEC or in our other public disclosures.

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PART I

ITEM 1.    BUSINESS

In this Annual Report on Form 10-K, we use the terms “Bob Evans,” “Company,” “we,” “us” and “our” to collectively refer to Bob Evans Farms, Inc., a Delaware corporation, and its direct and indirect subsidiaries.

We maintain a website at www.bobevansgrocery.com. We make available free of charge through our website our periodic and other reports filed with or furnished to the SEC pursuant to the Exchange Act, as soon as reasonably practicable after we file such material with, or furnish it to, the SEC. Information on our website is not deemed to be incorporated by reference into this Annual Report on Form 10-K or any other filings that we make from time to time with the SEC.

The following description of our business should be read in conjunction with the information contained in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 7 of this Annual Report on Form 10-K and our consolidated financial statements included in Item 8 of this Annual Report on Form 10-K.

Background

We are a leading producer and distributor of a variety of home-style refrigerated side-dishes, premium pork sausage and frozen food items primarily under the Bob Evans, Owens and Country Creek brand names as well as the Pineland Farms brand name subsequent to our acquisition of the Pineland Farms Potato Company on May 1, 2017. Our food products are distributed to retail customers throughout the United States. Additionally, we manufacture and sell similar products to foodservice customers, including Bob Evans Restaurants and other restaurants and food sellers. Prior to the sale of our restaurant business on April 28, 2017, we also owned and operated 523 Bob Evans Restaurants in 18 states.

Our business started in 1948 when our founder began making sausage on his southeastern Ohio farm to serve at his 12-stool, 24-hour diner. Our business grew from there and was incorporated in Ohio in 1957. We became a publicly traded company on June 6, 1963. Our current parent company was incorporated in Delaware on November 4, 1985.

Major changes to continuing operations of the business as operated today include:

• In 1987, we expanded our business by acquiring Owens Country Sausage, Inc.

• In 1991, we established the Bob Evans foodservice division, which sold food products directly to distributors and institutions.

• In 1997, we began selling refrigerated side-dish products to our grocery customers.

• In 2003, Owens Country Sausage purchased a food production plant in Sulphur Springs, Texas and began major renovations.

• Beginning in 2009, as part of a network optimization program, we eliminated direct store deliveries and began shipping products directly to customer warehouses. As part of this program, in 2010 we closed our fresh sausage plant in Galva, Illinois, and also formed BEF Management, Inc. to act as a management company. In 2011, we sold our distribution center in Springfield, Ohio. We also completed a restructuring of the foods segment by creating BEF Foods, Inc., which consolidated all food production and operations under one company.

• In 2012, we purchased a 100,000 square foot food production facility in Lima, Ohio, where we primarily produce potato and pasta-based refrigerated side-dish products.

• In 2013, we closed our fresh sausage plant in Richardson, Texas and our production facility in Bidwell, Ohio. We also began the first phase of an expansion at our Lima, Ohio, production facility and began an expansion at the Sulphur Springs, Texas, production facility.

• In October 2013, we moved into our new corporate headquarters in New Albany, Ohio.

• In 2014, we closed our production facility in Springfield, Ohio and also completed the expansions at the Lima, Ohio, and Sulphur Springs, Texas production facilities.

• In October 2015, we entered into a sale leaseback transaction on our Lima, Ohio, and Sulphur Springs, Texas, production facilities. The lease agreement includes an initial 20-year term and two ten-year renewal options.

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• In August 2016, we completed a fourth production line at the Lima, Ohio, plant.

• In April 2017, we completed the sale of the Bob Evans Restaurants business as well as our corporate headquarters to affiliates of Golden Gate Capital Opportunity Fund, L.P. and completely divested from the restaurant segment.

• In May 2017, we completed the acquisition of Pineland Farms Potato Company, a Maine corporation with assets that include a state-of-the-art potato processing facility and a 900-acre potato farm.

Our Business

We are a leading producer and distributor of home-style refrigerated side-dishes, pork sausage products and a variety of complimentary frozen food items. We offer a variety of quality, wholesome food products to retail and foodservice customers. We sell our retail food products under the Bob Evans, Owens, Country Creek and Pineland brand names, and selectively manufacture products for our retail customers' own private-label brand names. Our food products provide “farm-fresh goodness” and convenient meal solutions that uphold our commitment to premium quality. Our food products include over 100 complementary, convenience food items in the refrigerated and frozen areas of grocery stores such as mashed potatoes (different varieties in various sizes), diced and shredded breakfast potatoes, our Oven Bake Scalloped Potatoes, Oven Bake Macaroni & Cheese, Oven Bake Double Cheddar Pasta with Applewood Smoked Bacon and Oven Bake Southwest, our sides such as Homestyle Broccoli & Cheese, Seasoned Homestyle Stuffing, Six Cheese Pasta and Sliced Glazed Apples, our handheld breakfast items such as Bob Evans Sausage, Egg & Cheese Biscuits, Bob Evans Sausage Biscuits, Egg & Cheese Croissant, our Breakfast Burritos, Breakfast Bowls and Owens Kolaches, as well as our Soups (Original Chicken & Noodles and Original Sausage Chili), and Sausage Gravies. We also offer approximately 60 varieties of branded fresh, smoked and fully cooked pork and turkey sausage, ham and hickory-smoked bacon products. Varieties include Bob Evans Fresh Sausage (in rolls, patties or links), Bob Evans Sausage (including Italian, Savory Sage, Maple, as well as Naturally!), Bob Evans Fully Cooked Original Links and Fully Cooked Original Patties, Maple Links, Bob Evans Fully Cooked Turkey Sausage Patties or Fully Cooked Turkey Sausage Links, and Bob Evans Grilling Sausage (Original Bratwurst, Beer Bratwurst, Sweet Italian and Hot Italian).

Our Strategy

We believe every initiative, investment and expenditure the Company undertakes must not only deliver an acceptable financial return; it must also support and empower our team members to execute our brand promise:  high quality food delivered consistently to our retailers and food service customers.  Quality and customer service are hallmarks of the Bob Evans brand that will allow us to drive continued profitable sales growth. Our strategy for growth focuses on five key growth drivers, including:

• increasing overall household penetration of the refrigerated side-dish market from 20% utilization, by 3-4x;

• expanding SKU penetration at current retail customers

• achieving new retail distribution including non-traditional grocery retailers such as food clubs and convenience stores;

• expansion of our food service channel; and

• continued product innovation including additional opportunities in vegetables, rice and pasta side-dish varieties.

Our refrigerated mashed potatoes and pasta side-dishes continue to grow as a percentage of our food products volume. Side-dish products comprise 58% of our current sales volumes, up from 36% in 2010, and will continue to grow as a percentage of our total volumes with the recent acquisition of Pineland Farms Potato Company.

We will also continue to review our Selling, General and Administrative expenses ("S,G&A") and other cost structures to identify sustainable cost savings.

Our vision for the Company is to be the grocery products brand of choice for consumers, a desirable and engaging employer for current and prospective talent, a valued partner in the community and a sound investment for shareholders. With the successful execution of our business objectives and business strategy, we believe we will achieve our vision.

Restaurants Business Divestiture

On April 28, 2017, we completed the sale of our Bob Evans Restaurants business ("Restaurants Business") to Bob Evans Restaurants, LLC (formerly BER Acquisition, LLC), a Delaware limited liability company formed by affiliates of Golden Gate Capital Opportunity Fund, L.P. (the “Buyer”). The Buyer purchased the assets associated with our Restaurants Business, as well

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as our corporate headquarters for an aggregate purchase price of $565.0 million in cash, before certain adjustments set forth in the Asset and Membership Interest Purchase Agreement (the "BER Sale Agreement"), for net proceeds of $539.3 million. As part of the transaction we also conveyed to the Buyer the majority of working capital liabilities associated with the Restaurants Business, including outstanding payables, accrued wages, and other accrued current liabilities, other than debt. We expect net proceeds, after tax payments, of $487.0 to $493.0 million. We used a portion of the proceeds to repay all outstanding borrowings under our $650.0 million Revolving and Restated Credit Agreement (the "Credit Agreement") on April 28, 2017. On May 1, 2017, our Board of Directors also declared a special dividend of approximately $150.0 million (or $7.50 per share) representing the majority of the net cash proceeds from the sale of the Restaurants Business after income tax payments and the settlement of outstanding borrowings under our Credit Agreement, to be paid on June 16, 2017, to existing shareholders of record on May 30, 2017.

Recent Acquisition

On May 1, 2017, we completed the acquisition of Pineland Farms Potato Company, Inc., a Maine corporation (“PFPC”). We acquired all of the equity interests of PFPC in exchange for (i) $115.0 million in cash, subject to certain adjustments set forth in the purchase agreement, and (ii) up to an additional $25.0 million in cash as potential earn-out consideration, the payment of which is subject to the achievement of certain operating EBITDA performance milestones over consecutive twelve-month periods during the 24 months following the closing.

The Acquisition increases our side-dish production capacity and provides us the capability to produce and sell diced and shredded potato products in both the retail and food service channels. The acquisition also diversifies our production capability by adding a second state-of-the-art potato processing facility with approximately 180 million pounds of capacity. PFPC also owns and operates a 900-acre potato farm and is surrounded an estimated 55,000 acres of annual potato production. The production facility's close proximity to this potato production is anticipated to reduce transportation costs. The Acquisition will also mitigate the required near term capital spending for additional capacity to meet our expected sales growth targets in side-dish products.

Production Capacity

We produce food products in five manufacturing facilities. We produce fresh sausage products at our production facilities located in Hillsdale, Michigan and Xenia, Ohio. Ready-to-eat products, such as sandwiches, soups and gravies, are produced at our Sulphur Springs, Texas plant. Our Lima, Ohio, and newly acquired Mars Hill, Maine plants produce refrigerated side-dishes. In the second quarter of fiscal 2017, we completed an additional $20.0 million expansion in production capacity to add a fourth side-dish production line at the Lima, Ohio, plant. This production line provides an additional 45 million pounds of annual side-dish production capacity. In May of 2017, we completed the acquisition of PFPC. Adding PFPC’s state-of-the-art production facility adds approximately 180 million pounds of production capacity to our plant network.

We strive to be the best at operations execution by always focusing on food safety. We follow a Hazard Analysis and Critical Control Points (“HACCP”) program at each of our manufacturing plants. HACCP is a comprehensive system developed in conjunction with government agencies to prevent food safety problems by addressing physical, chemical and biological hazards. We use HACCP to identify potential safety hazards so that key actions can be taken to reduce or eliminate risks during production. We also have a team dedicated to food safety and quality assurance. We also follow the British Retail Consortium global food safety initiatives to help ensure food safety and quality standards are practiced in our manufacturing facilities, as well as in the third party facilities that supply us.

We contract with third parties to manufacture or “co-pack” some of the Bob Evans and Owens products that are not produced in our own facilities or to supplement production during peak demand periods. These co-packed items include some of our side-dish and meat items. We used approximately 20 third parties to manufacture food products for us in fiscal 2017, representing approximately 17% of pounds produced.

Sales

The U.S. food industry has experienced significant consolidation over the last 20 years as competitors have shed non-core businesses and made strategic acquisitions to complement category positions, maximize economies of scale in raw material sourcing and production, and expand retail distribution. This consolidation is expected to continue. The importance of sustaining strong relationships with retailers has become a critical success factor for food companies because it drives category management and continuous replenishment programs. Food companies with category leadership positions and strong retail relationships have increasingly benefited from these initiatives as a way to maintain shelf space and maximize distribution efficiencies.

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Bob Evans maintains a greater than 50% share of the national refrigerated dinner side-dish market and our refrigerated side-dish products are available in 75% of domestic retail grocery stores. Bob Evans branded mashed potatoes is the leading retail brand of refrigerated side-dish product in the United States and has been since 2007. Bob Evans sausage products also continue to have the largest market share in our core Midwest market. Our goal is to consistently drive sales growth by leveraging our strong market-share position to secure additional retail store business and gain additional market penetration. We also believe strong brand awareness is critical in maintaining and securing valuable retail shelf space and provides a strong platform for introducing product line extensions and new products.

A relatively small number of customers account for a large percentage of our sales. In fiscal 2017, Wal-mart Stores Inc. accounted for 20% of food product sales, while The Kroger Co. accounted for 14% of food product sales. We use national account teams to address the needs of our key retailers on a long-term basis.

Our retail sales force, which consists of our national account teams as well as third-party food brokers, sells our food products to the leading national and regional retail chains. Retail sales are approximately 85% of net sales, while foodservice sales account for approximately 15% of net sales. Items sold to our foodservice customers include sausage, sausage gravy, breakfast sandwiches and side-dishes. Sales to Bob Evans Restaurants (intercompany sales eliminated in consolidation in fiscal 2017) comprised approximately 40% of our food service sales in fiscal 2017. As part of the sale of our Restaurants Business, we entered into a five-year supply agreement with Bob Evans Restaurants. The supply agreement requires Bob Evans Restaurants purchase 100% of certain food products from the Company in the first year. The required percentage of purchases for those products then decreases annually, down to a required minimum of 25% in the final year of the supply agreement.

Foodservice sales provide us with incremental volume in our production plants to leverage operating efficiencies. With the additional capacity provided by the acquisition of PFPC, we expect significant expansion in our food service product line, which accounts for approximately 80% of PFPC's sales. We believe foodservice sales may grow to approximately 40% of total volumes by fiscal 2020 as we work to obtain new customers. Expanding our foodservice customer base will help to maximize the utilization at our production plants and decrease the overhead cost burden on our retail products.

Distribution

We supply our customers by shipping products directly to their warehouses for further distribution by the customers to their retail stores. We also distribute our products through food wholesalers and distributors who primarily service smaller, independent grocers and distribute to restaurant and food service operators.

At the end of fiscal 2017, Bob Evans or Owens brand products were available for purchase in grocery stores in all 50 states and the District of Columbia. Our Owens brand products were available for purchase primarily in Oklahoma, Louisiana and Texas.

We continue to work with retailers in states where there is an opportunity to distribute our products and explore expansion prospects to profitably increase points of distribution.

Sources and Availability of Raw Materials

One of the most important raw materials used in our food products business is live sows (an adult female pig), which we depend upon to produce our pork sausage products. We produce sausage using the same premium ingredients that Bob Evans used when he started the Company. Sow meat is a high-value product compared to other types of pig meat because it has a better texture when made into sausage.

We procure live sows at prevailing market prices from terminals, local auctions, country markets and corporate and family farms in various U.S. locations. The live sow market is volatile in terms of the number of sows available and market price. The live sow market is also dependent upon supply and demand for pork products, as well as corn and soybean meal prices (the major food supply for sows), weather and farmers’ access to capital. We procure sows in a variety of ways, including through supply contracts. Due to the structure of the sow market however, including the limited availability of sows, there is generally not a way to “lock” in prices contractually in advance for sows nor any commercially feasible, financial hedging products for sow prices to “fix” prices in advance, unlike the financial hedging products that are available for “lean hogs” or “pork bellies” prices.

In fiscal 2017, larger herd sizes as well as capacity expansion including new butcher hog processing plants, drove sow costs lower than the prior year. We expect sow prices in fiscal 2018 to be modestly higher than fiscal 2017 as the breeding herd stabilizes and prices fluctuate on the normal seasonal pattern.

Other important raw materials used in our food products operations are potatoes, dairy products, seasonings and packaging materials. Historically, these materials have been readily available, although some items may be in short supply

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during certain seasons and prices fluctuate according to availability. Such shortages did not have a material impact on net sales or operating income in fiscal 2017. Generally, we purchase these items under supply contracts with periodic pricing reviews with our suppliers. We occasionally engage in commitments for certain commodity based items when market conditions indicate that taking a future position will have a favorable financial impact. We believe that these items will continue to be available from our existing suppliers or, upon short notice, can be obtained from other qualified suppliers.

With the recent acquisition of PFPC, we acquired a 900-acre potato farm in Maine that vertically integrates less than 5% of our potato supply, but more importantly provides us with information regarding the cost of growing, harvesting and storing potatoes. This information allows us to purchase with greater efficiency and credibility with potato growers. The newly acquired facility is also surrounded by more than 55,000 acres of annual potato production.

Most of our food products are perishable and require proper refrigeration. Product shelf life ranges from 18 to 60 days for refrigerated products. Due to the perishable nature and shelf life of these items, our production plants normally process only enough products to fill existing orders; however we do build inventory seasonally in-line with peak periods of customer demand. As a result, we maintain minimal inventory levels. Many of our breakfast and dinner sausage items can be frozen for shipping to warehouses. Shipping frozen product allows our retailers added flexibility to slack-out product as needed to meet consumer demand and allows us to build inventory for heavy consumption periods.

Advertising and Marketing

During fiscal 2017, we spent approximately $9.0 million advertising our food products, excluding coupons and trade promotion marketing costs. Our food products marketing programs consist of advertising, consumer promotions and trade promotions. Our advertising activities include television, newspaper and digital advertising aimed at increasing brand awareness and building consumer loyalty. Consumer promotions include the distribution of recipes featuring our products and targeted coupons designed to attract new customers and increase the frequency of purchases. Our trade promotions are aimed at providing retail display support, price discounts and securing additional shelf space. Trade promotions and discounts, which are recorded as a reduction to net sales, were $84.8 million, $79.3 million and $56.6 million in fiscal years 2017, 2016 and 2015, respectively. A decline in sow costs as compared to the last year drove the increase in fiscal 2017 trade promotions and discounts, allowing us to remain price competitive in a low sow cost environment. Trade incentives are generally more prevalent for fresh sausage than for refrigerated sides and represented approximately 64%, 62% and 53% of total trade incentives in fiscal years 2017, 2016 and 2015, respectively.

Competition

The food products business is highly competitive and is affected by changes in the public’s eating habits and preferences, as well as by local and national economic conditions affecting consumer spending habits, many of which are beyond our control. Key competitive factors in the industry are the quality, flavor and value of the food products offered, advertising and name brand awareness. We believe that we compete favorably with respect to each of these factors. Our competitors include well-established national, regional and local producers and wholesalers of similar products, many of which have substantially greater financial, marketing and other resources than we have. We also face growing competition from private label sausage products and side-dishes.

Seasonality and Quarterly Results

Our business is subject to seasonal fluctuations because third and fourth quarter sales are typically higher due to increased sales of sausage and our home-style side-dishes during the colder months from November through April and especially during the holiday season.

Our quarterly results can be significantly impacted by the cost and availability of raw materials, especially live sows. As a result, our financial results for any given quarter may not be indicative of the results that may be achieved for a full fiscal year.

Trademarks and Service Marks

We believe that brand awareness is a significant component in a consumer’s decision to purchase one product over another in highly competitive consumer products industries. In most cases, our brand, slogans, and product line names are protected by trademark applications or registrations in the United States and certain other foreign countries (“Trademarks”).  While some of the Trademarks are exclusively owned by us, the majority of the Trademarks used in connection with our business were contributed in conjunction with the sale of our Restaurants Business to an entity that we control jointly with affiliates of Golden Gate Capital (“IPCo”).  The sale of our Restaurants Business assets included the sale of fifty percent of the equity interests in a newly formed special purpose entity that holds specified intellectual property assets used by both the Restaurants Business and the Company’s food production business. As a result of this contribution, IPCo is the legal owner of

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the Trademarks and certain other intellectual property contributed to IPCo, and we have a license to use the Trademarks and other intellectual property held by IPCo in connection with our business.  Certain restrictions set forth in our agreement with IPCo may limit our ability to expand use of the Trademarks into certain lines of business in which we do not currently operate.

Our web content and the domain names, including www.bobevansgrocery.com, and www.owensfoods.com are owned by us and the content is copyright protected. We also rely on unpatented proprietary expertise, recipes and formulations, continuing innovation and other trade secrets to develop and maintain our competitive position.

We believe that our trademarks, service marks, websites, proprietary recipes and other proprietary rights have significant value and are important to our brand-building efforts and marketing. We have vigorously protected our proprietary rights in the past and expect to continue to do so. We cannot predict, however, whether steps taken by us to protect our proprietary rights will be adequate to prevent misappropriation of these rights or the use by others. It may be possible for unauthorized parties to copy, obtain or use certain portions of our food products or trademarks. Such unauthorized use could reduce the value of our products and brands, or have an adverse impact on our business and financial condition.

Government Regulation

We are subject to numerous federal, state and local laws affecting our businesses. However, we believe that we are in compliance in all material respects with applicable governmental regulations and, to date, we have not experienced abnormal difficulties or delays in obtaining the licenses or approvals required to open or operate any of our facilities.

Various federal and state labor laws govern our operations and our relationships with our employees, including such matters as minimum wage, meal and rest breaks, overtime, fringe benefits, safety, working conditions and citizenship requirements.

Minimum wages are governed by federal, state and local laws. There have been a number of increases in minimum wage in various states, as well as increasing legislative discussion at the federal level. Any significant changes in the level of minimum wages could affect our profitability. Federal and state legislatures have also proposed bills that would require paid time off at the hourly level.

The passage of the Affordable Care Act and ongoing changes in the governing rules have required significant effort to ensure compliance. The Company has chosen to continue to make health care available to eligible employees based on the terms set forth in the plan. Further, we are providing medical, prescription drug, dental, vision and an employee assistance program through an insurance carrier, as we attempt to manage overall health care costs. In the first years under the Affordable Care Act (calendar years 2014 and 2015) we experienced a more significant increase in costs than we had anticipated and were unable to mitigate the cost to the Company by re-distributing the cost of the coverage between the Company and employees. Continued, significant cost increases and administrative burdens will continue to affect our profitability and our ability to continue our current health care strategy.

The nature of our business requires employees to work weekends and nontraditional schedules at times. These factors make it imperative that we carefully monitor and manage the hours that nonexempt employees work to remain compliant with overtime pay and health care regulations. As the definitions and enforcement of overtime and overtime exemption regulations continue to change at the federal and state levels, we may need to consider making changes in these classifications, which could result in higher payroll costs and negatively impact profitability.

Bob Evans must comply with the applicable requirements of the Americans with Disabilities Act of 1990, as amended by the ADA Amendments Act of 2008 (“ADA”) and related state statutes. In pertinent part, the ADA prohibits discrimination on the basis of disability with respect to public accommodations and employment. Under the ADA and related state laws, when constructing or undertaking significant remodeling of existing or new facilities, we must ensure each facility meets the accessibility requirements of all applicable laws and regulations. We also must make reasonable accommodations for the employment of people with disabilities.

As a manufacturer and distributor of food products, we are subject to a number of food safety regulations, including regulations promulgated by the U.S. Department of Agriculture (“USDA”) and the Food and Drug Administration. These agencies enact and enforce regulations relating to the manufacturing, labeling, packaging, distribution and safety of food in the United States. Among other matters, these agencies: enforce statutory prohibitions against misbranded and adulterated foods; establish safety standards for food processing; establish standards for ingredients and manufacturing procedures for certain foods; establish standards for identifying certain foods; determine the safety of food additives; establish labeling standards and nutrition labeling requirements for food products; and enforce regulations to prevent the introduction, transmission or spread of communicable diseases. In addition, various states regulate our operations by: enforcing federal and state standards for selected food products; grading food products; licensing and inspecting plants and warehouses; regulating trade practices related to the

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sale of food products; and imposing their own labeling requirements on food products. Some of the food commodities we use in our operations are also subject to governmental agricultural programs. These programs have substantial effects on prices and supplies and are subject to congressional and administrative review.

Through our sausage manufacturing operations, we are subject to the requirements of the Packers & Stockyards Act (the “P&S Act”). The general purpose of the P&S Act is to: (1) assure fair competition and fair trade practices; (2) safeguard farmers and ranchers; (3) protect consumers; and (4) protect members of the livestock, meat and poultry industries from unfair, deceptive, unjustly discriminatory and monopolistic practices. The P&S Act is administered by the Grain Inspection, Packers & Stockyards Administration (“GIPSA”), which is part of the USDA. Among other requirements, the P&S Act requires meat packers to be bonded, which provides trust protection for producers in the event they are not paid for livestock by a meat packer, and requires that livestock producers be paid promptly by meat packers for the sale of livestock. Violations of the P&S Act may be resolved through a notice of violation, a stipulation agreement with GIPSA, administrative actions and court actions.

We are subject to federal and state environmental regulations, including various laws concerning the handling, storage and disposal of hazardous materials, such as cleaning solvents. These regulations have not had a material adverse effect on our operations to date. We do not anticipate that compliance with federal, state and local provisions regulating the discharge of materials into the environment, or which otherwise relate to the protection of the environment, will have a material adverse effect upon our capital expenditures, revenues or competitive position.

U.S. federal, state and local laws and regulations are increasingly being enacted to address concerns about the effects that carbon dioxide emissions and other identified greenhouse gases (“GHG”) may have on the environment and climate worldwide. One or more of our manufacturing facilities could be covered by such new legislation. As in virtually every industry, GHG emissions occur at several points across our operations, including production, transportation and processing. Compliance with future legislation, if any, and compliance with currently evolving regulation of GHGs by the Environmental Protection Agency and states may result in increased compliance costs, capital expenditures, and operating costs. In the event that any future compliance requirements at any of our facilities require more than the sustainability measures that we are currently undertaking to monitor emissions and improve our energy efficiency, we may experience increases in our costs of operation. These regulatory changes may also lead to higher cost of goods and services, which may be passed on to us by suppliers. Based on information currently available to us, we believe that compliance with these regulations will not have a material adverse effect on us.

From time to time, we receive notices and inquiries from regulatory authorities and others asserting that we are not in compliance with particular laws and regulations. In some instances, litigation ensues. In addition, individuals may initiate litigation against us. Many of our facilities are subject to environmental permits and other regulatory requirements, violations of which are subject to civil and criminal sanction. In some cases, third parties may also have the right to sue to enforce compliance.

Employees

As of April 28, 2017, we employed approximately 1,000 employees, including approximately 200 salaried employees. None of our employees are covered by collective bargaining agreements. We consider overall relations with our employees to be satisfactory. As part of the recent acquisition of PFPC, we added approximately 200 employees, of which approximately 40 are salaried.

Available Information

We are subject to the informational requirements of the Exchange Act, and, accordingly, we file reports, proxy statements, and other information with the SEC. Such reports, proxy statements, and other information are publicly available and can be read and copied at the reference facilities maintained by the SEC at the Public Reference Room, 100 F Street, NE, Room 1580, Washington, D.C. 20549. Information regarding the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. The SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

Our website is www.bobevansgrocery.com. We make available at this address, free of charge, press releases, annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, reports for transactions in the Company stock by insiders on Forms 3, 4 and 5, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after electronically filing such material with, or furnishing it to, the SEC. In addition, we provide periodic investor relations updates and our corporate governance materials at our website.

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Upon the written request of a stockholder, we will provide without charge a copy of this Annual Report on Form 10-K, including the financial statements and financial statement schedules included herein. In addition, upon the written request of a stockholder, we will provide a copy of any exhibit to this Annual Report on Form 10-K upon the payment of a reasonable fee. Written requests should be delivered to Bob Evans Farms, Inc., Attention: Investor Relations, 8111 Smith's Mill Road, New Albany, Ohio 43054.

ITEM 1A.    RISK FACTORS.

The following are certain risk factors that could affect our business, financial condition and results of operations. These risk factors contained in this Annual Report on Form 10-K and our other filings with the SEC could cause the actual results and conditions to differ materially from those projected in forward-looking statements. Additional risks and uncertainties that are not presently known to us or are currently deemed to be immaterial also may materially adversely affect our business, financial condition, or results of operations in the future. If any of the risks actually occur, our business, financial condition or results of operations could be negatively affected.

Concerns with the safety and quality of certain food products or ingredients could cause consumers to avoid our products.

We could be adversely affected if consumers in our principal markets lose confidence in the safety and quality of certain products or ingredients. Negative publicity about these concerns, whether or not valid, may discourage consumers from buying our products or cause disruptions in production or distribution of our products and negatively impact our business and financial results.

If our products become adulterated, misbranded or mislabeled or become contaminated, we may need to recall those items and may experience product liability claims if consumers are harmed.

Selling food products involves a number of legal and other risks, including product contamination, spoilage, product tampering, allergens or other adulteration. Additionally, many of the raw materials used to make certain of our products are vulnerable to contamination by naturally occurring pathogens, such as porcine epidemic diarrhea virus and salmonella. We may need to recall some or all of our products if they become adulterated, mislabeled or misbranded, whether caused by us or someone in our supply chain. A recall could result in destruction of product inventory, negative publicity, temporary plant closings, supply chain interruption, substantial costs of compliance or remediation, fines and increased scrutiny by federal and state regulatory agencies. Should consumption of any product cause illness or injury, we may be liable for monetary damages as a result of a judgment against us. In addition, adverse publicity, including claims (whether or not valid) that our products or ingredients are unsafe or of poor quality may discourage consumers from buying our products or cause production and delivery disruptions. Any of these events, including a significant product liability claim against us, could result in a loss of consumer confidence in our food products. Although we have various insurance programs in place to protect us against matters such as these, any of these events and/or a loss of consumer confidence could have an adverse effect on our financial condition, results of operations and/or cash flows.

Our product categories face a high level of competition, which could negatively impact our sales and results of operations.

The food products business is highly competitive. Numerous brands and products compete for shelf space and sales, with competition based primarily on product quality, brand recognition and loyalty, price, trade promotion, consumer promotion, customer service, and the ability to identify and satisfy emerging consumer preferences. We compete with a significant number of companies, many of which have multiple product lines and substantially greater financial and other resources available to them. Because of their diversity, larger capitalization and greater resources, these companies may be better able to compete on the basis of input costs or selling price.

Price increases for our products that we manufacture may negatively impact our financial results if not properly implemented or accepted by our customers. Future price increases, such as those made in order to offset increased input costs, may reduce our overall sales volume, which could reduce our revenue and operating profit. In addition, because we offer moderately priced food products, we may be unable to pass along price increases to our customers sufficient to completely offset cost increases. Conversely, if market prices for certain inputs decline significantly, competitive pressure could cause us to reduce the prices for our products and thereby lower our revenue and operating profit.

In addition, we are subject to competition from companies, including some of our customers, that either currently manufacture or are developing products directly in competition with our products. These generic or store-branded products may be a less expensive option for consumers than our products, making it more difficult to sell our products that compete with them. Additionally, our customers may reduce their purchases of our products or detrimentally change the shelf placement of our products in favor of their own private-label products. Competitive pressures or other factors could cause us to lose market share, which may require us to lower prices, increase marketing and advertising expenditures, or increase the use of discounting

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or promotional campaigns, each of which could materially and adversely affect our margins and could result in a decrease in our operating results and profitability.

Demand for our products may be adversely affected by changes in consumer preferences and tastes or if we are unable to innovate or market our products effectively.

To generate revenue and profits, we must sell products that appeal to our customers and consumers. Any significant changes in consumer preferences or any inability on our part to anticipate or react to such changes could result in reduced demand for our products and erosion of our competitive and financial position. Our success depends on our ability to respond to consumer trends, including concerns of consumers regarding health and wellness, obesity, product attributes and ingredients. In addition, changes in product category consumption or consumer demographics could result in reduced demand for our products. Consumer preferences may shift due to a variety of factors, including the aging of the general population, changes in social trends, or changes in travel, vacation or leisure activity patterns. Any of these changes may reduce consumers’ willingness to purchase our products and negatively impact our financial results.

If we are unable to accurately predict which shifts in consumer preferences will be long-lasting, or are unable to introduce new and improved products to satisfy those preferences, our sales may decline. As such, we must be successful in developing innovative products across a multitude of product categories. Our continued success is dependent on product innovation, including maintaining a robust pipeline of new products, and the effectiveness of advertising and promotional campaigns, marketing programs and product packaging. Although we devote significant resources to meet this goal, there can be no assurance as to the continued ability to develop and launch successful new products or variants of existing products, or to effectively execute advertising and promotional campaigns and marketing programs. If we are unable to rapidly develop products in faster-growing and more profitable categories, we could experience reduced demand for our products, or fail to expand margins.

If we lose one or more of our major customers, or if any of our major customers experiences significant business interruption or enacts initiatives to improve their cost structure, our results of operations could be adversely affected.

Our two largest customers, Wal-Mart Stores, Inc. and The Kroger Co., accounted for approximately 20% and 14%, respectively, of our net sales from continuing operations in fiscal 2017. If, for any reason, one of our key customers were to purchase significantly less of our products in the future or were to terminate entirely its purchases from us, or if we were unable to maintain existing relationships with key customers on terms favorable to us, our business, financial condition and our results of operations could be materially and adversely affected.

Many of our customer relationships do not require our customers to commit to any specified minimum purchase volumes. Moreover, many of our customer relationships are terminable at will by our customers following brief notice periods. As a result, we could have periods during which we have diminished orders for our products but incur costs in the short term associated with our workforce and operations that are not supportable by reduced sales volumes. In addition, our large customers may choose to purchase products from us based on a combination of factors such as price, consumer demand, customer service performance, their desired inventory levels, and other factors. Changes in any of our major customers’ strategies, including a reduction in the number of brands they carry, initiatives to improve their cost structure, or a shift of shelf space to private label products, could have a material adverse effect on our business and our results of operations. There can be no assurance that we will be able to find new customers in a timely fashion and on favorable terms, or at all, to supplement periods of diminished order volume from established customers. Periods of no or limited orders for our products could have a material adverse effect on our business, financial condition and our results of operations.

Customer consolidation, and competitive, economic and other pressures facing our customers, may in-turn put pressure on our operating margins and profitability.

A number of our customers, such as supermarkets and food distributors, have consolidated in recent years and consolidation could continue. Such consolidation could present a challenge to margin growth and profitability in that it has produced large, sophisticated customers with increased buying power who are more capable of operating with reduced inventories; resisting price increases; demanding lower pricing, increased promotional programs and specifically tailored products; and shifting shelf space currently used for our products to private label and other competitive products. The economic and competitive landscape for our customers is constantly changing, such as the emergence of new sales channels like e-commerce, and our customers' responses to those changes could impact our business. These factors and others could have an adverse impact on our business, financial condition or results of operations.

The price and availability of operating resources, and for commodities such as food, ingredients, and utilities, could adversely affect our revenues and results of operations.

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Our business depends heavily on raw materials, such as sows, potatoes and dairy products that are used in the production of our products. Our raw materials are generally sourced from third-party suppliers, and we are not assured of continued supply, pricing, or exclusive access to raw materials from any of these suppliers. In addition, a substantial portion of our raw materials are agricultural products, which are vulnerable to adverse weather conditions and natural disasters, such as floods, droughts, frost, earthquakes, and pestilence. Adverse weather conditions and natural disasters also can lower crop yields and reduce supplies of these ingredients or increase their prices. Additionally, the increased global demand for corn, wheat and dairy products has increased feed costs for livestock from time to time. Also, the cost of commodities subject to governmental regulation, such as dairy and corn, can be even more susceptible to price fluctuation than other products. Some climatologists predict that the long-term effects of climate change may result in more severe, volatile weather, which could result in greater volatility in product supply and price. Furthermore, many of the products that we use and their costs are interrelated, which could result in compound effects from events that negatively affect our sources of supply. Other events that adversely affect our third-party suppliers and that are out of our control could also impair our ability to obtain the raw materials and other inputs that we need in the quantities and at the prices that we desire. Such events include problems with our suppliers' businesses, finances, labor relations, costs, production, insurance, and reputation.

Sows are the most important raw material used to produce our pork sausage products. We procure live sows at prevailing market prices from terminals, local auctions, country markets and corporate and family farms in many states and Canada. The live sow market is volatile in terms of the number of sows available and the current market price. The live sow market is dependent upon supply and demand for pork products, as well as such commodities as corn and soybean meal prices (the major food supply for sows), weather and farmers’ access to capital. We also use pork trimmings in certain of our products. The pork trimmings market is also volatile in terms of availability and market price. Higher sow and pork trimmings costs could adversely affect our profitability, and we cannot guarantee that we will be able to pass along any portion of the increased costs to our consumers in a timely manner, or at all.

Our ability to anticipate and respond effectively to one or more adverse changes in any of these operating costs could have a significant adverse effect on our results of operations. In addition, because we offer moderately priced food products, we may be unable to pass along price increases to our customers sufficient to completely offset cost increases.

We are vulnerable to disruptions to our food processing business because our food production business is concentrated in five manufacturing facilities.

Because the majority of our food products are produced in five manufacturing facilities, significant disruptions at any of our facilities could have a material adverse effect on our business, financial condition or results of operations. We produce fresh sausage products at our plants located in Hillsdale, Michigan and Xenia, Ohio. Ready-to-eat products, such as sandwiches, soups and gravies, are produced at our Sulphur Springs, Texas plant. Our Lima, Ohio, plant and the PFPC facility we recently acquired in Mars Hill, Maine produce refrigerated side-dishes as well as diced and shredded potatoes. If we had to close or limit production of all or part of the operations at one or more of these plants for an extended period of time, we may be unable to increase production at our other plants or with our third-party co-packers in a timely manner, which could have a material adverse effect on our results of operations.

We rely on third party co‑packers for a portion of our manufacturing capacity needs, and the inability to enter into additional or future co‑packing agreements could limit our ability to meet customer demand.

We rely upon co‑packers for a portion of our manufacturing needs. The success of our business depends, in part, on maintaining a strong sourcing and manufacturing platform. We believe that there are a limited number of competent, high‑quality co‑packers in the industry, and if we were required to obtain additional or alternative co‑packing agreements or arrangements in the future, we can provide no assurance that we would be able to do so on satisfactory terms or in a timely manner.

We outsource certain business processes and product manufacturing to third-party vendors that subjects us to risks, including disruptions in business and increased costs.

Some of our business processes and the manufacturing of certain products are currently outsourced to third parties. Such processes include distribution of food and retail products to our food service customers, employee payroll card services, health care and workers’ compensation claims processing, wage and related tax credit documentation and approval and externally hosted business software applications. We cannot ensure that all providers of outsourced services are observing proper internal control practices, such as redundant processing facilities, and there are no guarantees that failures will not occur. Failure of third parties to provide adequate services could have an adverse effect on our financial condition and results of operations.

We rely on certain technology licensed from third parties and may be required to license additional technology in the future for use in managing our Internet sites and providing services to our customers and employees. These third-party

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technology licenses may not continue to be available to us on acceptable terms or at all. The inability to enter into and maintain these technology licenses could adversely affect our business.

Our results of operations and financial condition may be adversely affected by the failure to execute and successfully integrate business acquisitions.

We may not be able to identify and complete acquisitions in the future, and our failure to do so could limit our ability to grow our business beyond our existing products. Additionally, the process of integrating any acquired business involves risks. For example, if we are unable to successfully integrate the recently completed acquisition of PFPC with our existing food production business in an efficient and effective manner, the anticipated benefits of our acquisition of PFPC, including the expected diversification and expansion of our production capability and transportation cost savings, may not be realized fully, or at all, or may take longer to realize than expected. An inability to realize the full extent of the anticipated benefits of our acquisition of PFPC, or any delays encountered in the integration process, could have an adverse effect on the results of operations, cash flows and financial position of the Company. In addition, the actual integration of PFPC may result in additional and unforeseen expenses.

Moreover, if we pursue strategic acquisitions or joint ventures in the future, we may incur significant costs and may not be able to consummate the transactions or obtain the requisite financing. Potential risks of acquisitions, in addition to the integration risks discussed above, include: the diversion of management’s attention from other business concerns; potential loss of key employees and/or customers of acquired businesses; potential assumption of unknown liabilities; the inability to implement promptly an effective control environment; potential impairment charges if purchase assumptions are not achieved or market conditions decline; and the risks inherent in entering markets or lines of business with which we may have limited or no prior experience.

The divestiture of the Restaurants Business could adversely affect our results of operations.

In April 2017, we completed the sale of our Restaurants Business to Bob Evans Restaurants, LLC (formerly, BER Acquisition, LLC), a Delaware limited liability company formed by affiliates of Golden Gate Capital Opportunity Fund, L.P. (the “Buyer”), pursuant to an Asset and Membership Interest Purchase Agreement (the “BER Sale Agreement”) between the Company and the Buyer dated January 24, 2017. Difficulties in the separation of operations, services, products and personnel could have an adverse impact on operations of the Company.

As part of the sale of the Restaurants Business the Company also entered into a transition services agreement ("TSA"), pursuant to which both the Company and the Buyer will provide transition services to the other party at the provider’s cost for a period of 18 months following the closing. Disruptions in the services provided under the TSA, including the IT services the Company will provide the Restaurants Business, could have an adverse impact on our on-going business, as well as the Restaurants Business, which remains a significant customer of the Company. The obligation to indemnify the Buyer for certain breaches of the BER Sale Agreement and for certain other liabilities, subject to the applicable limitations in the BER Sale Agreement, could have a negative impact on our results of operations. The Company may also be negatively impacted by the departure of senior members of our corporate management team in connection with the transaction, as well as an increased potential for losses of further employees as a result of the uncertainty created by the transaction.

There is no assurance that we will be successful in managing these risks or that these risks will not adversely affect our results of operations.

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Guarantor provisions associated with restaurant lease obligations could adversely affect our results of operations or financial condition even after completion of the sale.

Following the sale of our Restaurants Business, the Buyer assumed the lease obligations of the Restaurants Business. However, as part of the sale leaseback transaction of 143 of our restaurant properties in fiscal 2016, the Company and its wholly owned subsidiary BEF Foods, Inc. entered into payment and performance guaranties relating to the leases on such restaurant properties, which have remained in place following the completion of the sale of our Restaurants Business. Under the terms of the BER Sale Agreement, the Buyer assumed responsibility for the payment and performance obligations under the leases on these sale leaseback properties. However, while we will no longer have control over the Restaurants Business, under the terms of the guaranties we remain liable for payments due under these leases if the Buyer fails to satisfy its lease obligations. Any such unexpected expenses related to our obligations under the payment and performance guaranties could adversely affect our results of operations or financial condition.

A material disruption in our information technology, network infrastructure and telecommunication systems could adversely affect our business and results of operations.

We are a highly automated business and rely on our production facilities, our network infrastructure, the Internet, our website and mobile apps for our development, marketing, operational, support, hosted services and sales activities. Our business depends significantly on the reliability and capacity of our information technology systems to process these transactions, summarize results and manage and report on our business and our supply chain. Our information technology systems are subject to disruption, infiltration, damage, interruption or failure from power outages, computer, network, cable system, Internet and telecommunications failures, computer viruses, security breaches, catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes, acts of war or terrorism or usage errors by our employees. If our information technology and telecommunication systems are damaged or cease to function properly, we may have to make a significant investment to repair or replace them, and we could suffer loss of critical data, system interruption, delay, limitations on operations and services and disruption in our product production. Any material interruption in our information technology and telecommunication systems could adversely affect our business or results of operations.

Many of our corporate systems and processes and corporate support for operations are centralized at one Ohio location. We have disaster recovery procedures and business continuity plans in place to address most events of a crisis nature, including tornadoes and other natural disasters, and back up and off-site locations for recovery of digital and other forms of data and information. However, if we are unable to implement our disaster recovery plans, we may experience delays in recovery of data, experience inability to perform vital corporate functions, experience delays in required reporting and compliance, fail to adequately support field operations and experience other breakdowns in normal communication and operating procedures. These could have a material adverse effect on our financial condition, results of operation, and exposure to administrative and other legal claims.

A privacy breach could adversely affect our business.

The protection of customer, employee and company data is critical to us. We are subject to laws relating to information security, privacy and fraud. Additionally, an increasing number of government and industry groups have established laws and standards for the protection of personal and health information. The regulatory environment surrounding information security and privacy is increasingly demanding, with the frequent imposition of new and constantly changing requirements. We employ both internal resources and external consultants to conduct auditing and testing for weaknesses in our cyber environment to reduce the likelihood of any security incident. We have developed a multi-disciplined security incident response plan to help ensure that our executives are fully and accurately informed and managing, with the help of content experts, the discovery, investigation, auditing and recovery stages of any security incidents. However, we can provide no assurance that our security measures will be successful in the event of an attempted or actual security incident. Compliance with these requirements may result in cost increases due to necessary systems changes and the development of new administrative processes.

In addition, our customers and employees have a high expectation that we will adequately protect their personal information. Third parties may have the technology or know-how to breach the security of this confidential information, and our security measures and those of our technology vendors may not effectively prohibit others from obtaining improper access to this information. If we fail to comply with the laws and regulations regarding privacy and security or experience a security breach, we could be exposed to risks of data loss, fines, litigation, termination or diminution of our relationships with affected customers and serious disruption of our operations. Additionally, any resulting negative publicity could significantly harm our reputation.

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We may not be able to adequately protect our intellectual property and other proprietary rights that are material to our business.

Our ability to compete effectively depends in part upon protection of our rights in trademarks, trade dress, copyrights and other intellectual property rights that we use in our business. Our use of contractual provisions, confidentiality procedures and agreements, and trademark, copyright, unfair competition, trade secret and other laws to protect our intellectual property and other proprietary rights may not be adequate. Litigation may be necessary to enforce our intellectual property rights and protect our proprietary information, or to defend against claims by third parties that our products or our use of intellectual property infringe their intellectual property rights. Any litigation or claims brought by or against us could result in substantial costs and diversion of our resources. A successful claim of trademark, copyright or other intellectual property infringement against us could prevent us from providing our products, which could harm our business, financial condition or results of operations. In addition, a breakdown in our internal policies and procedures may lead to an unintentional disclosure of our proprietary, confidential or material non-public information, which could in turn harm our business, financial condition or results of operations.

Additionally, in connection with the Restaurants Business transaction, many of the trademarks, copyrights and other intellectual property rights that we use in our business were contributed to the IPCo. As a result of this contribution, the IPCo is the legal owner of these intellectual property assets, and we hold the right to use these intellectual property assets through license agreements with the IPCo. As such, any enforcement action with respect to certain intellectual property rights we use in our business may require the active involvement or approval of the IPCo, over which we do not have sole control. If we are prevented from, or otherwise unable to, protect intellectual property rights we use in our business, our business, financial condition or results of operations could be materially and adversely affected. Furthermore, because certain of our tradenames are shared and used by a third party, negative events outside of our control, for example a privacy breach or food safety issue at Bob Evans Restaurants, could have an adverse impact on our results of operations or financial condition.

The loss of key executives or difficulties in recruiting and retaining qualified personnel could jeopardize our future growth and success.

We have assembled a senior management team that has substantial background and experience in the food products industry. Our future growth and success depends substantially on the contributions and abilities of our senior management and other key personnel. If we fail to retain senior management or other key personnel or fail to attract key personnel, our succession planning and operations could be materially and adversely affected and could jeopardize our ability to meet our business goals.

Labor organizing could harm our operations and competitive position in our industry, which could materially adversely affect our financial performance.

Our staff members and others may attempt to unionize our workforce, establish boycotts or picket lines or interrupt our supply chains which could limit our ability to manage our workforce effectively and cause disruptions to our operations, which could materially adversely affect our financial performance. A loss of our ability to effectively manage our workforce and the compensation and benefits we offer to our employees could significantly increase our labor costs, which could materially adversely affect our financial performance.

Our marketing and branding strategies may not be successful, which could negatively affect our business.

Our marketing and branding strategies continue to evolve to maximize our appeal to customers and compete effectively. We do not have any assurance that our marketing strategies will be successful. Moreover, many of our competitors have successfully used national marketing strategies in the past, including network, cable television, and social media and we may not be able to successfully compete against those established and newly developed programs.

Media campaigns related to food production and the use or misuse of social media may have an adverse effect on our business and financial results.

Media outlets, including new social media platforms, provide the opportunity for individuals or organizations to publicize inappropriate or inaccurate stories or perceptions about us or the food industry. Such practices have the ability to cause damage to our brands, the industry generally, or consumers’ perceptions of us or the food production industry and may result in negative publicity and adversely affect our financial results. In addition, our competitors are increasingly using social media networks to make and advertise products. If we are unable to compete in this environment, it could adversely affect our financial results.

Our sales and profit growth is dependent upon our ability to expand existing market penetration and enter into new markets.

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Successful growth depends in part on our ability to add new retail customers, as well as expand the number of products sold through existing retail customers. This would include expanding the number of our items they offer for sale and product placement within the refrigerated meat and side-dish departments. The expansion of our business depends on our ability to obtain and retain large-account customers, such as grocery store chains and warehouse customers. Our failure to retain and obtain new large-account customers or maintain our relationships with existing large-account customers could have a material adverse effect on the business and results of operations.

Economic downturns could limit consumer demand for our products.

The willingness of consumers to purchase our products depends in part on general or local economic conditions. In periods of economic uncertainty, consumers may purchase less of our products and may forego certain purchases altogether. In those circumstances, we could experience a reduction in sales of our products. In addition, as a result of economic conditions or competitive actions, we may be unable to raise our prices sufficiently to protect profit margins. Any of these events could have an adverse effect on our results of operations.

Failure of our internal control over financial reporting could adversely affect our business and financial results.

Our management is responsible for establishing and maintaining effective internal control over financial reporting. Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of financial reporting for external purposes in accordance with the United States generally accepted accounting principles (“US GAAP”). Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that we would prevent or detect a misstatement of our financial statements or fraud. Any failure to maintain an effective system of internal control over financial reporting could limit our ability to report our financial results accurately and timely or to detect and prevent fraud. The identification of a material weakness could indicate a lack of controls adequate to generate accurate financial statements that, in turn, could cause a loss of investor confidence and decline in the market price of our common stock.

Our current insurance programs expose us to unexpected costs, which could have a material adverse effect on our financial condition and results of operations.

Our insurance coverage is structured to include deductibles, self-insured retentions, limits of liability, stop loss limits and similar provisions that we believe prudent based on our operations. However, there are types of losses we may incur against which we cannot be insured or which we believe are not economically reasonable to insure or where the risk is considered low, such as losses due to acts of terrorism and some natural disasters, including floods. If we incur such losses, our business could suffer. In addition, we self-insure a significant portion of expected losses under our workers’ compensation, general liability and group health insurance programs. Unanticipated changes in the actuarial assumptions and management estimates underlying our reserves for these losses, including unexpected increases in medical and indemnity costs, could result in materially different amounts of expense than expected under these programs.

Our annual and quarterly operating results may fluctuate significantly and could fall below the expectations of investors and securities analysts due to a number of factors, some of which are beyond our control, resulting either in volatility or a decline in the price of our securities.

Our quarterly operating results may fluctuate as a result of any number of factors in or outside of our control. Our business is also subject to seasonal fluctuations. Accordingly, results for any one quarter are not necessarily indicative of results to be expected for any other quarter or for any fiscal year. If our annual or quarterly operating results fall below the expectations of securities analysts and investors due to the factors discussed above, this could result in the price of our securities fluctuating dramatically over time or could decrease generally.

Our actual operating and financial results in any given period may differ from guidance we provide to the public, including our most recent public guidance.

From time to time, in press releases, SEC filings, public conference calls and other contexts, we have provided guidance to the public regarding current business conditions and our expectations for our future financial results. We expect that we will provide guidance periodically in the future. Our guidance is based upon a number of assumptions, expectations and estimates that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In providing our guidance, we also make various assumptions with respect to our future business decisions, some of which will change. Our actual financial results, therefore, may vary from our guidance due to our inability to meet the assumptions upon which our guidance is based and the impact on our business of the various risks and uncertainties described in these risk factors and in our public filings with the SEC. Variances between our actual results and our guidance may be material. To the extent that our actual financial results do not meet or exceed our guidance, the trading prices of our

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securities may be materially adversely affected, and we may suffer associated costs related to the matter, such as legal costs associated with any claims.

Many factors, including those over which we have no control, affect the trading price of our stock.

A number of factors may significantly affect the market price of our common stock. These include, but are not limited to: actual or anticipated variations in our operating results or those of our competitors as compared to analyst expectations; changes in financial estimates by research analysts with respect to us or others in our industry; announcements of significant transactions (including mergers or acquisitions, divestitures, joint ventures or other strategic initiatives) by us or others in our industry; and actions by activist shareholders. In addition, the equity markets have experienced price and volume fluctuations that affect the stock price of companies in ways that have been unrelated to an individual company’s operating performance. The price of our common stock may continue to be volatile, based on factors specific to our company and industry, as well as factors related to the equity markets overall.

In addition to investor expectations about our prospects, trading activity in our common stock can reflect the portfolio strategies and investment allocation changes of institutional holders, as well as non-operating initiatives such as share repurchase programs. Any failure to meet market expectations for our financial performance, particularly with respect to revenues, operating margins and earnings per share, would likely cause our stock price to decline.

Our dividend program, as well as stock repurchase program (if any), requires the use of a substantial amount of our free cash flow. Assuming the authorization of either program by our Board of Directors, our ability to pay dividends over time, or repurchase stock from time to time, will depend on our ability to generate sufficient cash flows from operations and capacity to borrow funds, which may be subject to economic, financial, competitive and other factors that are beyond our control. Any failure to pay our dividends over time may negatively impact investor confidence in us, and may negatively impact our stock price.

New laws or regulations or changes in existing laws or regulations could adversely affect our business.

The food industry is subject to a variety of federal, state, local, and foreign laws and regulations, including those related to food safety, food labeling, and environmental matters. Governmental regulations also affect taxes and levies, healthcare costs, energy usage, international trade, immigration, and other labor issues, all of which may have a direct or indirect effect on our business or those of our customers or suppliers. The impact of current laws and regulations, the effect of future changes in laws or regulations that impose additional requirements and the consequences of litigation relating to current or future laws and regulations could increase our compliance and other costs of doing business and therefore have an adverse effect on our results of operations. Failure to comply with the laws and regulatory requirements of federal, state and local authorities could result in, among other things, revocation of required licenses, administrative enforcement actions, fines and civil and criminal liability. Compliance with these laws and regulations can be costly and can increase our exposure to litigation or governmental investigations or proceedings. Also, the failure to obtain and maintain required licenses, permits and approvals could adversely affect our operating results.

Increased government regulations to limit carbon dioxide and other greenhouse gas emissions as a result of concern over climate change may result in increased compliance costs, capital expenditures, and other financial obligations for us. We use natural gas, diesel fuel, and electricity in the manufacturing and distribution of our products. Legislation or regulation affecting these inputs could materially affect our profitability. In addition, climate change could affect our ability to procure needed commodities at costs and in quantities we currently experience, and may require us to make additional unplanned capital expenditures.

Healthcare reform legislation could adversely affect our results of operations.

The Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (collectively, the “Health Reform Law”) serves as the primary vehicle for comprehensive healthcare reform in the United States. Among other things, the Health Reform Law contains provisions that affect employer-sponsored health plans and impose excise and other taxes and fees with respect to certain plans. We anticipate increased expenses relating to our and our company-sponsored plans over the course of the next several years. If we are not able to limit or offset future cost increases, those costs could have an adverse effect on our results of operations. The 2016 U.S. elections, which resulted in the election of a Republican president and Republican control of both houses of Congress, may lead to the repeal of the Health Reform Law or significant changes to the Health Reform Law, its implementation or its interpretation. We are unable to predict whether, when, and how the Health Reform Law will be changed, what alternative provisions, if any, will be enacted, the timing of enactment and implementation of alternative provisions, or the impact of alternative provisions on our results of operations.

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Litigation, legal or administrative proceedings could have an adverse impact on our business, financial condition and damage our reputation.

We are party to a variety of legal claims and proceedings in the ordinary course of business, such as employee claims based on, among other things, discrimination, harassment, wage and hour disputes or wrongful termination. Since litigation is inherently uncertain, there is no guarantee that we will be successful in defending ourselves against such claims or proceedings, or that management’s assessment of the materiality or immateriality of these matters, including any reserves taken in connection with such matters, will be consistent with the ultimate outcome of such claims or proceedings. In the event that management’s assessment of the materiality or immateriality of current claims and proceedings proves inaccurate, or litigation that is material arises in the future, there may be a material adverse effect on our financial condition. Any adverse publicity resulting from allegations made in litigation claims or legal or administrative proceedings (even if untrue) may also adversely affect our reputation. These factors and others could have an adverse impact on our business, financial condition or damage our reputation.

Our Certificate of Incorporation and Bylaws, as well as Delaware law, may discourage potential acquirers of the Company.

Provisions of our Certificate of Incorporation and Bylaws may have the effect of discouraging, delaying or preventing a merger, tender offer or proxy contest, which could have an adverse effect on the market price of our common stock. In addition, certain provisions of Delaware law could also delay or make more difficult a merger, tender offer or proxy contest involving our Company. This includes Section 203 of the Delaware General Corporation Law, which prohibits a Delaware corporation from engaging in any business combination with any “interested shareholder” (as defined in the statute) for a period of three years unless certain conditions are met. These provisions, either alone or in combination with each other, give our current directors and executive officers a substantial ability to influence the outcome of a proposed acquisition of the Company. These provisions would apply even if an acquisition, or other significant corporate transaction, was considered beneficial by some of our shareholders. If a change in control or change in management is delayed or prevented by these provisions, the market price of our securities could decline.

ITEM 1B.    UNRESOLVED STAFF COMMENTS

None.

ITEM 2.    PROPERTIES

The following provides a brief summary of the location and general character of our principal plants and other physical properties as of April 28, 2017.

Our corporate headquarters is located at 8111 Smith’s Mill Road, New Albany, Ohio. The property was sold to the Buyer on April 28, 2017, as part of the sale of our Restaurants Business. We will remain in this location as part of a cost-sharing arrangement under the TSA executed as part of the transaction.

We also own a 30-acre property in Richardson, Texas, that is currently classified as held for sale.

As of April 28, 2017, we produced food products in four manufacturing facilities. We produce fresh sausage products at our plants located in Hillsdale, Michigan, and Xenia, Ohio. Our Sulphur Springs, Texas, plant produces ready-to-eat products, such as sandwiches, soups and gravies. We operate a 100,000 square foot food production facility in Lima, Ohio that produces refrigerated mashed potatoes and other potato-based side-dishes, macaroni and cheese and other pasta side-dishes. In fiscal 2017 we completed the process of constructing an additional production line at the facility which added an additional 45 million pounds of mashed potato production capacity.

We own the Hillsdale, Michigan and Xenia, Ohio properties. Subsequent to the sale-leaseback transaction completed in the second quarter of fiscal 2016, we lease the Sulphur Springs, Texas and Lima, Ohio production facilities. We also lease various other locations throughout our BEF Foods marketing territory, which serve as regional and divisional sales offices.

On May 1, 2017, we completed the acquisition of PFPC, which included a 125,000 square foot production facility and office in Mars Hill, Maine, a 900-acre potato farm in St. Agatha, Maine, and a 20 million pound potato store house in Westfield, Maine. We believe our facilities have adequate capacity in the near-term with our recent acquisition and capital additions, to position the Company for profitable sales growth.

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ITEM 3.    LEGAL PROCEEDINGS.

We are from time-to-time involved in ordinary and routine litigation, typically involving claims from customers, employees and others related to operational issues common to the restaurant and food manufacturing industries, and incidental to our business. Management presently believes that the ultimate outcome of these proceedings, individually or in the aggregate, will not have a material adverse effect on our financial position, cash flows or results of operations.

ITEM 4.    MINE SAFETY DISCLOSURES.

Not applicable.

SUPPLEMENTAL ITEM.    EXECUTIVE OFFICERS OF BOB EVANS FARMS, INC.

The following table sets forth certain information for the “executive officers” of Bob Evans Farms, Inc. for the past five years as of June 15, 2017. The following “executive officers” are the Company's “Section 16 officers,” both as defined pursuant to the Securities Exchange of 1934, as of such date.

Name	Age	Years of Service as Officer	Background
T. Alan Ashworth	57	5	Senior Vice President, Corporate Development and Finance, and Treasurer of Bob Evans Farms, Inc. since July 2015; Vice President, Corporate Development and Finance, and Treasurer of Bob Evans Farms, Inc. from June 2014 to July 2015; Chief Financial Officer (Interim) of Bob Evans Farms, Inc. from May 2014 to June 2014; Vice President, Corporate Development and Finance of Bob Evans Farms, Inc. from August 2012 to June 2014; Senior Director, Finance of Bob Evans Farms, Inc. from December 2011 to August 2012; Vice President, Finance, Convergys Corporation from 2008 to 2011.
Douglas N. Benham	60	1	Executive Chair of Bob Evans Farms, Inc. since January 2016; Executive Chair (chief executive officer) of Bob Evans Farms, Inc. from August 2015 to December 2015; President and Chief Executive Officer of DNB Advisors, LLC, since 2006.
Terrance R. Camp	58	Less than 1	Senior Vice President of Operations, Bob Evans Farms, Inc. since May 2015; Vice President of Operations, Bob Evans Farms, Inc. May 2013 to May 2015; Senior Director of Operations, Bob Evans Farms, Inc. May 2011 to May 2013; Director of Operations, Bob Evans Farms, Inc. May 2006 to May 2011.
Colin M. Daly	45	5	Executive Vice President, General Counsel and Corporate Secretary of Bob Evans Farms, Inc. since December 2014; Senior Vice President, General Counsel and Corporate Secretary of Bob Evans Farms, Inc. from May 2012 to December 2014; General Counsel of O’Charley’s Inc. from February 2008 to May 2012; Secretary of O’Charley’s Inc. from March 2009 to May 2012.
Richard D. Hall	61	21	Executive Vice President, Supply Chain Management of Bob Evans Farms, Inc. since September 2008.
Mark E. Hood	64	3	Chief Financial and Administrative Officer of Bob Evans Farms, Inc., since September 2015; Member, Chief Executive Officer’s Office of Bob Evans Farms, Inc. from December 2014 to August 2015; Chief Financial Officer of Bob Evans Farms, Inc. since June 2014; Consultant from July 2012 to June 2014; Senior Vice President and Chief Financial Officer, Caleres Inc., (formerly Brown Shoe Company, Inc.) from 2006 to 2012.
Christopher J. Lambrix	49	Less than 1	Senior Vice President of Retail Development, Bob Evans Farms, Inc. since June 2011; Principal, A.T. Kearney Consumer Industries and Retail Practice, May 2008 to May 2011; Vice President of Retail Price and Promotion, Sara Lee, August 2006 to August 2008.
J. Michael Townsley	58	14	President and Chief Executive Officer of Bob Evans Farms, Inc. since April 2017; President, BEF Foods, Inc. from June 2008 to March 2017; Member, Chief Executive Officer’s Office of Bob Evans Farms, Inc. from December 2014 to August 2015.

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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER REPURCHASES OF EQUITY SECURITIES

Market Information, Holders of Common Equity and Dividends

The information required by Item 201(a) through (c) of Regulation S-K is incorporated herein by reference to Note 11 — Quarterly Financial Data (Unaudited) to our consolidated financial statements, which are included in Item 8 of this Annual Report on Form 10-K.

Comparison of Five-Year Cumulative Total Return

The following line graph compares the yearly percentage change in our cumulative total stockholder return on our common stock over our preceding five fiscal years against the cumulative total return of the Standard & Poor’s 500 Stock Index (“S&P 500”) and two peer groups, the peer group we have historically used ("Old peer group") and a new peer group we have started using this year following the sale of the Restaurants Business ("New peer group").

Our Old peer group is comprised of restaurant companies listed on The NASDAQ Stock Market (weighted 70 percent) and a group of meat producers listed on either The NASDAQ Stock Market or the New York Stock Exchange (weighted 30 percent) whose attributes closely aligned with our company prior to the sale of our Restaurants Business. Our New peer group is comprised exclusively of select small and mid-cap food and beverage manufacturing companies listed on the NASDAQ or New York Stock Exchange.

We measure cumulative stockholder return by dividing (a) the sum of (i) the cumulative amount of dividends for the measurement period, assuming dividend reinvestment, and (ii) the difference between the price of our common stock at the end and the beginning of the measurement period by (b) the price of our common stock at the beginning of the measurement period.

The subsequent performance graph is being furnished as part of this Annual Report on Form 10-K solely in accordance with the requirement under Rule 14a-3(b)(9) to furnish our stockholders with such information, and therefore, shall not be deemed to be filed or incorporated by reference into any filings by the Company under the Securities Act or the Exchange Act.

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CUMULATIVE VALUE OF $100 INVESTMENT

	2012		2013		2014		2015		2016		2017
Old Peer Group (1)	$	100.00	$	113.03	$	135.10	$	168.55	$	148.40	$	168.97
New Peer group (2)	$	100.00	$	129.45	$	151.64	$	187.61	$	187.37	$	196.71
S&P 500	$	100.00	$	115.32	$	138.69	$	160.85	$	160.35	$	189.08
Bob Evans Farms, Inc.	$	100.00	$	113.06	$	127.48	$	126.64	$	131.11	$	197.57

⁽¹⁾ The old peer group includes the following companies: B&G Foods Inc., Biglari Holdings Inc., BJ's Restaurants, Inc., Bloomin' Brands, Inc., Brinker International, Inc., Buffalo Wild Wings Inc., Chipotle Mexican Grill, Inc., Cracker Barrel Old Country Store, Inc., Denny's Corporation, DineEquity, Inc., Flowers Foods, Inc., Panera Bread Co., Popeyes Louisiana Kitchen, Inc. (formerly known as AFC Enterprises), Red Robin Gourmet Burgers Inc., Ruby Tuesday, Inc., Sanderson Farms, Inc., Seneca Foods Corp., Snyder's Lance, Inc., Texas Roadhouse, Inc., The Cheesecake Factory Inc., The Hain Celestial Group, Inc., The Wendy's Company and Treehouse Foods, Inc.

⁽²⁾ The new peer group includes the following companies: Amplify Snack Brands, Inc., B&G Foods Inc., Blue Buffalo Pet Products, Inc., Calavo Growers, Inc., Farmer Bros. Co., Hostess Brands, Inc., J&J Snack Foods Corp., John B. Sanfilippo & Son, Inc., Lamb Weston Holdings, Inc., Lancaster Colony Corporation, Landec Corporation, Snyder's-Lance, Inc., The Hain Celestial Group, Inc. and Tootsie Roll Industries, Inc.

Issuer Repurchases of Equity Securities

On November 19, 2015, the Board of Directors increased the authorization under its stock repurchase program to $250.0 million. The program authorizes the Company to repurchase its outstanding common stock pursuant to plans approved by the Board under SEC Rules 10b-18 and 10b5-1, and in the open market or through privately negotiated transactions. In fiscal 2016 we repurchased approximately 3.9 million shares for $171.5 million. We did not repurchase any shares in fiscal 2017. On January 24, 2017, the Board of Directors increased the Company’s existing share repurchase authorization, which extends through December 31, 2017, to $100.0 million.

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ITEM 6.    SELECTED FINANCIAL DATA

Consolidated Financial Review

Bob Evans Farms, Inc. and Subsidiaries

(in thousands, except per share, shareholder and employee amounts)	2017		2016			2015			2014			2013
Operating Results
Net Sales from Continuing Operations	$	394,842	$	387,616		$	379,313		$	371,973		$	348,808
Operating Income (Loss) from Continuing Operations	$	30,126	$	33,074		$	(5,357	)	$	(10,290	)	$	(2,402	)
Income (Loss) from Continuing Operations before Income Taxes	$	20,910	$	22,647		$	(14,006	)	$	(12,304	)	$	(13,887	)
Provision (Benefit) for Income Taxes from Continuing Operations	$	3,874	$	6,439		$	(8,626	)	$	(12,678	)	$	(5,235	)
Income from Continuing Operations	$	17,036	$	16,208		$	(5,380	)	$	374		$	(8,651	)
Income from Discontinued Operations, Net of Income Taxes	$	109,431	$	8,014		$	21,933		$	33,311		$	7,830
Net Income	$	126,467	$	24,222		$	16,553		$	33,685		$	(821	)
Earnings Per Share - Income from Continuing Operations
Basic	$	0.86	$	0.76		$	(0.23	)	$	0.01		$	(0.31	)
Diluted	$	0.85	$	0.75		$	(0.23	)	$	0.01		$	(0.30	)
Earnings Per Share - Income from Discontinued Operations
Basic	$	5.51	$	0.38		$	0.93		$	1.26		$	0.28
Diluted	$	5.43	$	0.38		$	0.93		$	1.25		$	0.27
Earnings Per Share - Net Income
Basic	$	6.37	$	1.14		$	0.70		$	1.27		$	(0.03	)
Diluted	$	6.28	$	1.13		$	0.70		$	1.26		$	(0.03	)
EBITDA from continuing operations (1)	$	76,682	$	57,076		$	17,368		$	12,398		$	15,687
Financial Position
Working capital	$	176,305	$	(57,819	)	$	(45,014	)	$	(486,499	)	$	(190,426	)
Property, plant and equipment — net (2)	$	134,074	$	629,280		$	853,721		$	878,482		$	797,272
Total indebtedness	$	2,695	$	339,057		$	451,085		$	459,733		$	202,249
Stockholders’ Equity	$	331,648	$	216,444		$	379,991		$	389,219		$	594,775
Supplemental Information for the Year
Capital expenditures	$	65,768	$	65,694		$	74,517		$	190,995		$	118,200
Depreciation and amortization from continuing operations	$	24,031	$	21,044		$	18,364		$	15,790		$	13,776
Weighted-average shares outstanding:
Basic	19,839		21,336			23,489			26,450			28,066
Diluted	20,132		21,494			23,649			26,704			28,488
Cash dividends per share	$	1.360	$	1.300		$	1.240		$	1.205		$	1.075
Common stock market closing prices:
High	$	67.25	$	51.88		$	59.64		$	58.86		$	45.36
Low	$	35.67	$	37.51		$	42.70		$	42.60		$	34.45
Supplemental Information at Year-End
Employees	1,021		30,625			32,341			34,470			34,023
Registered stockholders	14,744		15,719			16,578			17,689			18,927
Market price per share at closing	$	66.74	$	45.54		$	45.29		$	46.80		$	42.52
Book value per share	$	16.75	$	10.96		$	16.23		$	16.69		$	21.68

(1) Numbers represent earnings before interest, taxes, depreciation and amortization including any stock compensation expense from continuing operations.

(2) On the April 29, 2016, Consolidated Balance Sheet, property, plant and equipment associated with our Restaurants Business was classified as assets held for sale. See Note 2 for additional information.

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On April 28, 2017, the Company completed the sale of Bob Evans Restaurants. In fiscal 2017, we adjusted our consolidated financial statements to reflect the Restaurants Business as a discontinued operation for that year and all prior periods presented. The selected financial data for fiscal 2017 and prior years reflect the Restaurants Business as a discontinued operation. Refer to the "Strategic Transactions" section in Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information regarding the sale of the Restaurants Business as well as Note 2 to the Consolidated Financial Statements.

In fiscal 2014 we adjusted our consolidated financial statements to reflect the Mimi's Café operations as a discontinued operation for that year and all prior periods presented. The selected financial data for fiscal 2014 and prior years also reflects Mimi's Café as a discontinued operation.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General Overview

In this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”), we use the terms “Bob Evans,” “Company,” “we,” “us” and “our” to collectively refer to Bob Evans Farms, Inc., a Delaware corporation, and its subsidiaries. This MD&A may contain forward-looking statements that set forth our expectations and anticipated results based on management’s plans and assumptions. These statements are often indicated by words such as “expects,” “anticipates,” “believes,” “estimates,” “intends” and “plans.” Actual results may differ materially from those predicted by the forward-looking statements because of various factors and possible events, including the assumptions, risks and uncertainties discussed herein. For more information, see "Forward Looking Statements" in this Annual Report on Form 10-K.

We produce and distribute a variety of complementary home-style, refrigerated side-dish convenience food items and pork sausage under the Bob Evans, Owens and Country Creek brand names. These food products are available throughout the United States. We also manufacture and sell similar products to foodservice accounts, including Bob Evans Restaurants and other restaurants.

We have a 52 or 53-week fiscal year that ends on the last Friday in April. When we refer to 2017, 2016, and 2015, or fiscal 2017, fiscal 2016 and fiscal 2015, we are referring to our fiscal years that ended on April 28, 2017, April 29, 2016, and April 24, 2015, respectively. Our fiscal 2016 year that ended on April 29, 2016, was a 53-week fiscal year. Other years presented are comprised of 52 weeks.

Strategic Transactions

Sale of Bob Evans Restaurants Business

On January 24, 2017, the Company entered into the BER Sale Agreement with the Buyer. On April 28, 2017, the Buyer completed the acquisition of the Restaurants Business, including our corporate headquarters, for an aggregate purchase price of $565.0 million in cash, subject to certain adjustments set forth in the BER Sale Agreement (the “Restaurants Transaction”).

The Restaurants Transaction was effected by (i) the sale of the Restaurants Business assets by the Company’s affiliates to Buyer and (ii) the sale by the Company of fifty percent of the equity interests in a newly formed special purpose entity that holds specified intellectual property assets used by both the Restaurants Business and the Company. As part of the Restaurants Transaction, the Company also conveyed to the Buyer the majority of working capital liabilities associated with the Restaurants Business, including outstanding payables, accrued wages, and other accrued current liabilities.

After adjusting for items set forth in the BER Sale Agreement, we received net proceeds of $539.3 million from the Buyer, and we expect net proceeds after tax payments of $487.0 to $493.0 million. We used a portion of the proceeds to repay all outstanding borrowings under our Credit Agreement on April 28, 2017. Furthermore, on May 1, 2017, our Board of Directors declared a special dividend of $7.50 per share, representing the majority of net cash proceeds from the Restaurants Transaction after income tax payments and the settlement of outstanding borrowings under our Credit Agreement. The dividend will be paid on June 16, 2017, to shareholders of record on May 30, 2017.

Acquisition of Pineland Farms Potato Company, Inc.

On January 24, 2017, the Company’s subsidiary BEF Foods, Inc. (“BEF Foods”) entered into a Stock Purchase Agreement (the “PFPC Agreement”) with Pineland Farms Potato Company, Inc., a Maine corporation (“PFPC”), the stockholders of PFPC party thereto (collectively, the “Sellers”), and Libra Foundation, as the Sellers’ Representative, and, solely for the purposes of guaranteeing the payment and performance obligations of BEF Foods thereunder, the Company. The transaction closed on May 1, 2017. Pursuant to the terms of the PFPC Agreement, BEF Foods has purchased and acquired from the Sellers all of the equity interests of PFPC outstanding immediately prior to the closing (the “Acquisition”), in exchange for (i) $115.0 million in cash at closing and up to an additional $25.0 million in cash as potential earn-out consideration, the payment of which is subject to the achievement of certain operating EBITDA performance milestones over consecutive twelve-month periods during the 24 months following the closing.

The Acquisition increases our side-dish production capacity and provides us the capability to produce and sell diced and shredded potato products in both the retail and food-service channels. The acquisition also diversifies our production capability by adding a second state-of-the-art potato processing facility with approximately 180 million pounds of capacity, 50 million pounds of which came online in April 2017. PFPC also owns and operates a 900-acre potato farm and is surrounded by an estimated 55,000 acres of annual potato production. The production facility's close proximity to tens of thousands of acres of potato production is anticipated to reduce transportation costs. The Acquisition mitigates the required near term capital spending for additional capacity to meet our expected sales growth targets in side-dish products.

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Prior to the decision to sell our Restaurants Business, we had two reporting segments, Bob Evans Restaurants and BEF Foods. BEF Foods sells food products throughout the retail grocery and food service channels, including to Bob Evans Restaurants. Corporate and other costs related to shared services functions were not allocated to our reporting segments. As a result of selling our Restaurants Business, which is now classified as discontinued operations, we have one reporting segment. Revenues and costs related to our remaining BEF Foods business, including indirect corporate overhead costs, are reported within results from continuing operations. All revenues and costs incurred directly in support of the Restaurants Business are presented in results from discontinued operations. Prior year information has been adjusted to conform to current presentation. Unless otherwise stated, the information disclosed in Management's Discussion and Analysis refer to results from continuing operations. See Note 2 to the Consolidated Financial Statements for additional information regarding the sale of our Restaurants Business.

Bob Evans Farms, Inc. Overview from Continuing Operations

Net sales from continuing operations were $394.8 million in fiscal 2017, an increase of $7.2 million as compared to the corresponding period last year. Operating income from continuing operations was $30.1 million in fiscal 2017, a decrease of $3.0 million as compared to the corresponding period last year. Results were favorably impacted by higher sales and improved margins, offset by $6.3 million of accelerated stock compensation expense, $1.9 million of termination benefits and a $15.3 million impairment charge on a note receivable recorded during the year. Additionally, results from continuing operations in fiscal 2016 included net sales of $7.1 million from the 53rd week, which drove operating income of $1.9 million.

Pretax income from continuing operations in fiscal year 2017 was $20.9 million as compared to a $22.6 million in the corresponding period last year. The effective tax rate on income from continuing operations was 18.5% in fiscal 2017 as compared to 28.4% in the corresponding period last year. Earnings per diluted share from continuing operations was $0.85 in fiscal 2017 as compared to $0.75 in the corresponding period last year.

Refer to the sections below for analysis on our fiscal 2017 operating results as compared to fiscal 2016.

Fiscal Year Ended April 28, 2017 (“fiscal 2017” or "2017") as Compared to Fiscal Year Ended April 29, 2016 (“fiscal 2016” or "2016")

The following tables reflect data for fiscal 2017, compared to the prior year. The ratios presented reflect the underlying dollar values expressed as a percentage of the applicable net sales amounts.

	Results from Continuing Operations
(in thousands)	2017				2016
Net Sales	$	394,842			$	387,616
Cost of sales	170,820		43.3	%	172,973		44.6	%
Operating wage and fringe benefit expenses	39,964		10.1	%	42,189		10.9	%
Other operating expenses	58,402		14.8	%	52,387		13.5	%
Selling, general and administrative expenses	56,243		14.2	%	65,949		17.1	%
Depreciation and amortization expense	24,031		6.1	%	21,044		5.4	%
Impairments	15,256		3.9	%	—		—
Operating Income	$	30,126	7.6	%	$	33,074	8.5	%

Sales

Net sales increased 1.9%, to $394.8 million, in fiscal 2017, compared to $387.6 million last year. Total pounds sold increased by 5.0%, including a 10.7% increase in refrigerated side-dish products and a 4.0% increase in sausage products. The increase in pounds sold was partially offset by a 3.4% decline in average net selling price per pound, driven by an increased sales mix of lower-priced, although higher-margin side-dish products, as well as reduced net sausage pricing through increased trade spending.

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The following table summarizes pounds sold by category in fiscal 2017 and the corresponding period last year:

(in thousands)	2017			2016
Category
Refrigerated Sides	132,089	57.3	%	119,328	54.4	%
Sausage	57,081	24.7	%	54,864	25.0	%
Food Service	27,135	11.8	%	27,940	12.7	%
Frozen	8,021	3.5	%	9,318	4.3	%
Other	6,190	2.7	%	7,997	3.6	%
Total	230,516			219,447

Cost of Sales

Cost of sales from continuing operations was $170.8 million, or 43.3% of net sales fiscal 2017, compared to $173.0 million, or 44.6% of net sales, last year. The 130 bps decrease in cost of sales as a percentage of net sales was primarily driven by a 100 bps impact of lower sow costs and an 80 bps impact from the increase in sales mix of higher margin refrigerated side-dish products, partially offset by increased trade spend and unfavorable plant operating variances associated with a new production line in our Lima, Ohio plant. Sow costs averaged $40.47 per hundredweight in fiscal 2017, compared to $44.31 per hundredweight last year.

Operating Wage and Fringe Benefit Expenses

Operating wage and fringe benefit expenses ("operating wages") from continuing operations were $40.0 million, or 10.1% of net sales, in fiscal 2017, compared to $42.2 million, or 10.9% of net sales, last year. The 80 bps decrease in the operating wages ratio was driven primarily by improved production wages due to plant operating efficiencies as well as lower benefit costs including workers compensation.

Other Operating Expenses

Other operating expenses from continuing operations were $58.4 million, or 14.8% of net sales, in fiscal 2017, compared to $52.4 million, or 13.5% of net sales, last year. The most significant components of other operating expenses are shipping and handling costs, advertising costs, warehousing and distribution costs, utilities and production supplies. The 130 bps increase in operating expenses as a percentage of net sales was primarily driven by a $2.3 million incremental investment in advertising costs to support and promote our brand and $1.9 million of higher rent expense associated with the sale leaseback of two of our production facilities in the second quarter of fiscal 2016. Other operating expenses were also impacted by $1.8 million of higher shipping and handling costs, utilities, production costs and other costs associated with increased production volumes.

Selling, General and Administrative Expenses

S,G&A expenses include costs of our sales organization, executive leadership, and corporate functions including information technology, finance, legal, human resources, supply chain and other corporate functions and includes costs such as ongoing IT infrastructure costs, third-party legal and professional fees and other costs. S,G&A expenses incurred directly in support of the Restaurants Business, including wage and benefit costs of corporate employees who transferred with the Restaurants Business and legal and professional fees incurred and associated with the Restaurants Transaction are included in results from discontinued operations.

S,G&A expenses from continuing operations were $56.2 million, or 14.2% of net sales, in fiscal 2017, compared to $65.9 million, or 17.1% of net sales, last year. The 290 bps decrease in S,G&A costs was driven by $6.3 million of lower legal and professional fees, which includes a $2.2 million reduction in costs associated with the settlement of litigation, $3.4 million of costs incurred in the second quarter of fiscal 2016 related to the sale leaseback of two of our production facilities and $6.4 million of lower other costs, including wages and benefits associated with headcount reductions that occurred in the prior year. These savings were partially offset by $6.4 million of severance and benefit costs associated with headcount reductions in the third quarter of fiscal 2017 and the vesting of all employee stock awards in the fourth quarter of fiscal 2017, which was the result of a decision to fully vest all outstanding and unvested employee stock awards on the closing date of the Restaurants Transaction. S,G&A costs include $31.0 million of costs related to shared services that were historically classified as corporate and other costs and were not allocated to our reporting segments. $8.8 million of those costs relate to wages and benefits of terminated associates that will no longer be in the Company's expense base in fiscal 2018.

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Depreciation and Amortization

Depreciation and amortization expenses from continuing operations were $24.0 million, or 6.1% of net sales, in fiscal 2017, compared to $21.0 million, or 5.4% of net sales, last year. The increase is primarily driven by depreciation and amortization related to the implementation of the second phase of our ERP system which went live during the second quarter of fiscal 2017, as well as an expansion of production capacity at our Lima, Ohio facility.

Impairments

Impairments from continuing operations were $15.3 million in fiscal 2017, related to a note receivable that was settled in the third quarter. See Note 1 to the Consolidated Financial Statements for additional information.

Interest

Net interest expense from continuing operations was $9.2 million in fiscal 2017, as compared to $10.4 million last year. The decrease is primarily due to higher average borrowings on our Credit Agreement during fiscal 2016 as compared to the current year, partially offset by $2.0 million of accelerated debt amortization costs recorded in the fourth quarter of fiscal 2017 when we paid off all outstanding borrowings and terminated our revolving Credit Agreement. See Note 3 to the Consolidated Financial Statements for additional information.

Income Taxes

The provision for income taxes is based on our current estimate of the annual effective income tax rate adjusted to reflect the impact of discrete items. The Company’s effective income tax rate on continuing operations was a provision of 18.5% in fiscal 2017, as compared to 28.4%, in the corresponding period a year ago. The effective income tax rates in fiscal 2017 and 2016 were substantially different than the statutory rate due to the impact of officer’s life insurance and discrete items. In both fiscal 2017 and 2016, the effective tax rate was significantly impacted by the effect of permanent items on pretax earnings.

Results from Discontinued Operations

Results associated with the Restaurants Business are classified as income from discontinued operations, net of taxes, in our Consolidated Statements of Net Income. Prior year results have been adjusted to conform to current presentation. Below is a summary of results from discontinued operations in fiscal 2017 as compared to fiscal 2016.

	Results from Discontinued Operations
(in thousands)	2017		2016
Income from discontinued operations before gain on sale of the Restaurants Business	$	16,785	$	2,774
Gain on sale of the Restaurants Business	150,167		—
Income from discontinued operations before income taxes	166,952		2,774
Provision (benefit) for income taxes	57,521		(5,240		)
Income from discontinued operations	$	109,431	$	8,014

Pretax income from discontinued operations was impacted by the $150.2 million pretax gain, net of transaction costs, recorded on the sale of our Restaurants Business. Results were also favorably impacted by $22.5 million of lower depreciation and amortization costs. The Restaurants Business depreciation base lowered considerably after the closing of the sale leaseback of 143 restaurant properties in the four quarter of fiscal 2016. Additionally, no depreciation was recorded on assets sold in the Restaurants Transaction subsequent to those assets meeting the criteria for held-for-sale classification in the third quarter of fiscal 2017. Results from discontinued operations were negatively impacted by a 3.2% reduction in restaurant same store sales as compared to the prior year, as well as $6.9 million of accelerated stock compensation expense and $3.9 million of severance costs associated with employees who supported the Restaurants Business. Additionally, results from discontinued operations in fiscal 2016 were favorably impacted by $1.8 million of pretax income due to the 53rd week. The change in tax rates as compared to the prior year is driven primarily by the increase in pretax income, as well as the impact of tax credits related to hiring and tip wages. See Note 2 to the Consolidated Financial Statements for additional information regarding the sale of our Restaurants Business.

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Fiscal Year Ended April 29, 2016 (“fiscal 2016” or "2016") as Compared to Fiscal Year Ended April 24, 2015 (“fiscal 2015” or "2015")

Net sales from continuing operations were $387.6 million in fiscal 2016, an increase of $8.3 million compared to fiscal 2015. Operating income from continuing operations was $33.1 million in fiscal 2016, an increase of $38.4 million as compared to the corresponding period the year before. The increase in operating income was driven by higher sales, lower costs of sales and an impairment charge recorded in fiscal 2015.

Pretax income from continuing operations was $22.6 million in fiscal 2016 as compared to a pretax loss of $14.0 million in fiscal 2015. Income tax expense from continuing operations was $6.4 million in fiscal 2016 as compared to an income tax benefit of $8.6 million in fiscal 2015. Earnings per diluted share from continuing operations were $0.75 in fiscal 2016 as compared to a loss per diluted share of $0.23 in fiscal 2015.

The following tables reflect data for fiscal 2016, compared to fiscal 2015. The ratios presented reflect the underlying dollar values expressed as a percentage of the applicable net sales amounts.

	Results from Continuing Operations
(in thousands)	2016				2015
Net Sales	$	387,616			$	379,313
Cost of sales	172,973		44.6	%	199,067			52.5	%
Operating wage and fringe benefit expenses	42,189		10.9	%	41,717			11.0	%
Other operating expenses	52,387		13.5	%	49,381			13.0	%
Selling, general and administrative expenses	65,949		17.1	%	73,380			19.4	%
Depreciation and amortization expense	21,044		5.4	%	18,364			4.8	%
Impairments	—		—	%	2,761			0.7	%
Operating Income (Loss)	$	33,074	8.5	%	$	(5,357	)	(1.4	)%

Sales

Net sales from continuing operations increased 2.2%, to $387.6 million, in fiscal 2016, as compared to $379.3 million in fiscal 2015.

Net sales from continuing operations increased by 2.2% due to higher volumes, including a 17.3% increase in refrigerated side-dish products and an 11.8% increase in sausage products, partially offset by a 19.8% decrease in food service. The increase in pounds sold was partially offset by lower net sausage pricing due to a decline in sow costs, and the change in sales mix. Average sow costs were $44.31 in fiscal 2016 as compared to $69.41 in fiscal 2015.

The following table summarizes pounds sold by category in fiscal 2016 as compared to 2015.

(in thousands)	2016			2015
Category
Refrigerated Sides	119,328	54.4	%	101,746	50.0	%
Sausage	54,864	25.0	%	49,072	24.1	%
Food Service	27,940	12.7	%	34,856	17.1	%
Frozen	9,318	4.3	%	9,946	4.9	%
Other	7,997	3.6	%	7,955	3.9	%
Total	219,447			203,575

Cost of Sales

Cost of sales from continuing operations was $173.0 million, or 44.6% of net sales, in fiscal 2016, compared to $199.1 million, or 52.5% of net sales, in fiscal 2015. The decrease in cost of sales as a percentage of sales was driven by an increase in sales of our higher margin refrigerated side-dish products as well as a decrease in cost of sales driven by lower sow costs as compared to the prior year. This favorability was largely offset by an increase in trade spending, primarily on sausage products.

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Operating Wage and Fringe Benefit Expenses

Operating wage and fringe benefit expenses ("operating wages") from continuing operations was $42.2 million, or 10.9% of net sales, in fiscal 2016, compared to $41.7 million, or 11.0% of net sales, in fiscal 2015. Wages increased $0.5 million due to the 53rd week in fiscal 2016. Excluding the impact of the 53rd week, wages were flat. Higher net benefit costs, including incentive compensation, were incurred primarily due to increased profitability and were partially offset by lower contract labor costs.

Other Operating Expenses

Other operating expenses from continuing operations were $52.4 million, or 13.5% of net sales, in fiscal 2016, compared to $49.4 million, or 13.0% of net sales, in fiscal 2015. The increase was primarily the result of a $3.1 million increase in advertising costs and $2.2 million in rent expense attributable to the two production facilities that were sold and leased back in the second quarter of fiscal 2016. These costs were partially offset by a reduction in transportation costs, driven by lower fuel costs.

Selling, General and Administrative Expenses

S,G&A expenses from continuing operations were $65.9 million, or 17.1% of net sales, in fiscal 2016, compared to $73.4 million, or 19.4% of net sales, in fiscal 2015.

The decrease in S,G&A costs was driven by $12.6 million of lower legal and professional fees and $3.2 million of costs incurred in fiscal 2015 related to the separation of our former CEO. These savings were partially offset by $3.4 million of costs incurred in fiscal 2016 associated with the sale leaseback of two of our production facilities, higher employee benefit costs, including incentive compensation costs driven by improved performance and costs related to our deferred compensation plans, as well as service costs related to our ERP system that went live in fiscal 2016.

Depreciation and Amortization

Depreciation and amortization expenses ("D&A") from continuing operations was $21.0 million, or 5.4% of net sales, in fiscal 2016, compared to $18.4 million, or 4.8% of net sales, in fiscal 2015. The increase is primarily driven by depreciation and amortization related to our ERP system, which went live in the first quarter of fiscal 2016, partially offset by a reduction in depreciation associated with the sale leaseback of our Lima, Ohio, and Sulphur Springs, Texas, production facilities in the second quarter of fiscal 2016.

Impairments

An impairment charge of $2.8 million was recorded in 2015 related to a trade name we no longer use.

Interest

Net interest expense was $10.4 million in fiscal 2016 as compared to $8.6 million in fiscal 2015. The increase in net interest expense in fiscal 2016 was the result of higher average borrowings and higher average interest rates as compared to fiscal 2015.

Income Taxes

The effective tax rate for continuing operations in fiscal 2016 was 28.4% as compared to a benefit of 61.6% for fiscal 2015. The effective income tax rate in fiscal 2016 was different than the statutory rate due to the increase in pretax income, as well as the impact of the Company’s domestic production activities deduction.

Results from Discontinued Operations

Results associated with our Restaurants Business are classified as income from discontinued operations, net of taxes, in our Consolidated Statements of Net Income. Prior year results have been recast to conform to current presentation. Below is a summary of results for fiscal 2016, compared to fiscal 2015:

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	Results from Discontinued Operations
(in thousands)	2016			2015
Income from discontinued operations before income taxes	$	2,774		$	23,043
(Benefit) Provision for income taxes	(5,240		)	1,110
Income from discontinued operations	$	8,014		$	21,933

Results from discontinued operations in fiscal 2016 as compared to fiscal 2015 were impacted by a 2.5% reduction in restaurant same store sales, a $9.6 million loss on the sale-leaseback of 143 restaurant properties and $7.8 million of impairment and severance costs related to store closings. The change in tax rates as compared to the prior year is driven primarily by the reduction in pretax income as well as the impact of tax credits related to hiring and tip wages.

Liquidity and Capital Resources

Our primary sources of liquidity are cash generated from operating activities, the borrowing capacity under our new revolving credit facility and the proceeds received from the sale of our Restaurants Business.

Historically, our working capital requirements have been minimal. This favorable working capital position resulted from the relatively short trade credit terms with our BEF Foods customers as well as most of our major suppliers and distributors and the quick turnover of our inventories.

Share Repurchase Program

On November 19, 2015, the Board of Directors increased the authorization of a stock repurchase program to $250.0 million. The program authorizes the Company to repurchase its outstanding common stock pursuant to plans approved by the Board under SEC Rules 10b-18 and 10b5-1, and in the open market or through privately negotiated transactions. In fiscal 2016 we repurchased approximately 3.9 million shares for $171.5 million. The repurchases were funded primarily through additional borrowings on our Credit Agreement, cash from operations and the net proceeds from the sale leaseback transactions of 143 restaurant properties and two production facilities. We did not repurchase any shares in fiscal 2017. On January 24, 2017, the Board of Directors increased the Company’s existing share repurchase authorization to $100.0 million and extended the authorization through December 31, 2017.

Credit Agreement and other long term debt

Utilizing proceeds from the Restaurants Transaction, on April 28, 2017, we repaid all outstanding borrowings on our $650.0 million revolving credit facility (the "Credit Agreement") and terminated the agreement. Concurrently on April 28, 2017, we entered into a new $300.0 million credit facility ("the Credit Facility"). As of April 28, 2017, there were no outstanding borrowings on the Credit Facility. We expect our fiscal 2018 target leverage ratio will be approximately 1.0x, which we believe provides considerable flexibility to continue to grow and invest in the Company. Our new Credit Facility contains financial and other various affirmative and negative covenants that are typical for financings of this type. It requires us to maintain a specified minimum coverage ratio and maximum leverage ratio. A breach of any of these covenants could result in a default under our Credit Facility, in which all amounts under our Credit Facility may become immediately due and payable, and all commitments under our Credit Facility to extend further credit, terminated. We were in compliance with the financial covenant requirements of our new Credit Facility as of April 28, 2017.

As part of the Restaurants Transaction we sold our corporate headquarters to the Buyer on a debt-free basis. This required us to pay-in-full the outstanding borrowings on our $30.0 million Mortgage Loan on our corporate headquarters prior to closing the transaction. Accordingly, in the fourth quarter of fiscal 2017, using additional borrowings from our now terminated Credit Agreement, we settled all outstanding borrowings and terminated the Mortgage Loan. See Note 3 to the Consolidated Financial Statements for additional information.

Impact from Strategic Transactions

We expect net proceeds, after tax payments, of $487 to $493 million. On May 1, 2017, our Board of Directors declared a special dividend of $7.50 per share, representing the majority of net cash proceeds from the Restaurants Transaction after income tax payments and the settlement of outstanding borrowings under our Credit Agreement. The dividend will be paid at the close of business on June 16, 2017, to shareholders of record on May 30, 2017.

Cash flows from operating activities

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Net cash provided by operating activities was $73.6 million for fiscal 2017 as compared to $123.6 million for fiscal 2016. The change in operating cash flow was a result of lower earnings after the adjustment for non-cash items, including the gain on sale of our Restaurants Business. Net cash provided by operating activities from continuing operations was $109.4 million in fiscal 2017 as compared to $51.0 million in fiscal 2016. The change was primarily driven by higher earnings from continuing operations, adjusted for non-cash items such as impairments and stock compensation expense.

Cash flows from investing activities

Cash provided by investing activities was $491.6 million for fiscal 2017, as compared to $196.3 million for fiscal 2016. The increase was primarily due to the $539.3 million of net proceeds received from the sale of the Restaurants Business in fiscal 2017 as compared to the $241.7 million of proceeds received in fiscal 2016 from the sale leaseback of 143 restaurant properties and two of our production facilities. Capital expenditures were $65.8 million and $65.7 million, respectively, for fiscal 2017 and fiscal 2016. In fiscal 2017, capital expenditures from continuing operations were $28.5 million and primarily related to an additional refrigerated side-dish production line at our Lima, Ohio plant, and IT infrastructure projects. Refer to Note 2 to the Consolidated Financial Statementsfor additional information regarding cash flows from investing activities for discontinued operations. In fiscal 2018, capital expenditures are expected to approximate $25.0 million to $30.0 million.

Cash flows from financing activities

Cash used in financing activities was $367.2 million for fiscal 2017, as compared to $313.4 million for fiscal 2016. In fiscal 2017 we repaid $334.4 million of net outstanding debt, while in fiscal 2016 we repaid approximately $111.0 million of net debt, and also paid $171.5 million to repurchase shares of Company stock. During fiscal 2017 we also paid a cash dividend of $1.36 per share, as compared to $1.30 per share during the corresponding period last year. While we expect to continue paying regular quarterly cash dividends, the declaration, amount and timing of future dividends are at the discretion of our Board of Directors and subject to the restrictions in our Credit Facility.

Off-Balance Sheet Arrangements

As of April 28, 2017, we have not entered into any “off-balance sheet” arrangements with unconsolidated entities or other persons, as that term is defined in rules issued by the SEC.

Contractual Obligations

As part of the Restaurants Transaction, the Buyer assumed all operating leases associated with the Restaurants Business, including leases for 143 restaurant properties that were sold as part of a sale leaseback transaction in the fourth quarter of fiscal 2016. The Company and BEF Foods, Inc. continue to guarantee certain payment and performance obligations associated with the lease agreements for those restaurant properties. These contingent obligations are not reflected in the table below. See Note 2 to the Consolidated Financial Statements for additional information.

Future payments of our contractual obligations and outstanding indebtedness as of April 28, 2017, are as follows (in thousands):

(in thousands)	2018		2019		2020		2021		2022		Thereafter		Total
Operating leases(1)	$	3,586	$	3,657	$	3,731	$	3,805	$	3,881	$	60,657	$	79,317
Debt(2)	428		428		428		517		1,000				2,801
Purchase obligations(3)	45,203		—		—		—		—		—		45,203
Deferred compensation(4)	4,047		1,652		1,351		1,094		970		10,812		19,926
Capital project obligations(5)	5,081												5,081
Other(6)	2,797		2,551		2,186		140		—		—		7,674
Totals	$	61,142	$	8,288	$	7,696	$	5,556	$	5,851	$	71,469	$	160,002

(1) Obligations for operating leases include payments through the end of current lease terms and do not include the impact of any available renewal periods.

(2) The balances represent principle payments on our Research and Development Investment Loans. See Note 3 to the Consolidated Financial Statements for more details.

(3) Purchase obligations are comprised of $45.2 million of raw material purchase commitments for BEF Foods, all of which are expected to be satisfied in the next 12 months. Many of these agreements do not obligate us to purchase any specific volumes and include provisions that would allow us to cancel such agreements with appropriate notice. For such agreements, amounts included in the table above represent our estimate of expected purchases prior to any cancellation of these contracts with appropriate notice.

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(4) Deferred compensation obligations in future years may change due to additional participant deferral, returns on participant investments and changes in distribution elections by our plan participants. The obligations above exclude share based obligations, see Note 7 to the Consolidated Financial Statements for more details.

(5) Capital project obligations in fiscal 2018 primarily relate to purchase commitments for capital projects at our production facilities.

(6) Primarily relates to IT service commitments for ongoing support of our ERP system and other IT infrastructure.

Business Outlook

Our outlook for fiscal 2018 relies on a number of assumptions, as well as the risk factors included in our SEC filings.

Guidance Metric	Fiscal 2018 Outlook (1)
Net sales	$464 to $476 million
EBITDA	$102 to $108 million
GAAP diluted earnings per share	$2.06 to $2.24
Sow cost (per hundredweight)	$43 to $46
Capital expenditures	$25 to $30 million
Net interest expense	$3.8 to $4.3 million
GAAP Tax rate	34.5% to 35.5%
Diluted weighted-average share count	approximately 20.4 million shares
Share repurchase authorization	$100 million

(1) This outlook is subject to a number of factors beyond the Company’s control, including the risk factors discussed in this Form 10‑K and other subsequent filings with the Securities and Exchange Commission.

Critical Accounting Policies and Estimates

We prepare our consolidated financial statements in conformity with US GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. We base our estimates on historical experience, current trends and conditions and various other facts and conditions that we believe to be reasonable under the circumstances.

Our significant accounting policies are described in Note 1 to the Consolidated Financial Statements. Certain significant accounting policies require complex and subjective judgment as a result of estimates surrounding uncertain outcomes. While we believe that our historical experience and other factors considered provide a meaningful basis for the accounting policies applied in the preparation of the consolidated financial statements, the judgments surrounding these critical accounting policies may result in materially different amounts under different financial conditions or by using different assumptions. We consider the following policies to be the most critical in understanding the judgments that are involved in preparing our consolidated financial statements.

BEF Foods Sales Promotions (Trade Spend)

We engage in promotional (sales incentive) programs in the form of “off-invoice” deductions, billbacks, cooperative advertising and coupons, collectively referred to as trade spend programs, with our customers. Costs associated with these programs are classified as a reduction of net sales in the period in which the sale occurs. Our trade programs may fluctuate based on sow costs trends and during peak holiday periods. As a result, we enter into promotion agreements with our customers during distinct time periods where we expect to maximize the impact of promotions on net sales and profitability. A change in actual sales volume and sow costs from our estimates will impact sales, and ultimately, profitability.

Long-Lived Asset Impairment

We evaluate the carrying amount of long-lived assets held and used in the business when events and circumstances indicate that the carrying value of the assets may not be recoverable. Recoverability of long-lived assets is measured by comparing the carrying value of the asset, or asset group, to the undiscounted future cash flows expected to be generated by the asset. A long-lived asset or asset group is considered impaired when the carrying value of the asset or asset group exceeds its fair value. The impairment loss recognized is the excess of carrying value of the asset or asset group above its fair value. The assumptions used to estimate the recoverability and fair value of long-lived assets require a high degree of judgment and may be affected by many factors, including changes in economic conditions and changes in operating performance. If these assumptions change in the future we may be required to record additional impairment charges on these assets.

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Goodwill and Other Intangible Assets

Goodwill is not amortized and is tested for impairment during the fourth quarter each year or on a more frequent basis when indicators of impairment exist. Our goodwill is primarily the result of our acquisition of Kettle Creations in fiscal 2013.

Goodwill impairment testing involves a comparison of the estimated fair value of reporting units to the respective carrying amount. If the estimated fair value exceeds the carrying amount, then no impairment exists. If the carrying amount exceeds the estimated fair value, then a second step is performed to determine the amount of impairment, if any. We perform our impairment test using a combination of income based and market based approaches. The income based approach indicates the fair value of an asset or business based on the estimated future discounted cash flows expected to be generated by the asset or business. Significant assumptions used to determine the fair value of our business includes forecasted trends in sales, operating and allocated expenses, capital expenditures and an appropriate discount rate. Under the market-based approach, fair value is determined by using earnings multiples to compare the value of the company to similar businesses or guideline companies whose securities are actively traded in public markets. If the Company's future operating performance is materially different from the forecast we may be required to record impairment related to goodwill, however in fiscal 2017 the estimated fair value of our business significantly exceeded its carrying value.

Self-insurance Reserves

We record estimates for health, workers’ compensation and general liability insurance costs that are self-insured programs. Self-insurance reserves include actuarial estimates of both claims filed, carried at their expected ultimate settlement value, and claims incurred but not yet reported. Our liability represents an estimate of the ultimate cost of claims incurred as of the balance sheet date. We utilize stop loss insurance to limit our exposure on a per person basis for health insurance and on a per claim basis for workers’ compensation and general liability insurance. Estimates for health, workers’ compensation and general liability are calculated utilizing claims development estimates based on historical experience and other factors. Future changes from the actuarial estimates regarding the frequency and severity of claims or settlement practices may result in insurance reserves that are materially different than what is recorded today.

Taxes

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

We record uncertain tax positions in accordance with Accounting Standards Codification ("ASC") 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying Consolidated Statement of Net Income. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheets.

We generally file our income tax returns several months after our fiscal year end. The major jurisdiction in which the Company files income tax returns includes the U.S. federal jurisdiction, and approximately 30 states in the U.S.

ITEM 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We do not currently use derivative financial instruments for speculative or hedging purposes. We maintain our cash and cash equivalents in financial instruments with maturities of three months or less when purchased.

Commodities Prices

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We purchase certain commodities such as pork, potatoes and dairy products. These commodities are generally purchased based upon market prices established with suppliers. These purchase arrangements may contain contractual features that fix the price paid for certain commodities. We do not use financial instruments to hedge commodity prices because these purchase arrangements help control the ultimate cost paid and most commodity price aberrations are generally short-term in nature. Long term fluctuations in commodity prices could significantly impact the profitability of the Company.

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ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA

BOB EVANS FARMS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except par value amounts)

	April 28, 2017			April 29, 2016
Assets
Current Assets
Cash and equivalents	$	210,886		$	11,609
Accounts receivable, net	28,071			24,613
Inventories	17,210			17,093
Federal and state income taxes receivable	2,895			—
Prepaid expenses and other current assets	6,833			5,716
Current assets held for sale	3,334			48,707
Total Current Assets	269,229			107,738
Land	291			330
Buildings and improvements	25,351			21,203
Machinery and equipment	214,366			176,611
Construction in process	4,546			20,959
Total Property, Plant and Equipment	244,554			219,103
Less accumulated depreciation	113,814			89,851
Net Property, Plant and Equipment	130,740			129,252
Other Assets
Deposits and other	2,118			3,841
Notes receivable	—			20,886
Rabbi trust assets	22,353			20,662
Goodwill and other intangible assets	19,673			19,829
Deferred income tax assets	5,131			29,002
Non-current assets held for sale	—			469,164
Total Other Assets	49,275			563,384
Total Assets	$	449,244		$	800,374
Liabilities and Stockholders’ Equity
Current Liabilities
Current portion of long-term debt	$	428		$	3,419
Accounts payable	13,424			15,841
Accrued property, plant and equipment purchases	1,283			4,024
Accrued non-income taxes	3,353			890
Accrued wages and related liabilities	16,404			16,370
Self-insurance reserves	10,692			11,288
Current taxes payable	27,954			9,473
Current reserve for uncertain tax positions	1,481			1,481
Other accrued expenses	17,905			13,614
Current liabilities held for sale	—			89,157
Total Current Liabilities	92,924			165,557
Non-Current Liabilities
Deferred compensation	17,277			17,761
Reserve for uncertain tax positions	1,795			2,752
Deferred income tax liabilities	50			—
Deferred rent and other	1,091			377
Deferred gain on sale leaseback transactions	2,192			2,432
Credit facility borrowings and other long-term debt	2,267			335,638
Non-current liabilities held for sale	—			59,413
Total Non-Current Liabilities	24,672			418,373
Stockholders’ Equity
Common stock, $.01 par value; authorized 100,000 shares; issued 42,638 shares at April 28, 2017, and April 29, 2016	426			426
Capital in excess of par value	260,619			244,304
Retained earnings	931,315			832,323
Treasury stock, 22,842 shares at April 28, 2017, and 22,881 shares at April 29, 2016, at cost	(860,712		)	(860,609		)
Total Stockholders’ Equity	331,648			216,444
Total Liabilities and Stockholders' Equity	$	449,244		$	800,374

The accompanying Notes are an integral part of these Consolidated Financial Statements.

37

BOB EVANS FARMS, INC.

CONSOLIDATED STATEMENTS OF NET INCOME

(in thousands, except per share amounts)

	2017		2016		2015
Net Sales	$	394,842	$	387,616	$	379,313
Cost of sales	170,820		172,973		199,067
Operating wage and fringe benefit expenses	39,964		42,189		41,717
Other operating expenses	58,402		52,387		49,381
Selling, general and administrative expenses	56,243		65,949		73,380
Depreciation and amortization expense	24,031		21,044		18,364
Impairments	15,256		—		2,761
Operating Income (Loss)	30,126		33,074		(5,357		)
Net interest expense	9,216		10,427		8,649
Income (Loss) from Continuing Operations Before Income Taxes	20,910		22,647		(14,006		)
Provision (Benefit) for income taxes	3,874		6,439		(8,626		)
Income (Loss) from Continuing Operations	17,036		16,208		(5,380		)
Income from Discontinued Operations, Net of Income Taxes	109,431		8,014		21,933
Net Income	$	126,467	$	24,222	$	16,553
Earnings (Loss) Per Share - Income from Continuing Operations
Basic	$	0.86	$	0.76	$	(0.23	)
Diluted	$	0.85	$	0.75	$	(0.23	)
Earnings Per Share - Income from Discontinued Operations
Basic	$	5.51	$	0.38	$	0.93
Diluted	$	5.43	$	0.38	$	0.93
Earnings Per Share - Net Income
Basic	$	6.37	$	1.14	$	0.70
Diluted	$	6.28	$	1.13	$	0.70
Cash Dividends Paid Per Share	$	1.36	$	1.30	$	1.24
Weighted Average Shares Outstanding
Basic	19,839		21,336		23,489
Dilutive Shares	293		158		160
Diluted	20,132		21,494		23,649

The accompanying Notes are an integral part of these Consolidated Financial Statements.

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BOB EVANS FARMS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

	Common Stock Shares		Common Stock Amount		Capital in Excess of Par Value				Retained Earnings			Treasury Stock				Total
Stockholders' Equity at April 25, 2014	23,319		$	426	$	231,933			$	849,235		$	(692,375	)		$	389,219
Net income	—		—		—				16,553			—				16,553
Dividends ($1.24 per share)	—		—		—				(29,426		)					(29,426		)
Treasury stock repurchased	—		—		—				—			—				—
Treasury stock reissued under compensation plans	88		—		830				—			(380		)		450
Share-based compensation expense	—		—		2,967				—			—				2,967
Tax benefit — stock plans	—		—		228				—			—				228
Stockholders' Equity at April 24, 2015	23,407		$	426	$	235,958			$	836,362		$	(692,755	)		$	379,991
Net income									24,222							24,222
Dividends ($1.30 per share)									(28,261		)					(28,261		)
Treasury stock repurchased	(3,912	)										(171,513		)		(171,513		)
Treasury stock reissued under compensation plans	262				558							3,659				4,217
Share-based compensation expense					6,127											6,127
Tax benefit — stock plans					1,661											1,661
Stockholders' Equity at April 29, 2016	19,757		$	426	$	244,304		(2)	$	832,323		$	(860,609	)		$	216,444
Net income									126,467							126,467
Dividends ($1.36 per share)									(27,475		)					(27,475		)
Treasury stock repurchased																—
Treasury stock reissued under compensation plans	39				(383		)					(103		)		(486		)
Share-based compensation expense					17,197											17,197
Tax benefit — stock plans					(499		)									(499		)
Stockholders' Equity at April 28, 2017	19,796		$	426	$	260,619		(2)	$	931,315		$	(860,712	)	(1)	$	331,648

(1) Treasury stock includes 1,160 shares held by our Rabbi Trust as of April 28, 2017 that will be used to satisfy share-based deferred compensation obligations. Refer to Note 7 for additional information.

(2) Capital in Excess of Par Value includes $14,356 and $9,502 of share based obligations owed to participants in our deferred compensation plans as of April 28, 2017 and April 29, 2016, respectively. Refer to Note 7 for more information.

The accompanying Notes are an integral part of these Consolidated Financial Statements.

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BOB EVANS FARMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	2017			2016			2015
Operating activities:
Net income	$	126,467		$	24,222		$	16,553
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	60,090			79,607			80,074
Impairments	15,256			8,384			8,861
(Gain) Loss on disposal of fixed assets	(168,859		)	4,532			2,204
(Gain) Loss on rabbi trust assets	(1,691		)	1,640			(742		)
Loss (Gain) on deferred compensation	2,514			(765		)	2,013
Share-based compensation	17,197			6,127			2,967
Accretion of non-current note receivable	(1,133		)	(2,082		)	(1,859		)
Deferred income taxes	23,921			(28,384		)	(14,791		)
Amortization of deferred financing costs	4,201			2,188			1,099
Cash provided by (used for) assets and liabilities:
Accounts receivable	(2,700		)	(2,793		)	4,588
Inventories	(751		)	(377		)	623
Prepaid expenses and other current assets	(1,377		)	483			(563		)
Accounts payable	(10,281		)	7,499			955
Federal and state income taxes	14,629			33,067			1,504
Accrued wages and related liabilities	(1,160		)	(3,101		)	11,005
Self-insurance	(1,474		)	1,269			(974		)
Accrued non-income taxes	(756		)	745			(2,892		)
Deferred revenue	(337		)	433			747
Other assets and liabilities	(198		)	(9,058		)	(8,267		)
Net cash provided by operating activities	73,558			123,636			103,105
Investing activities:
Purchase of property, plant and equipment	(65,768		)	(65,694		)	(74,517		)
Proceeds from sale of property, plant and equipment	557,061			257,246			10,036
Proceeds from liquidation of rabbi trust assets	—			5,245			—
Deposits and other	330			(537		)	(135		)
Net cash provided by (used in) investing activities	491,623			196,260			(64,616		)
Financing activities:
Cash dividends paid	(26,915		)	(27,861		)	(29,056		)
Gross proceeds from credit facility borrowings and other long-term debt	413,268			672,349			579,895
Gross repayments of credit facility borrowings and other long-term debt	(750,668		)	(783,339		)	(588,541		)
Payments of debt issuance costs	(1,542		)	(3,555		)	(1,279		)
Purchase of treasury stock	—			(171,513		)	—
Proceeds from share-based compensation	518			214			534
Cash paid for taxes on share-based compensation	(1,353		)	(1,314		)	(1,738		)
Excess tax benefits from share-based compensation	(499		)	1,661			228
Net cash (used in) financing activities	(367,191		)	(313,358		)	(39,957		)
Net cash provided by (used in) operations	197,990			6,538			(1,468		)
Cash and equivalents at the beginning of the period	12,896			6,358			7,826
Cash and equivalents at the end of the period	$	210,886		$	12,896		$	6,358

The accompanying Notes are an integral part of these Consolidated Financial Statements.

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BOB EVANS FARMS, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 1 — Summary of Significant Accounting Policies

Description of Business:   We produce and distribute a variety of complementary home-style, refrigerated side-dish convenience food items and pork sausage under the Bob Evans ®, Owens ® and Country Creek ® brand names. These food products are available throughout the United States at grocery retailers. We also manufacture and sell similar products to food-service accounts, including Bob Evans Restaurants and other restaurants. The revenue from sales to Bob Evans Restaurants were eliminated in consolidation.

On January 24, 2017, we entered into an Asset and Membership Interest Purchase Agreement (the "BER Sale Agreement") with Bob Evans Restaurants, LLC (formerly BER Acquisition, LLC) a Delaware limited liability company formed by affiliates of Golden Gate Capital Opportunity Fund, L.P. ("the Buyer"). The Buyer completed the acquisition of the Company's Bob Evans Restaurants Business (the "Restaurants Business"), including our corporate headquarters, on April 28, 2017 (the "Restaurants Transaction"). For all periods presented in our Consolidated Statements of Net Income, all sales, costs, expenses, gains and income taxes attributable to our Restaurants Business as well as the Restaurants Transaction have been reported under the captions "Income from Discontinued Operations, Net of Income Taxes." Cash flows used in or provided by our Restaurants Business have been reported in the Consolidated Statements of Cash Flows under operating and investing activities. Refer to Note 2 - Discontinued Operations for additional information.

Prior to the decision to sell our Restaurants Business, we had two reporting segments, Bob Evans Restaurants and BEF Foods. BEF Foods sells food products throughout the retail grocery and food service channels, including to Bob Evans Restaurants. Corporate and other costs related to shared services functions were not allocated to our reporting segments. As a result of the decision to sell our Restaurants Business, which is now classified as discontinued operations, we have one reporting segment. Revenues and costs related to our BEF Foods business, including indirect corporate overhead costs, are reported within results from continuing operations. All revenues and costs incurred directly in support of the Bob Evans Restaurants business are presented in results from discontinued operations. Prior year information has been adjusted to conform with the current presentation. Unless otherwise stated, the information disclosed in footnotes accompanying the financial statements refer to continuing operations. See Note 2 for additional information regarding results from discontinued operations.

Principles of Consolidation:    The consolidated financial statements include the accounts of Bob Evans and its subsidiaries. Intercompany accounts and transactions have been eliminated. Dollars are in thousands, except share and per share amounts.

Use of Estimates:    The preparation of financial statements in conformity with US GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could differ from the estimates and assumptions used.

Fiscal Year:    Our fiscal year ends on the last Friday in April. References herein to fiscal 2017, fiscal 2016 and fiscal 2015 refer to fiscal years ended April 28, 2017, April 29, 2016, and April 24, 2015, respectively. Fiscal years 2017 and 2015 were 52 week periods, whereas fiscal year 2016 was a 53 week period.

Revenue Recognition: Revenue is recognized when products are received by our customers. We engage in promotional (sales incentives or trade spend) programs in the form of "off-invoice" deductions, billbacks, cooperative advertising and coupons with our customers. Costs associated with these programs are classified as a reduction of gross sales in the period in which the sale occurs. Promotional spending for continuing operations, primarily comprised of off-invoice deductions and billbacks, was $84,748, $79,302, and $56,618 for fiscal years 2017, 2016 and 2015, respectively.

Shipping and Handling costs:  Expenditures related to shipping our BEF Foods products to our customers are expensed when incurred. Shipping and handling costs were $16,125, $14,850 and $17,025 in fiscal years 2017, 2016 and 2015, respectively, and are recorded in the other operating expenses line of the Consolidated Statements of Net Income.

Cash Equivalents:    We consider all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. We did not own any cash equivalents as of April 28, 2017, or April 29, 2016.

Accounts Receivable:    Accounts receivable represents amounts owed to us through our operating activities and are presented net of allowance for doubtful accounts and promotional incentives. Accounts receivable consist primarily of trade receivables from customer sales. We evaluate the collectability of our accounts receivable based on a combination of factors.

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In circumstances where we are aware of a specific customer’s inability to meet its financial obligations to us, we record a specific allowance for bad debts against amounts due to reduce the net recognized receivable to the amount we reasonably believe will be collected. In addition, we recognize allowances for bad debts based on the length of time receivables are past due with allowance percentages, based on our historical experiences, applied on a graduated scale relative to the age of the receivable amounts. If circumstances such as higher than expected bad debt experience or an unexpected material adverse change in a major customer’s ability to meet its financial obligations to us were to occur, the recoverability of amounts due to us could change by a material amount. We had allowances for doubtful accounts of $269 and $421 as of April 28, 2017, and April 29, 2016, respectively. Accounts receivable are reduced by $8,055 and $4,916 as of April 28, 2017, and April 29, 2016, respectively, related to promotional incentives that reduce what is owed to the Company from certain BEF Foods customers.

Concentration of Credit Risk:    We maintain cash depository accounts with major banks. Accounts receivable can be potentially exposed to a concentration of credit risk with customers or in particular industries. In fiscal 2017 sales to Wal-mart comprised approximately 20% of net sales from continuing operations while sales to Kroger comprised approximately 14% of net sales from continuing operations. Reserves for credit losses have historically been within our expectations.

Notes Receivable:    As a result of the sale of Mimi’s Café to Le Duff, we received a promissory note ("the Note") for $30,000. The Note had an annual interest rate of 1.5%, a term of seven years and a full principal and interest payment date of February 2020. Partial prepayments were required prior to maturity if the buyer reached certain levels of EBITDA during specified periods. No partial prepayments were received on this Note. The Note was originally valued using a discounted cash flow model and we recognized accretion income of $1,133, $2,082 and $1,859 in fiscal years 2017, 2016 and 2015, respectively.

In the third quarter of fiscal 2017, we reached an agreement with Mimi's Café and settled the Note. We received a payment of $7,000 which settled all of Mimi's Café outstanding obligations of the Note. The settlement resulted in an impairment charge of $15,256, which was recorded in the Impairments line of the Consolidated Statements of Net Income.

Inventories:    Our inventories are determined on an average cost method which approximates a first in, first out basis due to the perishable nature of our inventory. Inventory includes raw materials and supplies ($6,037 in fiscal 2017 and $5,911 in fiscal 2016) and finished goods ($11,173 in fiscal 2017 and $11,182 in fiscal 2016). Inventories associated with the Restaurants Business were transferred to the Buyer as part of the Restaurants Transaction. See Note 2 for additional information.

Property, Plant and Equipment:   Property, plant and equipment is recorded at cost less accumulated depreciation. The straight-line depreciation method is used for all capitalized assets. Depreciation is calculated at rates adequate to amortize costs over the estimated useful lives of buildings and improvements (5 to 25 years) and machinery and equipment (3 to 10 years). Improvements to leased properties are depreciated over the shorter of their useful lives or the initial lease terms. Total depreciation expense from continuing operations was $23,875, $20,887 and $18,207 and in fiscal years 2017, 2016 and 2015, respectively.

We capitalized internal labor costs of $605, $1,557 and $2,118 in fiscal years 2017, 2016 and 2015, respectively, primarily associated with the first and second phases of our ERP implementation and other IT projects. The first phase of our ERP system was put in service in the first quarter of fiscal 2016, and has an expected useful life of ten years. The second phase of our ERP system was put in service in the second quarter of fiscal year 2017 and also has an expected useful life of 10 years.

We evaluate property, plant and equipment held and used in the business for impairment whenever events or changes circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. Impairment is determined by comparing the estimated fair value for the asset group to the carrying amount of its assets. If impairment exists, the amount of impairment is measured as the excess of the carrying amount over the estimated fair values of the assets.

Assets associated with our Richardson, Texas, location totaling $3,334 are classified as Current Assets Held for Sale in the Consolidated Balance Sheet as of April 28, 2017 and April 29, 2016.

Goodwill and Other Intangible Assets:    Goodwill and other intangible assets, which primarily represents the cost in excess of fair market value of net assets acquired, were $19,673 and $19,829 as of April 28, 2017, and April 29, 2016, respectively. The majority of our goodwill was acquired as part of our fiscal 2013 acquisition of Kettle Creations. Additionally, as part of this acquisition we obtained a non-compete agreement with certain executives of the former company. The Kettle Creations non-compete agreement is amortized on a straight-line basis over its estimated economic life of five years.

Goodwill and intangible assets with indefinite lives are not amortized, but rather are tested for impairment during the fourth quarter each year or on a more frequent basis when indicators of impairment exist. Goodwill and indefinite lived intangible asset impairment testing involves a comparison of the estimated fair value of reporting units to the respective

42

carrying amount. If the estimated fair value exceeds the carrying amount, then no impairment exists. If the carrying amount exceeds the estimated fair value, then a second step is performed to determine the amount of impairment, if any. We perform our impairment test using a combination of income-based and market-based approaches. The income based approach indicates the fair value of an asset or business based on the cash flows it can be expected to generate over its remaining useful life. Under the market-based approach, fair value is determined by comparing our reporting units to similar businesses or guideline companies whose securities are actively traded in public markets. There have been no impairments to our goodwill in the current or prior years.

Accrued Non-Income Taxes:    Accrued non-income taxes primarily represent obligations for real estate and personal property taxes. Accrued non-income taxes were $3,353 and $890 at April 28, 2017, and April 29, 2016, respectively. Accrued non-income taxes associated with the Restaurants Business were conveyed to the Buyer as part of the Restaurants Transaction. See Note 2 - Discontinued Operations for additional information.

Self-Insurance Reserves:    We record estimates for certain health, workers’ compensation and general liability insurance costs that are self-insured programs. Self-insurance reserves include actuarial estimates of both claims filed, carried at their expected ultimate settlement value, and claims incurred but not yet reported. Our liability represents an estimate of the ultimate cost of claims incurred as of the fiscal year end balance sheet date. Self-insurance reserves were $10,692 and $11,288 at April 28, 2017, and April 29, 2016, respectively. Workers compensation reserves associated with the Restaurants Business were transferred to the Buyer as part of the Restaurants Transaction. See Note 2 for additional information.

Other Accrued Expenses:    Other accrued expenses consisted of the following:

(in thousands)	April 28, 2017		April 29, 2016
Legal and professional fees	$	10,807	$	4,119
Accrued customer incentives	1,912		1,872
Accrued broker fees	945		957
Accrued advertising	515		727
Accrued utilities	492		449
Accrued interest	16		541
Other	3,218		4,949
Total other accrued expenses	$	17,905	$	13,614

Advertising Costs:    Media advertising is expensed at the time the media first airs. We expense all other advertising costs as incurred. Advertising expense from continuing operations was $9,006, $6,658 and $3,607 in fiscal years 2017, 2016 and 2015, respectively. Advertising costs are classified in other operating expenses in the Consolidated Statements of Net Income.

Cost of Sales:    Cost of sales represents primarily the cost of materials. Cost of sales excludes depreciation expense, which is recorded in the depreciation and amortization expense line on the Consolidated Statements of Net Income.

Comprehensive Income:    Comprehensive income is the same as reported net income as we have no other comprehensive income.

Earnings Per Share:    Our basic earnings per share ("EPS") computation is based on the weighted-average number of shares of common stock outstanding during the period presented. Our diluted EPS calculation reflects the assumed vesting of restricted shares and market-based performance shares, the exercise and conversion of outstanding employee stock options and the settlement of share-based obligations recorded as liabilities on the Consolidated Balance Sheets (see Note 6 for more information), net of the impact of antidilutive shares.

The numerator in calculating both basic and diluted EPS for each period is reported net income. The denominator is based on the following weighted-average shares outstanding:

(in thousands)	2017	2016	2015
Basic	19,839	21,336	23,489
Dilutive shares	293	158	160
Diluted	20,132	21,494	23,649

43

In fiscal years 2017, 2016 and 2015, respectively, there were 215,889, 207,538 and 124,766 shares of common stock excluded from the diluted earnings per share calculations because they were antidilutive.

Dividends: In fiscal 2017, we paid four quarterly dividends, each equal to $0.34 per share on our outstanding common stock. Individuals that hold awards for unvested and outstanding restricted stock units, market-based performance share units and outstanding deferred stock awards are entitled to receive dividend equivalent rights equal to the per-share cash dividends paid on outstanding units. Dividend equivalent rights are forfeitable until the underlying share units from which they were derived vest. Share-based dividend equivalents are recorded as a reduction to retained earnings, with an offsetting increase to capital in excess of par value. Refer to table below:

	2017		2016
Cash dividends paid to common stock holders	$	26,915	$	27,861
Dividend Equivalent Rights	560		400
Total dividends	$	27,475	$	28,261

Leases:     In fiscal 2016, we entered into sale leaseback transactions for two of our production facilities. The transaction included 20-year initial lease terms for each facility, with two10-year additional renewal periods exercisable at our option, 2% annual rent increases and payment and performance guaranties. A gain of $2,305 on the sale of our Lima, Ohio, facility was deferred and is being recognized on a straight-line basis over the initial term of the lease. Rent expense is recorded on a straight-line basis. Our straight-line rent calculation does not include an assumption of lease renewal periods. We record the difference between the amount charged to expense and the rent paid as deferred rent in the Consolidated Balance Sheets. Rent expense was $4,117 and $2,202 in fiscal years 2017 and 2016, respectively. Refer to the following table for expected future minimum lease payments, which excludes the impact of any available renewal periods:

(in thousands)	2018		2019		2020		2021		2022		Thereafter
Future operating lease payments	$	3,586	$	3,657	$	3,731	$	3,805	$	3,881	$	60,657

Income Taxes:   We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

We record uncertain tax positions in accordance with the Income Taxes Topic of the Financial Accounting Standards Board ("FASB ") ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying Consolidated Statement of Net Income. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheets. See Note 4 for additional information.

Commitments and Contingencies:    We occasionally use purchase commitment contracts to stabilize the potentially volatile pricing associated with certain commodity items.

We are self-insured for most casualty losses and employee health care claims up to certain stop-loss limits per claim. We have accounted for liabilities for casualty losses, including both reported claims and incurred but not reported claims, based on information provided by independent actuaries. We have estimated our employee health care claims liability through a review of incurred and paid claims history. The Company retained liabilities for health insurance and general liability claims associated with the Restaurants Business that were incurred prior to the closing of the Restaurants Transaction. We do not believe that our calculation of casualty losses and employee health-care claims liabilities would change materially under

44

different conditions and/or different methods. However, due to the inherent volatility of actuarially determined casualty losses and employee health care claims, it is reasonably possible that we could experience changes in estimated losses, which could be material to net income.

We are from time to time involved in ordinary and routine litigation, typically involving claims from customers, employees and others related to operational issues common to the food manufacturing industry. Management believes that the ultimate outcome of these proceedings, individually or in the aggregate, will not have a material adverse effect on our financial position, cash flows or results of operations. See Note 8 for further information.

As part of the Restaurants Transaction, the Company and BEF Foods, Inc. continue to guarantee certain payment and performance obligations associated with Bob Evans Restaurants leases associated with the sale leaseback transaction that occurred in the fourth quarter of fiscal 2016. See Note 2 for additional information.

New Accounting Pronouncements: In the normal course of business, management evaluates all new accounting pronouncements issued by the FASB, the Securities and Exchange Commission (“SEC”), the Emerging Issues Task Force, the American Institute of Certified Public Accountants or any other authoritative accounting body to determine the potential impact they may have on the Company’s consolidated financial statements. The pronouncements below were either adopted by the Company in fiscal 2017 or will be effective for the Company in future years.

In May 2014, the FASB and the International Accounting Standards Board ("IASB") issued new joint guidance surrounding revenue recognition. Under US GAAP, this guidance is being introduced to the ASC as Topic 606, Revenue from Contracts with Customers ("Topic 606"), by Accounting Standards Update No. 2014-09. The new standard supersedes a majority of existing revenue recognition guidance under US GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Companies may need to use more judgment and make more estimates while recognizing revenue, which could result in additional disclosures to the financial statements. Topic 606 allows for either a "full retrospective" adoption or a "modified retrospective" adoption. The standard will become effective for us in fiscal 2019.

We are in the process of implementing the new standard, focusing on promotional arrangements with customers. We do not believe the implementation will be material to our current or historical financial statements. We are in the process of developing additional controls to ensure proper oversight of new customer relationships and promotional activity, as well as to ensure we meet all of the disclosure requirements associated with the new standard. We have not yet concluded which transition method we will elect, but anticipate we will use the modified retrospective approach.

In August 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-15, Presentation of Financial Statements - Going Concern to provide guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern. The guidance requires management to assess whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity's ability to continue as a going concern within one year after the date that the financial statements are issued. When management identifies such conditions or events, a footnote disclosure is required to disclose their nature, as well as management's plans to alleviate the substantial doubt to continue as a going concern. The standard became effective for our fiscal year end 2017 and did not have an impact on the consolidated financial statements.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. ASU 2015-11 simplifies the subsequent measurement of inventory by replacing today's lower of cost or market test with a lower of cost or net realizable test, which is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The standard will become effective for us in fiscal 2018. We do not expect this update to have a material impact on the consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases. This guidance requires companies to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The new standard also will result in enhanced quantitative and qualitative disclosures, including significant judgments made by management, to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing leases. The standard requires modified retrospective adoption and will become effective beginning in fiscal 2020, with early adoption permitted. We are currently evaluating this standard, including the timing of adoption and the related impact on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Compensation Accounting. ASU 2016-09 requires that excess tax benefits are recorded on the income statement as opposed to additional paid-in-capital, and treated as an operating activity on the statement of cash flows. ASU 2016-09 also allows companies to make an accounting policy election to either estimate the number of awards that are expected to vest (current U.S. GAAP) or account for forfeitures

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when they occur. ASU 2016-09 further requires cash paid by an employer when directly withholding shares for tax-withholding purposes to be classified as a financing activity on the statement of cash flows. The standard will become effective for us in fiscal 2018. We are currently evaluating the impact this standard will have on our consolidated financial statements.

In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses. ASU 2016-13 introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale (AFS) debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The standard will become effective for us in our fiscal 2021. We do not expect this standard to have a material impact on the consolidated financial statements.

In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The guidance is to be applied using a retrospective transition method to each period presented. This standard will become effective for us in our fiscal 2019. We are currently evaluating the impact this standard will have on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment." ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating Step 2 from the goodwill impairment test. Under the previous guidance an impairment of goodwill exists when the carrying amount of goodwill exceeds its implied fair value, whereas under the new guidance a goodwill impairment loss would be recognized if the carrying amount of the reporting unit exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. The ASU is effective for annual and any interim impairment tests for periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact this standard will have on our consolidated financial statements.

Note 2 — Discontinued Operations

On January 24, 2017, the Company entered into the BER Sale Agreement with the Buyer. On April 28, 2017, we completed the sale of the Restaurants Business for an aggregate purchase price of $565,000 in cash, subject to certain adjustments set forth in the BER Sale Agreement (the “Restaurants Transaction”). The Buyer also purchased our corporate headquarters as part of the transaction.

The Restaurants Transaction was effected by (i) the sale of the Restaurants Business assets by the Company’s affiliates to Buyer and (ii) the sale by the Company of fifty percent of the equity interests in a newly formed special purpose entity that holds specified intellectual property assets used by both the Restaurants Business and the Company’s food production business. As part of the Restaurants Transaction the Company also conveyed to the Buyer the majority of working capital liabilities associated with the Restaurants Business, including outstanding payables, accrued wages, and other accrued current liabilities, other than debt.

The Company will continue to supply Bob Evans Restaurants with certain of its products under a five-year supply agreement. The supply agreement requires Bob Evans Restaurants purchase 100% of certain food products from the Company in the first year. The required percentage of purchases for those products then decreases annually, down to 25% in the final year. In fiscal years 2017, 2016 and 2015 respectively, the Company's BEF Foods business sold $22,056, $18,769 and $19,304 of products to Bob Evans Restaurants. These sales were eliminated on our Consolidated Statements of Net Income.

Additionally, pursuant to a transition services agreement, the Company will supply certain services, primarily information technology related, to Bob Evans Restaurants and will receive certain human resource, tax and accounting services from Bob Evans Restaurants. These services will be provided at cost for a period up to 18 months, which can be further extended.

Results associated with the Restaurants Business are classified as income from discontinued operations, net of income taxes, in our Consolidated Statements of Net Income. Prior year results have been adjusted to conform with the current presentation. Income from discontinued operations is comprised of the following:

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(in thousands)	2017		2016			2015
Net Sales	$	876,786	$	951,211		$	969,878
Costs and expenses:
Cost of sales	226,516		252,612			258,677
Operating wage and fringe benefit expenses	359,959		384,959			381,822
Operating expenses	172,717		169,673			168,610
Selling, general and administrative expenses	62,025		73,873			69,916
Depreciation and amortization expense	36,059		58,562			61,710
Impairments	522		8,385			6,100
Operating Income from discontinued operations	18,988		3,147			23,043
Gain on sale of Restaurants Business	150,167		—			—
Net interest expense	2,203		373			—
Income from discontinued operations before income taxes	166,952		2,774			23,043
Provision (Benefit) for income taxes	57,521		(5,240		)	1,110
Income from discontinued operations	$	109,431	$	8,014		$	21,933

Selling, general and administrative expenses recorded in discontinued operations include corporate costs incurred directly in support of the Restaurants Business. In fiscal 2017, these costs included $10,818 of severance and stock compensation costs associated with corporate employees who supported the Restaurants Business.

We sold our corporate headquarters facility to the Buyer on a debt-free basis as part of the Restaurants Transaction, which required us to pay-in-full the outstanding borrowings on our Mortgage Loan prior to closing the Transaction. In accordance with ASC 205 - Presentation of Financial Statements, interest expense associated with the Mortgage Loan, which includes $972 of debt issuance amortization charges recorded upon termination of the Mortgage Loan in the fourth quarter, was allocated to discontinued operations.

See the table below for a reconciliation of the gain recorded on the sale of our Restaurants Business:

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Net proceeds received from Restaurant Transaction (1)	$	539,301
Restaurants Business assets:
Accounts receivable	3,522
Inventory	8,538
Property, plant and equipment	480,663
Other assets	5,693
Total Restaurants Business assets	498,416
Restaurants Business liabilities:
Accounts payable	13,813
Accrued non income taxes	11,587
Accrued wages and benefits	8,794
Self-insurance reserves	8,003
Accrued gift cards	13,810
Accrued miscellaneous liabilities	12,455
Deferred sale leaseback gain	51,077
Other restaurant liabilities	7,039
Total Restaurants Business Liabilities	126,578
Other transaction costs incurred as part of the sale of the Restaurants Business (2)	$	17,296
Gain on sale of the Restaurants Business before income taxes	$	150,167

(1)The proceeds received from the Restaurants Transaction are net of certain costs paid at closing, including transfer taxes and title insurance, and other working capital adjustments outlined in the BER Sale Agreement.

(2) Costs directly incurred as a result of the sale of our Restaurants Business, including investment bank fees, legal fees, professional fees and other administrative costs.

Prior to the closing of the Restaurants Transaction, these assets and liabilities were classified as held for sale in the Consolidated Balance Sheets as of January 27, 2017, in the Form 10-Q. The Company retained certain liabilities associated with the Restaurants Business, including $7,408 of liabilities for general liability and health insurance claims incurred prior to the closing of the Restaurants Transaction. Additionally we retained all liabilities related to income taxes associated with the Restaurants Business.

Proceeds from the sale of the Restaurants Business have been presented in the Consolidated Statements of Cash Flow under investing activities for fiscal year 2017. Total operating and investing cash flows of discontinued operations for fiscal years 2017, 2016 and 2015 are comprised of the following:

(in thousands)	2017			2016		2015
Net cash (used in) provided by operating activities	$	(35,807	)	$	72,645	$	123,401
Net cash provided by (used in) investing activities	$	519,833		$	175,816	$	(49,184	)

Net cash provided by investing activities in fiscal year 2017 includes the proceeds from the sale of the Restaurants Business, while net cash provided by investing activities in fiscal year 2016 includes approximately $197,000 of proceeds associated with our sale leaseback of 143 restaurant properties. Net cash provided by (used in) investing activities in each year is net of capital expenditures associated with the Restaurants Business.

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Lease Guarantee

As part of the Restaurants Transaction, the Buyer assumed all operating leases associated with the Restaurants Business, including leases for the 143 restaurant properties that were sold as part of a sale leaseback transaction in the fourth quarter of fiscal 2016. The Company and BEF Foods, Inc. continue to guarantee certain payment and performance obligations associated with the lease agreements for those restaurant properties (the "Guarantee"). In the event Bob Evans Restaurants fails to meet its payment and performance obligations under these lease agreements, the Company may be required to make rent and other payments to the landlord under the requirements of the Guarantee. Should the Company, as guarantor of the lease obligations, be required to make all lease payments due for the remaining term of the lease subsequent to April 28, 2017, the maximum amount we may be required to pay is the annual rent amount, for the remainder of the lease term. The current annual rent on these leases is approximately $13,300, and will increase up to 1.5% annually based on indexed inflation. The lease term extends for approximately 19 more years as of April 28, 2017, and the Company would remain a guarantor of the leases in the event the leases are extended for a renewal period. In the event that the Company is obligated to make payments under the guarantor obligations, we believe the exposure is limited due to contractual protections and recourse available in the master lease agreements as well as the BER Sale Agreement, including a requirement of the landlord to mitigate damages by re-letting the properties in default. Bob Evans Restaurants continues to meet its obligations under these leases and there have not been any events that would indicate that they will not continue to meet the obligations of the leases. As such, we believe the fair value of the Guarantee is immaterial as of April 28, 2017.

Note 3 — Long-Term Debt and Credit Arrangements

As of April 28, 2017, long-term debt was comprised of the long term portion of a $3,000 Research and Development Investment Loan ("R&D Loan") and an interest-free loan of $1,000, due ten years from the date of borrowing, with imputed interest.

In the fourth quarter of fiscal 2017, in conjunction with the sale of our Restaurants Business, we paid all outstanding borrowings and terminated our Revolving and Restated Credit Agreement ("Credit Agreement"). Under the terms of the Credit Agreement, we were required to use proceeds from the sale of our Restaurants Business to pay off outstanding borrowings, which occurred on the date the Restaurants Transaction closed. In the fourth quarter of fiscal 2017, we also paid off all outstanding borrowings on the mortgage credit agreement on our corporate headquarters facility (the "Mortgage Loan"). Our corporate headquarters facility was sold as part of the Restaurants Transaction and the termination of the Mortgage Loan prior to closing the Restaurants Transaction was a requirement under the BER Sale Agreement. Interest expense associated with the Mortgage Loan, including the write off of unamortized debt issuance costs of $972, was recorded in the results from discontinued operations. We expensed $2,005 of unamortized debt issuance costs in the fourth quarter of fiscal 2017 associated the termination of the Credit Agreement. Interest expense associated with the Credit Agreement, including the write off of unamortized debt issuance costs, were recorded in the Net Interest Expense line of the Consolidated Statements of Net Income.

Refer to the table below for outstanding borrowings as of April 28, 2017, and April 29, 2016, respectively:

(in thousands)	April 28, 2017			April 29, 2016
Credit Agreement borrowings	$	—		$	307,000
Mortgage Loan	—			28,963
R&D Loan (1)	1,801			2,219
Interest-free loan (1)	894			875
Total borrowings	2,695			339,057
Less current portion	(428		)	(3,419		)
Long term debt	$	2,267		$	335,638

(1) The R&D Loan and Interest-free loan mature in fiscal 2021 and 2022, respectively.

Establishment of New Credit Facility

On April 28, 2017, the Company entered into a new $300,000 Credit Facility (the “Credit Facility”). The Credit Facility represents a syndicated secured revolving credit facility under which up to $300,000 will be available, with a letter of credit sub-facility of $20,000, and an accordion option to increase the revolving credit commitment to $400,000. All obligations under the Credit Facility are unconditionally guaranteed by the Company as well as certain wholly owned subsidiaries, and is secured by a first-priority security interest in certain property and assets of the Company, including accounts receivable,

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inventory, equipment, intellectual property and certain other assets, including stock pledges of certain material direct subsidiaries. The Credit Facility has a maturity date of April 28, 2022. We incurred financing costs of $1,542 associated with this Credit Facility, which will be amortized over the five-year term of the facility.     

The primary purposes of the Credit Facility are for stand-by letters of credit in the ordinary course of business as well as working capital, capital expenditures, acquisitions, stock repurchases, dividends, including a special dividend paid to the Company’s stockholders at the close of business on June 16, 2017, and other general corporate purposes.

Borrowings under the Credit Facility bear interest, at Borrower’s option, at a rate based on the Eurodollar Rate or the Base Rate, plus a margin based on the Consolidated Leverage Ratio, as detailed in the Credit Facility, ranging from 1.25% to 2.00% per annum for Eurodollar Rate, and ranging from 0.25% to 1.00% per annum for Base Rate. Base Rate means, for any day, a fluctuating per annum rate of interest equal to the highest of (i) the Federal Funds Rate, plus 0.50%, and (ii) Bank of America, N.A.’s “prime rate”, and (iii) the Eurodollar Rate, plus 1.0%. As of April 28, 2017, the margin on LIBOR-based loans was 1.50% per annum and the margin on Base Rate-based loans was 0.50% per annum. Commitment fees payable under the Credit Facility are also based on the Consolidated Leverage Ratio and range from 0.20% per annum to 0.30% per annum of the average unused portion of the total lender commitments then in effect.

The terms of the Credit Facility provide for customary representations and warranties and affirmative covenants. The Credit Facility contains negative covenants usual and customary for a transaction of this nature. The Credit Agreement also contains financial covenants that require us to maintain a specified minimum coverage ratio of not less than 3.00 to 1.00, and a maximum leverage ratio that may not exceed 3.50 to 1.00. As of April 28, 2017, there were no outstanding borrowings on the Credit Facility and we were in compliance with all covenants. A breach of any of these covenants could result in a default under our Credit Facility, in which all amounts under the Credit Facility may become immediately due and payable, and all commitments under our Credit Facility to extend further credit may be terminated.

At April 28, 2017, we had outstanding letters of credit that totaled approximately $12,036, of which $11,736 is utilized as part of the total amount available under our Credit Facility. If certain conditions are met under these arrangements, we would be required to satisfy the obligations in cash. Due to the nature of these arrangements and based on historical experience and future expectations, we do not expect to make any significant payment outside of the terms set forth in these arrangements. Approximately $3,300 of these letters of credit were associated with our Restaurants Business and have subsequently been canceled or released.

Our combined effective annual interest rate for the now terminated Credit Agreement and Mortgage Loan was 2.37% during the year ended April 28, 2017. Interest costs of $445, $210 and $471 incurred in fiscal years 2017, 2016 and 2015, respectively, were capitalized in connection with our ERP system implementation and other construction activities. Interest paid in fiscal years 2017, 2016 and 2015 was $9,718, $10,579 and $10,399, respectively. Net interest expense from continuing operations in fiscal years 2017, 2016 and 2015 was comprised of the following:

(in thousands)	2017			2016			2015
Interest Expense:
Variable-rate debt (1)	$	7,817		$	10,925		$	10,373
Fixed-rate debt (2)	3,213			2,262			1,177
Capitalized interest	(445		)	(210		)	(471		)
Total Interest Expense on outstanding borrowings	10,585			12,977			11,079
Interest Income:
Accretion on note receivable (3)	(1,133		)	(2,082		)	(1,859		)
Other (4)	(236		)	(468		)	(571		)
Total Interest Income	(1,369		)	(2,550		)	(2,430		)
Net Interest Expense	$	9,216		$	10,427		$	8,649

(1) Primarily interest expense on our Credit Agreement borrowings.

(2) Includes the amortization of debt issuance costs

(3) Accretion on our $30,000 note receivable, obtained as part of the sale of Mimi’s Café to Le Duff which was settled in fiscal 2017.

(4) Primarily interest income on the $30,000 note receivable, obtained as part of the sale of Mimi’s Café to Le Duff which was settled in fiscal 2017.

Note 4 — Income Taxes

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Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The amount of the deferred tax assets considered realizable could be adjusted if estimates of future taxable income during the carryforward periods are reduced or increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence, such as the Company’s projections for growth. Significant components of our deferred tax liabilities and assets as of April 28, 2017, and April 29, 2016, were as follows:

(in thousands)	April 28, 2017			April 29, 2016
Deferred tax assets:
Self-insurance	$	2,306		$	5,595
Stock and deferred compensation plans	14,034			12,582
Deferred proceeds on Mimi’s Café sale	—			3,564
Rebates, coupons and allowances	2,683			1,067
Inventory	2,234			2,605
Wage and related liabilities	2,511			3,426
Deferred gain from sale leaseback	769			22,306
Other	2,392			7,619
Total deferred tax assets before valuation allowances	26,929			58,764
Valuation allowance	(238		)	(246		)
Net deferred tax assets	$	26,691		$	58,518
Deferred tax liabilities:
Property, plant and equipment	$	19,988		$	28,111
Intangibles	1,217			747
Other	405			658
Total deferred tax liabilities	21,610			29,516
Net deferred tax assets (liabilities)	$	5,081		$	29,002

There are $568 of state net operating loss carry forwards that will expire at various times through 2036.

As of April 28, 2017, and April 29, 2016, the valuation allowance for net operating loss carryovers totaled $238 and $246, respectively. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, taxable income in carryback years and tax-planning strategies when making this assessment.

Significant components of the provision (benefit) for income taxes are as follows:

(in thousands)	2017			2016		2015
Current:
Federal	$	(3,647	)	$	3,714	$	(5,679	)
State	(173		)	873		(779		)
Total current	(3,820		)	4,587		(6,458		)
Deferred:
Federal	8,364			1,704		(1,922		)
State	(670		)	148		(246		)
Total deferred	7,694			1,852		(2,168		)
Total tax provision (benefit)	$	3,874		$	6,439	$	(8,626	)

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Our provision for income taxes differs from the amounts computed by applying the federal statutory rate due to the following:

	2017		2016		2015
Statutory federal tax rate	35.0	%	35.0	%	35.0	%
State and local income tax — net	0.9		3.9		6.8
Domestic production activity deduction	(13.5	)	(11.7	)	13.4
Fixed assets	—		—		2.2
Officers life insurance	(2.5	)	2.7		4.4
Other	(1.4	)	(1.5	)	(0.2	)
Provision for income taxes	18.5	%	28.4	%	61.6	%

Taxes paid during fiscal 2017, fiscal 2016 and fiscal 2015 were $23,743, $7,739 and $10,543, respectively.

Uncertain Tax Positions

The following table summarizes activity of the total amounts of unrecognized tax benefits:

(in thousands)	2017			2016			2015
Balance at beginning of fiscal year	$	4,983		$	5,202		$	5,952
Additions based on tax positions related to the current year	(23		)	306			63
Additions for tax positions of prior years	308			149			551
Reductions for tax positions of prior years	(227		)	(188		)	(284		)
Reductions due to settlements with taxing authorities	(126		)	(113		)	(672		)
Reductions due to statute of limitations expiration	(903		)	(373		)	(408		)
Balance at end of fiscal year	$	4,012		$	4,983		$	5,202

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of April 28, 2017, April 29, 2016, and April 24, 2015, was $4,012, $4,720 and $4,939, respectively. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain, but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits would not affect our effective tax rate.

The Company believes that it is reasonable that a decrease of up to $73 to $1,554 in unrecognized tax benefits related to state exposures may be necessary in the coming year due to settlements with taxing authorities or lapses of statutes of limitations.

We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense in the Consolidated Statements of Net Income. During fiscal 2017, fiscal 2016 and fiscal 2015, we recognized $422, $50 and $166, respectively of benefits related to the adjustment of previously assessed interest and penalties. As of April 28, 2017, and April 29, 2016, we accrued approximately $368 and $790, respectively, in interest and penalties related to unrecognized tax benefits.

We file United States federal and various state and local income tax returns. Tax returns are generally subject to examination for a period of three to five years after the filing of the respective return. 

Note 5 — Restructuring and Severance Charges

In fiscal 2017, we incurred charges of $6,662 related to a reduction of personnel as part of the Company's overall strategic initiatives, including the sale of the Restaurants Business (see Note 2 for additional information). Severance charges associated with employees who work in shared service functions were recorded in the S,G&A line of the Consolidated Statements of Net Income, while charges associated with employees who supported the Restaurant Business were recorded in results from discontinued operations. Liabilities for severance charges associated with restructuring activities as of April 28, 2017, were $2,800 and are recorded in the accrued wages and related liabilities line of the Consolidated Balance Sheet and we expect these liabilities to be paid in fiscal 2018.

Additionally, in each of the fourth quarters of fiscal years 2016 and 2015, we recorded charges related to a reduction of personnel at our corporate headquarters. Restructuring costs related to employees who supported our continuing operations or

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worked in shared service functions were recorded in the S,G&A line of the Consolidated Statements of Net Income. See the table below for additional information.

	Restructuring Charges
Balance April 25, 2014	$	1,227
Restructuring and related severance charges incurred (1)	4,340
Amounts paid	(1,849		)
Balance Adjustments	(92		)
Balance April 24, 2015	$	3,626
Restructuring and related severance charges incurred (1)	2,606
Amounts paid	(3,105		)
Adjustments	(429		)
Balance April 29, 2016	$	2,698
Restructuring and related severance charges incurred (1)	6,662
Amounts paid	(5,632		)
Adjustments	(928		)
Balance April 28, 2017	$	2,800

⁽¹⁾ Restructuring charges of $2,090, $972 and $3,236 were recorded in continuing operations in fiscal years 2017, 2016 and 2015, respectively, in the S,G&A line of the Consolidated Statements of Net Income. The remaining charges were recorded in the results of discontinued operations.

Note 6 — Share-Based Compensation Plans

Shared-based Employee Compensation:    The Stock Compensation Topic of the FASB ASC 718 ("ASC 718") requires that we measure the cost of employee services received in exchange for an equity award, such as stock options, restricted stock awards and restricted stock units, based on the estimated fair value of the award on the grant date. The cost is recognized in the income statement over the vesting period of the award on a straight-line basis with the exception of compensation cost related to awards for retirement eligible employees, which are recognized immediately upon grant. Compensation cost recognized is based on the grant date fair value estimated in accordance with ASC 718.

On September 13, 2010, our stockholders approved the Bob Evans Farms, Inc. 2010 Equity and Cash Incentive Plan (the “2010 Plan”). Upon approval, the 2010 Plan became our primary plan under which new stock-based compensation can be granted.

The types of awards that may be granted under the 2010 Plan include: stock options, stock appreciation rights, restricted stock, restricted stock units, cash incentive awards, performance shares, performance units, and other awards. The Compensation Committee of the Board of Directors administers the 2010 Plan, including establishing the terms and conditions of the awards. The 2010 Plan allows the Compensation Committee to make awards to any of our employees, consultants, or nonemployee directors. The 2010 Plan imposes various restrictions on awards, including a maximum life of 10 years for stock options and stock appreciation rights and a minimum exercise price equal to the grant date stock price for stock options and stock appreciation rights. The remaining shares available for issue under the 2006 Equity and Cash Incentive Plan (the “2006 Plan”) became available for issuance under the 2010 Plan effective September 13, 2010.

In fiscal 2017, we granted market-based performance share units ("PSUs") and restricted stock units ("RSUs"). The PSUs granted under the 2010 Plan have market-based vesting conditions, while RSUs granted under the 2010 Plan vest ratably over three years for employees, and one year for non-employee directors of the Company. The PSUs awarded in the first quarter of fiscal 2017 were designed to vest at the end of a three-year performance period if they achieved the market-based vesting conditions. The PSUs were valued using a Monte Carlo simulation with the number of shares that ultimately vest dependent on the Company's total stockholder return, measured against the total stockholder return of a select group of peer companies over a three-year period. During fiscal years 2017, 2016 and 2015, we issued treasury shares to satisfy the vesting of restricted awards and stock option exercises.

In the third quarter of fiscal 2017, in accordance with the authority and power granted to the Compensation Committee under the terms of the 2010 Plan, the Compensation Committee approved acceleration of the vesting of all unvested RSUs,

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RSAs and PSUs then outstanding, contingent upon and effective at the time of the closing of the Restaurants Transaction. The Compensation Committee further determined that the performance criteria applicable to each PSU was deemed satisfied, upon the closing of the Restaurants Transaction and delivery by the participant of a written agreement with the Company containing a general release of claims and certain restrictive covenants. The Compensation Committee’s decision applied to all of the Company’s outstanding RSUs, RSAs and PSUs granted to employees that were unvested at the time of the modification.

The Compensation Committee's decision resulted in a Type III modification, defined as a change from improbable to probable vesting conditions as per ASC 718, for certain employees terminated during fiscal 2017 and for employees that left the Company as part of the Restaurants Transaction. For Type III modified stock awards, we recalculated the fair value on the modification date (January 24, 2017), and accelerated the associated unrecognized stock compensation expense. RSAs and RSUs are valued based on the stock closing price on the grant date. Total stock-based compensation expense from continuing operations in fiscal years 2017, 2016 and 2015, was $7,269, $2,958 and $1,600 respectively. The related tax benefit recognized was $2,762, $1,124 and $608 in fiscal years 2017, 2016 and 2015, respectively. Expense associated with stock-based compensation is primarily reflected in S,G&A expense.

Stock Options

The following table summarizes option-related activity for fiscal 2017:

Options	Shares Subject to Options		Weighted-Average Exercise Price
Outstanding, Beginning of Year	38,040		$	33.26
Granted	—		—
Exercised	(15,150	)	34.16
Forfeited or expired	—		—
Outstanding, End of Year	22,890		$	32.67

	Shares	Weighted-Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Options outstanding	22,890	$	32.67	1.59	$	780
Options exercisable	22,890	$	32.37	1.59	$	780

As of April 28, 2017, there was no remaining unrecognized compensation cost related to outstanding stock options. The total intrinsic value of options exercised during fiscal years 2017, 2016 and 2015 was $333, $195 and $567, respectively. Cash received from the exercise of options was $518, $214 and $534 for fiscal years 2017, 2016 and 2015, respectively.

Cash flows resulting from the tax benefits of tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) are classified as financing cash flows. In fiscal years 2017, 2016 and 2015, excess tax (expense) benefits of $(499), $1,661 and $228, respectively, were classified as financing cash flows in the Consolidated Statements of Cash Flows.

Restricted Stock

A summary of the status of our non-vested restricted stock awards and restricted stock units as of April 28, 2017, and changes during fiscal 2017 is presented below:

Restricted Stock Awards	Shares		Weighted-Average Grant Date Fair Value
Non-vested, Beginning of Year	89,655		$	40.93
Granted	—		—
Vested	(85,222	)	41.25
Forfeited	(4,433	)	34.74
Non-vested, End of Year	—		$	—

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Restricted Stock Units	Shares		Weighted-Average Grant Date Fair Value
Non-vested, Beginning of Year	145,118		$	45.51
Granted	97,862		39.25
Vested	(211,743	)	43.55
Forfeited	(7,418	)	43.33
Non-vested, End of Year	23,819		$	37.91

At April 28, 2017, there was $291 of unrecognized compensation cost related to non-vested restricted stock units for our Board of Directors. This cost is expected to be recognized over a weighted-average period of 0.33 years. The total fair value of RSAs and RSUs granted during fiscal years 2017, 2016 and 2015 was $3,841, $6,092 and $4,649, respectively. The total fair value of RSAs and RSUs that vested during fiscal years 2017, 2016 and 2015 was $9,221, $5,601 and $10,136, respectively.

In addition to the shares subject to outstanding options and unvested restricted stock units and performance share units, approximately 2.9 million shares were available for grant under the 2010 Plan at April 28, 2017.

Performance Share Units

Performance Share Units	Shares		Weighted-Average Grant Date Fair Value
Non-vested, Beginning of Year	61,746		$	54.76
Granted	142,124		34.08
Vested	(189,959	)	40.19
Forfeited	(13,911	)	42.46
Non-vested, End of Year	—		$	—

At April 28, 2017, there was no unrecognized stock compensation expense. The total fair value of PSU awards granted during fiscal 2017 was $4,844. The total fair value of PSU awards vested during fiscal 2017 was $7,634. The weighted-average assumptions used for PSUs in the Monte Carlo simulation during fiscal 2017 were as follows:

	Fiscal 2017 PSU grants
Grant date market price	$	39.69
Fair value	$	34.08
Assumptions:
Price volatility	30.9		%
Risk-free interest rate	0.92		%
Average volatility of peer companies	36.2		%
Average correlation coefficient of peer companies	0.774

Note 7 — Other Compensation Plans

Defined Contribution Plan: We have a defined contribution plan (401(k)) that is available to substantially all employees who have at least 1,000 hours of service. Expenses related to matching contributions to these plans for continuing operations were $1,426, $988 and $946 for fiscals 2017, 2016, and 2015 respectively, and are primarily recorded within S,G&A.

Nonqualified Deferred Compensation Plans: We have three nonqualified deferred compensation plans, the Bob Evans Executive Deferral Plans I and II (collectively referred to as “BEEDP”) and Bob Evans Directors’ Deferral Plan (“BEDDP”), which provides certain executives and Board of Directors members, respectively, the opportunity to defer a portion of their current year salary or stock compensation to future years. A third party manages the investments of employee deferrals. Expenses related to investment results of these deferrals are based on the change in quoted market prices of the underlying investments elected by plan participants.

Obligations to participants who defer stock compensation through our deferral plans are satisfied only in company stock. There is no change in the vesting term for stock awards that are deferred into these plans. Obligations related to these deferred stock awards are treated as "Plan A" instruments, as defined by ASC 710. These obligations are classified as equity instruments within the Capital in excess of par value line of the Consolidated Balance Sheets. No subsequent changes in fair value are

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recognized in the Consolidated Financial Statements for these instruments. Participants earn share-based dividend equivalents in an amount equal to the value of per-share dividends paid to common shareholders. These dividends accumulate into additional shares of common stock, and are recorded through retained earnings in the period in which dividends are paid. Vested, deferred shares are included in the denominator of basic and diluted EPS in accordance with ASC 260 - Earnings per Share. The dilutive impact of unvested, deferred stock awards is included in the denominator of our diluted EPS calculation.

Participants who defer cash compensation into our deferral plans have a range of investment options, one of which is company stock. Obligations for participants who choose this investment election are satisfied only in shares of company stock, while all other obligations are satisfied in cash. These share-based obligations are treated as "Plan B" instruments, as defined by ASC 710. These deferred compensation obligations are recorded as liabilities on the Consolidated Balance Sheets, in the deferred compensation line. We record compensation cost for subsequent changes in fair value of these obligations. Participants earn share-based dividend equivalents in an amount equal to the value of per-share dividends paid to common shareholders. These dividends accumulate into additional shares of common stock, and are recorded as compensation cost in the period in which the dividends are paid. At April 28, 2017, our deferred compensation obligation included $1,398 of share based obligations, which represents 20,949 shares. The dilutive impact of these shares are included in the denominator of our EPS calculation. Compensation cost (benefit) recognized on the adjustment of fair value for deferred awards was immaterial in the current and prior year.

Supplemental Executive Retirement Plan: The Supplemental Executive Retirement Plan ("SERP") provides awards to a limited number of executives in the form of nonqualified deferred cash compensation. Gains and losses related to these benefits and the related investment results are recorded within the S,G&A caption in the Consolidated Statements of Net Income. The SERP is frozen and no further persons can be added, and funding was reduced to a nominal amount per year for the remaining participants.

Deferred compensation liabilities expected to be satisfied in the next 12 months are classified as current liabilities in the accrued wages and other liabilities line of the Consolidated Balance Sheets. Our deferred compensation liabilities as of April 28, 2017 and April 29, 2016, consisted of the following:

(in thousands)	April 28, 2017			April 29, 2016
Deferred cash obligations in BEEDP and BEDDP plans	$	13,986		$	12,845
Deferred cash obligations in SERP plan	5,830			6,271
Deferred liability for share-based obligations in BEEDP and BEDDP plans	1,398			673
Other noncurrent compensation arrangements	110			100
Total deferred compensation liabilities	21,324			19,889
Less current portion	(4,047		)	(2,128		)
Noncurrent deferred compensation liabilities	$	17,277		$	17,761

Employees who transferred to Bob Evans Restaurants as part of the Restaurants Transaction were treated as terminated employees in our deferred compensation plans and will receive payouts based on their distribution elections.

Rabbi Trust Assets:    The Rabbi Trust is intended to be used as a source of funds to match respective funding obligations in our nonqualified deferred compensation plans. Assets held by the Rabbi Trust are recorded on our Consolidated Balance Sheets, and include company owned life insurance ("COLI") policies, short-term money market securities and Bob Evans common stock. The COLI policies held by the Rabbi Trust are recorded at cash surrender value on the Rabbi Trust Assets line of Consolidated Balance Sheets and totaled $22,353 and $20,662 as of April 28, 2017, and April 29, 2016, respectively. The cash receipts and payments related to the company owned life insurance policies are included in cash flows from operating activities on the Consolidated Statements of Cash Flows and changes in the cash surrender value for these assets are reflected within the S,G&A line in the Consolidated Statements of Net Income.

The short-term securities held by the Rabbi Trust are recorded at their carrying value, which approximates fair value, on the prepaid expense and other current assets line of the Consolidated Balance Sheets and totaled $984 and $3,290 as of April 28, 2017, and April 29, 2016, respectively. All assets held by the Rabbi Trust are restricted to their use as noted above.

Net expenses associated with our nonqualified deferred compensation plans include expenses associated with investment returns of our plan participants as well as premiums and administrative fees associated with the plans and our Rabbi Trust, and are offset by the investment returns on our COLI policies. Net expenses associated with our deferred compensation plans totaled $1,031, $1,162 and $1,236 in fiscal years 2017, 2016, and 2015 respectively, and are recorded within S,G&A.

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Note 8 — Commitments and Contingencies

We are from time-to-time involved in ordinary and routine litigation, typically involving claims from customers, employees and others related to operational issues common to the food manufacturing industries, and incidental to our business. Management presently believes that the ultimate outcome of these proceedings, individually or in the aggregate, will not have a material adverse effect on our financial position, cash flows or results of operations.

In the fourth quarter of fiscal 2016, we settled a class-action related to alleged violations of the Fair Labor Standards Act by misclassifying assistant managers as exempt employees and failing to pay overtime compensation during the period of time the employee worked as an assistant manager. In fiscal 2015, we recorded a charge of $6,000 related to the settlement of this matter. In the first quarter of fiscal 2016, we reached an agreement in principle to resolve litigation matter and recorded an additional $10,500 charge. In the fourth quarter of fiscal 2016, the Court issued a Final Approval Order on the settlement and the appeals period expired. The Company recorded a favorable adjustment of $3,344 related to the final settlement of this matter in fiscal 2016.

Note 9 — Goodwill and Other Intangible Assets

The carrying value of our goodwill and other intangible assets as of the end of fiscal 2017 and fiscal 2016 is $19,673 and $19,829, respectively, and primarily represents goodwill acquired in our fiscal 2013 acquisition of Kettle Creations. We assess the carrying value of our goodwill annually or whenever circumstances indicate that a decline in the carrying value may have occurred as required under the provisions of ASC 350. In the fourth quarter of fiscal 2017 we completed our annual impairment test. There have been no impairments to our goodwill in the current or prior years

We also have a definite-lived intangible assets recorded on the Consolidated Balance Sheets consisting of noncompetition agreements that are being amortized over a 5-year life and have an immaterial remaining unamortized balance as of April 28, 2017.

Note 10 — Acquisitions

On January 24, 2017, the Company’s subsidiary BEF Foods, Inc. (“BEF Foods”) entered into a Stock Purchase Agreement (the “PFPC Agreement”) with Pineland Farms Potato Company, Inc., a Maine corporation (“PFPC”), the stockholders of PFPC party thereto (collectively, the “Sellers”), and Libra Foundation, as the Sellers’ Representative, and, solely for the purposes of guaranteeing the payment and performance obligations of BEF Foods under the PFPC Agreement, the Company. Pursuant to the PFPC Agreement, subject to the satisfaction or waiver of certain conditions, BEF Foods has purchased and acquired from the Sellers all of the equity interests of PFPC outstanding immediately after the closing , in exchange for (i) $115,000 in cash, subject to certain adjustments set forth in the PFPC Agreement, and (ii) up to an additional $25,000 in cash as potential earn-out consideration, the payment of which is subject to the achievement of certain operating EBITDA performance milestones over a consecutive twelve-month period during the 24 months following the closing. The transaction closed in the first quarter of fiscal 2018.

Note 11 — Quarterly Financial Data (Unaudited)

Summarized unaudited quarterly financial results for Fiscal 2017 and Fiscal 2016 follows (in thousands, except per share amounts):

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	First Quarter				Second Quarter					Third Quarter					Fourth Quarter
	2017		2016		2017			2016		2017			2016		2017		2016
Net Sales from Continuing Operations	$	85,941	$	83,044	$	96,158		$	94,281	$	112,820		$	107,897	$	99,923	$	102,394
Operating Income (Loss) from Continuing Operations	$	8,265	$	5,986	$	(4,768	)	$	5,330	$	17,121		$	11,424	$	9,508	$	10,334
Net Income (Loss) from Continuing Operations	$	5,298	$	2,582	$	(4,857	)	$	1,278	$	9,838		$	6,416	$	6,757	$	5,932
Net Income (Loss) from Discontinued Operations	$	3,864	$	1,698	$	5,074		$	5,152	$	(1,617	)	$	6,515	$	102,110	$	(5,351	)
Consolidated Earnings Per Share - Net Income
Basic	$	0.46	$	0.19	$	0.01		$	0.29	$	0.41		$	0.62	$	5.47	$	0.03
Diluted	$	0.46	$	0.19	$	0.01		$	0.29	$	0.41		$	0.62	$	5.39	$	0.03
Common stock sale prices (1)
High	$	46.83	$	51.88	$	41.09		$	49.92	$	57.94		$	44.34	$	67.25	$	48.14
Low	$	35.67	$	43.02	$	35.90		$	42.51	$	40.05		$	37.51	$	55.49	$	38.92
Cash dividends paid	$	0.34	$	0.31	$	0.34		$	0.31	$	0.34		$	0.34	$	0.34	$	0.34

(1) Common stock sale prices are based on the market-close prices during the respective periods.

• Fiscal quarters represent 13-week periods, except the fourth quarter of fiscal year 2016, which was a 14-week period.

• Total quarterly EPS may not equal the annual amount because EPS is calculated independently for each quarter.

• Stock prices are high and low sale prices for our common stock as reported on the NASDAQ Stock Market (trading symbol — BOBE), which is the principal market for our common stock.

• The number of registered stockholders of our common stock at June 9, 2017, was 14,648.

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Note 12 — Subsequent Events

On May 1, 2017, we completed the acquisition of PFPC. We acquired all of the equity interests of PFPC in exchange for (i) $115,000 in cash, subject to certain adjustments set forth in the purchase agreement, and (ii) up to an additional $25,000 in cash as potential earn-out consideration, the payment of which is subject to the achievement of certain operating EBITDA performance milestones over consecutive twelve month periods during the 24 months following the closing.

The acquisition increases our side-dish production capacity and provides us the capability to produce and sell diced and shredded potato products in both the retail and food-service channels. The acquisition also diversifies our production capability by adding a second state-of-the-art potato processing facility with approximately 180 million pounds of capacity. PFPC also owns and operates a 900-acre potato farm and is surrounded by an estimated 55,000 acres of annual potato production.

On May 1, 2017, the Company’s Board of Directors announced the declaration of a special dividend in the amount of $7.50 per share on the Company’s outstanding common stock. The dividend is payable on June 16, 2017 to stockholders of record at the close of business on May 30, 2017.

On May 31, 2017, the Company’s Board of Directors announced the declaration of a quarterly cash dividend of $0.34 per share on the Company's outstanding common stock. The dividend is payable on June 26, 2017 to stockholders of record at the close of business on June 12, 2017.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of Bob Evans Farms, Inc.:

We have audited the accompanying consolidated balance sheets of Bob Evans Farms, Inc. as of April 28, 2017 and April 29, 2016, and the related consolidated statements of net income, stockholders’ equity and cash flows for each of the three years in the period ended April 28, 2017. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Bob Evans Farms, Inc. at April 28, 2017, and April 29, 2016, and the consolidated results of their operations and their cash flows for each of the three years in the period ended April 28, 2017, in conformity with U.S. generally accepted accounting principles.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Bob Evans Farms, Inc.’s internal control over financial reporting as of April 28, 2017, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated June 15, 2017, expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Grandview Heights, Ohio

June 15, 2017

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of Bob Evans Farms, Inc.:

We have audited Bob Evans Farms, Inc.’s internal control over financial reporting as of April 28, 2017, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). Bob Evans Farms, Inc.’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Bob Evans Farms, Inc. maintained, in all material respects, effective internal control over financial reporting as of April 28, 2017, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Bob Evans Farms, Inc. as of April 28, 2017 and April 29, 2016, and the related consolidated statements of net income, stockholders’ equity and cash flows for each of the three years in the period ended April 28, 2017 of Bob Evans Farms, Inc. and our report dated June 15, 2017, expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Grandview Heights, Ohio

June 15, 2017

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES

None.

ITEM 9A.  CONTROLS AND PROCEDURES

Changes in Internal Control Over Financial Reporting

In the second quarter of fiscal 2017, we implemented the second phase of our ERP system which improves the efficiency of certain financial and related transaction processes. The implementation resulted in business and operational changes, which required changes to our internal controls over financial reporting. We believe we have designed adequate controls into and around the new ERP system, which includes performing significant procedures, both within the ERP and outside the ERP, to monitor, review and reconcile financial activity for fiscal 2017 to ensure ongoing reliability of our financial reporting.

Except as described above, there has been no material change in our internal control over financial reporting (as defined in Rules 13a-15(f) under the Exchange Act) during the year ended April 28, 2017, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of chief executive officer (principal executive officer) and chief financial officer (principal financial officer), has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act as of the end of the period covered by the Annual Report on Form 10-K. Based upon that evaluation, our Chairman of the Board, Chief Executive Officer and Chief Financial Officer, have concluded that:

• information required to be disclosed by us in this Annual Report on Form 10-K and other reports that we file or submit under the Exchange Act would be accumulated and communicated to our management, including our principal executive officers and principal financial officer, as appropriate to allow timely decisions regarding required disclosure;

• information required to be disclosed by us in this Annual Report on Form 10-K and the other reports that we file or submit under the Exchange Act would be recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and

• our disclosure controls and procedures were effective as of the end of the period covered by this Annual Report on Form 10-K.

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MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

To the Stockholders of Bob Evans Farms, Inc.:

Our management is responsible for establishing and maintaining adequate internal control over financial reporting to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States. Internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of the unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Accordingly, even an effective system of internal control over financial reporting will provide only reasonable assurance with respect to the reliability of financial reporting and financial statement preparation.

Management assessed our internal control over financial reporting as of April 28, 2017, the end of our fiscal year. Management based its assessment on criteria established in Internal Control -Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Management’s assessment included the evaluation of such elements as the design and operating effectiveness of key financial reporting controls, process documentation, accounting policies and our overall control environment. This assessment is supported by testing and monitoring performed by our internal audit function.

Based on its assessment, management concluded that our internal control over financial reporting was effective as of the end of the fiscal year ended April 28, 2017, the period covered by this Annual Report on Form 10-K, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with accounting principles generally accepted in the United States.

We reviewed the results of management’s assessment with the Audit Committee of our Board of Directors. Additionally, our independent registered public accounting firm, Ernst & Young LLP, independently assessed our internal control over financial reporting. Ernst & Young has issued a report on our internal control over financial reporting, which is included in this annual report.

/s/    J. Michael Townsley	/s/    Mark E. Hood
J. Michael Townsley	Mark E. Hood
President and Chief Executive Officer	Chief Financial Officer and Chief Administrative Officer

June 15, 2017

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ITEM 9B. OTHER INFORMATION

None.

PART III

The information required by Items 10, 11, 12, 13 and 14 will be furnished pursuant to a definitive proxy statement involving the election of directors pursuant to Regulation 14A that will contain such information. Notwithstanding the foregoing, information appearing in the sections “Compensation Committee Report” and “Audit Committee Report” shall not be deemed to be incorporated by reference in this Form 10-K.

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information contained in our definitive proxy statement relating to the 2017 annual meeting of stockholders (the “2017 Proxy Statement”), under “SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE,” “PROPOSAL 1: ELECTION OF DIRECTORS,” and “CORPORATE GOVERNANCE” under the sub-caption “Directors Serving on Boards of Other Public Companies” is incorporated herein by reference.

The information regarding our executive officers required by Item 401(a) of Regulation S-K is included in Part I of this Form 10-K under the caption “Supplemental Item. Executive Officers of Bob Evans Farms, Inc.”

Information concerning our Audit Committee and the determination by our Board of Directors that at least one member of the Audit Committee qualifies as an “audit committee financial expert” is incorporated herein by reference to the information contained in our 2017 Proxy Statement under “CORPORATE GOVERNANCE” under the sub-captions “Board Committees and Charters” and “Board Committees and Charters — Audit Committee.”

Information regarding the procedures by which our stockholders may recommend nominees to our Board of Directors is incorporated by reference to the information contained in our 2017 Proxy Statement under “CORPORATE GOVERNANCE” under the sub-caption “Board Committees and Charters — Nominating and Corporate Governance Committee.”

Our Board of Directors has adopted a Code of Conduct that applies to all directors, officers and employees, including our principal executive officer, principal financial officer and controller. The Code of Conduct is available at our website www.bobevans.com in the “Investors” section under “Corporate Governance.” To receive a copy of the Code of Conduct at no cost, contact our Legal Department at (614) 492-7415. We intend to satisfy the disclosure requirements under Item 5.05 of Form 8-K regarding amendments to, or waivers from, certain provisions of the Code of Conduct that apply to our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, by posting such information on our website, www.bobevansgrocery.com.

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Set forth below is a list of our directors, and their principal occupations, as of June 1, 2017:

Name	Principal Occupation
Douglas N. Benham	Executive Chair, Bob Evans Farms, Inc.; President and Chief Executive Officer of DNB Advisors, LLC, a restaurant industry consulting firm since 2006
Charles M. Elson	Edgar S. Woolard, Jr. Chair in Corporate Governance and Director of the John L. Weinberg Center for Corporate Governance at the University of Delaware since 2000
Mary Kay Haben	Retired; President of North America for the Wm. Wrigley Jr. Company, a leading confectionery company
David W. Head	President and Chief Executive Officer and Board Member of Primanti, Inc., a private equity-owned restaurant chain since 2013
Kathleen S. Lane	Retired Executive Vice President and Chief Information Officer of TJX Companies, Inc., a specialty apparel retailer
Eileen A. Mallesch	Retired; Senior Vice President, Chief Financial Officer of Nationwide Property & Casualty Insurance, Nationwide Insurance
Larry S. McWilliams	Co-CEO of Compass Marketing, a marketing consulting firm serving a broad range of leading brands and consumer products
Kevin M. Sheehan	CEO of Scientific Games Corporation
J. Michael Townsley	President and Chief Executive Officer, Bob Evans Farms, Inc.
Michael F. Weinstein	Chairman and co-founder of INOV8 Beverage Consulting Group, LLC, a beverage consulting firm since 2012
Paul S. Williams	Partner of Major, Lindsey and Africa, a legal executive search firm

ITEM 11. EXECUTIVE COMPENSATION

Information regarding the compensation of our Board of Directors is incorporated by reference to the information contained in our 2017 Proxy Statement under “CORPORATE GOVERNANCE” under the sub-caption “Director Compensation for Fiscal 2017.”

Information regarding the compensation of our executive officers is incorporated by reference to the information contained in our 2017 Proxy Statement under “COMPENSATION DISCUSSION AND ANALYSIS,” “COMPENSATION COMMITTEE REPORT” and “EXECUTIVE COMPENSATION” (including the information appearing under the sub-captions “Summary Compensation Table for Fiscal 2017, 2016 and 2015,” “All Other Compensation Table for Fiscal 2017,” “Grants of Plan-Based Awards in Fiscal 2017,” “Outstanding Equity Awards at 2017 Fiscal Year-End,” “Option Exercises and Stock Vested in Fiscal 2017,” “Nonqualified Deferred Compensation,” “Nonqualified Deferred Compensation Table for Fiscal 2017,” “Change in Control and Severance Program,” and “Potential Payouts upon Termination or Change-in-Control”).

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Stock Ownership of Certain Beneficial Owners and Management

The information required by Item 403 of Regulation S-K regarding the security ownership of certain beneficial owners and management is incorporated herein by reference to the information contained in the 2017 Proxy Statement under “STOCK OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.”

Equity Compensation Plan Information

In September 2010, our stockholders approved the Bob Evans Farms, Inc. 2010 Equity and Cash Incentive Plan (the “2010 Plan”). Our stockholders further amended the 2010 Plan in August 2013 to add 2.6 million shares to the 2010 Plan for future grants. As of April 28, 2017, there are approximately 2.9 million shares available for grant under the 2010 Plan. Currently, the 2010 Plan is the only plan under which we may issue equity securities to our directors, officers and employees.

Our stockholders approved all of our previous equity plans. These plans were terminated as to new awards when our stockholders adopted the 2010 Plan. Any shares that were available for issuance under our previous equity plans at the time they were terminated became available for issuance under the 2010 Plan.

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The following table shows, as of April 28, 2017, the number of shares of common stock issuable upon exercise of outstanding options, the weighted-average exercise price of those options and the number of shares of common stock remaining for future issuance under the 2010 Plan, excluding shares issuable upon exercise of outstanding options.

	(a)		(b)			(c)
	Number of Securities to be Issued Upon Exercise of Options, Warrants and Rights		Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights			Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))
Equity compensation plans approved by security holders	308,739	(1)	$	32.67	(2)	2,877,140	(3)
Equity compensation plans not approved by security holders	N/A		N/A			N/A
Total	308,739		$	32.67		2,877,140

(1) Includes 22,890 common shares issuable upon exercise of stock options granted under 2006 Stock Option Plan. Also includes 262,030 of restricted stock units deferred in our Nonqualified Deferred Compensation Plans, and 23,819 outstanding, unvested restricted stock units granted under the 2010 Plan that are expected to vest in the second quarter of fiscal 2018.

(2) The restricted stock units and performance share units included in column (a) are not taken into account in calculating the weighted average exercise price of outstanding options

(3) Represents shares available for issuance under the 2010 Plan, including 940,495 shares that were made available for issuance under the 2010 Plan when the 1992 Stock Option Plan, 1993 LTIP, the 1998 Stock Option Plan, and the 2006 Plan were suspended as well as shares that became available for issuance under the 2010 Plan when outstanding awards under the 1992 Stock Option Plan, 1993 LTIP, the 1998 Stock Option Plan and the 2006 Plan expired or were otherwise forfeited. This also includes approved, but unregistered shares available for grant. Shares available for future issuance under the 2010 Plan may be granted in the form of incentive stock options, nonqualified stock options, performance shares, performance units, restricted stock, restricted stock units, stock appreciation rights or whole shares. The Company’s practice for at least the past four years is to issue only restricted stock awards, restricted stock units and performance share units. For fungible “full” value awards, such as the grant of a share of restricted stock, 2.63 shares will be deducted from the total number of authorized shares for the Equity and Cash Incentive Plan. In the case of a grant of a stock option or SAR, the share ratio is 1-to-1, so one share will be deducted from the total number of authorized shares for the Equity and Cash Incentive Plan. This reflects the different values of these types of grants.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information contained in the 2017 Proxy Statement under the captions “TRANSACTIONS WITH RELATED PERSONS” and “CORPORATE GOVERNANCE” under the sub-caption “Director Independence” is incorporated herein by reference.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information contained in the 2017 Proxy Statement under “PROPOSAL [4]: RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM” under the captions “Preapproval of Services Performed by the Independent Registered Public Accounting Firm” and “Fees of the Independent Registered Public Accounting Firm” is incorporated herein by reference.

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a)(1) Financial Statements

The following consolidated financial statements of Bob Evans Farms, Inc. and subsidiaries are filed as part of this Annual Report on Form 10-K under Item 8 hereof:

• Management’s Report on Internal Control Over Financial Reporting

• Report of Independent Registered Public Accounting

• Report of Independent Registered Public Accounting Firm

• Consolidated Balance Sheets at April 28, 2017, and April 29, 2016

• Consolidated Statements of Net Income for the fiscal years ended April 28, 2017, April 29, 2016, and April 24, 2015

• Consolidated Statements of Stockholders’ Equity for the fiscal years ended April 28, 2017, April 29, 2016, and April 24, 2015

• Consolidated Statements of Cash Flows for the fiscal years ended April 28, 2017, April 29, 2016, and April 24, 2015

• Notes to Consolidated Financial Statements

(a)(2) Financial Statement Schedules

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Financial statement schedules have been omitted because they are not required or are not applicable or because the information required to be set forth therein either is not material or is included in the financial statements or notes thereto.

(a)(3) Exhibits

The accompanying Index to Exhibits is filed as part of this Annual Report on Form 10-K. Management contracts or compensatory plans or arrangements required to be filed as exhibits to this Annual Report on Form 10-K are denoted by asterisk in the Index to Exhibits.

(b) Exhibits

The accompanying Index to Exhibits is filed as part of this Annual Report on Form 10-K.

(c) Financial Statement Schedules

Not applicable.

ITEM 16. FORM 10-K SUMMARY

Not applicable.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BOB EVANS FARMS, INC.
Date: June 15, 2017	By:	/s/ J. Michael Townsley
		J. Michael Townsley President and Chief Executive Officer (Principal Executive Officer)
Date: June 15, 2017	By:	/s/ Mark E. Hood
		Mark E. Hood Chief Financial Officer and Chief Administrative Officer (Principal Financial Officer and Principal Accounting Officer)

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Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/    J. Michael Townsley	President, Chief Executive Officer and Director (Principal Executive Officer)	June 15, 2017
J. Michael Townsley
/s/    Mark E. Hood	Chief Financial Officer and Chief Administrative Officer (Principal Financial Officer and Principal Accounting Officer)	June 15, 2017
Mark E. Hood
*		June 15, 2017
Douglas N. Benham	Director
*		June 15, 2017
Charles M. Elson	Director
*		June 15, 2017
Mary Kay Haben	Director
*		June 15, 2017
David W. Head	Director
*		June 15, 2017
Kathleen S. Lane	Director
*		June 15, 2017
Eileen A. Mallesch	Director
*		June 15, 2017
Larry S. McWilliams	Director
*		June 15, 2017
Kevin M. Sheehan	Director
*		June 15, 2017
Michael F. Weinstein	Director
*		June 15, 2017
Paul S. Williams	Director
* By Colin M. Daly pursuant to Powers of Attorney executed by the directors and executive officers listed above, which Powers of Attorney have been filed with the Securities and Exchange Commission.
/s/    Colin M. Daly
Colin M. Daly Executive Vice President, General Counsel and Secretary

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EXHIBIT INDEX

Exhibit Number	Description	Location
2.1	Asset and Membership Interest Purchase Agreement, dated as of January 24, 2017, by and between Bob Evans Farms, Inc. and Bob Evans Restaurants, LLC (f.k.a. BER Acquisition, LLC)	Incorporated herein by reference to Exhibit 2.1 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed January 25, 2017 (File No. 0-01667)
2.2	First Amendment to Asset and Membership Purchase Agreement, dated as of April 28, 2017, by and between Bob Evans Farms, Inc. and Bob Evans Restaurants, LLC (f.k.a. BER Acquisition, LLC)	Filed herewith
2.3	Stock Purchase Agreement, dated as of January 24, 2017, by and among BEF Foods, Inc., Pineland Farms Potato Company, Inc., the selling stockholders party thereto, Libra Foundation, in its capacity as the Sellers’ Representative, and Bob Evans Farms, Inc.	Incorporated herein by reference to Exhibit 2.2 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed January 25, 2017 (File No. 0-01667)
3.1	Amended and Restated Certificate of Incorporation of company reflecting amendments through Aug. 20, 2014. [This document represents the Company’s Certificate of Incorporation in restated format incorporating all amendments. This compiled document has not been filed with the Delaware Secretary of State.]	Incorporated herein by reference to Exhibit 3.1 to Bob Evans Farms, Inc.’s Current Report on Form 8-K/A filed September 3, 2014 (File No. 0-1667)
3.2	Amended and Restated By-Laws of Bob Evans Farms, Inc. (Effective August 20, 2014)	Incorporated herein by reference to Exhibit 3.2 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed September 3, 2014 (File No. 0-1667)
4.1	Credit Agreement, dated as of April 28, 2017, among BEF Foods Inc., as borrower; Bob Evans Farms, Inc. and certain of its subsidiaries party thereto, as guarantors; Bank of America, N.A., as administrative agent, and the other Lenders party thereto	Incorporated herein by reference to Exhibit 10.1 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed May 1, 2017 (File No. 0-01667)
10.01	Lease Guaranty, dated as of October 23, 2015, by Bob Evans Farms, Inc. for the benefit of Broadstone BEF Portfolio, LLC	Incorporated herein by reference to Exhibit 10.2 to Bob Evans Farms, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 23, 2015, filed December 2, 2015 (File No. 0-1667)
10.02	Lease Guaranty, dated as of October 23, 2015, by Bob Evans Farms, LLC for the benefit of Broadstone BEF Portfolio, LLC	Incorporated herein by reference to Exhibit 10.3 to Bob Evans Farms, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 23, 2015, filed December 2, 2015 (File No. 0-1667)
10.03	Master Lease Agreement, dated as of October 23, 2015, by and between BEF Foods, Inc. and Broadstone BEF Portfolio, LLC	Incorporated herein by reference to Exhibit 10.4 to Bob Evans Farms, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 23, 2015, filed December 2, 2015 (File No. 0-1667)
10.04	Form of Master Lease Agreement, dated as of April 14, 2016, by and between Bob Evans Farms, LLC and National Retail Properties, LP	Incorporated herein by reference to Exhibit 10.4 to Bob Evans Farms, Inc.’s Annual Report on Form 10-K for the fiscal year ended April 29, 2016, filed June 23, 2016 (File No. 0-01667)
10.05	Master Lease Agreement, dated as of April 14, 2016, by and between Bob Evans Farms, LLC and BE Portfolio, LLC	Incorporated herein by reference to Exhibit 10.5 to Bob Evans Farms, Inc.’s Annual Report on Form 10-K for the fiscal year ended April 29, 2016, filed June 23, 2016 (File No. 0-01667)
10.06	Lease Guaranty, dated as of April 14, 2016, by Bob Evans Farms, Inc. and BEF Foods, Inc. for the benefit of BE Portfolio, LLC	Incorporated herein by reference to Exhibit 10.6 to Bob Evans Farms, Inc.’s Annual Report on Form 10-K for the fiscal year ended April 29, 2016, filed June 23, 2016 (File No. 0-01667)

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Exhibit Number	Description	Location
10.07	Form of Lease Guaranty, dated as of April 14, 2016, by Bob Evans Farms, Inc. and BEF Foods, Inc. for the benefit of National Retail Properties Trust	Incorporated herein by reference to Exhibit 10.7 to Bob Evans Farms, Inc.’s Annual Report on Form 10-K for the fiscal year ended April 29, 2016, filed June 23, 2016 (File No. 0-01667)
*10.08	Employment Agreement, dated as of August 27, 2015, by and between Bob Evans Farms, Inc. and Douglas N. Benham	Incorporated herein by reference to Exhibit 10.1 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed August 28, 2015 (File No. 0-01667)
*10.09	Employment Agreement, dated as of November 14, 2015, by and between Bob Evans Farms, Inc. and Saed Mohseni	Incorporated herein by reference to Exhibit 10.1 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed November 17, 2015 (File No. 0-01667)
*10.10	Severance Agreement and General Release, dated as of [April 1], BOBE: Please confirm execution date. 2017, by and between BEF Management, Inc. and John J. Fisher	Filed herewith
*10.11	Separation Agreement, dated as of April 27, 2017, by and between Bob Evans Farms, Inc. and Saed Mohseni	Filed herewith
*10.12	Employment Agreement, dated as of April 29, 2017, by and between Bob Evans Farms, Inc. and J. Michael Townsley	Filed herewith
*10.13	Employment Agreement, dated as of April 29, 2017, by and between Bob Evans Farms, Inc. and Mark E. Hood	Filed herewith
*10.14	Employment Agreement, dated as of April 29, 2017, by and between Bob Evans Farms, Inc. and Colin M. Daly	Filed herewith
*10.15	Amended and Restated Change In Control and Severance Plan dated November 14, 2015	Incorporated herein by reference to Exhibit 10.2 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed November 17, 2015 (File No. 0-01667)
*10.16	Bob Evans Farms, Inc. Form of Director and Officer Indemnification Agreement	Incorporated herein by reference to Exhibit 10.5 to Bob Evans Farms, Inc.’s Annual Report on Form 10-K for the fiscal year ended April 26, 2013, filed June 21, 2013 (File No. 0-01667)
*10.17	Bob Evans Farms, Inc. and Affiliates Fourth Amended and Restated Executive Deferral Program	Incorporated herein by reference to Exhibit 10.1 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed June 2, 2010 (File No. 0-01667)
*10.18	Bob Evans Farms, Inc. and Affiliates Fourth Amended and Restated Supplemental Executive Retirement Plan	Incorporated herein by reference to Exhibit 10.14 to Bob Evans Farms, Inc.’s Annual Report on Form 10-K for the fiscal year ended April 29, 2016, filed June 23, 2016 (File No. 0-01667)
*10.19	Bob Evans Farms, Inc. Amended and Restated Executive Compensation Recoupment Policy	Incorporated herein by reference to Exhibit 10.15 to Bob Evans Farms, Inc.’s Annual Report on Form 10-K for the fiscal year ended April 29, 2016, filed June 23, 2016 (File No. 0-01667)
*10.20	Bob Evans Farms, Inc. 2010 Director Deferral Program effective May 26, 2010	Incorporated herein by reference to Exhibit 10.2 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed June 2, 2010 (File No. 0-01667)
*10.21	Bob Evans Farms, Inc. 2006 Equity and Cash Incentive Plan	Incorporated herein by reference to Exhibit 10 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed September 14, 2006 (File No. 0-01667)
*10.22	Bob Evans Farms, Inc. Amended and Restated 2006 Equity and Cash Incentive Plan (effective as of January 1, 2008)	Incorporated herein by reference to Exhibit 10.7 to Bob Evans Farms, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 26, 2007, filed December 5, 2007 (File No. 0-01667)

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Exhibit Number	Description	Location
*10.23	First Amendment to the Bob Evans Farms, Inc. Amended and Restated 2006 Equity and Cash Incentive Plan (effective as of November 18, 2008)	Incorporated herein by reference to Exhibit 10.13 to Bob Evans Farms, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended January 23, 2009, filed March 4, 2009 (File No. 0-01667)
*10.24	Form of Bob Evans Farms, Inc. 2006 Equity and Cash Incentive Plan Incentive Stock Option Award Agreement (for Employees - Performance Incentive Plan Award)	Incorporated herein by reference to Exhibit 10.1 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed April 25, 2007 (File No. 0-01667)
*10.25	Form of Bob Evans Farms, Inc. 2006 Equity and Cash Incentive Plan Nonqualified Stock Option Award Agreement (for Employees - Performance Incentive Plan Award)	Incorporated herein by reference to Exhibit 10.2 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed April 25, 2007 (File No. 0-01667)
*10.26	Form of Bob Evans Farms, Inc. 2006 Equity and Cash Incentive Plan Annual Bonus Award Agreement (for Employees)	Incorporated herein by reference to Exhibit 10.7 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed April 25, 2007 (File No. 0-01667)
*10.27	Form of Bob Evans Farms, Inc. 2006 Equity and Cash Incentive Plan Whole Share Award Agreement (for Employees - Performance Incentive Plan Award)	Incorporated herein by reference to Exhibit 10.4 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed May 17, 2007 (File No. 0-01667)
*10.28	Form of Bob Evans Farms, Inc. 2006 Equity and Cash Incentive Plan Restricted Stock Award Agreement (for Employees - Performance Incentive Plan Award)	Incorporated herein by reference to Exhibit 10.1 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed May 17, 2007 (File No. 0-01667)
*10.29	Form of Bob Evans Farms, Inc. 2006 Equity and Cash Incentive Plan Whole Share Award Agreement (for Employees)	Incorporated herein by reference to Exhibit 10.3 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed May 17, 2007 (File No. 0-01667)
*10.30	Form of Bob Evans Farms, Inc. 2006 Equity and Cash Incentive Plan Cash Based Award Agreement (for Employees - Performance Incentive Plan Award)	Incorporated herein by reference to Exhibit 10.5 to Bob Evans Farms, Inc.’s Current Report on Form 8-K/A filed June 21, 2007 (File No. 0-01667)
*10.31	Bob Evans Farms, Inc. Amended and Restated 2010 Equity And Cash Incentive Plan, Amended and Restated (effective as of August 21, 2013)	Incorporated herein by reference to Exhibit 10.1 to Bob Evans Farms, Inc.’s Current Report on Form 8-K filed August 23, 2013 (File No. 0-01667)
*10.32	Form of Bob Evans Farms, Inc. 2010 Equity and Cash Incentive Plan Restricted Stock Award Agreement (for Directors)	Incorporated herein by reference to Exhibit 10.3 to Bob Evans Farms, Inc.’s Form S-8 Registration Statement filed September 13, 2010 (File No. 333-169350)
*10.33	Form of Bob Evans Farms, Inc. 2010 Equity and Cash Incentive Plan Restricted Stock and Restricted Stock Unit Award Agreement (for Employees)	Incorporated herein by reference to Exhibit 10.70 to Bob Evans Farms, Inc.’s Annual Report on Form 10-K for the fiscal year ended April 29, 2011, filed June 28, 2011 (File No. 0-01667)
*10.34	Form of Bob Evans Farms, Inc. 2010 Equity and Cash Incentive Plan Performance Share and Restricted Stock Unit Award Agreement (for Employees)	Incorporated herein by reference to Exhibit 10.30 to Bob Evans Farms, Inc.’s Annual Report on Form 10-K for the fiscal year ended April 29, 2016, filed June 23, 2016 (File No. 0-01667)
*10.35	Form of Bob Evans Farms, Inc. 2010 Equity and Cash Incentive Plan Restricted Stock Unit Award Agreement - 2016 (for Employees)	Incorporated herein by reference to Exhibit 10.31 to Bob Evans Farms, Inc.’s Annual Report on Form 10-K for the fiscal year ended April 29, 2016, filed June 23 ,2016 (File No. 0-01667)
21	Subsidiaries of Bob Evans Farms, Inc.	Filed herewith
23	Consent of Independent Registered Public Accounting Firm	Filed herewith
24	Power of Attorney	Filed herewith
31.1	Rule 13a-14(a)/15d-14(a) Certification (Principal Executive Officer)	Filed herewith
31.2	Rule 13a-14(a)/15d-14(a) Certification (Principal Financial Officer)	Filed herewith

72

Exhibit Number	Description	Location
32.1	Section 1350 Certification (Principal Executive Officer)	Filed herewith
32.2	Section 1350 Certification (Principal Financial Officer)	Filed herewith
101.INS	XBRL Instance Document	**
101.SCH	XBRL Taxonomy Extension Schema Document	**
101.CAL	XBRL Taxonomy Extension Calculation	**
	Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase	**
	Document
101.PRE	XBRL Taxonomy Presentation Linkbase	**
	Document
101.DEF	XBRL Taxonomy Extension Definition	**
	Linkbase Document
*	Denotes management contract or compensatory plan or agreement.
**	In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 to this Annual Report on Form 10-K shall be deemed to be furnished and not filed herewith.

73

EX-2.2

Exhibit 2.2

FIRST AMENDMENT TO ASSET AND MEMBERSHIP PURCHASE AGREEMENT

THIS FIRST AMENDMENT made as of April 28, 2017 (this “Amendment”) amends that certain Asset and Membership Purchase Agreement made as of January 24, 2017 (as amended, restated, supplemented or otherwise modified, the “APA”) entered into by and between Bob Evans Farms, Inc., a Delaware corporation (“Seller”), and Bob Evans Restaurants, LLC (f.k.a. BER Acquisition, LLC), a Delaware limited liability company (“Buyer”). Terms that are capitalized herein but not defined herein shall have the meaning ascribed to them in the APA.

WHEREAS, Section 11.02 of the APA provides that any provision of the APA may be amended only by written agreement duly executed by each party to the APA; and

WHEREAS, Seller and Buyer desire to amend certain provisions of the APA as set forth herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

Section 1.Effective Date. This Amendment shall become effective as of the date hereof (the “Amendment Effective Date”).

Section 2.Amendment to Certain Definitions. (i) Business Employee, (ii) Cash and Cash Equivalents of the Business, (iii) Indebtedness and (iv) Non-Operating Restaurants Sale Proceeds Adjustment Amount shall have the following meanings under the APA, respectively:

“Business Employee” means (i) all Restaurant employees employed by Seller or its Subsidiaries immediately prior to the Closing; (ii) each employee (other than a Restaurant employee) of Seller or its Subsidiaries whose employment duties immediately prior to the Closing are primarily dedicated to the performance of services (including administrative or backoffice support services) for the Business and only to the extent that such employees are set forth on Schedule 1.01(b) as of the date of this Agreement; and (iii) any employees hired by Seller or any of its Subsidiaries in the ordinary course of business consistent with past practice after the date of this Agreement and before the Closing to replace any of the employees set forth on Schedule 1.01(b) whose employment terminates after the date of this Agreement and before the Closing.

“Cash and Cash Equivalents of the Business” means the aggregate amount of cash and cash equivalents on hand at the Restaurants as of the Closing after taking into account the customary daily withdrawal of excess cash at the Restaurants; provided, however, Cash and Cash Equivalents of the Business shall exclude any credit card receivables.

“Indebtedness” means (a) all obligations for borrowed money or advances, (b) all obligations evidenced by notes, bonds, debentures or other instruments, (c) all obligations of any obligor or otherwise under letters of credit, bankers’ acceptance or similar instruments, (d) all obligations under leases required to be accounted for as capitalized leases under GAAP and all purchase money obligations or similar agreements that would be required to be accounted for by the lessee as indebtedness in accordance with GAAP, (e) all outstanding prepayment premium obligations that constitute an Assumed Liability, if any, (f) all obligations for the deferred purchase price of property or services (other than ordinary course trade payables) and agreements with suppliers and other than

employee compensation and benefits to be provided under employee benefit and compensation plans and arrangements), (g) all obligations under interest rate, currency or commodity derivatives or hedging or similar arrangements, (h) the GAAP liability for gift cards sold prior to the Closing related to the Business; (i) all obligations for guarantees of another Person in respect of any items set forth in clauses (a) through (g), and (i) all accrued interest, fees and expenses, together with any breakage, make-whole payments or other charges or amounts related to any of the foregoing, in each case, calculated in accordance with the assumptions, procedures and methodologies set forth on Schedule 1.01(e).

“Non-Operating Restaurants Sale Proceeds Adjustment Amount” means an amount equal to the dollar value (determined on an after-Tax basis) of the net proceeds received by Seller or its Subsidiaries in respect of any and all Permitted Non-Operating Restaurant Sales between (and inclusive of) November 15, 2016 and the Closing.

Section 3.Amendment to Section 2.02(j). Section 2.02(j) of the APA is hereby amended and restated in its entirety to read as follows:

“all Cash and Cash Equivalents of the Business and all credit card receivables and other receivables of the Business as of the Closing”

Section 4.Amendment to Section 2.02(o). Section 2.02(o) of the APA is hereby amended and restated in its entirety to read as follows:

“any physical memorabilia related to Bob Evans founding and history located at the Business Real Property, except such physical memorabilia that the Parties mutually agree will be retained by Seller (the “Seller Memorabilia”); provided that the Parties will agree on the Seller Memorabilia within a reasonable time following Closing;”

Section 5.Amendment to Section 2.02(q). Section 2.02(q) of the APA is hereby amended and restated in its entirety to read as follows:

“(q) all of the Employee Plans and assets relating to the Employee Plans that are set forth in Schedule 7.04 and the assets transferred to Buyer’s Trust pursuant to the Savings Plan Transfer described in Section 7.08; and”

Section 6.Amendment to Section 2.03(o). Section 2.03(o) of the APA is hereby amended and restated in its entirety to read as follows:

“all proceeds received from the sale or other disposition of any assets (including any Permitted Non-Operating Restaurant Sales) sold or otherwise disposed of in compliance with the terms of this Agreement during the period from the date hereof until the Closing (including with respect to any Permitted Non-Operating Restaurant Sales);”

Section 7.Amendment to Section 2.04 (h). Section 2.04(h) of the APA is hereby amended and restated in its entirety to read as follows:

“except to the extent an Excluded Liability, all Liabilities arising out of or in connection with any act, omission or circumstance with respect to the Business or the Purchased Assets occurring at any time after the Closing;”

Section 8.Amendment to Section 2.05(f). Section 2.05(f) of the APA is hereby amended and restated in its entirety to read as follows:

“(f) all Liabilities for severance amounts paid, payable or otherwise owing to any employee of Seller or any of its Affiliates that does not become a Transferred Employee, and all Liabilities for severance amounts paid by Buyer or any of its Affiliates with respect to Transferred Employees listed

in the “Farm” department on Schedule 1.01(b) as updated prior to Closing (such Transferred Employees, the “Farm Employees”)”

Section 9.Amendment to Section 2.05(l). Section 2.05(l) of the APA is hereby amended and restated in its entirety to read as follows:

“all unpaid amounts of any checks and wires related to the Business that are outstanding as of the Closing, except to the extent set forth in Section 2.04(j);”

Section 10.Amendment to Section 2.08. The fourth sentence of Section 2.08 of the APA is hereby amended and restated in its entirety to read as follows:

“The Closing shall be deemed to have been consummated at 11:59 p.m. U.S. Eastern time on the Closing Date (the “Effective Time”).”

Section 11.Amendments to Section 2.09(a).

(a)Section 2.09(a)(i) of the APA is hereby amended and restated in its entirety to read as follows:

“its good faith estimate of (A) the aggregate amount of all Indebtedness related to the Business as of the Closing (the “Estimated Closing Date Indebtedness”),”

(b)Section 2.09(a)(v) of the APA is hereby amended and restated in its entirety to read as follows:

“a schedule reflecting all Permitted Non-Operating Restaurant Sales between (and  inclusive of) November 15, 2016 and the Closing and the sales price of and net proceeds (determined on an after-Tax basis) received or receivable by Seller or its Subsidiaries with respect to each such sale.”

Section 12.Amendments to Section 2.09(b).

(a)Section 2.09(b)(i) of the APA is hereby amended and restated in its entirety to read as follows:

“an unaudited combined balance sheet of the Business as of the Closing (the “Closing Balance Sheet”),”

(b)Section 2.09(b)(ii) of the APA is hereby amended and restated in its entirety to read as follows:

“a calculation of the aggregate amount of all Indebtedness related to the Business as set forth on the Closing Balance Sheet as of the Closing (the “Closing Date Indebtedness”),”

Section 13.Amendments to Section 5.01.

(a)The first paragraph of Section 5.01 (up to the beginning of subsection (a)) is hereby amended and restated in its entirety to read as follows:

“From the date hereof until the Closing, except (i) as expressly contemplated by applicable Law, (ii) as otherwise expressly provided by the Transaction Documents, or (iii) with Buyer’s prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall, and shall cause its Subsidiaries to, conduct the Business in the ordinary course consistent with past practice (including with respect to the timely collection of accounts receivable and payment of accounts payable in the ordinary course consistent with past practice) and shall use its commercially reasonable efforts to: (x) preserve intact the present business organizations and goodwill of the Business, (y) preserve the present relationships of the Business with suppliers and other business partners and keep available the services of its present officers and key employees who are Business Employees, and (z) maintain the properties and Equipment related to the Business in good repair and operation condition (subject to normal wear). Without limiting the generality of the foregoing, from the date hereof until the Closing, except (i) as expressly contemplated by applicable Law, (ii) as

otherwise expressly provided by the Transaction Documents, (iii) as set forth on Schedule 5.01, or (iv) with Buyer’s prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed), with respect to the Business, Seller shall not and shall cause its Subsidiaries not to: . . . ”

(b)Section 5.01(p) of the APA is hereby amended and restated in its entirety to read as follows:

“except as set forth in Schedule 5.01(p), (i) negotiate or enter into any collective bargaining agreement or any employment, deferred compensation, severance, retirement or other similar agreement with or relating to any Business Employee for which Buyer or its Affiliates could have any Liability (or any amendment to any such existing agreement), (ii) other than as provided under any severance plan, policy or agreement in effect on the date of this Agreement that covers such Business Employee and is disclosed in the Disclosure Schedule, grant any new severance or termination pay to any Business Employee, (iii) increase the compensation payable, or grant any equity-based award, or grant or pay any fringe benefit or any bonus, severance, retention or termination amount, to any Business Employee other than promotions, merit based increases and/or market adjustments in the ordinary course of business consistent with past practices or as required by Law or the terms of any Employee Plan or other Contract in effect on the date of this Agreement and that is disclosed in the Disclosure Schedule (it being understood that the payment in the ordinary course of business consistent with past practice prior to the Closing of any bonus, fringe benefit, severance or termination amount pursuant to the terms of an Employee Plan in effect on the date of this Agreement shall not be prohibited by this subclause (iii) even though Seller may not be legally obligated to make such payment), (iv) implement any employee layoffs that would require Seller to provide any notification to any Business Employee under the WARN Act if Buyer could have any Liability in connection therewith, or (v) hire or terminate any officer, employee or other service provider of the Business with annual base compensation in excess of $150,000, other than a termination for cause;”

(c)The first sentence of the last paragraph of Section 5.01 of the APA is hereby amended and restated in its entirety to read as follows:

“For the avoidance of doubt, Seller shall be permitted to (i) collect all cash from the Restaurants prior to the Closing and (ii) receive and retain all payments related to the Business prior to the Closing.”

Section 14.Amendment to Section 5.12(a). Section 5.12(a) of the APA is hereby amended and restated in its entirety to read as follows:

“Seller shall, and shall cause its Subsidiaries to, continue to carry their respective insurance policies with respect to the Business prior to the Closing. From and after the Closing, the Business shall cease to be insured by Seller’s or its Affiliates’ insurance policies or by any of their self-insured programs. Seller or its Affiliates may, to be effective at the Closing, amend any insurance policies in the manner they deem appropriate to give effect to this Section 5.12(a). From and after the Closing, Buyer shall be responsible for securing all insurance it considers appropriate for its operation of the Business and for promptly providing evidence thereof, as may be required, to third parties under any Contract or Lease.”

Section 15.Amendment to Section 5.13(a). The first sentence of Section 5.13(a) of the APA is hereby amended and restated in its entirety to read as follows:

“From and after the Closing,(i) except to the extent that Buyer is seeking indemnification, in which case the provisions of ARTICLE IX shall govern, Buyer shall have exclusive authority and control over the investigation, prosecution, defense, and appeal of all Actions to the extent covering or relating to the Purchased Assets and the Assumed Liabilities, and, subject to Section 5.12(b), may settle or compromise, or consent to the entry of any judgment with respect to any such Action, and (ii) Seller shall have exclusive authority and control over the investigation, prosecution, defense, and

appeal of all Actions referred to in Section 2.05(k) and all other Actions to the extent covering or relating to the Excluded Assets and the Excluded Liabilities, and may settle or compromise, or consent to the entry of any judgment with respect to any such Action without the consent of Buyer; provided that, to the extent any Action retained by Seller relates to or arises out of, in whole or in part, the Business, Seller shall not settle or compromise, or consent to any judgment in respect of, such Action without Buyer’s consent (such consent not to be unreasonably withheld, conditioned, or delayed), unless in connection therewith Seller obtains a complete and unconditional general release by the third party asserting the claim against or relating to the Business and Buyer and its Affiliates affected by the claim, and such settlement or judgment does not contain any admission by, or sanction or restriction upon the conduct or operation of the Business or Buyer and its Affiliates (including any settlement or judgment that includes injunctive or other equitable relief (including involving or relating to a change in business practices)).”

Section 16.Amendment to Section 7.01(a). Section 7.01(a) is hereby amended and restated in its entirety to read as follows:

“Buyer shall (or shall cause its Subsidiaries to) make an offer of employment (an “Offer”) to each Business Employee, effective as of the day following the Closing Date and subject to such Business Employee remaining actively employed through the Closing Date. Such Offers shall be for a reasonably comparable position as compared to the position held as of the Closing Date and shall be on the terms set forth in this Section 7.01 and Section 7.02. For this purpose, a Business Employee will be considered “actively employed” if, as of the Closing Date, such employee is either actively at work or absent from work on account of paid time-off, vacation, sick leave or similar temporary absence, but will not be “actively employed” if such  individual is not actively at work due to any other reason. Prior to the Closing Date, Seller shall promptly provide Buyer with any information concerning the Business Employees that is reasonably requested by Buyer in order to make the Offers required under this Section 7.01, unless prohibited by applicable Law. Unless a written acceptance of an offer of employment is required by Law (including in connection with Section 7.02(g)), any Business Employee who (i) has received such an Offer, (ii) remains actively employed through the Closing Date, (iii) has not specifically declined such offer, and (iv) actually commences employment with Buyer or its applicable Subsidiary on the day following the Closing Date (or his or her first regularly-scheduled day of employment following the Closing Date or in the event of an un-scheduled absence from work, reasonably promptly thereafter) shall be deemed (A) to have accepted such offer and (B) to have terminated employment with Seller on the Closing Date. Until the Closing, Buyer shall keep Seller informed of any rejections of such Offers in a timely manner. Seller and its Subsidiaries acknowledge and agree that they shall neither enforce, nor treat the continued employment of any Transferred Employee by the Business following the Transfer Time as a violation of any non-competition, non-solicitation or confidentiality obligation owed by any Transferred Employee to Seller or any of its Subsidiaries; provided, however, that the foregoing shall not constitute a waiver of any of Seller’s rights under Section 5.17.”

Section 17.Amendment to Section 7.02(c). The first sentence of Section 7.02(c) is hereby amended and restated in its entirety to read as follows:

“As of 12:00 a.m. U.S. Eastern time on the day following the Closing Date, or, with respect to any Inactive Employee who becomes a Transferred Employee, the time of commencement of employment with Buyer or its Subsidiaries (the “Transfer Time”), each Transferred Employee participating in any Employee Plan that is a health and welfare benefit plan (each, a “Seller Welfare Plan”) shall cease to be eligible to participate in such Seller Welfare Plans and Buyer shall use commercially reasonable efforts to permit such Transferred Employee to immediately commence

participation in health and welfare benefit plans that shall be maintained, administered or contributed to, as applicable, as of the Transfer Time or as soon as reasonably practicable thereafter by Buyer and its Subsidiaries.”

Section 18.Amendment to Section 7.02(f). Section 7.02(f) of the APA is hereby amended and restated in its entirety to read as follows:

“(f) Buyer shall, or shall cause its Subsidiaries to, (i) provide severance benefits to any Transferred Employee, other than any employee set forth on Schedule 7.02(f)(ii) who is laid off or whose employment is otherwise involuntarily terminated by Buyer or its Subsidiaries without cause during the Severance Protection Period in an amount that is equal to or greater than the severance benefits (including severance payments and continued health coverage) as set forth on Schedule 7.02(f)(i) or (ii) solely with respect to the employees set forth on Schedule 7.02(f)(ii) (if they become Transferred Employees), unless such employees consent to receive severance provided under employment agreements that supersede the payment of severance pursuant to this paragraph and Seller is a beneficiary of releases under such employment agreements that are reasonably satisfactory to Seller (with Seller’s approval not to be unreasonably withheld), provide severance benefits equal to or greater than the severance payments set forth on Schedule 7.02(f)(ii) upon a termination without “Cause” or resignation for “Good Reason” as defined on Schedule 7.02(f)(ii) (provided that such definition of Good Reason shall not apply to or be triggered by any changes in the terms and conditions of any Transferred Employee’s employment effected in connection with Buyer’s hiring or employment of such Transferred Employee in connection with the transactions contemplated by this Agreement (including that such Transferred Employee will no longer be employed by a publicly-held company and will no longer have duties, budgetary or other authority and responsibilities with respect to multiple business segments or divisions) and that the transfer of the Transferred Employee’s employment in connection with the transactions contemplated by this Agreement shall not be treated as a termination without “Cause” for any purpose) during the Severance Protection Period; provided, further, that in no event shall Buyer or its Subsidiaries be obligated to provide any severance benefits in violation of applicable Law. For purposes of the foregoing, “Severance Protection Period” means (i) with respect to the employees set forth on Schedule 7.02(f)(ii), 12 months or 24 months (as indicated on Schedule 7.02(f)(ii)) following the Closing Date and (ii) with respect to all other Transferred Employees, the Relevant Period. Notwithstanding the foregoing, any severance benefits owed to Farm Employees shall be an Excluded Liability and Seller shall reimburse Buyer for any such severance benefits paid by Buyer to the Farm Employees.”

Section 19.Amendment to Section 7.08. Section 7.08 of the APA is hereby amended and restated in its entirety to read as follows:

“Section 7.08 401(k) Trust-to-Trust Transfer.

(a) Seller shall cause the active participation of the Transferred Employees in the Bob Evans Farms, Inc. and Affiliates 401(k) Retirement Plan (“Seller’s Savings Plan”) to cease as of the Closing Date (or, if later, the return to active employment described in Section 7.01(b) and (c) above). Effective no later than the Closing Date, Buyer shall establish a defined contribution plan intended to satisfy Section 401(k) of the Code (“Buyer’s Savings Plan”), pursuant to which the Transferred Employees shall be able to participate in accordance with Section 7.02(b).

(b) Except as set forth in this Section 7.08(b), Seller shall continue to administer the Seller’s Savings Plan for all participants, including the account balances of the Transferred Employees, in a manner that is consistent with past practice, subject to its terms and applicable Law. The Seller shall (i) effective not later than May 1, 2017, (A) cease offering the employer stock fund invested in the common stock of Seller (the “Stock Fund”) as an investment choice under Seller’s Savings Plan for

amounts not then-invested in the Stock Fund, (B) cause amounts then-invested in the Stock Fund to remain invested in the Stock Fund, unless reinvested at the direction of the participant, and (C) “map” each participant’s investment election with respect to future contributions in the Stock Fund of the Seller’s Savings Plan to the Vanguard Small Cap Index Fund of the Seller’s Savings Plan, and (ii) not later than August 31, 2017, “map” any accounts then-invested in the Stock Fund of the Seller’s Savings Plan to the Vanguard Small Cap Index Fund in the Seller’s Savings Plan.

(c) Seller and Buyer shall effectuate a trust-to-trust transfer of the Transferred Employees’ account balances under the Seller’s Savings Plans to the Buyer’s Savings Plan as set forth in this Section 7.08 (the “Savings Plan Transfer”). Not later than August 31, 2017, and, for the avoidance of doubt, after the occurrence of the transfer of any accounts invested in the Stock Fund to the Vanguard Small Cap Index Fund of the Seller’s Savings Plan, Seller shall cause the assets in the account of each Transferred Employee under the Seller’s Savings Plan to be transferred to the trust (the “Buyer’s Trust”) maintained under Buyer’s Savings Plan (the date of such transfer, the “Initial Transfer Date”), including for Inactive Employees with a Transfer Time prior to the Initial Transfer Date. Such transferred assets shall be transferred in-kind, with each Transferred Employee’s account in the Seller’s Savings Plan being mapped into the same investments under the Buyer’s Savings Plan and all assets shall be transferred in accordance with Section 414(l) of the Code. Notwithstanding the foregoing, the Seller and Buyer shall not effectuate a trust-to-trust transfer of the account balances of any Inactive Employee prior to the Inactive Employee’s Transfer Time, and following any such Inactive Employee’s Transfer Time occurring on or after the Initial Transfer Date, Seller shall transfer the account balances of such Inactive Employee using the same procedure and methodology described above, except that the assets shall be transferred to the Buyer’s Trust not later than 30 days following the Inactive Employee’s Transfer Time rather than by the Initial Transfer Date.

(d) Seller shall furnish Buyer with such information concerning the assets transferred from Seller’s Savings Plan as is reasonably requested by Buyer and shall reasonably cooperate with Buyer as necessary to effectuate the provisions of this Section 7.08.

(e) Buyer shall assume the Liability to distribute the assets received by Buyer’s Trust as a result of the Savings Plan Transfer, but only to the extent such Liability does not exceed the value of the assets received pursuant to the Savings Plan Transfer, and Seller shall retain any other Liability arising out of or relating to the Seller’s Savings Plan.”

Section 20.New Section 9.02(a)(vi). After Section 9.02(a)(v) of the APA, the following new Section 9.02(a)(vi) is inserted:

“(vi) Liability arising from or related to (A) the Stock Fund, (B) the Savings Plan Transfer, other than Liabilities expressly assumed under Section 7.08(e), (C) the Seller’s Savings Plan, or (D) the failure of Buyer’s Savings Plan to comply with its terms or applicable Law as a result of Buyer’s Savings Plan being a successor to the Seller’s Savings Plan, including any Liability arising as a direct result of required corrections under the IRS Employee Plans Compliance Resolution System, the Delinquent Filer Voluntary Compliance Program or the Voluntary Fiduciary Correction Program due to being a successor to the Seller’s Savings Plan.”

Section 21.Miscellaneous.

(a)Effect of Amendment. This Amendment shall modify and amend the APA to the extent, and only to the extent, expressly set forth herein (it being the intent of the parties that all of the terms and provisions of the APA that are not expressly amended, modified, waived or replaced hereunder shall be unaltered and shall remain in full force and effect and that the execution, delivery and performance of this Amendment shall not operate as a waiver of or consent to any past, present or future breach of any provision

of the APA). From and after the Amendment Effective Date, all references in the APA to “this Agreement,” “herein,” “hereunder,” and words of like import shall mean and refer to the APA as amended hereby.

(b)Governing Law; Forum; Jury Trial. This Amendment shall be exclusively governed by and construed in accordance with the Laws of the State of Delaware, without regard to the conflicts of Law rules of such state. The Parties expressly waive any right they may have, now or in the future, to demand or seek the application of a governing law other than the Law of the State of Delaware. The parties agree that all disputes under this Amendment shall be resolved in accordance with Section 11.06 of the APA and hereby waive their right to a jury in accordance with Section 11.07 of the APA, in each case as if both Sections were specifically set forth herein.

(c)Counterparts; Facsimile and Electronic Signatures. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute one and the same instrument. Fascimiles, e-mail transmission of .pdf signatures or other electronic copies of signatures shall be deemed to be originals.

(d)No Third Party Beneficiaries. No provision of this Amendment is intended to confer any rights, benefits, remedies or Liabilities hereunder upon any Person other than the Parties and their respective successors and permitted assigns. Without limiting the generality of the foregoing, nothing in this Amendment, express or implied, is intended to confer any rights, benefits, remedies, obligations or liabilities under this Amendment upon any Person (including any Transferred Employees) other than the Parties to this Amendment and their respective successors and assigns to continued employment or any severance or other benefits from Seller, Buyer or any of their respective Affiliates. Nothing contained in this Amendment shall be construed as an amendment to any Employee Plan or employee benefit plan or a limitation on the rights of Seller, Buyer or any of their respective Subsidiaries and Affiliates to amend, modify or terminate, either before or after Closing, any employee benefit plan, or is intended to confer upon any current or former employee any right to employment or continued employment for any period of time by reason of this Agreement, or any right to a particular term or condition of employment.

[Remainder of page intentionally blank]

[Signature Page to Amendment to Asset Purchase Agreement]

[Signature page to amendment of APA]

IN WITNESS HEREOF, the Parties have caused this Amendment to be duly executed as of the date first written above by their respective officers thereunto duly authorized.

BOB EVANS RESTAURANTS, LLC

By:

Name:

Title:

BOB EVANS FARMS, INC.

By:

Name:

Title:

EX-10.10

EXHIBIT 10.10

SEVERANCE AGREEMENT AND GENERAL RELEASE

This Severance Agreement and General Release (“Agreement”) is made between John J. Fisher (“Employee”) and BEF MANAGEMENT, INC., an Ohio corporation (“Bob Evans” or the “Company”).

WHEREAS, the parties acknowledge it is in their individual and mutual best interests to fully dispose of any and all claims between them arising out of Employee’s employment with and separation from the Company;

NOW, THEREFORE, in exchange for and in consideration of the following mutual covenants and promises, the undersigned parties, intending to be legally bound, hereby agree as follows:

1.Separation Date. Employee and Bob Evans acknowledge and agree that the Employee’s last day of employment with the Company is April 1, 2017 (“Separation Date”).

2.Consideration for Release. In consideration for Employee’s (i) release of any and all claims Employee may have against the Company, if any, and (ii) adherence to each of the terms and conditions of this Agreement and provided that Employee has executed this Agreement and has not later revoked the Agreement as provided herein, the Parties agree that subject to Section 7 herein, the Company shall pay Employee: (x) a lump sum gross payment of Five Hundred Twenty-Five Thousand Dollars and 00/100 cents ($525,000.00), representing a severance amount equivalent to eighteen (18) months of salary, and (y) a lump sum payment equal to Twelve Thousand, Seven Hundred Seventy Nine Dollars and 69/100 cents ($12,779.69), representing the Benefits Offset, in each case less appropriate deductions and tax withholding amounts. As used herein, the term “Benefits Offset” shall mean an amount equal to the difference between the premium cost for COBRA coverage for the Employee and the amount the Employee would have been charged by the Company for comparable insurance coverage for a period of fifty-two weeks and assuming Employee had remained employed by the Company (all as determined by the Company in the reasonable exercise of its discretion). Except as may be required under Paragraph 24, payment will be made within fifteen (15) business days after Bob Evans receives a signed and notarized original Agreement as more fully set forth in Paragraph 15.2 below.

3.Other Benefits, Plans and Agreements. All other benefits and remuneration of any kind, including bonus plans, life insurance and long term disability insurance, perquisites (i.e., company car and/or car and gas allowances), shall terminate effective on the Separation Date, except (i) medical and dental insurance coverage, including flexible spending account and employee assistance program access, if any, which will terminate on April 30, 2017; (ii) any vested rights Employee may have in any outstanding equity awards, Bob Evans’ 401(k) Retirement Plan, the Bob Evans Farms Third Amended and Restated Executive Deferral Program (“BEEDP”), and the Bob Evans Farms, Inc. and Affiliates Third Amended and Restated Supplemental Executive Retirement Plan (“SERP”) (all of which shall be governed and paid according to the terms of their respective plans and/or award agreement); (iii) indemnification rights, if any, under the Company’s Bylaws or separate agreement; and (iv) as otherwise provided for in this Agreement. Additionally, to the extent that on or prior to the Separation Date, the Company has granted the Employee restricted stock awards / restricted stock units or performance stock units, the Company shall cause one hundred percent (100%) of such unvested stock awards / stock units to be vested at the “target” threshold of performance (the “Stock Acceleration”) on the later to occur of the closing of: (X) the acquisition by

the Company (or its affiliates) of all of the equity interests of Pineland Farms Potato Company, and (Y) the sale by the Company of the Bob Evans Restaurants business to Golden Gate Capital, all as more fully provided in that certain 8-k filed by the Company with the SEC on January 24, 2017, providedfurtherthat Employee has executed this Agreement without later revoking the same. Employee acknowledges and agrees that the Company has paid Employee all wages, salary, benefits and other compensation (including any accrued but unpaid vacation pay) to which Employee is entitled and owed. Moreover, except as provided for in this Agreement, Employee shall not be entitled to receive any other compensation or benefits of any sort from the Company and its affiliates, or their respective officers, directors, employees, agents, insurance companies, attorneys, shareholders, or subsidiaries for, without limitation, salary, vacation, bonuses, stock, stock options, health care continuation coverage or any other compensation or benefits. Employee also understands and agrees that, by entering into this Agreement, any and all rights Employee had, has or may hereafter have, under any and all change in control agreements between Employee and the Company are hereby revoked, extinguished and released.

4.Confidential Information and Company Property.

4.1.    Without the written consent of the Company, Employee shall not use,

divulge, furnish, copy, disclose or make accessible (other than for the benefit of the Company and its affiliates) to any person or organization in any form or manner for use in any way any Confidential Information (as defined herein) of the Company or its affiliates.

4.2.    As used in this Agreement, “Confidential Information” means any and all

confidential or proprietary information of the Company and its affiliates, including without limitation: trade secrets (as defined by the laws of the State of Ohio); business plans; financial information; accounting data; employment or employee-related information; marketing plans and information; sales information (including sales records, plans and projections); pricing information; supplier and customer (current and prospective) information; product information (including new products, recipes, formulas and samples); information related to the siting of new or existing restaurants; information related to the design or construction of the Company’s restaurants or plants; manufacturing processes; hiring and recruitment information; all information relating to the Company’s goods and services; research and development information; legal information (including legal issues, cases and strategies) or other information, technology, data and materials, disclosed verbally or in writing by the Company and its affiliates to Employee. “Confidential Information” does not include information that is or becomes generally available to the public, other than through disclosure by Employee.

4.3.     Employee acknowledges that any information shall be presumed to be Confidential Information if the Company takes or has taken measures designed to prevent it, in the ordinary course of business, from being available to persons other than those selected by the Company to have access thereto for limited purposes.

4.4.    All information disclosed to Employee or to which Employee obtains or

has obtained access to during the period of Employee’s employment, which Employee has a reasonable basis to believe to be Confidential Information, shall be presumed to be Confidential Information.

4.5.    Immediately upon Employee’s separation from the Company, all records of Confidential Information, including, but not limited to, all notes, emails, memos, plans, records, letters, reports or other tangible materials, including copies thereof, in Employee’s possession, and including any and a

ll documents and copies thereof provided to Employee’s attorney, whether prepared by Employee or by others, shall be left with, or delivered by Separation Date to the Company. Further, immediately upon the Separation Date, Employee shall return to Company any and all property of Company in Employee’s possession, including, but not limited to, Employee’s company car, cellular phone, keys, equipment, all documents, emails, Confidential Information and computer files (howsoever evidenced and stored, and whether on Employee’s personal computer, PDA, phone or otherwise). Employee acknowledges and understands that the Company’s obligation to pay Employee the severance benefits identified in Paragraph 2 together with the Stock Acceleration is expressly conditioned upon Employee’s adherence to the terms of this Agreement, including the provisions of this Paragraph. Notwithstanding the foregoing, Employee may retain any and all documents relating to his/her compensation and benefits, including, but not limited to, documents relating to the health insurance plan, outstanding equity awards, the 401(k) Retirement Plan, the SERP, and the BEEDP.

4.6.    Employee agrees, unless compelled by legal process, not to discuss with any person or entity, including without limitation any current, future or former employees of the Company and its affiliates (collectively, “Company Employees”), any information concerning: any Confidential Information, including the business sensitive policies, personnel or business practices of the Company and/or any of its affiliates, and its or their past, present or future stockholders, officers, directors, parents, subsidiaries, divisions, successors, assigns, employees, managers, members, agents or representatives (collectively, “Related Parties”). If Employee is compelled to give testimony pursuant to legal process, Employee shall immediately notify the Company as soon as Employee becomes aware of such legal process pursuant to Paragraph 23. The above notwithstanding, nothing in this Agreement prohibits Employee from communicating directly with the U.S. Securities and Exchange Commission (the “SEC”), or any member of its staff, about any possible violation of federal securities law or making any disclosure protected under the whistleblower provisions of federal law or regulation. Employee does not need the approval of the Company prior to communicating directly with the SEC or its staff. Employee, however, further acknowledges that the Employee has no reason to believe that the Company is in violation of federal securities laws, nor does the Employee have any knowledge of any violation, possible violation or series of facts and circumstances on the part of / attributable to the Company which could give rise to a whistleblower claim under federal or state law or applicable regulations.

4.7.    Employee understands and agrees that, even after his/her employment with the Company ends, Employee is still bound by the provisions of the Company’s “Policy Statement Against Insider Trading,” which provides, in relevant part, that:

This Policy Statement continues to apply to your transactions in our securities even after your service with us ends. If you are aware of material nonpublic information when your service ends with us, you may not disclose such information or otherwise trade in our securities until that information has become public or is no longer material.

5.Cooperation. Employee agrees to cooperate fully with the Company in its defense of any lawsuit, investigation, proceeding or third party request for information filed/requested over matters that occurred during the tenure of Employee’s employment with the Company, and agrees to provide full and accurate information with respect to same. Employee further agrees not to provide any information to any outside parties concerning the Company and its Related Parties, unless compelled to do so by valid subpoena or other court order, and in such case only after first notifying

the Company in advance of such subpoena or court order pursuant to Paragraph 23 and permitting the Company a minimum of five (5) business days to respond or object.

6.Confidentiality. Employee agrees not to, at any time, talk about, write about or otherwise publicize or disclose to any third party the terms of this Agreement or any fact concerning its negotiation, execution or implementation, except with (i) an attorney, accountant, or other advisor engaged by Employee to advise him/her; (ii) the Internal Revenue Service or other governmental agency; and (iii) his/her immediate family, providing that all such persons agree in advance to keep said information confidential and not to disclose it to others. Nothing in this Paragraph shall be construed to prohibit Employee from disclosing to potential employers the existence of this Agreement and the general nature of its provisions.

7.New Employment / Severance Offset. Intentionally Omitted

8.Clawback. Intentionally Omitted.

9.Non-Competition. Employee covenants and agrees that for a period of one (1) year following Employee’s Separation Date, Employee shall not, directly or indirectly, as an employee, employer, consultant, agent, principal, partner, shareholder, officer, director, member, manager or through any other kind of ownership (other than ownership of securities of publicly held corporations of which Employee owns less than three percent (3%) of any class of outstanding securities), membership, affiliation, association, or any other representative or individual capacity, engage in or render, or agree to engage in or render, any services to any Competing Business. For purposes of this Agreement, “Competing Business” shall mean any business in North America that (i) is engaged in the family dining restaurant industry or any other sector of the restaurant industry in which the Company is actively engaged or has taken substantial steps towards being actively engaged as of the Separation Date; (ii) produces and distributes food products to the extent the Company is actively engaged in such business or has taken substantial steps towards being engaged in such business as of the Separation Date; or (iii) is engaged in a line of business that competes with any line of business that the Company or its affiliates entered into, or have taken substantial steps to enter into, during Employee’s employment with the Company.

10.Agreement Not to Solicit Employees. Employee agrees that during the one-year (1) period following his/her Separation Date, Employee shall not, either directly or indirectly, on Employee’s own behalf or in the service or on behalf of others, solicit or attempt to solicit any person then employed by the Company or any of its affiliates, to seek employment with Employee or with any employer for which Employee works or is otherwise affiliated; nor shall Employee solicit, induce, recruit or cause any person employed by the Company to terminate his/her employment with the Company for the purpose of joining, associating, or becoming employed with any other business or activity of Employee or any employer for which Employee is affiliated.

11.No Disparagement. Employee agrees that he/she shall not make or publish any statement (orally or in writing) that becomes or reasonably could be expected to become publicly known, which would libel, slander or disparage (whether or not such disparagement legally constitutes libel or slander) the Company or its Related Parties.

12.Release of Claims.

12.1.    In consideration of the receipt of the sums and covenants stated herein, Employee does hereby, on behalf of Employee, his/her heirs, administrators, executors, agents, and assigns, forever release, requite, and discharge the Company and its Related Parties, from any and all charges, claims, demands, judgments, actions, causes of action, damages, expenses, costs, attorneys’ fees, and liabilities of any kind whatsoever, whether known or unknown, vested or contingent, in law, equity or otherwise, which Employee has ever had or now has against said Company and its Related Parties for or on account of any matter, cause or thing whatsoever which has occurred prior to the date Employee signed this Agreement, including, without limiting the generality of the foregoing, any and all claims which are related to Employee’s employment with the Company and the termination thereof, and any and all rights which Employee has or may have under the Age Discrimination in Employment Act, as amended; the Older Worker Benefit Protection Act; the Fair Labor Standards Act; the Family and Medical Leave Act; Title VII of the Civil Rights Act of 1964, as amended by the Equal Employment Opportunity Act of 1972; the Civil Rights Act of 1991; the Employee Retirement Income Security Act, 29 U.S.C. §1001 et seq.; 42 U.S.C. §1981; the Americans With Disabilities Act; Ohio Revised Code Sections 4101.17 and 4112.02 etseq., as and to the extent any of the foregoing are amended or modified, and other federal and state statutes which regulate or pertain to employment; and the laws of contract, torts, and other subjects. Nothing contained herein shall be construed as a waiver or release of Employee’s vested rights in the Company’s 401(k) Retirement Plan, any outstanding equity awards, the SERP, the BEEDP, indemnification rights, or rights under this Agreement.

12.2.     It is hereto agreed that this Agreement constitutes, among other things and except to the extent that rights are retained as noted above, a full and complete release of any and all claims which Employee may have against the Company or its Related Parties, upon or by reason of any matter or thing whatsoever which has occurred prior to the signature date of this Agreement, including without limitation all age discrimination claims under the Age Discrimination in Employment Act, as amended, and it is the intention of the parties hereto that this Agreement is and shall be a complete and absolute defense to anything released hereunder. Employee expressly and knowingly waives his/her right to file any civil action, as a class member or individually, or to receive any monetary award arising therefrom related to any claims Employee may have against the Company or its Related Parties which are released hereunder, including without limitation any matters arising out of or relating to Employee’s employment with or separation from Bob Evans.

12.3.    Notwithstanding the foregoing provisions of Paragraph 12, Employee understands that Employee is not waiving any claims and rights that may arise after the date of this waiver. Employee further understands that this does not limit Employee’s right to file a charge with an agency or to participate in any agency’s investigation; however, Employee waives his/her right to recover any damages should any agency ever pursue a claim on Employee’s behalf. Employee further understands that this does not limit Employee’s right to seek a judicial determination of the validity of this waiver or to test the knowing and voluntary nature of this waiver.

13.No Acknowledgment of Liability. It is understood that this Agreement is, among other things, a compromise of disputed claims, and no party, by entering into this Agreement, acknowledges the validity of the other’s claims or defenses, and the above-mentioned payments and covenants are not, and should not be construed as, an admission or acknowledgment by the Company or its Related Parties of any liability whatsoever to Employee or any other person or entity.

14.Remedies for Breach by Employee. Employee agrees that it would be difficult to compensate the Company fully for damages for any violation of the provisions of this Agreement,

including without limitation the provisions of Paragraphs 4, 5, 6, 9, 10 and 11. Employee agrees that any breach of this Agreement by Employee would cause the Company and/or its Related Parties great and irreparable injury and damage, the actual amount of which cannot be reasonably or adequately compensated in damages in an action at law. Employee acknowledges that the Company shall, therefore, be entitled, in addition to any other remedies that it may have under this Agreement or at law, to receive injunctive and other equitable relief (including without limitation specific performance) to enforce any of the rights and privileges of the Company or any of the covenants or obligations of the Employee hereunder. In addition to any and all other remedies available to the Company, Employee agrees that the Company shall be entitled to recover from Employee liquidated damages in an amount no less than twenty-five percent (25%) of the severance and Stock Acceleration provided hereunder. Nothing contained herein, and no exercise by the Company of any right or remedy, shall be construed as a waiver by the Company of any other rights or remedies that the Company may have.

15.Employee’s Acknowledgments.

15.1.    Employee states and represents that he/she has carefully read this Agreement and knows the contents thereof, and that Employee has executed the same as his/her own free act and deed.

15.2    Employee acknowledges that he/she has been and is hereby advised in writing to consult with an attorney concerning this Agreement and that Employee had the opportunity to seek the advice of legal counsel in connection with the negotiation and execution of this Agreement. Employee further acknowledges that he/she has had the opportunity to ask questions about each and every provision of this Agreement and that Employee fully understands the effect of the provisions contained in this Agreement upon his/her legal rights. Employee acknowledges that he/she has been given twenty-one (21) days from the date of receipt of the Agreement to consider whether to sign the Agreement, and that Employee may revoke his/her signature at any time before expiration of seven (7) days after Employee signs the Agreement. To accept the terms of this Agreement, Employee must return a signed and notarized original Agreement to Debbie Wickline, Bob Evans Farms, 8111 Smith’s Mill Road, New Albany, OH 43054. To revoke his/her signature and the Agreement, Employee shall notify the Company pursuant to Paragraph 23 by no later than 5:00 p.m. EST on the seventh (7th) day after Employee signs the Agreement. This Agreement becomes effective upon the expiration of seven (7) days after Employee signs the Agreement provided Employee has not sooner revoked his/her signature.

15.3 Employee agrees that he/she has: (i) received all compensation due Employee as a result of services performed for the Company with the receipt of his/her final paycheck; (ii) reported to the Company any and all work-related injuries incurred by Employee during his/her employment by the Company; and (iii) been provided any leave of absence due on account of Employee’s or a family member’s health condition and has not been subjected to any improper treatment, conduct or actions due to a request for or taking such leave.

15.4    Employee agrees that he/she is solely liable for any and all income tax, other taxes, or assessments owed by Employee in connection with any payment made pursuant to this Agreement. Employee further warrants that he/she is not a Medicare beneficiary as of the date of this release and that, as a result, no conditional payments have been made by Medicare.

16.Successors and Assigns. Employee’s obligations and agreements under this Agreement shall be binding on the Employee’s heirs, executors, legal representatives and assigns and

shall inure to the benefit of any successors and assigns of the Company. The Company’s obligations and agreements under this Agreement shall be binding upon the Company’s affiliates, divisions, successors, and assigns and shall inure to the benefit of Employee’s heirs, executors, and assigns.

17.Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Ohio without giving effect to any choice of law or conflict of law rules or provisions. If any provision or provisions hereof shall at any time be found or declared invalid or unenforceable, such finding or declaration shall not impair the remaining provisions hereof, but the same shall remain valid and enforceable.

18.Entire Agreement; Amendment. This Agreement constitutes the entire agreement between the parties hereto in respect of the subject matter hereof and this Agreement supersedes all prior and contemporaneous agreements between the parties hereto in connection with the subject matter hereof, except as otherwise provided herein. No change, termination or attempted waiver of any of the provisions of this Agreement shall be binding on any party hereto unless in writing and signed by the party affected.

19.Waiver. The failure of any party hereto to enforce at any time any of the provisions of this Agreement shall in no way be construed to be a waiver of any such provision, nor in any way to affect the validity of this Agreement or any part thereof or the right of any party thereof to enforce each and every such provision. No waiver or any breach of this Agreement shall be held to be a waiver of any other or subsequent breach.

20.Interpretation. In this Agreement, (i) the word “including” means including without limiting the generality of any description preceding such term and (ii) references to any agreement or plan means such agreement or plan as amended and modified and in effect from time to time in accordance with the terms of such agreement or plan.

21.Withholding Taxes. The Company may withhold from all compensation payable pursuant hereto all sums required to be withheld under all federal, state and city laws, or governmental regulation or ruling, with respect to payment of compensation, benefits or perquisites.

22.Severability. To the extent any provision of this Agreement shall be invalid or unenforceable, it shall be considered deleted and the remainder of such provision and of this Agreement shall be unaffected and shall continue in full force and effect. In furtherance and not in limitation of the foregoing, should the duration or geographical extent of, or business activities covered by any provision of this Agreement be in excess of that which is valid and enforceable under applicable law, then such provision shall be construed to cover only that duration, extent or activities which may validly and enforceably be covered. Employee acknowledges the uncertainty of the law in this respect and expressly stipulates that this Agreement shall be given the construction that renders the provisions valid and enforceable to the maximum extent (not exceeding its express terms) possible under applicable law.

23.Notices. All notices or other communication required or permitted hereunder shall be in writing and shall be deemed given or delivered when delivered personally or four (4) days after being mailed by registered or certified mail, return receipt requested, or one (1) day after being sent by private overnight courier addressed as set forth below, or if sent by facsimile transmission, on the first business day after transmission provided that an original copy has been deposited in the U.S. mail:

If to the Company, to:

BEF Management, Inc.

8111 Smith’s Mill Road

New Albany, OH 43054

Attention: Jim Roberts, Vice President & Associate General Counsel

Fax: (614) 409-2261

Or to such other address as such party may indicate by a notice delivered to the other party hereto.

24.Code Section 409A. This Agreement shall be interpreted and construed to reflect the intent of the Company that this Agreement be classified as a short-term deferral arrangement exempt from the provisions of Code Section 409A. Nothing in this Agreement shall provide a basis for any person to take action against the Company based on matters covered by Code Section 409A, including the tax treatment of this Agreement, and the Company shall not under any circumstances have any liability to the Employee, or other person for any taxes, penalties or interest due on amounts paid or payable under this Agreement, including taxes, penalties or interest imposed under Code Section 409A. In accordance with Code Section 409A, to the extent that the total time period described in Paragraph 15.2 (both the consideration and revocation periods) begins in one calendar year and ends in a second calendar year, no payment under this Agreement shall be made, or begin to be made, until the second calendar year.

Employee acknowledges that he/she has carefully read and fully understands all the provisions of this Agreement, that Employee has been given twenty-one (21) days in which to consider this Agreement and will have seven (7) days to revoke acceptance after signing this Agreement. Employee is advised to consult with an attorney of Employee’s own choosing before signing this Agreement.

EMPLOYEE ALSO ACKNOWLEDGES THAT THE COMPANY FURNISHED TO HIM/HER, ALONG WITH THIS AGREEMENT, WRITTEN AND UNDERSTANDABLE INFORMATION DISCLOSING THE JOB TITLES AND AGES OF ALL INDIVIDUALS WHO ARE ELIGIBLE AND NOT ELIGIBLE FOR RECEIVING A SEVERANCE AGREEMENT AND RELEASE OFFER.

IN WITNESS WHEREOF, THE UNDERSIGNED, HAVING READ THIS SEVERANCE AGREEMENT AND GENERAL RELEASE AND UNDERSTANDING THE TERMS CONTAINED HEREIN, DOES KNOWINGLY, VOLUNTARILY, AND FREELY SIGN AS OF THE DATE SET FORTH BELOW.

John J. Fisher and the Company hereby enter into this Severance Agreement and General Release as indicated by their signatures below.

___________________________________

John J. Fisher

STATE OF OHIO:

: SS

COUNTY OF FRANKLIN :

The foregoing instrument was acknowledged before me this _____ day of _____________, 2017 by John J. Fisher.

_____________________________________

Notary Public

BEF MANAGEMENT, INC.

By: __________________________________

Its:

STATE OF OHIO:

: SS

COUNTY OF FRANKLIN :

The foregoing instrument was acknowledged before me this ____ day of _______________, 2017 by John Carothers, Vice President of BEF Management, Inc., on behalf of the Company.

_____________________________________

Notary Public

EX-10.11

EXHIBIT 10.11

SEVERANCE AGREEMENT AND GENERAL RELEASE

This Severance Agreement and General Release (“Agreement”) is made between Saed Mohseni (“Employee”) and BEF MANAGEMENT, INC., an Ohio corporation (“Bob Evans” or the “Company”).

WHEREAS, Employee and the Company are parties to that certain Employment Agreement dated November 14, 2015 (the “Employment Agreement”); and

WHEREAS, the parties acknowledge it is in their individual and mutual best interests to fully dispose of any and all claims between them arising out of Employee’s employment with and separation from the Company.

NOW, THEREFORE, in exchange for and in consideration of the following mutual covenants and promises, the undersigned parties, intending to be legally bound, hereby agree as follows:

1.Separation Date. Employee and Bob Evans acknowledge and agree that the Employee’s last day of employment with the Company is April 27, 2017 (“Separation Date”). The parties agree and acknowledge that the separation is not as a result of a disagreement between the Employee and the Company, or a disagreement between the Company and the Employee. Accordingly, Employee’s separation of employment shall be considered a “Termination Without Cause” under the Employment Agreement.

2.Consideration for Release. In consideration for Employee’s (i) release of any and all claims Employee may have against the Company, if any, and (ii) adherence to each of the terms and conditions of this Agreement and provided that Employee has executed this Agreement and has not later revoked the Agreement as provided herein, the Company shall pay Employee: (x) a gross payment of One Million Two Hundred Sixty Thousand Dollars and 00/100 cents ($1,260,000.00), representing a severance amount equivalent to twenty-four (24) months of salary discounted by ten percent of such salary (10%), and (y) a lump sum payment equal to Forty-NineThousand, Three Hundred Eighteen Dollars and 25/100 cents ($49,318.25), representing the Benefits Payment, in each case less appropriate deductions and tax withholding amounts. As used herein, the term “Benefits Payment” shall mean the payment in full satisfaction of the Company’s benefit payment obligation as set forth in Section 13.d(vi) and (vii) of the Employment Agreement. The Severance Amount shall be paid in equal monthly installments over the twenty-four (24) months following the Separation Date (the “Severance Period”); provided, however, that if the Company determines that any portion of the Severance Amount satisfies an exemption from Code Section 409A (as defined herein), then (i) the portion of the severance amount that the Company determines satisfies an exemption from Code Section 409A (the “Exempt Severance Portion”) shall be paid to Employee in a lump sum on the thirtieth (30th) business day after the Separation Date, and (ii) the portion of the severance amount that the Company determines is subject to, but does not satisfy an exemption from, Code Section 409A shall be paid to Employee in equal monthly installments over the Severance Period, subject to the Delay Period (as defined in Paragraph 24 of this Agreement). The Benefits Payment shall be paid in a lump sum payment on the thirtieth (30th) business day after the Separation Date.

3.Other Benefits, Plans and Agreements. All other benefits and remuneration of any kind, including bonus plans, life insurance and long term disability insurance, perquisites (i.e., company car and/or car and gas allowances), shall terminate effective on the Separation Date, except (i) medical and dental insurance coverage, including flexible spending account and employee assistance program access, if any, which will terminate on April 30, 2017; (ii) any vested rights Employee may have in any outstanding equity awards, Bob Evans’ 401(k) Retirement Plan, the Bob Evans Farms Third Amended and Restated Executive Deferral Program (“BEEDP”), and the Bob Evans Farms, Inc. and Affiliates Third Amended and Restated Supplemental Executive Retirement Plan (“SERP”) (all of which shall be governed and paid according to the terms of their respective plans and/or award agreement); (iii) indemnification rights, if any, under the Company’s Bylaws or separate agreement; and (iv) as otherwise provided for in this Agreement.

Additionally, (I) to the extent that on or prior to the Separation Date, the Company has granted the Employee restricted stock awards / restricted stock units or performance stock units, the Company shall cause one hundred percent (100%) of such unvested stock awards / stock units to be vested at the “target” threshold of performance (the “Stock Acceleration”) on the later to occur of: (X) April 28, 2017 and (Y) the sale by the Company of the Bob Evans Restaurants business to Golden Gate Capital, all as more fully provided in that certain 8-k filed by the Company with the SEC on January 24, 2017, and (II) the Company shall pay Employee his Bonus for Fiscal Year 2017 based on the actual achievement of the applicable performance goals for such fiscal year (as determined by the Company’s Compensation Committee in the reasonable exercise of its discretion, and paid at the same time payments are made thereunder to other participants, unless delayed by the operation of this Agreement); provided in each case that Employee has executed this Agreement without later revoking the same. Employee acknowledges and agrees that the Company has paid Employee all wages, salary, benefits and other compensation (including any accrued but unpaid vacation pay) to which Employee is entitled and owed. Moreover, except as provided for in this Agreement, Employee shall not be entitled to receive any other compensation or benefits of any sort from the Company and its affiliates, or their respective officers, directors, employees, agents, insurance companies, attorneys, shareholders, or subsidiaries for, without limitation, salary, vacation, bonuses, stock, stock options, health care continuation coverage or any other compensation, benefits or rights under the Employment Agreement. Employee also understands and agrees that, by entering into this Agreement, any and all rights Employee had, has or may hereafter have, under any and all change in control agreements between Employee and the Company are hereby revoked, extinguished and released.

4.Confidential Information and Company Property.

4.1.Without the written consent of the Company, Employee shall not use,

divulge, furnish, copy, disclose or make accessible (other than for the benefit of the Company and its affiliates) to any person or organization in any form or manner for use in any way any Confidential Information (as defined herein) of the Company or its affiliates.

4.2.As used in this Agreement, “Confidential Information” means any and all

confidential or proprietary information of the Company and its affiliates, including without limitation: trade secrets (as defined by the laws of the State of Ohio); business plans; financial information; accounting data; employment or employee-related information; marketing plans and information; sales information (including sales records, plans and projections); pricing information; supplier and customer (current and prospective) information; product information (including new products, recipes, formulas and samples); information related to the siting of new or existing restaurants; information related to the design or construction of the Company’s restaurants or plants; manufacturing processes; hiring and recruitment information; all information relating to the Company’s goods and services; research and development information; legal information (including legal issues, cases and strategies) or other information, technology, data and materials, disclosed verbally or in writing by the Company and its affiliates to Employee. “Confidential Information” does not include information that is or becomes generally available to the public, other than through disclosure by Employee.

4.3. Employee acknowledges that any information shall be presumed to be Confidential Information if the Company takes or has taken measures designed to prevent it, in the ordinary course of business, from being available to persons other than those selected by the Company to have access thereto for limited purposes.

4.4. All information disclosed to Employee or to which Employee obtains or

has obtained access to during the period of Employee’s employment, which Employee has a reasonable basis to believe to be Confidential Information, shall be presumed to be Confidential Information.

4.5.    Immediately upon Employee’s separation from the Company, all records of Confidential Information, including, but not limited to, all notes, emails, memos, plans, records, letters, reports or other tangible materials, including copies thereof, in Employee’s possession, and including any and all documents and copies thereof provided to Employee’s attorney, whether prepared by Employee or by others, shall be left with, or delivered by Separation Date to the Company. Further, immediately upon the Separation Date, Employee shall return to Company any and all property of Company in Employee’s possession, including, but not limited to, Employee’s company car, cellular phone, keys, equipment, all documents, emails, Confidential Information and computer files (howsoever

evidenced and stored, and whether on Employee’s personal computer, PDA, phone or otherwise). Employee acknowledges and understands that the Company’s obligation to pay Employee the severance benefits identified in Paragraph 2 together with the Stock Acceleration is expressly conditioned upon Employee’s adherence to the terms of this Agreement, including the provisions of this Paragraph. Notwithstanding the foregoing, Employee may retain any and all documents relating to his/her compensation and benefits, including, but not limited to, documents relating to the health insurance plan, outstanding equity awards, the 401(k) Retirement Plan, the SERP, and the BEEDP.

4.6.    Employee agrees, unless compelled by legal process, not to discuss with any person or entity, including without limitation any current, future or former employees of the Company and its affiliates (collectively, “Company Employees”), any information concerning: any Confidential Information, including the business sensitive policies, personnel or business practices of the Company and/or any of its affiliates, and its or their past, present or future stockholders, officers, directors, parents, subsidiaries, divisions, successors, assigns, employees, managers, members, agents or representatives (collectively, “Related Parties”). If Employee is compelled to give testimony pursuant to legal process, Employee shall immediately notify the Company as soon as Employee becomes aware of such legal process pursuant to Paragraph 23. The above notwithstanding, nothing in this Agreement prohibits Employee from communicating directly with the U.S. Securities and Exchange Commission (the “SEC”), or any member of its staff, about any possible violation of federal securities law or making any disclosure protected under the whistleblower provisions of federal law or regulation. Employee does not need the approval of the Company prior to communicating directly with the SEC or its staff. Employee, however, further acknowledges that the Employee has no reason to believe that the Company is in violation of federal securities laws, nor does the Employee have any knowledge of any violation, possible violation or series of facts and circumstances on the part of / attributable to the Company which could give rise to a whistleblower claim under federal or state law or applicable regulations.

4.7.    Employee understands and agrees that, even after his/her employment with the Company ends, Employee is still bound by the provisions of the Company’s “Policy Statement Against Insider Trading,” which provides, in relevant part, that:

This Policy Statement continues to apply to your transactions in our securities even after your service with us ends. If you are aware of material nonpublic information when your service ends with us, you may not disclose such information or otherwise trade in our securities until that information has become public or is no longer material.

5.Cooperation. Employee agrees to cooperate fully with the Company in its defense of any lawsuit, investigation, proceeding or third party request for information filed/requested over matters that occurred during the tenure of Employee’s employment with the Company, and agrees to provide full and accurate information with respect to same. Employee further agrees not to provide any information to any outside parties concerning the Company and its Related Parties, unless compelled to do so by valid subpoena or other court order, and in such case only after first notifying the Company in advance of such subpoena or court order pursuant to Paragraph 23 and permitting the Company a minimum of five (5) business days to respond or object.

6.Confidentiality. Employee agrees not to, at any time, talk about, write about or otherwise publicize or disclose to any third party the terms of this Agreement or any fact concerning its negotiation, execution or implementation, except with (i) an attorney, accountant, or other advisor engaged by Employee to advise him/her; (ii) the Internal Revenue Service or other governmental agency; and (iii) his/her immediate family, providing that all such persons agree in advance to keep said information confidential and not to disclose it to others. Nothing in this Paragraph shall be construed to prohibit Employee from disclosing to potential employers the existence of this Agreement and the general nature of its provisions.

7.New Employment / Severance Offset. Intentionally Omitted

8.Recoupment. Employee acknowledges that he remains subject to the Bob Evans Farms, Inc. Executive Recoupment Policy, as the same is in effect on the date hereof.

9.Non-Competition. Employee acknowledges that he remains subject to the Non-Competition provisions of Section 9 of the Employment Agreement, which provisions are incorporated herein by reference as if fully restated herein.

10.Agreement Not to Solicit Employees. Employee acknowledges that he remains subject to the Non-Solicitation provisions of Section 10 of the Employment Agreement, which provisions are incorporated herein by reference as if fully restated herein.

11.No Disparagement. Employee agrees that he/she shall not make or publish any statement (orally or in writing) that becomes or reasonably could be expected to become publicly known, which would libel, slander or disparage (whether or not such disparagement legally constitutes libel or slander) the Company or its Related Parties. Company agrees that he/she shall not make or publish any statement (orally or in writing) that becomes or reasonably could be expected to become publicly known, which would libel, slander or disparage (whether or not such disparagement legally constitutes libel or slander) the Employee.

12.Release of Claims.

12.1.In consideration of the receipt of the sums and covenants stated herein, Employee does hereby, on behalf of Employee, his/her heirs, administrators, executors, agents, and assigns, forever release, requite, and discharge the Company and its Related Parties, from any and all charges, claims, demands, judgments, actions, causes of action, damages, expenses, costs, attorneys’ fees, and liabilities of any kind whatsoever, whether known or unknown, vested or contingent, in law, equity or otherwise, which Employee has ever had or now has against said Company and its Related Parties for or on account of any matter, cause or thing whatsoever which has occurred prior to the date Employee signed this Agreement, including, without limiting the generality of the foregoing, any and all claims which are related to Employee’s employment with the Company and the termination thereof, and any and all rights which Employee has or may have under the Age Discrimination in Employment Act, as amended; the Older Worker Benefit Protection Act; the Fair Labor Standards Act; the Family and Medical Leave Act; Title VII of the Civil Rights Act of 1964, as amended by the Equal Employment Opportunity Act of 1972; the Civil Rights Act of 1991; the Employee Retirement Income Security Act, 29 U.S.C. §1001 et seq.; 42 U.S.C. §1981; the Americans With Disabilities Act; Ohio Revised Code Sections 4101.17 and 4112.02 etseq., as and to the extent any of the foregoing are amended or modified, and other federal and state statutes which regulate or pertain to employment; and the laws of contract, torts, and other subjects. Nothing contained herein shall be construed as a waiver or release of Employee’s vested rights in the Company’s 401(k) Retirement Plan, any outstanding equity awards, the SERP, the BEEDP, indemnification rights, or rights under this Agreement.

12.2. It is hereto agreed that this Agreement constitutes, among other things and except to the extent that rights are retained as noted above, a full and complete release of any and all claims which Employee may have against the Company or its Related Parties, upon or by reason of any matter or thing whatsoever which has occurred prior to the signature date of this Agreement, including without limitation all age discrimination claims under the Age Discrimination in Employment Act, as amended, and it is the intention of the parties hereto that this Agreement is and shall be a complete and absolute defense to anything released hereunder. Employee expressly and knowingly waives his/her right to file any civil action, as a class member or individually, or to receive any monetary award arising therefrom related to any claims Employee may have against the Company or its Related Parties which are released hereunder, including without limitation any matters arising out of or relating to Employee’s employment with or separation from Bob Evans.

12.3.Notwithstanding the foregoing provisions of Paragraph 12, Employee understands that Employee is not waiving any claims and rights that may arise after the date of this waiver. Employee further understands that this does not limit Employee’s right to file a charge with an agency or to participate in any agency’s investigation; however, Employee waives his/her right to recover any damages should any agency ever pursue a claim on Employee’s behalf. Employee further understands that this does not limit Employee’s right to seek a judicial determination of the validity of this waiver or to test the knowing and voluntary nature of this waiver.

13.No Acknowledgment of Liability. It is understood that this Agreement is, among other things, a compromise of disputed claims, and no party, by entering into this Agreement, acknowledges the validity of the other’s claims or defenses, and the above-mentioned payments and covenants are not, and should not be construed as, an admission or acknowledgment by the Company or its Related Parties of any liability whatsoever to Employee or any other person or entity.

14.Remedies for Breach by Employee. Employee agrees that it would be difficult to compensate the Company fully for damages for any violation of the provisions of this Agreement, including without limitation the provisions of Paragraphs 4, 5, 6, 9, 10 and 11. Employee agrees that any breach of this Agreement by Employee would cause the Company and/or its Related Parties great and irreparable injury and damage, the actual amount of which cannot be reasonably or adequately compensated in damages in an action at law. Employee acknowledges that the Company shall, therefore, be entitled, in addition to any other remedies that it may have under this Agreement or at law, to receive injunctive and other equitable relief (including without limitation specific performance) to enforce any of the rights and privileges of the Company or any of the covenants or obligations of the Employee hereunder. In addition to any and all other remedies available to the Company, Employee agrees that the Company shall be entitled to recover from Employee liquidated damages in an amount no less than twenty-five percent (25%) of the severance and Stock Acceleration provided hereunder. Nothing contained herein, and no exercise by the Company of any right or remedy, shall be construed as a waiver by the Company of any other rights or remedies that the Company may have.

15.Employee’s Acknowledgments.

15.1.Employee states and represents that he/she has carefully read this Agreement and knows the contents thereof, and that Employee has executed the same as his/her own free act and deed.

15.2Employee acknowledges that he/she has been and is hereby advised in writing to consult with an attorney concerning this Agreement and that Employee had the opportunity to seek the advice of legal counsel in connection with the negotiation and execution of this Agreement. Employee further acknowledges that he/she has had the opportunity to ask questions about each and every provision of this Agreement and that Employee fully understands the effect of the provisions contained in this Agreement upon his/her legal rights. Employee acknowledges that he/she has been given twenty-one (21) days from the date of receipt of the Agreement to consider whether to sign the Agreement, and that Employee may revoke his/her signature at any time before expiration of seven (7) days after Employee signs the Agreement. To accept the terms of this Agreement, Employee must return a signed and notarized original Agreement to Debbie Wickline, Bob Evans Farms, 8111 Smith’s Mill Road, New Albany, OH 43054. To revoke his/her signature and the Agreement, Employee shall notify the Company pursuant to Paragraph 23 by no later than 5:00 p.m. EST on the seventh (7th) day after Employee signs the Agreement. This Agreement becomes effective upon the expiration of seven (7) days after Employee signs the Agreement provided Employee has not sooner revoked his/her signature.

15.3 Employee agrees that he/she has: (i) received all compensation due Employee as a result of services performed for the Company with the receipt of his/her final paycheck; (ii) reported to the Company any and all work-related injuries incurred by Employee during his/her employment by the Company; and (iii) been provided any leave of absence due on account of Employee’s or a family member’s health condition and has not been subjected to any improper treatment, conduct or actions due to a request for or taking such leave.

15.4Employee agrees that he/she is solely liable for any and all income tax, other taxes, or assessments owed by Employee in connection with any payment made pursuant to this Agreement. Employee further warrants that he/she is not a Medicare beneficiary as of the date of this release and that, as a result, no conditional payments have been made by Medicare.

16.Successors and Assigns. Employee’s obligations and agreements under this Agreement shall be binding on the Employee’s heirs, executors, legal representatives and assigns and shall inure to the benefit of any successors and assigns of the Company. The Company’s obligations and agreements under this

Agreement shall be binding upon the Company’s affiliates, divisions, successors, and assigns and shall inure to the benefit of Employee’s heirs, executors, and assigns.

17.Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Ohio without giving effect to any choice of law or conflict of law rules or provisions. If any provision or provisions hereof shall at any time be found or declared invalid or unenforceable, such finding or declaration shall not impair the remaining provisions hereof, but the same shall remain valid and enforceable.

18.Entire Agreement; Amendment. This Agreement constitutes the entire agreement between the parties hereto in respect of the subject matter hereof and this Agreement supersedes all prior and contemporaneous agreements between the parties hereto in connection with the subject matter hereof, except as otherwise provided herein. No change, termination or attempted waiver of any of the provisions of this Agreement shall be binding on any party hereto unless in writing and signed by the party affected.

19.Waiver. The failure of any party hereto to enforce at any time any of the provisions of this Agreement shall in no way be construed to be a waiver of any such provision, nor in any way to affect the validity of this Agreement or any part thereof or the right of any party thereof to enforce each and every such provision. No waiver or any breach of this Agreement shall be held to be a waiver of any other or subsequent breach.

20.Interpretation. In this Agreement, (i) the word “including” means including without limiting the generality of any description preceding such term and (ii) references to any agreement or plan means such agreement or plan as amended and modified and in effect from time to time in accordance with the terms of such agreement or plan.

21.Withholding Taxes. The Company may withhold from all compensation payable pursuant hereto all sums required to be withheld under all federal, state and city laws, or governmental regulation or ruling, with respect to payment of compensation, benefits or perquisites.

22.Severability. To the extent any provision of this Agreement shall be invalid or unenforceable, it shall be considered deleted and the remainder of such provision and of this Agreement shall be unaffected and shall continue in full force and effect. In furtherance and not in limitation of the foregoing, should the duration or geographical extent of, or business activities covered by any provision of this Agreement be in excess of that which is valid and enforceable under applicable law, then such provision shall be construed to cover only that duration, extent or activities which may validly and enforceably be covered. Employee acknowledges the uncertainty of the law in this respect and expressly stipulates that this Agreement shall be given the construction that renders the provisions valid and enforceable to the maximum extent (not exceeding its express terms) possible under applicable law.

23.Notices. All notices or other communication required or permitted hereunder shall be in writing and shall be deemed given or delivered when delivered personally or four (4) days after being mailed by registered or certified mail, return receipt requested, or one (1) day after being sent by private overnight courier addressed as set forth below, or if sent by facsimile transmission, on the first business day after transmission provided that an original copy has been deposited in the U.S. mail:

If to the Company, to:

BEF Management, Inc.

8111 Smith’s Mill Road

New Albany, OH 43054

Attention: Colin M. Daly

Email: colin.daly@bobevansfoods.com

Or to such other address as such party may indicate by a notice delivered to the other party hereto.

24.Code Section 409A / 280G.

24.1 This Agreement shall be interpreted, construed and payments made to reflect the intent of the Company that this Agreement comply with or be exempt from the provisions of Section 409A of the Code and the regulations and guidance promulgated thereunder (collectively, “Code Section 409A”) and the Company shall have complete discretion to interpret and construe this Agreement and any associated documents in any manner that establishes an exemption from (or compliance with) the requirements of Code Section 409A. If for any reason, such as imprecision in drafting any provision of this Agreement (or of any award of compensation, including, without limitation, equity compensation or benefits) does not accurately reflect its intended establishment of an exemption from (or compliance with) Code Section 409A, as demonstrated by consistent interpretations or other evidence of intent, such provision shall be considered ambiguous as to its exemption from (or compliance with) Code Section 409A and shall be interpreted by the Company in a manner consistent with such intent, as determined in the discretion of the Company

24.2 A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits that are considered nonqualified deferred compensation under Code Section 409A upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A, and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “such a separation from service.” The determination of whether and when a separation from service has occurred for proposes of this Agreement shall be made in accordance with the presumptions set forth in Section 1.409A-1(h) of the Treasury Regulations.

24.3 Notwithstanding any provision of this Agreement to the contrary, if any payment or benefit that Employee becomes entitled to under this Agreement in connection with Employee’s separation from service is determined to constitute “nonqualified deferred compensation” within the meaning of Code Section 409A and Employee is determined to be a “specified employee” within the meaning of Code Section 409A, then such payment or benefit shall not be paid or provided until the date which is the earlier of (i) six (6) months and one day after such separation from service or (ii) the date of Employee’s death (the “Delay Period”). Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this Section 24.3 (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or provided to Employee in a lump-sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

24.4 For purposes of Code Section 409A, Employee’s right to receive any installment payments shall be treated as a right to receive a series of separate and distinct payments. In no event may Employee, directly or indirectly, designate the calendar year of any payment to be made under this Agreement, to the extent such payment is subject to Code Section 409A.

24.5 Nothing in this Agreement shall provide a basis for any person to take action against the Company based on matters covered by Code Section 409A, including the tax treatment of this Agreement, and the Company shall not under any circumstances have any liability to Employee, or other person for any taxes, penalties or interest due on amounts paid or payable under this Agreement, including taxes, penalties or interest imposed under Code Section 409AAdditionally, the provisions of Section 18.j of the Employment Agreement are fully incorporated herein as if fully restated herein.

Employee acknowledges that he/she has carefully read and fully understands all the provisions of this Agreement, that Employee has been given twenty-one (21) days in which to consider this Agreement and will have seven (7) days to revoke acceptance after signing this Agreement. Employee is advised to consult with an attorney of Employee’s own choosing before signing this Agreement. Notwithstanding any provision of this Agreement to the contrary, if this Agreement has not been executed and delivered and become irrevocable on or before the thirtieth (30^th) business day after the Separation Date, no amounts or benefits under this Section 2 shall be or become payable.

IN WITNESS WHEREOF, THE UNDERSIGNED, HAVING READ THIS SEVERANCE AGREEMENT AND GENERAL RELEASE AND UNDERSTANDING THE TERMS CONTAINED HEREIN, DOES KNOWINGLY, VOLUNTARILY, AND FREELY SIGN AS OF THE DATE SET FORTH BELOW.

(Remainder of Page Intentionally Blank)

Saed Mohseni and the Company hereby enter into this Severance Agreement and General Release as indicated by their signatures below.

___________________________________

Saed Mohseni

STATE OF OHIO:

: SS

COUNTY OF FRANKLIN :

The foregoing instrument was acknowledged before me this _____ day of _____________, 2017 by Saed Mohseni.

_____________________________________

Notary Public

BEF MANAGEMENT, INC.

By: __________________________________

Its:

STATE OF OHIO:

: SS

COUNTY OF FRANKLIN :

The foregoing instrument was acknowledged before me this ____ day of _______________, 2017 by Doug Benham, Executive Chair of BEF Management, Inc., on behalf of the Company.

_____________________________________

Notary Public

EX-10.12

EXHIBIT 10.12

EMPLOYMENT AGREEMENT

This Employment Agreement (“Agreement”) is entered into as of April 29, 2017 by and between Bob Evans Farms, Inc., a Delaware corporation (the “Company”), and J. Michael Townsley (the “Executive”).

WHEREAS, the Company desires to retain the Executive to serve as the Company’s President and Chief Executive Officer and the Executive desires to serve and be so employed by the Company; and

WHEREAS, the Company and the Executive wish to establish the terms of the Executive’s employment with the Company, the financial obligations of the Company to the Executive and to specify certain rights, responsibilities and duties of the Executive.

NOW, THEREFORE, in consideration of the premises and the mutual terms and conditions hereof, and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Employment. Subject to the terms and conditions of this Agreement, the Company hereby employs the Executive as the Company’s President and Chief Executive Officer upon the terms and conditions hereinafter set forth. The Board of Directors of the Company (the “Board”) agrees to appoint the Executive as a member of the Board promptly following the Effective Date and to continue to nominate the Executive for election as a member of the Board and to recommend that the Company’s stockholders elect the Executive as a member of the Board for and during the Term.

2. Duties; Exclusive Services. During the Term and subject to the terms and conditions of this Agreement, the Executive shall (a) serve as, and have the title of, the Company’s President and Chief Executive Officer, (b) report to the Board and perform such duties and responsibilities as may be prescribed from time to time by the Board, which shall be generally consistent with the duties and responsibilities of similarly situated executives of companies in similar lines of business, (c) if elected, serve as a member of the Board and as an officer and/or director of any direct or indirect subsidiary of the Company, (d) perform and discharge faithfully, diligently and to the best of his ability such duties and responsibilities and devote his full time and efforts to the business and affairs of the Company, (e) comply with and abide by all terms and conditions set forth in this Agreement, all applicable work policies, procedures and rules as may be issued from time to time by the Company and all federal, state and local statutes, regulatory and public ordinances governing the performance of his duties hereunder, and (f) in addition to the obligations described in Section 9, not engage in any other business activity, whether or not for gain, profit or other pecuniary advantage, that in the reasonable judgment of the Board could interfere with the performance of Executive’s obligations under this Agreement. Notwithstanding the foregoing, it shall not be a violation of this Agreement for Executive to (A) devote reasonable periods of time to charitable and community activities and industry or professional activities (including, without limitation, serving on the board of directors of not-for-profit entities) or (B) manage personal business interests and investments, so long as such activities in (A) and (B) do not interfere with the performance of Executive’s obligations under this Agreement. Except as set forth in the foregoing sentence, Executive may not, without the prior approval of the Board (or applicable committee thereof), serve on the board of directors (or other governing body) of any other for-profit corporation or entity.

3. Term. Subject to earlier termination as hereinafter provided, this Agreement shall commence on April 29, 2017 (the “Effective Date”) and shall continue through the fifth (5^th) anniversary of the Effective Date (the “Initial Term”) and shall automatically renew for successive one-year periods (each, a “Renewal

Term”) upon all terms, conditions and obligations set forth herein unless either party shall provide written notice to the other not less than ninety (90) days prior to the expiration of the Initial Term or any Renewal Term. For purposes hereof, the Initial Term, together with any Renewal Term, are hereinafter referred to as the “Term.” In the event for any reason the Executive does not commence employment on or before the Effective Date, this Agreement shall be deemed void and of no force or effect.

4. Compensation.

a. Subject to the terms and conditions of this Agreement, during the Term and as compensation for his services rendered under this Agreement, the Executive shall be entitled to receive the following:

i. Base Salary. The Executive’s initial annual base salary is Five Hundred Thousand Dollars ($500,000). Such amount may be increased from time to time in the sole discretion of the Compensation Committee of the Board (such amount, as may be so increased, is hereafter referred to as the “Base Salary”), and shall be payable in 26 equal bi-weekly installments or, if different, the Company’s regular payroll schedule, prorated for any partial employment month.

ii. Annual Cash Bonus. The Executive shall be eligible for an annual cash bonus opportunity (“Bonus”) as may be determined and authorized in the sole discretion of the Compensation Committee based upon performance goals that the Compensation Committee establishes in good faith. Some or all of the Bonus may, in the sole discretion of the Compensation Committee, be subject to performance goals designed to comply with the performance-based compensation exception under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), or any successor rule or regulation. The Executive’s target Bonus opportunity shall be determined by the Compensation Committee in its sole discretion on an annual basis, except that the Executive’s target Bonus opportunity for any given year during the Term will not be less than 65% of his Base Salary.

iii. Long Term Incentive Plan. As may be determined and authorized from time to time in the sole discretion of the Compensation Committee, and subject to the terms and conditions of any equity compensation plans and award agreements governing the grant of equity awards, the Executive shall be eligible to participate annually during the Term in the Company’s Long Term Incentive Plan or successor program (including, without limitation, the Bob Evans Farms, Inc. Amended and Restated 2010 Equity and Cash Incentive Plan, collectively, the “LTIP”), with a targeted equity award based upon a percentage of the Executive’s Base Salary, but set initially at 80%. Any equity grants made pursuant to the LTIP shall be dependent upon the achievement of performance goals, and the vesting and other terms and conditions of such equity grants shall be determined by the Compensation Committee in its sole discretion.

b.Recoupment Policy. Notwithstanding any other provision of this Agreement to the contrary, the Executive is subject to the Bob Evans Farms, Inc. Executive Compensation Recoupment Policy, as amended from time to time (the “Recoupment Policy”). In the event of any conflict between this Agreement and the terms of the Recoupment Policy, the terms of the Recoupment Policy shall control.

5. Benefits. In addition to the compensation to be paid to the Executive pursuant to Section 4 hereof, the Executive shall be entitled to receive the following benefits, subject to the Company continuing to sponsor and maintain such benefits for its senior executive officers and subject to any modification or amendment to the plans or policies governing such benefits:

a. Participation in Employee Plans. In addition to the plans described in this Agreement, the Executive shall be entitled to participate in any health, disability, or group life insurance plan; any pension, retirement, or profit sharing plan; and any other perquisites and fringe benefits, in which the Executive is

eligible to participate and which may be generally made available from time to time to the Company’s senior executive officers, in accordance with the terms of such plans or arrangements.

b. Paid Time Off. The Executive shall be entitled to twenty-six (26) days of paid time off with full salary and benefits each fiscal year. Under current policy (which may be changed at the discretion of the Company), no cash or other payment will be due, however, for unused paid time off and paid time off may not be carried over from any fiscal year to the next.

6. Reimbursement of Expenses. Subject to such rules and procedures as from time to time are specified by the Company and in accordance with the Company’s expense reimbursement policy (which may be changed at the discretion of the Company), the Company shall reimburse the Executive for reasonable business expenses necessarily incurred in the performance of his duties under this Agreement. To the extent that any expenses, reimbursement, fringe benefit or other, similar plan or arrangement in which Executive participates during the Term (including any reimbursements under this Section 6) or thereafter provides for a “deferral of compensation” within the meaning of Code Section 409A, then such amount shall be reimbursed in accordance with Treasury Regulation section 1.409A-3(i)(1)(iv), including (i) the amount eligible for reimbursement or payment under such plan or arrangement in one calendar year may not affect the amount eligible for reimbursement or payment in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), (ii) subject to any shorter time periods provided herein or the applicable plans or arrangements, any reimbursement or payment of an expense under such plan or arrangement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and (iii) the right to any reimbursement or in-kind benefit is not subject to liquidation or exchange for another benefit.

7. Confidentiality/Trade Secrets. The Executive acknowledges that his position with the Company is one of the highest trust and confidence both by reason of his position and by reason of his access to and contact with the trade secrets and confidential and proprietary business information of the Company. Both during the Term of this Agreement and thereafter, the Executive covenants and agrees as follows:

a. He shall use his best efforts and exercise reasonable diligence to protect and safeguard the trade secrets and confidential and proprietary information of the Company, including but not limited to financial information, the identity of its customers and suppliers, its arrangements with customers and suppliers, and its technical and financial data, records, compilations of information, processes, recipes and specifications relating to its customers, suppliers, products and services;

b. He shall not disclose any of such trade secrets and confidential and proprietary information, except as may be required in the course of his employment with the Company or by law; and

c. He shall not use, directly or indirectly, for his own benefit or for the benefit of another, any of such trade secrets and confidential and proprietary information.

All files, records, documents, drawings, specifications, memoranda, notes, or other documents relating to the business of the Company, in whatever form, format or medium, whether prepared by the Executive or otherwise coming into his possession, shall be the exclusive property of the Company and shall be delivered to the Company and not retained by the Executive upon termination of his employment for any reason whatsoever or at any other time upon request of the Board, or, at the option of the Company, he may destroy all such material and certify such destruction in writing to the Company within ten (10) days following the termination of his employment or such request by the Company.

8. Discoveries. The Executive covenants and agrees that he will fully inform the Company of and disclose to the Company all inventions, designs, improvements, discoveries, and processes (“Discoveries”) that he has now or may hereafter have during his employment with the Company and that pertain or relate to the business of the Company or to any experimental work, products, services, or processes of the Company in progress or planned for the future, whether conceived by the Executive alone or with others, and whether or not conceived during regular working hours or in conjunction with the use of any Company assets. All such Discoveries shall be the exclusive property of the Company whether or not patent or trademark applications are filed thereon. The Executive shall provide reasonable assistance to the Company, at any time during or after his employment, in obtaining patents and other intellectual property protection on all such Discoveries deemed patentable or otherwise protectable by the Company and shall execute all documents and do all things reasonably requested by the Company to obtain letters patent, vest the Company with full and exclusive title thereto, and protect the same against infringement by others, all at the expense of the Company.

9. Non-Competition.

a. The Executive covenants and agrees that he shall not, directly or indirectly, as an employee, employer, consultant, agent, principal, partner, shareholder, officer, director, member, manager or through any other kind of ownership (other than ownership of securities of publicly held corporations of which the Executive owns less than three percent (3%) of any class of outstanding securities), membership, affiliation, association, or in any other representative or individual capacity, engage in or render, or agree to engage in or render, any services to (i) any Competing Restaurant Business for a period of two (2) years following the date hereof or (ii) any Competing Foods Business during the period of his employment with the Company and for a period of two (2) years following the effective date of the termination of the Executive’s employment for any reason.

b.For purposes of this Agreement:

i.“Competing Restaurant Business” shall mean any business in North America that is engaged in the Family Dining Segment (as hereinafter defined) of the restaurant industry or any other sector of the restaurant industry in which the Company was, or had taken substantial steps toward being, actively engaged as of April 28, 2017.

ii.“Competing Foods Business” shall mean any business in North America that: (a) produces and distributes food products to the extent the Company is actively engaged in, or has taken substantial steps towards being actively engaged in, producing and distributing the same or similar food products at the time of Executive’s termination of employment; (b) offers products that compete with the products offered by the Company, or with products as to which the Company has taken substantial steps toward launching, during the Executive’s employment with the Company; or (c) is engaged in a line of business that competes with any line of business in which the Company is operating, or as to which the Company has taken substantial steps toward beginning to operate, at the time of Executive’s termination of employment.

iii.“Family Dining Segment” shall mean the segment of the restaurant industry in which Bob Evans Restaurants is categorized, and shall include, without limitation and by way of example, the following restaurant concepts together with such other concepts as are commonly understood within the restaurant industry to be included within the “family dining” segment: Baker’s Square, Frisch’s Big Boy, Cracker Barrel Old Country Store, Denny’s, First Watch, Friendly’s, HomeTown Buffet, Golden Corral, Huddle House, IHOP, Marie Callender’s, Old Country Buffet, Perkins, Ponderosa, Ryan’s, Shoney’s, Skyline Chili, Sonny’s BBQ, Village Inn, Waffle House and

Western Sizzlin. The Family Dining Segment shall expressly exclude restaurants in other segments of the restaurant industry including the “casual dining” segment, which would include, without limitation, restaurant concepts such as Applebee’s, Chili’s, Longhorn Steakhouse, Olive Garden, Ruby Tuesday’s and O’Charley’s together with such other concepts as are commonly understood within the restaurant industry to be included within the “casual dining” segment.

10. Non-Solicitation. The Executive agrees that for a period of two (2) years following the date hereof, he will not, either directly or indirectly, for himself or for any third party, employ or hire any other person who is then employed by Bob Evans Restaurants, LLC (“BER”), or solicit, induce, recruit, or cause any other person who is then employed by BER to terminate his/her employment for the purpose of joining, associating, or becoming employed with any other business or activity or to violate any confidentiality, non-competition or employment agreement that such person may have with BER or any policy of BER. The Executive further agrees that during the period of his employment, and for a period of two (2) years following the effective date of the termination of the Executive’s employment for any reason, he will not, either directly or indirectly, for himself or for any third party, employ or hire any other person who is then employed by the Company, or solicit, induce, recruit, or cause any other person who is then employed by the Company to terminate his/her employment for the purpose of joining, associating, or becoming employed with any other business or activity or to violate any confidentiality, non-competition or employment agreement that such person may have with the Company or any policy of the Company.

11. Cooperation.

a. The Executive agrees that both during the Term of this Agreement and thereafter, he will make himself available at reasonable times, intervals and places for interviews, consultations, internal investigations and/or testimony during which he will provide to the Company, or its designated attorneys or agents, any and all information known to him regarding or relating to the Company or his activities on behalf of the Company pertaining to the subject matter on which his cooperation is sought.

The Executive further agrees that if he is ever subpoenaed or otherwise required by law to provide any statement or other assistance to a party to a dispute or litigation with the Company, other than the Company, then he will provide written notice of the circumstances requiring such statement or other assistance, including where applicable a copy of the subpoena or other legal writ, in such a manner and at such a time that allows the Company to timely respond. Nothing herein shall prevent the Executive from cooperating with co-defendants in litigation or with inquiry in a government investigation without a need to obtain prior consent or approval from the Company; however, the Executive shall provide prompt notice of any voluntary giving of oral or written statements to such parties, and provide to the Company a copy of any written statement so given or a summary of any oral statement provided.

b. Both during the Term of this Agreement and thereafter, the Executive covenants and agrees that he will not disparage the Company.

12. Remedies for Breach of Covenants of the Executive.

a. The Company and the Executive specifically acknowledge and agree that the foregoing covenants of the Executive in Sections 7, 8, 9, 10, and 11 are reasonable in content and scope and are given by the Executive for adequate consideration and that the violation of any provision of such sections will cause irreparable harm to the Company. The Company and the Executive further acknowledge and agree that if any court of competent jurisdiction or other appropriate authority disagrees with the parties’ foregoing agreement as to reasonableness, then such court or other authority shall reform or otherwise amend the foregoing covenants to the extent permitted by law and in accordance with Section 18(b).

b. The covenants set forth in Sections 7, 8, and 11 of this Agreement shall continue to be binding upon the Executive notwithstanding the termination of his employment with the Company for any reason whatsoever, and the covenants set forth in Sections 9 and 10 of this Agreement shall continue to be binding upon the Executive following the termination of his employment with the Company for any reason whatsoever for the period provided therein. Such covenants shall be deemed and construed as separate agreements independent of any other provisions of this Agreement and any other agreement between the Company and the Executive. The existence of any claim or cause of action by the Executive against the Company, unless predicated on this Agreement, shall not constitute a defense to the enforcement by the Company of any or all such covenants. It is expressly agreed that the remedy at law for the breach of any such covenant is inadequate and injunctive relief and specific performance shall be available without the necessity of posting bond or other security to prevent the breach, or any threatened breach, thereof.

c.For purposes of the provisions of Sections, 7, 8, 9, 10, and 11, any reference to the Company shall include the Company and any entity or entities that control, are controlled by or are under common control with the Company.

13. Termination of Employment. Any reference to the Executive’s “Separation from Service” or “Separate from Service” shall have the same meaning as provided in Treasury Regulation section 1.409A-1(h). The Executive’s employment with the Company may be terminated as follows:

a. Death of the Executive. The Executive’s employment hereunder will terminate upon his death, and the Executive’s beneficiary will be entitled to the following payments and benefits:

i. Any Base Salary that is accrued but unpaid and any business expenses that are unreimbursed, all as of the date of termination of employment;

ii. Any rights and benefits (if any) provided under plans and programs of the Company in which the Executive was participating immediately prior to his death, including without limitation, the LTIP (including any award agreements applicable to awards thereunder) and the BEEDP (collectively, the “Plans and Programs”), determined in accordance with the applicable terms and provisions of such Plans and Programs;

iii.Any prior year earned, but unpaid Bonus, which shall be paid in accordance with the terms and provisions of the applicable plan or program at the later of (A) the same time that payments for that fiscal year would be made to other participants, or (B) within sixty (60) days following the Executive’s death; and

iv. An amount equal to the pro-rated Bonus for the then-current fiscal year based on the actual achievement of the applicable performance goals for such fiscal year (without pro-ration of such performance goals) and as approved by the Compensation Committee, which Bonus shall be pro-rated based on the number of calendar days the Executive was employed during the fiscal year and paid at the later of (A) the same time payments for that fiscal year are made to other participants, or (B) within sixty (60) days following the date of the Executive’s death.

In the absence of a beneficiary designation by the Executive, or if the Executive’s designated beneficiary does not survive him, payments and benefits described in this subsection will be paid to the Executive’s estate. All payments due under Section 13(a)(i) shall be made within thirty (30) days after the date of the Executive’s death.

b. Disability. The Executive’s employment hereunder may be terminated by the Company in the event of his Disability upon not less than thirty (30) days prior written notice to the Executive. For purposes of this Agreement, “Disability” or “Disabled” means, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, (i) the inability of the Executive to engage in any substantial gainful activity or (ii) the Executive receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering the Company’s employees. Unless otherwise required by law, the existence of a Disability shall be reasonably determined by the Company only upon receipt of a written medical opinion from a qualified physician selected by or reasonably acceptable to both the Company and Executive (“Designated Physician”). At the reasonable request of the Company, and as permitted by law, Executive will submit to a physical examination by the Designated Physician. During any period that the Executive fails to perform his duties hereunder as a result of a Disability (“Disability Period”), the Executive will continue to receive his Base Salary at the rate then in effect for such period commencing on the date the Executive is determined to be Disabled until his employment is terminated pursuant to this subsection; provided, however, that payments of Base Salary so made to the Executive will be reduced by the sum of the amounts, if any, that were payable to the Executive under any “bona fide disability benefit plan” as such term is defined in Treasury Regulation section 1.409A-1(a)(5), with any such offset being made in accordance with Treasury Regulation section 1.409A-3(i)(1)(ii). For purposes of clarification, Executive need not be Disabled for a period of twelve (12) months before the Company does in fact consider Executive to be Disabled pursuant to the definition provided herein, but subject in all instances to applicable law, including Code Section 409A. To the extent that a “disability benefit plan” elects not to pay Executive any sums (or the sums necessary to ensure Executive receives 100% of Base Salary), but Executive otherwise meets the definition of “Disabled” contained in this subsection, then the Company shall ensure that Executive continues to receive 100% of Base Salary until such time as Executive is no longer determined to be Disabled or Executive’s employment is terminated. In the event that the Company elects to terminate the Executive’s employment pursuant to this subsection, the Executive will be entitled to the following payments and benefits:

i. Any Base Salary that is accrued but unpaid and any business expenses that are unreimbursed, all as of the date of termination of employment;

ii. Any rights and benefits (if any) provided under Plans and Programs of the Company in which the Executive was participating immediately prior to the time he became Disabled, determined in accordance with the applicable terms and provisions of such Plans and Programs;

iii.Any prior year earned, but unpaid Bonus, which shall be paid in accordance with the terms and provisions of the applicable plan or program at the later of (A) the same time that payments for that fiscal year would be made to other participants, or (B) within sixty (60) days following the Executive’s Separation from Service; and

iv. An amount equal to the pro-rated Bonus for the then-current fiscal year based on the actual achievement of the applicable performance goals for such fiscal year (without pro-ration of such performance goals) and as approved by the Compensation Committee, which Bonus shall be pro-rated based on the number of calendar days the Executive was employed during the fiscal year and paid at the later of (A) the same time payments for that fiscal year are made to other participants, or (B) within sixty (60) days following the date of the Executive’s Separation from Service.

Any payments of Base Salary during the Disability Period shall be made in accordance with the payroll procedures described in Section 4(a)(i) of this Agreement. Any payments due under Section 13(b)(i) shall be made within thirty (30) days after the date of the Executive’s termination of employment.

c. Termination of Employment for Cause. The Company may terminate the Executive’s employment at any time for “Cause.” For purposes of this Agreement, the following shall constitute “Cause.”

i. The Executive is convicted of, or pleads no contest/nolo contendere to, any felony, crime involving moral turpitude or any other serious criminal offense;

ii. The Executive breaches in any material respect any provision of this Agreement (other than as related to Sections 7, 8, 9, 10, and 11, which is covered by Section 13(c)(iii) below and other than as related to any violation of the Company’s Code of Conduct or other Company policy which is covered by Section 13(c)(vi) below), or habitually neglects to perform his duties under this Agreement (other than for reasons related to Disability) and such breach or habitual neglect is not cured in the Board’s good faith belief within ten (10) business days after Executive’s receipt of written notice on behalf of the Board;

iii. The Executive breaches any provision of Section 7, 8, 9, 10, or 11, and such breach is not cured, to the extent curable, in the Board’s good faith belief within five (5) business days after Executive’s receipt of written notice on behalf of the Board;

iv. After conducting a thorough investigation in compliance with Company policy, the Company determines that the Executive has violated in any material respect any applicable local, state or federal law relating to discrimination or harassment; provided that the Executive shall be afforded an opportunity to respond to any allegations that are the subject of such investigation prior to the Company’s determination;

v. The Executive engages in any inappropriate relationship (romantic, sexual, or otherwise) with an employee, customer, or supplier of the Company, or misuses or abuses Company property and/or resources or engages in other conduct, even if not in conjunction with his duties hereunder, that in the Board’s good faith belief could reasonably be expected to bring material disrepute to the Company or adversely affect the Executive’s ability to perform his duties for the Company;

vi. The Company reasonably determines that the Executive has violated the Company’s Code of Conduct or any other Company policy adopted by the Board and applicable to senior executives of the Company; or

vii. The Executive acts, without Board direction or approval, in an intentionally reckless manner (but not mere unsatisfactory performance) that is materially injurious to the financial condition of the Company.

In the event that the Company terminates the Executive’s employment for Cause, the Executive will be entitled to no further payments or benefits hereunder other than the following:

A. Any Base Salary that is accrued but unpaid and any business expenses that are unreimbursed, all, as of the date of termination of employment; and

B. Any rights and benefits (if any) provided under Plans and Programs of the Company, determined in accordance with the applicable terms and provisions of such Plans and Programs.

All payments due under Section 13(c)(A) shall be made within thirty (30) days after the date of the Executive’s termination of employment.

d. Termination Without Cause. The Company may terminate the Executive’s employment for any reason upon fourteen (14) days prior written notice to the Executive. If the Executive’s employment is involuntarily terminated by the Company for any reason other than the reasons set forth in paragraphs (a), (b) or (c) of this Section 13 during the Term, the Executive will be entitled to the following payments and benefits:

i. Any Base Salary that is accrued but unpaid and business expenses that are unreimbursed as of the date of termination of employment which payment shall be due within thirty (30) days after the date of the Executive’s termination of employment;

ii. Any rights and benefits (if any) provided under Plans and Programs of the Company in which the Executive was participating at the time of the termination of his employment, determined in accordance with the applicable terms and provisions of such Plans and Programs;

iii. Any prior year earned, but unpaid Bonus, which shall be paid in accordance with the terms and provisions of the applicable plan or program at the later of (A) the same time that payments for that fiscal year would be made to other participants, or (B) within sixty (60) days following the Executive’s Separation from Service;

iv. Continuation of the Executive’s Base Salary, as in effect on the date of his Separation from Service, for a period of twenty-four (24) months commencing within sixty (60) days following the date of his Separation from Service; provided, that these payments will be made in equal monthly payments over such twenty-four (24) month period, each installment payment provided for in this Section 13(d)(iv) is a separate “payment” within the meaning of Treasury Regulation section 1.409A-2(b)(2)(i) and that the payments are intended to satisfy, to the greatest extent possible, the exemptions from the application of Code Section 409A, including those provided under Treasury Regulation sections 1.409A-1(b)(4) (regarding short-term deferrals), 1.409A-1(b)(9)(iii) (regarding the two-times, two (2) year exception) and 1.409A-1(b)(9)(v) (regarding reimbursements and other separation pay);

v. An amount equal to the pro-rated Bonus for the then-current fiscal year based on the actual achievement of the applicable performance goals for such fiscal year (without pro-ration of such performance goals) and as approved by the Compensation Committee, which shall be pro-rated based on the number of calendar days the Executive was employed during the fiscal year and paid at the later of (A) the same time payments for that fiscal year are made to other participants or (B) within sixty (60) days following the date of the Executive’s Separation from Service;

vi.A lump sum amount, payable by the Company concurrent with the payment provided in Section 13(d)(i) hereunder, equal to the Company’s estimated obligation (as determined by the Company in the reasonable exercise of its discretion) for the cost of premiums, and related administrative fees, for group health (medical, dental and/or vision) continuation coverage for the Executive and the Executive’s eligible dependents, for the same level of benefits as in effect immediately prior to the Executive’s termination of employment and for a period equal to eighteen (18) months. Notwithstanding the foregoing, if the Company’s payment pursuant to the foregoing sentence would violate the nondiscrimination rules applicable to non-grandfathered plans, or result in the imposition of penalties under, the Patient Protection and Affordable Care Act of 2010 (“PPACA”) and related regulations and guidance promulgated thereunder, the parties agree to reform such sentence in such manner as is necessary to comply with PPACA; and

vii.The payment by the Company for all Company-sponsored life insurance programs in which the Executive was participating or covered immediately before termination for eighteen (18) months following the date of his Separation from Service; or alternately and as determined in the reasonable exercise

of the Company’s discretion, the equivalent monetary value of the cumulative premiums for such coverage (payable by the Company concurrent with the payment provided in Section 13(d)(i) hereunder), but in no event shall the Company be required to expend more than $25,000 to provide the life insurance benefit or alternative contemplated pursuant to this subsection.

e. Voluntary Termination by the Executive. The Executive may resign and terminate his employment with the Company for any reason whatsoever (other than for Good Reason pursuant to Section 13(f)) upon not less than sixty (60) days prior written notice to the Company. In the event that the Executive so terminates his employment pursuant to this Section 13(e), the Executive will be entitled to the following payments and benefits:

i. Any Base Salary that is accrued but unpaid and any business expenses that are unreimbursed, all, as of the date of termination of employment; and

ii. Any rights and benefits (if any) provided under Plans and Programs of the Company in which the Executive was participating at the time of the termination of his employment (whether by reason of retirement or otherwise), determined in accordance with the applicable terms and provisions of such Plans and Programs.

All payments due under Section 13(e)(i) shall be made within thirty (30) days after the date of the Executive’s termination of employment.

f. Good Reason Termination. The Executive may resign and terminate his employment with the Company for “Good Reason.” The Executive shall have “Good Reason” to effect a termination of his employment if without his consent the Company (i) materially reduces the Executive’s Base Salary or Bonus or LTIP opportunity, except for a reduction that applies to executive officers generally (and does not apply disproportionately to the Executive), (ii) requires the Executive to relocate more than 50 miles from the greater Columbus, Ohio area, (iii) a material adverse change in Executive’s title, position, duties, or responsibilities; (iv) a material reduction in the aggregate health and welfare benefits provided to Executive under the Company’s welfare benefit plans, except for a reduction that applies to executive officers generally (and does not apply disproportionately to the Executive); or (vi) a material breach by the Company of the terms of this Agreement, including, without limitation, the removal of Executive from the Board by the Company (other than as a result of conduct constituting Cause) or the failure by the Company to nominate Executive for re-election to the Board; all provided the Executive (A) has given written notice to the Board as to the details of the basis for such Good Reason within thirty (30) days following the date on which the Executive alleges the condition giving rise to such Good Reason initially occurs and the Company has failed to provide a reasonable cure within thirty (30) days after its receipt of such notice and (B) terminates his employment within ninety (90) days of the time in which the condition giving rise to such Good Reason initially occurs.

In the event that the Executive terminates his employment for Good Reason pursuant to this Section 13(f), the Executive will be entitled to the payments and benefits described in Section 13(d).

g. Benefit Plans/Offset. In the event of any termination of the Executive’s employment, whether by the Executive or the Company and for any reason, participation by the Executive in all compensation and benefit plans of the Company will cease upon the effective termination date and all unvested bonuses, equity awards and other like items will immediately lapse, except as otherwise provided in applicable Company plans or hereunder and subject to the terms and limitation thereof. In the event of the Executive’s termination of employment, all amounts owed by the Executive to the Company for any reasons whatsoever will become immediately due and payable. The Company will have the right, in its discretion, to collect any or all such

amounts by offset against any amounts due to the Executive from the Company whether or not under this Agreement; provided that such offset complies with the requirements of Code Section 409A. Notwithstanding the foregoing, any such offset that would have the effect (directly or indirectly) of accelerating amounts due to the Executive under this Agreement that are subject to Code Section 409A must meet the following requirements: (i) such offset must relate to a debt that was incurred in the ordinary course of the service relationship between the Company and the Executive; (ii) the entire amount of reduction in any of the Executive’s taxable years may not exceed $5,000; and (iii) the offset must be made at the same time and in the same amount as the debt otherwise would have been due and collected from the Executive, all in accordance with Treasury Regulation section 1.409A-3(j)(4)(xiii). In addition, except as specifically provided for herein, the payments provided for in Section 13 of this Agreement are in lieu of and supersede any severance or termination benefits to which the Executive might otherwise be entitled, and there will be no duplication of payments or benefits made under this Agreement and any other agreement with, or plan, policy, or program maintained by, the Company.

h. Certain Delays in Payment if the Executive is a Specified Employee. Notwithstanding anything in this Agreement to the contrary, if the Executive is a “specified employee” (within the meaning of Treasury Regulation section 1.409A-1(i) and as determined under the Company’s policy for determining specified employees) on the date of his Separation from Service and the Executive is entitled to a payment and/or a benefit under this Agreement that is required to be delayed pursuant to Code Section 409A(a)(2)(B)(i), then such payment or benefit, as the case may be, shall not be paid or provided for (or begin to be paid or provided for) until the first business day of the seventh month following the date of the Executive’s Separation from Service (or, if earlier, the date of the Executive’s death). The first payment that can be made to the Executive following such postponement period shall include the cumulative amount of any payments or benefits that could not be paid or provided for during such postponement period due to the application of Code Section 409A(a)(2)(B)(i).

i. Conditions to Payment and Benefits. Except as required under applicable law, the obligation of the Company to make payments (other than Base Salary earned by the Executive prior to his separation from employment and payment for any unreimbursed business expenses) and to provide other benefits to the Executive after his termination of employment under Section 13 is expressly conditioned on (i) the Executive’s timely execution, without revocation, of a release of claims in a form reasonably satisfactory to the Company prior to the first date that payment is to begin and (ii) the Executive’s continued full performance of his obligations under Sections 7, 8, 9, 10, 11, and 12 to the extent that such sections survive the Executive’s termination of employment as provided thereunder. With respect to any payments or other benefits payable to the Executive after his termination of employment that are subject to Code Section 409A, to the extent that the period during which the Executive may execute, without revocation, a release of claims as set forth in this Section 13(i) begins in one taxable year of the Executive and ends in a second taxable year of the Executive, such payments or benefits shall not commence, be paid or provided until the second taxable year of the Executive, regardless of when the Executive executes the release.

14. Termination and Change in Control Agreement. The Executive is a participant in the Company’s Change in Control and Severance Plan dated November 2015(the “Change in Control Plan”). If an event or a series of related events entitle the Executive to payments under both this Agreement and the Change in Control Plan, the Executive will be entitled to the payments due under whichever of the Change in Control Plan or this Agreement provides for the greatest amount, and shall not be entitled to the payments otherwise provided under whichever of the Change in Control Plan or this Agreement provides for the least amount. Without limiting the generality of the foregoing, the provisions of Section 13(d) and 13(f) are expressly not intended to supersede this Section 14, and to the extent of any conflict, the terms of this Section 14 shall control. Any coordination of benefits under this Section 14 shall be made strictly in accordance

with Code Section 409A, including the preservation of the time and form of payment provisions regarding the payment of any amounts which provide for a “deferral of compensation” within the meaning of Code Section 409A under each respective arrangement.

15.Arbitration of Disputes. Except for disputes and claims arising out of or relating to Sections 7 through 12, disputes or controversies arising out of or relating to this Agreement, including the basis on which the Executive is terminated, will be resolved by arbitration in accordance with the rules of the American Arbitration Association. The award of the arbitrator will be final, conclusive and non-appealable and judgment upon the award rendered by the arbitrator may be entered in any court having competent jurisdiction. The arbitrator must be an arbitrator qualified to serve in accordance with the rules of the American Arbitration Association and one who is approved by the Company and the Executive. If the Executive and the Company fail to agree on an arbitrator, each must designate a person qualified to serve as an arbitrator in accordance with the rules of the American Arbitration Association and these persons will select the arbitrator from among those persons qualified to serve in accordance with the rules of the American Arbitration Association. Any arbitration relating to this Agreement will be held in Columbus, Ohio. With the exception of the Company agreeing to pay (or reimburse the Executive) for the arbitration filing fees and the fees paid to the Arbitrator, the Company and the Executive will each bear its/his own fees and expenses incurred in connection with the arbitration proceedings, including attorney’s fees, unless otherwise awarded by the arbitrator[s]. To the extent that the reimbursement of fees during the term of Executive’s employment under this Agreement (including any reimbursements under this Section 15) or thereafter provides for a “deferral of compensation” within the meaning of Code Section 409A, then such amount shall be reimbursed in accordance with Treasury Regulation section 1.409A-3(i)(1)(iv), including (i) the amount eligible for reimbursement or payment under such plan or arrangement in one calendar year may not affect the amount eligible for reimbursement or payment in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), (ii) subject to any shorter time periods provided herein or the applicable plans or arrangements, any reimbursement or payment of an expense under such plan or arrangement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and (iii) the right to any reimbursement or in-kind benefit is not subject to liquidation or exchange for another benefit.

16. Representation and Warranty. The Executive represents and warrants to the Company that no existing covenant, restriction, or other obligation restricts or limits in any way the Executive’s ability to enter into this Agreement and to perform his duties hereunder.

17. Notices. Any notices to be given hereunder by either party to the other may be effected and shall be deemed to have been given when delivered personally in writing or by mail, registered or certified, postage prepaid, with return receipt requested. Mailed notices shall be addressed as follows:

a. If to the Company:

Bob Evans Farms, Inc.

8111 Smiths Mill Road

New Albany, Ohio 43054

Attn: General Counsel - Legal Department

b. If to the Executive, to the address on file with the Company.

Either party may change its address for notice by giving notice in accordance with the terms of this Section 17.

18. General Provisions.

a. Law Governing. This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio.

b.Invalid Provisions. If any provision of this Agreement is held to be illegal, invalid, or unenforceable, then such provision shall be fully severable and this Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part hereof, and the remaining provisions hereof shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance herefrom. Furthermore, in lieu of such illegal, invalid, or unenforceable provision, there shall be added automatically as a part of this Agreement a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and still be legal, valid or enforceable.

c. Entire Agreement. This Agreement, the Recoupment Policy, the Change in Control Plan and any governing award agreements, grant notices, and plan documents referenced herein together set forth the entire understanding of the parties and supersede all prior agreements or understandings, whether written or oral, with respect to the subject matter hereof. No terms, conditions or warranties, other than those contained herein, and no amendments or modifications hereto shall be binding unless made in writing and signed by the parties hereto.

d. Binding Effect. This Agreement shall extend to and be binding upon and inure to the benefit of the parties hereto, their respective heirs, representatives, successors and assigns. This Agreement may not be assigned by the Executive, but may be assigned by the Company to any person or entity that succeeds to the ownership or operation of the business in which the Executive is primarily employed by the Company.

e. Waiver. The waiver by either party hereto of a breach of any term or provision of this Agreement shall not operate or be construed as a waiver of a subsequent breach of the same provision by any party or of the breach of any other term or provision of this Agreement.

f. Headings. Headings of the sections herein are used solely for convenience and shall not be used for interpretation or construing any word, clause, paragraph, or provision of this Agreement.

g. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument. Confirmation of execution by electronic transmission of a signature (whether by facsimile or email) shall be binding upon the party so confirming. A faxed or emailed copy of a signed Agreement will be deemed to be the same as an original.

h. Taxes. Anything in this Agreement to the contrary notwithstanding, all payments required to be made hereunder by the Company to the Executive shall be subject to withholding of such amounts relating to taxes as the Company may reasonably determine that it should withhold pursuant to any applicable law or regulations. In lieu of withholding such amounts, in whole or in part, however, the Company may, in its discretion, accept other provision for payment of taxes, provided that it is satisfied that all requirements of the law affecting its responsibilities to withhold such taxes have been satisfied.

i. Section 409A. This Agreement shall be interpreted and administered in compliance with Code Section 409A, to the extent applicable. By accepting this Agreement, Executive hereby agrees and acknowledges that the Company does not make any representations with respect to the application of Code Section 409A to any tax, economic or legal consequences of any payments payable to Executive hereunder. Further, by the acceptance of this Agreement, Executive acknowledges that (i) Executive has obtained

independent tax advice regarding the application of Code Section 409A to the payments due to Executive hereunder, (ii) Executive retains full responsibility for the potential application of Code Section 409A to the tax and legal consequences of payments payable to Executive hereunder and (iii) the Company shall not indemnify or otherwise compensate Executive for any violation of Code Section 409A that may occur in connection with this Agreement. The parties agree to cooperate in good faith to amend such documents and to take such actions as may be necessary or appropriate to comply with Code Section 409A.

j. Coordination with Code Sections 280G and 4999.

i.Anything in this Agreement to the contrary notwithstanding and except as set forth below, in the event it shall be determined that any payment, benefit, vesting or distribution to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (a “Payment”) would but for this Section 18(j) be subject to the excise tax imposed by §4999 of the Code, or any comparable successor provisions (the “Excise Tax”), then the Payments shall be either (i) provided to Executive in full, or (ii) provided to Executive as to such lesser extent which would result in no portion of such Payments being subject to the Excise Tax, whichever of the foregoing amounts, when taking into account applicable income and employment taxes, the Excise Tax, and any other applicable taxes, results in the receipt by Executive on an after-tax basis, of the greatest amount of Payments, notwithstanding that all or some portion of such Payments may be subject to the Excise Tax. Any determination required under this Section 18(j) shall be made in writing in good faith by the Company's independent certified public accountants, appointed prior to any change in ownership (as defined under Code §280G(b)(2), and/or tax counsel selected by such accountants (the “Accounting Firm”) in accordance with the principles of §280G of the Code. In the event of a reduction of Payments hereunder, the Payments shall be reduced as follows: (i) first from cash payments which are included in full as parachute payments, (ii) second from equity awards which are included in full as parachute payments, (iii) third from cash payments which are partially included as parachute payments, and (iv) fourth from equity awards that are partially included as parachute payments. In applying these principles, any reduction or elimination of the Payments shall be made in a manner consistent with the requirements of Code Section 409A and where two economically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro rata basis but not below zero. For purposes of making the calculations required by this Section 18(j), the Accounting Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of the Code, and other applicable legal authority. The Company and Executive shall furnish to the Accounting Firm such information and documents as the Accounting Firm may reasonably request in order to make a determination under this Section 18(j). All fees and expenses of the Accounting Firm shall be borne solely by the Company.

ii.If, notwithstanding any reduction described in this Section 18(j), the Internal Revenue Service (the “IRS”) determines that Executive is liable for the Excise Tax as a result of the receipt of the Payments as described above, then Executive shall be obligated to pay back to the Company, within thirty (30) days after a final IRS determination or in the event that Executive challenges the final IRS determination, a final judicial determination, a portion of the Payments equal to the “Repayment Amount.” The Repayment Amount with respect to the Payments shall be the smallest such amount, if any, as shall be required to be paid to the Company so that Executive's net after-tax proceeds with respect to the Payments (after taking into account the payment of the Excise Tax and all other applicable taxes imposed on such payment) shall be maximized. The Repayment Amount with respect to the Payments shall be zero if a Repayment Amount of more than zero would not result in Executive's net after-tax proceeds with respect to the Payments being maximized. If the Excise Tax is not eliminated pursuant to this paragraph, Executive shall pay the Excise Tax.

iii.Notwithstanding any other provision of this Section 18(j), if (i) there is a reduction in the Payments as described in this Section 18(j), (ii) the IRS later determines that Executive is liable for the Excise Tax, the payment of which would result in the maximization of Executive's net after-tax proceeds (calculated as if Executive's Payments had not previously been reduced), and (iii) Executive pays the Excise Tax, then the Company shall pay to Executive those Payments which were reduced pursuant to this subsection as soon as administratively possible after Executive pays the Excise Tax so that Executive's net after-tax proceeds with respect to the Payments are maximized.

For the avoidance of doubt, Executive acknowledges he is solely responsible for the payment of any Excise Tax and that the Company will not reimburse or otherwise indemnify him for such amount. Any reimbursements or repayments provided under this subsection shall be made strictly in accordance with Section 409A of the Code, including Treasury Regulation 1.409A-3(i)(1)(v).

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IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the date and year first above written.

THIS AGREEMENT CONTAINS AN ARBITRATION CLAUSE.

EXECUTIVE:

J. Michael Townsley

BOB EVANS FARMS, INC.

By:

Paul S. Williams

Chairman, Compensation Committee

of the Board of Directors

EX-10.13

EXHIBIT 10.13

EMPLOYMENT AGREEMENT

This Employment Agreement (“Agreement”) is entered into as of April 29, 2017 by and between Bob Evans Farms, Inc., a Delaware corporation (the “Company”), and Mark E. Hood (the “Executive”).

WHEREAS, the Company desires to retain the Executive to serve as the Company’sChief Financial Officer and Chief Administrative Officer, and the Executive desires to serve and be so employed by the Company; and

WHEREAS, the Company and the Executive wish to establish the terms of the Executive’s employment with the Company, the financial obligations of the Company to the Executive and to specify certain rights, responsibilities and duties of the Executive.

NOW, THEREFORE, in consideration of the premises and the mutual terms and conditions hereof, and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Employment. Subject to the terms and conditions of this Agreement, the Company hereby employs the Executive as the Company’s Chief Financial Officer and Chief Administrative Officer upon the terms and conditions hereinafter set forth.

2. Duties; Exclusive Services. During the Term and subject to the terms and conditions of this Agreement, the Executive shall (a) serve as, and have the title of, the Company’s Chief Financial Officer and Chief Administrative Officer, (b) report to the Chief Executive Officer and perform such duties and responsibilities as may be prescribed from time to time by the Chief Executive Officer, which shall be generally consistent with the duties and responsibilities of similarly situated executives of companies in similar lines of business, (c) perform and discharge faithfully, diligently and to the best of his ability such duties and responsibilities and devote his full time and efforts to the business and affairs of the Company, (d) comply with and abide by all terms and conditions set forth in this Agreement, all applicable work policies, procedures and rules as may be issued from time to time by the Company and all federal, state and local statutes, regulatory and public ordinances governing the performance of his duties hereunder, and (e) in addition to the obligations described in Section 9, not engage in any other business activity, whether or not for gain, profit or other pecuniary advantage, that in the reasonable judgment of the Board could interfere with the performance of Executive’s obligations under this Agreement. Notwithstanding the foregoing, it shall not be a violation of this Agreement for Executive to (A) devote reasonable periods of time to charitable and community activities and industry or professional activities (including, without limitation, serving on the board of directors of not-for-profit entities) or (B) manage personal business interests and investments, so long as such activities in (A) and (B) do not interfere with the performance of Executive’s obligations under this Agreement. Except as set forth in the foregoing sentence, Executive may not, without the prior approval of the Board (or applicable committee thereof), serve on the board of directors (or other governing body) of any other for-profit corporation or entity.

3. Term. Subject to earlier termination as hereinafter provided, this Agreement shall commence on April 29, 2017 (the “Effective Date”) and shall continue through the fifth (5^th) anniversary of the Effective Date (the “Initial Term”) and shall automatically renew for successive one-year periods (each, a “Renewal Term”) upon all terms, conditions and obligations set forth herein unless either party shall provide written notice to the other not less than ninety (90) days prior to the expiration of the Initial Term or any Renewal Term. For purposes hereof, the Initial Term, together with any Renewal Term, are hereinafter referred to as

the “Term.” In the event for any reason the Executive does not commence employment on or before the Effective Date, this Agreement shall be deemed void and of no force or effect.

4. Compensation.

a. Subject to the terms and conditions of this Agreement, during the Term and as compensation for his services rendered under this Agreement, the Executive shall be entitled to receive the following:

i. Base Salary. The Executive’s initial annual base salary is Four Hundred Eighty Thousand Dollars ($480,000). Such amount may be increased from time to time in the sole discretion of the Compensation Committee of the Board (such amount, as may be so increased, is hereafter referred to as the “Base Salary”), and shall be payable in 26 equal bi-weekly installments or, if different, the Company’s regular payroll schedule, prorated for any partial employment month.

ii. Annual Cash Bonus. The Executive shall be eligible for an annual cash bonus opportunity (“Bonus”) as may be determined and authorized in the sole discretion of the Compensation Committee based upon performance goals that the Compensation Committee establishes in good faith. Some or all of the Bonus may, in the sole discretion of the Compensation Committee, be subject to performance goals designed to comply with the performance-based compensation exception under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), or any successor rule or regulation. The Executive’s target Bonus opportunity shall be determined by the Compensation Committee in its sole discretion on an annual basis, except that the Executive’s target Bonus opportunity for any given year during the Term will not be less than 65% of his Base Salary.

iii. Long Term Incentive Plan. As may be determined and authorized from time to time in the sole discretion of the Compensation Committee, and subject to the terms and conditions of any equity compensation plans and award agreements governing the grant of equity awards, the Executive shall be eligible to participate annually during the Term in the Company’s Long Term Incentive Plan or successor program (including, without limitation, the Bob Evans Farms, Inc. Amended and Restated 2010 Equity and Cash Incentive Plan, collectively, the “LTIP”), with a targeted equity award based upon a percentage of the Executive’s Base Salary, but set initially at 75%. Any equity grants made pursuant to the LTIP shall be dependent upon the achievement of performance goals, and the vesting and other terms and conditions of such equity grants shall be determined by the Compensation Committee in its sole discretion.

b.Recoupment Policy. Notwithstanding any other provision of this Agreement to the contrary, the Executive is subject to the Bob Evans Farms, Inc. Executive Compensation Recoupment Policy, as amended from time to time (the “Recoupment Policy”). In the event of any conflict between this Agreement and the terms of the Recoupment Policy, the terms of the Recoupment Policy shall control.

5. Benefits. In addition to the compensation to be paid to the Executive pursuant to Section 4 hereof, the Executive shall be entitled to receive the following benefits, subject to the Company continuing to sponsor and maintain such benefits for its senior executive officers and subject to any modification or amendment to the plans or policies governing such benefits:

a. Participation in Employee Plans. In addition to the plans described in this Agreement, the Executive shall be entitled to participate in any health, disability, or group life insurance plan; any pension, retirement, or profit sharing plan; and any other perquisites and fringe benefits, in which the Executive is eligible to participate and which may be generally made available from time to time to the Company’s senior executive officers, in accordance with the terms of such plans or arrangements.

b. Paid Time Off. The Executive shall be entitled to twenty (20) days of paid time off with full salary and benefits each fiscal year. Under current policy (which may be changed at the discretion of the Company), no cash or other payment will be due, however, for unused paid time off and paid time off may not be carried over from any fiscal year to the next.

6. Reimbursement of Expenses. Subject to such rules and procedures as from time to time are specified by the Company and in accordance with the Company’s expense reimbursement policy (which may be changed at the discretion of the Company), the Company shall reimburse the Executive for reasonable business expenses necessarily incurred in the performance of his duties under this Agreement. To the extent that any expenses, reimbursement, fringe benefit or other, similar plan or arrangement in which Executive participates during the Term (including any reimbursements under this Section 6) or thereafter provides for a “deferral of compensation” within the meaning of Code Section 409A, then such amount shall be reimbursed in accordance with Treasury Regulation section 1.409A-3(i)(1)(iv), including (i) the amount eligible for reimbursement or payment under such plan or arrangement in one calendar year may not affect the amount eligible for reimbursement or payment in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), (ii) subject to any shorter time periods provided herein or the applicable plans or arrangements, any reimbursement or payment of an expense under such plan or arrangement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and (iii) the right to any reimbursement or in-kind benefit is not subject to liquidation or exchange for another benefit.

7. Confidentiality/Trade Secrets. The Executive acknowledges that his position with the Company is one of the highest trust and confidence both by reason of his position and by reason of his access to and contact with the trade secrets and confidential and proprietary business information of the Company. Both during the Term of this Agreement and thereafter, the Executive covenants and agrees as follows:

a. He shall use his best efforts and exercise reasonable diligence to protect and safeguard the trade secrets and confidential and proprietary information of the Company, including but not limited to financial information, the identity of its customers and suppliers, its arrangements with customers and suppliers, and its technical and financial data, records, compilations of information, processes, recipes and specifications relating to its customers, suppliers, products and services;

b. He shall not disclose any of such trade secrets and confidential and proprietary information, except as may be required in the course of his employment with the Company or by law; and

c. He shall not use, directly or indirectly, for his own benefit or for the benefit of another, any of such trade secrets and confidential and proprietary information.

All files, records, documents, drawings, specifications, memoranda, notes, or other documents relating to the business of the Company, in whatever form, format or medium, whether prepared by the Executive or otherwise coming into his possession, shall be the exclusive property of the Company and shall be delivered to the Company and not retained by the Executive upon termination of his employment for any reason whatsoever or at any other time upon request of the Board, or, at the option of the Company, he may destroy all such material and certify such destruction in writing to the Company within ten (10) days following the termination of his employment or such request by the Company.

8. Discoveries. The Executive covenants and agrees that he will fully inform the Company of and disclose to the Company all inventions, designs, improvements, discoveries, and processes (“Discoveries”) that he has now or may hereafter have during his employment with the Company and that pertain or relate to the business of the Company or to any experimental work, products, services, or processes

of the Company in progress or planned for the future, whether conceived by the Executive alone or with others, and whether or not conceived during regular working hours or in conjunction with the use of any Company assets. All such Discoveries shall be the exclusive property of the Company whether or not patent or trademark applications are filed thereon. The Executive shall provide reasonable assistance to the Company, at any time during or after his employment, in obtaining patents and other intellectual property protection on all such Discoveries deemed patentable or otherwise protectable by the Company and shall execute all documents and do all things reasonably requested by the Company to obtain letters patent, vest the Company with full and exclusive title thereto, and protect the same against infringement by others, all at the expense of the Company.

9. Non-Competition.

a. The Executive covenants and agrees that he shall not, directly or indirectly, as an employee, employer, consultant, agent, principal, partner, shareholder, officer, director, member, manager or through any other kind of ownership (other than ownership of securities of publicly held corporations of which the Executive owns less than three percent (3%) of any class of outstanding securities), membership, affiliation, association, or in any other representative or individual capacity, engage in or render, or agree to engage in or render, any services to (i) any Competing Restaurant Business for a period of two (2) years following the date hereof or (ii) any Competing Foods Business during the period of his employment with the Company and for a period of two (2) years following the effective date of the termination of the Executive’s employment for any reason.

b.For purposes of this Agreement:

i.“Competing Restaurant Business” shall mean any business in North America that is engaged in the Family Dining Segment (as hereinafter defined) of the restaurant industry or any other sector of the restaurant industry in which the Company was, or had taken substantial steps toward being, actively engaged as of April 28, 2017.

ii.“Competing Foods Business” shall mean any business in North America that: (a) produces and distributes food products to the extent the Company is actively engaged in, or has taken substantial steps towards being actively engaged in, producing and distributing the same or similar food products at the time of Executive’s termination of employment; (b) offers products that compete with the products offered by the Company, or with products as to which the Company has taken substantial steps toward launching, during the Executive’s employment with the Company; or (c) is engaged in a line of business that competes with any line of business in which the Company is operating, or as to which the Company has taken substantial steps toward beginning to operate, at the time of Executive’s termination of employment.

iii.“Family Dining Segment” shall mean the segment of the restaurant industry in which Bob Evans Restaurants is categorized, and shall include, without limitation and by way of example, the following restaurant concepts together with such other concepts as are commonly understood within the restaurant industry to be included within the “family dining” segment: Baker’s Square, Frisch’s Big Boy, Cracker Barrel Old Country Store, Denny’s, First Watch, Friendly’s, HomeTown Buffet, Golden Corral, Huddle House, IHOP, Marie Callender’s, Old Country Buffet, Perkins, Ponderosa, Ryan’s, Shoney’s, Skyline Chili, Sonny’s BBQ, Village Inn, Waffle House and Western Sizzlin. The Family Dining Segment shall expressly exclude restaurants in other segments of the restaurant industry including the “casual dining” segment, which would include, without limitation, restaurant concepts such as Applebee’s, Chili’s, Longhorn Steakhouse, Olive Garden,

Ruby Tuesday’s and O’Charley’s together with such other concepts as are commonly understood within the restaurant industry to be included within the “casual dining” segment.

10. Non-Solicitation. The Executive agrees that for a period of two (2) years following the date hereof, he will not, either directly or indirectly, for himself or for any third party, employ or hire any other person who is then employed by Bob Evans Restaurants, LLC (“BER”), or solicit, induce, recruit, or cause any other person who is then employed by BER to terminate his/her employment for the purpose of joining, associating, or becoming employed with any other business or activity or to violate any confidentiality, non-competition or employment agreement that such person may have with BER or any policy of BER. The Executive further agrees that during the period of his employment, and for a period of two (2) years following the effective date of the termination of the Executive’s employment for any reason, he will not, either directly or indirectly, for himself or for any third party, employ or hire any other person who is then employed by the Company, or solicit, induce, recruit, or cause any other person who is then employed by the Company to terminate his/her employment for the purpose of joining, associating, or becoming employed with any other business or activity or to violate any confidentiality, non-competition or employment agreement that such person may have with the Company or any policy of the Company.

11. Cooperation.

a. The Executive agrees that both during the Term of this Agreement and thereafter, he will make himself available at reasonable times, intervals and places for interviews, consultations, internal investigations and/or testimony during which he will provide to the Company, or its designated attorneys or agents, any and all information known to him regarding or relating to the Company or his activities on behalf of the Company pertaining to the subject matter on which his cooperation is sought.

The Executive further agrees that if he is ever subpoenaed or otherwise required by law to provide any statement or other assistance to a party to a dispute or litigation with the Company, other than the Company, then he will provide written notice of the circumstances requiring such statement or other assistance, including where applicable a copy of the subpoena or other legal writ, in such a manner and at such a time that allows the Company to timely respond. Nothing herein shall prevent the Executive from cooperating with co-defendants in litigation or with inquiry in a government investigation without a need to obtain prior consent or approval from the Company; however, the Executive shall provide prompt notice of any voluntary giving of oral or written statements to such parties, and provide to the Company a copy of any written statement so given or a summary of any oral statement provided.

b. Both during the Term of this Agreement and thereafter, the Executive covenants and agrees that he will not disparage the Company.

12. Remedies for Breach of Covenants of the Executive.

a. The Company and the Executive specifically acknowledge and agree that the foregoing covenants of the Executive in Sections 7, 8, 9, 10, and 11 are reasonable in content and scope and are given by the Executive for adequate consideration and that the violation of any provision of such sections will cause irreparable harm to the Company. The Company and the Executive further acknowledge and agree that if any court of competent jurisdiction or other appropriate authority disagrees with the parties’ foregoing agreement as to reasonableness, then such court or other authority shall reform or otherwise amend the foregoing covenants to the extent permitted by law and in accordance with Section 18(b).

b. The covenants set forth in Sections 7, 8, and 11 of this Agreement shall continue to be binding upon the Executive notwithstanding the termination of his employment with the Company for any reason

whatsoever, and the covenants set forth in Sections 9 and 10 of this Agreement shall continue to be binding upon the Executive following the termination of his employment with the Company for any reason whatsoever for the period provided therein. Such covenants shall be deemed and construed as separate agreements independent of any other provisions of this Agreement and any other agreement between the Company and the Executive. The existence of any claim or cause of action by the Executive against the Company, unless predicated on this Agreement, shall not constitute a defense to the enforcement by the Company of any or all such covenants. It is expressly agreed that the remedy at law for the breach of any such covenant is inadequate and injunctive relief and specific performance shall be available without the necessity of posting bond or other security to prevent the breach, or any threatened breach, thereof.

c.For purposes of the provisions of Sections, 7, 8, 9, 10, and 11, any reference to the Company shall include the Company and any entity or entities that control, are controlled by or are under common control with the Company.

13. Termination of Employment. Any reference to the Executive’s “Separation from Service” or “Separate from Service” shall have the same meaning as provided in Treasury Regulation section 1.409A-1(h). The Executive’s employment with the Company may be terminated as follows:

a. Death of the Executive. The Executive’s employment hereunder will terminate upon his death, and the Executive’s beneficiary will be entitled to the following payments and benefits:

i. Any Base Salary that is accrued but unpaid and any business expenses that are unreimbursed, all as of the date of termination of employment;

ii. Any rights and benefits (if any) provided under plans and programs of the Company in which the Executive was participating immediately prior to his death, including without limitation, the LTIP (including any award agreements applicable to awards thereunder) and the BEEDP (collectively, the “Plans and Programs”), determined in accordance with the applicable terms and provisions of such Plans and Programs;

iii.Any prior year earned, but unpaid Bonus, which shall be paid in accordance with the terms and provisions of the applicable plan or program at the later of (A) the same time that payments for that fiscal year would be made to other participants, or (B) within sixty (60) days following the Executive’s death; and

iv. An amount equal to the pro-rated Bonus for the then-current fiscal year based on the actual achievement of the applicable performance goals for such fiscal year (without pro-ration of such performance goals) and as approved by the Compensation Committee, which Bonus shall be pro-rated based on the number of calendar days the Executive was employed during the fiscal year and paid at the later of (A) the same time payments for that fiscal year are made to other participants, or (B) within sixty (60) days following the date of the Executive’s death.

In the absence of a beneficiary designation by the Executive, or if the Executive’s designated beneficiary does not survive him, payments and benefits described in this subsection will be paid to the Executive’s estate. All payments due under Section 13(a)(i) shall be made within thirty (30) days after the date of the Executive’s death.

b. Disability. The Executive’s employment hereunder may be terminated by the Company in the event of his Disability upon not less than thirty (30) days prior written notice to the Executive. For purposes of this Agreement, “Disability” or “Disabled” means, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a

continuous period of not less than twelve (12) months, (i) the inability of the Executive to engage in any substantial gainful activity or (ii) the Executive receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering the Company’s employees. Unless otherwise required by law, the existence of a Disability shall be reasonably determined by the Company only upon receipt of a written medical opinion from a qualified physician selected by or reasonably acceptable to both the Company and Executive (“Designated Physician”). At the reasonable request of the Company, and as permitted by law, Executive will submit to a physical examination by the Designated Physician. During any period that the Executive fails to perform his duties hereunder as a result of a Disability (“Disability Period”), the Executive will continue to receive his Base Salary at the rate then in effect for such period commencing on the date the Executive is determined to be Disabled until his employment is terminated pursuant to this subsection; provided, however, that payments of Base Salary so made to the Executive will be reduced by the sum of the amounts, if any, that were payable to the Executive under any “bona fide disability benefit plan” as such term is defined in Treasury Regulation section 1.409A-1(a)(5), with any such offset being made in accordance with Treasury Regulation section 1.409A-3(i)(1)(ii). For purposes of clarification, Executive need not be Disabled for a period of twelve (12) months before the Company does in fact consider Executive to be Disabled pursuant to the definition provided herein, but subject in all instances to applicable law, including Code Section 409A. To the extent that a “disability benefit plan” elects not to pay Executive any sums (or the sums necessary to ensure Executive receives 100% of Base Salary), but Executive otherwise meets the definition of “Disabled” contained in this subsection, then the Company shall ensure that Executive continues to receive 100% of Base Salary until such time as Executive is no longer determined to be Disabled or Executive’s employment is terminated. In the event that the Company elects to terminate the Executive’s employment pursuant to this subsection, the Executive will be entitled to the following payments and benefits:

i. Any Base Salary that is accrued but unpaid and any business expenses that are unreimbursed, all as of the date of termination of employment;

ii. Any rights and benefits (if any) provided under Plans and Programs of the Company in which the Executive was participating immediately prior to the time he became Disabled, determined in accordance with the applicable terms and provisions of such Plans and Programs;

iii.Any prior year earned, but unpaid Bonus, which shall be paid in accordance with the terms and provisions of the applicable plan or program at the later of (A) the same time that payments for that fiscal year would be made to other participants, or (B) within sixty (60) days following the Executive’s Separation from Service; and

iv. An amount equal to the pro-rated Bonus for the then-current fiscal year based on the actual achievement of the applicable performance goals for such fiscal year (without pro-ration of such performance goals) and as approved by the Compensation Committee, which Bonus shall be pro-rated based on the number of calendar days the Executive was employed during the fiscal year and paid at the later of (A) the same time payments for that fiscal year are made to other participants, or (B) within sixty (60) days following the date of the Executive’s Separation from Service.

Any payments of Base Salary during the Disability Period shall be made in accordance with the payroll procedures described in Section 4(a)(i) of this Agreement. Any payments due under Section 13(b)(i) shall be made within thirty (30) days after the date of the Executive’s termination of employment.

c. Termination of Employment for Cause. The Company may terminate the Executive’s employment at any time for “Cause.” For purposes of this Agreement, the following shall constitute “Cause.”

i. The Executive is convicted of, or pleads no contest/nolo contendere to, any felony, crime involving moral turpitude or any other serious criminal offense;

ii. The Executive breaches in any material respect any provision of this Agreement (other than as related to Sections 7, 8, 9, 10, and 11, which is covered by Section 13(c)(iii) below and other than as related to any violation of the Company’s Code of Conduct or other Company policy which is covered by Section 13(c)(vi) below), or habitually neglects to perform his duties under this Agreement (other than for reasons related to Disability) and such breach or habitual neglect is not cured in the Board’s good faith belief within ten (10) business days after Executive’s receipt of written notice on behalf of the Board;

iii. The Executive breaches any provision of Section 7, 8, 9, 10, or 11, and such breach is not cured, to the extent curable, in the Board’s good faith belief within five (5) business days after Executive’s receipt of written notice on behalf of the Board;

iv. After conducting a thorough investigation in compliance with Company policy, the Company determines that the Executive has violated in any material respect any applicable local, state or federal law relating to discrimination or harassment; provided that the Executive shall be afforded an opportunity to respond to any allegations that are the subject of such investigation prior to the Company’s determination;

v. The Executive engages in any inappropriate relationship (romantic, sexual, or otherwise) with an employee, customer, or supplier of the Company, or misuses or abuses Company property and/or resources or engages in other conduct, even if not in conjunction with his duties hereunder, that in the Board’s good faith belief could reasonably be expected to bring material disrepute to the Company or adversely affect the Executive’s ability to perform his duties for the Company;

vi. The Company reasonably determines that the Executive has violated the Company’s Code of Conduct or any other Company policy adopted by the Board and applicable to senior executives of the Company; or

vii. The Executive acts, without Board direction or approval, in an intentionally reckless manner (but not mere unsatisfactory performance) that is materially injurious to the financial condition of the Company.

In the event that the Company terminates the Executive’s employment for Cause, the Executive will be entitled to no further payments or benefits hereunder other than the following:

A. Any Base Salary that is accrued but unpaid and any business expenses that are unreimbursed, all, as of the date of termination of employment; and

B. Any rights and benefits (if any) provided under Plans and Programs of the Company, determined in accordance with the applicable terms and provisions of such Plans and Programs.

All payments due under Section 13(c)(A) shall be made within thirty (30) days after the date of the Executive’s termination of employment.

d. Termination Without Cause. The Company may terminate the Executive’s employment for any reason upon fourteen (14) days prior written notice to the Executive. If the Executive’s employment is involuntarily terminated by the Company for any reason other than the reasons set forth in paragraphs (a),

(b) or (c) of this Section 13 during the Term, the Executive will be entitled to the following payments and benefits:

i. Any Base Salary that is accrued but unpaid and business expenses that are unreimbursed as of the date of termination of employment which payment shall be due within thirty (30) days after the date of the Executive’s termination of employment;

ii. Any rights and benefits (if any) provided under Plans and Programs of the Company in which the Executive was participating at the time of the termination of his employment, determined in accordance with the applicable terms and provisions of such Plans and Programs;

iii. Any prior year earned, but unpaid Bonus, which shall be paid in accordance with the terms and provisions of the applicable plan or program at the later of (A) the same time that payments for that fiscal year would be made to other participants, or (B) within sixty (60) days following the Executive’s Separation from Service;

iv. Continuation of the Executive’s Base Salary, as in effect on the date of his Separation from Service, for a period of twenty-four (24) months commencing within sixty (60) days following the date of his Separation from Service; provided, that these payments will be made in equal monthly payments over such twenty-four (24) month period, each installment payment provided for in this Section 13(d)(iv) is a separate “payment” within the meaning of Treasury Regulation section 1.409A-2(b)(2)(i) and that the payments are intended to satisfy, to the greatest extent possible, the exemptions from the application of Code Section 409A, including those provided under Treasury Regulation sections 1.409A-1(b)(4) (regarding short-term deferrals), 1.409A-1(b)(9)(iii) (regarding the two-times, two (2) year exception) and 1.409A-1(b)(9)(v) (regarding reimbursements and other separation pay);

v. An amount equal to the pro-rated Bonus for the then-current fiscal year based on the actual achievement of the applicable performance goals for such fiscal year (without pro-ration of such performance goals) and as approved by the Compensation Committee, which shall be pro-rated based on the number of calendar days the Executive was employed during the fiscal year and paid at the later of (A) the same time payments for that fiscal year are made to other participants or (B) within sixty (60) days following the date of the Executive’s Separation from Service;

vi.A lump sum amount, payable by the Company concurrent with the payment provided in Section 13(d)(i) hereunder, equal to the Company’s estimated obligation (as determined by the Company in the reasonable exercise of its discretion) for the cost of premiums, and related administrative fees, for group health (medical, dental and/or vision) continuation coverage for the Executive and the Executive’s eligible dependents, for the same level of benefits as in effect immediately prior to the Executive’s termination of employment and for a period equal to eighteen (18) months. Notwithstanding the foregoing, if the Company’s payment pursuant to the foregoing sentence would violate the nondiscrimination rules applicable to non-grandfathered plans, or result in the imposition of penalties under, the Patient Protection and Affordable Care Act of 2010 (“PPACA”) and related regulations and guidance promulgated thereunder, the parties agree to reform such sentence in such manner as is necessary to comply with PPACA; and

vii.The payment by the Company for all Company-sponsored life insurance programs in which the Executive was participating or covered immediately before termination for eighteen (18) months following the date of his Separation from Service; or alternately and as determined in the reasonable exercise of the Company’s discretion, the equivalent monetary value of the cumulative premiums for such coverage (payable by the Company concurrent with the payment provided in Section 13(d)(i) hereunder), but in no

event shall the Company be required to expend more than $25,000 to provide the life insurance benefit or alternative contemplated pursuant to this subsection.

e. Voluntary Termination by the Executive. The Executive may resign and terminate his employment with the Company for any reason whatsoever (other than for Good Reason pursuant to Section 13(f)) upon not less than sixty (60) days prior written notice to the Company. In the event that the Executive so terminates his employment pursuant to this Section 13(e) on or prior to October 29, 2019, the Executive will be entitled to the following payments and benefits:

i. Any Base Salary that is accrued but unpaid and any business expenses that are unreimbursed, all, as of the date of termination of employment; and

ii. Any rights and benefits (if any) provided under Plans and Programs of the Company in which the Executive was participating at the time of the termination of his employment (whether by reason of retirement or otherwise), determined in accordance with the applicable terms and provisions of such Plans and Programs.

All payments due under Section 13(e)(i) shall be made within thirty (30) days after the date of the Executive’s termination of employment.

In the event that the Executive so terminates his employment pursuant to this Section 13(e) afterOctober 29, 2019and on or prior to April 29, 2022, the Executive will be entitled to receive the payments set forth in Section 13(d) hereof.

f. Good Reason Termination. The Executive may resign and terminate his employment with the Company for “Good Reason.” The Executive shall have “Good Reason” to effect a termination of his employment if without his consent the Company (i) materially reduces the Executive’s Base Salary or Bonus or LTIP opportunity, except for a reduction that applies to executive officers generally (and does not apply disproportionately to the Executive), (ii) requires the Executive to relocate more than 50 miles from the greater Columbus, Ohio area, (iii) a material adverse change in Executive’s title, position, duties, or responsibilities; (iv) a material reduction in the aggregate health and welfare benefits provided to Executive under the Company’s welfare benefit plans, except for a reduction that applies to executive officers generally (and does not apply disproportionately to the Executive); or (vi) a material breach by the Company of the terms of this Agreement; all provided the Executive (A) has given written notice to the Board as to the details of the basis for such Good Reason within thirty (30) days following the date on which the Executive alleges the condition giving rise to such Good Reason initially occurs and the Company has failed to provide a reasonable cure within thirty (30) days after its receipt of such notice and (B) terminates his employment within ninety (90) days of the time in which the condition giving rise to such Good Reason initially occurs.

In the event that the Executive terminates his employment for Good Reason pursuant to this Section 13(f), the Executive will be entitled to the payments and benefits described in Section 13(d).

g. Benefit Plans/Offset. In the event of any termination of the Executive’s employment, whether by the Executive or the Company and for any reason, participation by the Executive in all compensation and benefit plans of the Company will cease upon the effective termination date and all unvested bonuses, equity awards and other like items will immediately lapse, except as otherwise provided in applicable Company plans or hereunder and subject to the terms and limitation thereof. In the event of the Executive’s termination of employment, all amounts owed by the Executive to the Company for any reasons whatsoever will become immediately due and payable. The Company will have the right, in its discretion, to collect any or all such amounts by offset against any amounts due to the Executive from the Company whether or not under this

Agreement; provided that such offset complies with the requirements of Code Section 409A. Notwithstanding the foregoing, any such offset that would have the effect (directly or indirectly) of accelerating amounts due to the Executive under this Agreement that are subject to Code Section 409A must meet the following requirements: (i) such offset must relate to a debt that was incurred in the ordinary course of the service relationship between the Company and the Executive; (ii) the entire amount of reduction in any of the Executive’s taxable years may not exceed $5,000; and (iii) the offset must be made at the same time and in the same amount as the debt otherwise would have been due and collected from the Executive, all in accordance with Treasury Regulation section 1.409A-3(j)(4)(xiii). In addition, except as specifically provided for herein, the payments provided for in Section 13 of this Agreement are in lieu of and supersede any severance or termination benefits to which the Executive might otherwise be entitled, and there will be no duplication of payments or benefits made under this Agreement and any other agreement with, or plan, policy, or program maintained by, the Company.

h. Certain Delays in Payment if the Executive is a Specified Employee. Notwithstanding anything in this Agreement to the contrary, if the Executive is a “specified employee” (within the meaning of Treasury Regulation section 1.409A-1(i) and as determined under the Company’s policy for determining specified employees) on the date of his Separation from Service and the Executive is entitled to a payment and/or a benefit under this Agreement that is required to be delayed pursuant to Code Section 409A(a)(2)(B)(i), then such payment or benefit, as the case may be, shall not be paid or provided for (or begin to be paid or provided for) until the first business day of the seventh month following the date of the Executive’s Separation from Service (or, if earlier, the date of the Executive’s death). The first payment that can be made to the Executive following such postponement period shall include the cumulative amount of any payments or benefits that could not be paid or provided for during such postponement period due to the application of Code Section 409A(a)(2)(B)(i).

i. Conditions to Payment and Benefits. Except as required under applicable law, the obligation of the Company to make payments (other than Base Salary earned by the Executive prior to his separation from employment and payment for any unreimbursed business expenses) and to provide other benefits to the Executive after his termination of employment under Section 13 is expressly conditioned on (i) the Executive’s timely execution, without revocation, of a release of claims in a form reasonably satisfactory to the Company prior to the first date that payment is to begin and (ii) the Executive’s continued full performance of his obligations under Sections 7, 8, 9, 10, 11, and 12 to the extent that such sections survive the Executive’s termination of employment as provided thereunder. With respect to any payments or other benefits payable to the Executive after his termination of employment that are subject to Code Section 409A, to the extent that the period during which the Executive may execute, without revocation, a release of claims as set forth in this Section 13(i) begins in one taxable year of the Executive and ends in a second taxable year of the Executive, such payments or benefits shall not commence, be paid or provided until the second taxable year of the Executive, regardless of when the Executive executes the release.

14. Termination and Change in Control Agreement. The Executive is a participant in the Company’s Change in Control and Severance Plan dated November 2015(the “Change in Control Plan”). If an event or a series of related events entitle the Executive to payments under both this Agreement and the Change in Control Plan, the Executive will be entitled to the payments due under whichever of the Change in Control Plan or this Agreement provides for the greatest amount, and shall not be entitled to the payments otherwise provided under whichever of the Change in Control Plan or this Agreement provides for the least amount. Without limiting the generality of the foregoing, the provisions of Section 13(d) and 13(f) are expressly not intended to supersede this Section 14, and to the extent of any conflict, the terms of this Section 14 shall control. Any coordination of benefits under this Section 14 shall be made strictly in accordance with Code Section 409A, including the preservation of the time and form of payment provisions regarding

the payment of any amounts which provide for a “deferral of compensation” within the meaning of Code Section 409A under each respective arrangement.

15.Arbitration of Disputes. Except for disputes and claims arising out of or relating to Sections 7 through 12, disputes or controversies arising out of or relating to this Agreement, including the basis on which the Executive is terminated, will be resolved by arbitration in accordance with the rules of the American Arbitration Association. The award of the arbitrator will be final, conclusive and non-appealable and judgment upon the award rendered by the arbitrator may be entered in any court having competent jurisdiction. The arbitrator must be an arbitrator qualified to serve in accordance with the rules of the American Arbitration Association and one who is approved by the Company and the Executive. If the Executive and the Company fail to agree on an arbitrator, each must designate a person qualified to serve as an arbitrator in accordance with the rules of the American Arbitration Association and these persons will select the arbitrator from among those persons qualified to serve in accordance with the rules of the American Arbitration Association. Any arbitration relating to this Agreement will be held in Columbus, Ohio. With the exception of the Company agreeing to pay (or reimburse the Executive) for the arbitration filing fees and the fees paid to the Arbitrator, the Company and the Executive will each bear its/his own fees and expenses incurred in connection with the arbitration proceedings, including attorney’s fees, unless otherwise awarded by the arbitrator[s]. To the extent that the reimbursement of fees during the term of Executive’s employment under this Agreement (including any reimbursements under this Section 15) or thereafter provides for a “deferral of compensation” within the meaning of Code Section 409A, then such amount shall be reimbursed in accordance with Treasury Regulation section 1.409A-3(i)(1)(iv), including (i) the amount eligible for reimbursement or payment under such plan or arrangement in one calendar year may not affect the amount eligible for reimbursement or payment in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), (ii) subject to any shorter time periods provided herein or the applicable plans or arrangements, any reimbursement or payment of an expense under such plan or arrangement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and (iii) the right to any reimbursement or in-kind benefit is not subject to liquidation or exchange for another benefit.

16. Representation and Warranty. The Executive represents and warrants to the Company that no existing covenant, restriction, or other obligation restricts or limits in any way the Executive’s ability to enter into this Agreement and to perform his duties hereunder.

17. Notices. Any notices to be given hereunder by either party to the other may be effected and shall be deemed to have been given when delivered personally in writing or by mail, registered or certified, postage prepaid, with return receipt requested. Mailed notices shall be addressed as follows:

a. If to the Company:

Bob Evans Farms, Inc.

8111 Smiths Mill Road

New Albany, Ohio 43054

Attn: General Counsel - Legal Department

b. If to the Executive, to the address on file with the Company.

Either party may change its address for notice by giving notice in accordance with the terms of this Section 17.

18. General Provisions.

a. Law Governing. This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio.

b.Invalid Provisions. If any provision of this Agreement is held to be illegal, invalid, or unenforceable, then such provision shall be fully severable and this Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part hereof, and the remaining provisions hereof shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance herefrom. Furthermore, in lieu of such illegal, invalid, or unenforceable provision, there shall be added automatically as a part of this Agreement a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and still be legal, valid or enforceable.

c. Entire Agreement. This Agreement, the Recoupment Policy, the Change in Control Plan and any governing award agreements, grant notices, and plan documents referenced herein together set forth the entire understanding of the parties and supersede all prior agreements or understandings, whether written or oral, with respect to the subject matter hereof. No terms, conditions or warranties, other than those contained herein, and no amendments or modifications hereto shall be binding unless made in writing and signed by the parties hereto.

d. Binding Effect. This Agreement shall extend to and be binding upon and inure to the benefit of the parties hereto, their respective heirs, representatives, successors and assigns. This Agreement may not be assigned by the Executive, but may be assigned by the Company to any person or entity that succeeds to the ownership or operation of the business in which the Executive is primarily employed by the Company.

e. Waiver. The waiver by either party hereto of a breach of any term or provision of this Agreement shall not operate or be construed as a waiver of a subsequent breach of the same provision by any party or of the breach of any other term or provision of this Agreement.

f. Headings. Headings of the sections herein are used solely for convenience and shall not be used for interpretation or construing any word, clause, paragraph, or provision of this Agreement.

g. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument. Confirmation of execution by electronic transmission of a signature (whether by facsimile or email) shall be binding upon the party so confirming. A faxed or emailed copy of a signed Agreement will be deemed to be the same as an original.

h. Taxes. Anything in this Agreement to the contrary notwithstanding, all payments required to be made hereunder by the Company to the Executive shall be subject to withholding of such amounts relating to taxes as the Company may reasonably determine that it should withhold pursuant to any applicable law or regulations. In lieu of withholding such amounts, in whole or in part, however, the Company may, in its discretion, accept other provision for payment of taxes, provided that it is satisfied that all requirements of the law affecting its responsibilities to withhold such taxes have been satisfied.

i. Section 409A. This Agreement shall be interpreted and administered in compliance with Code Section 409A, to the extent applicable. By accepting this Agreement, Executive hereby agrees and acknowledges that the Company does not make any representations with respect to the application of Code Section 409A to any tax, economic or legal consequences of any payments payable to Executive hereunder. Further, by the acceptance of this Agreement, Executive acknowledges that (i) Executive has obtained independent tax advice regarding the application of Code Section 409A to the payments due to Executive

hereunder, (ii) Executive retains full responsibility for the potential application of Code Section 409A to the tax and legal consequences of payments payable to Executive hereunder and (iii) the Company shall not indemnify or otherwise compensate Executive for any violation of Code Section 409A that may occur in connection with this Agreement. The parties agree to cooperate in good faith to amend such documents and to take such actions as may be necessary or appropriate to comply with Code Section 409A.

j. Coordination with Code Sections 280G and 4999.

i.Anything in this Agreement to the contrary notwithstanding and except as set forth below, in the event it shall be determined that any payment, benefit, vesting or distribution to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (a “Payment”) would but for this Section 18(j) be subject to the excise tax imposed by §4999 of the Code, or any comparable successor provisions (the “Excise Tax”), then the Payments shall be either (i) provided to Executive in full, or (ii) provided to Executive as to such lesser extent which would result in no portion of such Payments being subject to the Excise Tax, whichever of the foregoing amounts, when taking into account applicable income and employment taxes, the Excise Tax, and any other applicable taxes, results in the receipt by Executive on an after-tax basis, of the greatest amount of Payments, notwithstanding that all or some portion of such Payments may be subject to the Excise Tax. Any determination required under this Section 18(j) shall be made in writing in good faith by the Company's independent certified public accountants, appointed prior to any change in ownership (as defined under Code §280G(b)(2), and/or tax counsel selected by such accountants (the “Accounting Firm”) in accordance with the principles of §280G of the Code. In the event of a reduction of Payments hereunder, the Payments shall be reduced as follows: (i) first from cash payments which are included in full as parachute payments, (ii) second from equity awards which are included in full as parachute payments, (iii) third from cash payments which are partially included as parachute payments, and (iv) fourth from equity awards that are partially included as parachute payments. In applying these principles, any reduction or elimination of the Payments shall be made in a manner consistent with the requirements of Code Section 409A and where two economically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro rata basis but not below zero. For purposes of making the calculations required by this Section 18(j), the Accounting Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of the Code, and other applicable legal authority. The Company and Executive shall furnish to the Accounting Firm such information and documents as the Accounting Firm may reasonably request in order to make a determination under this Section 18(j). All fees and expenses of the Accounting Firm shall be borne solely by the Company.

ii.If, notwithstanding any reduction described in this Section 18(j), the Internal Revenue Service (the “IRS”) determines that Executive is liable for the Excise Tax as a result of the receipt of the Payments as described above, then Executive shall be obligated to pay back to the Company, within thirty (30) days after a final IRS determination or in the event that Executive challenges the final IRS determination, a final judicial determination, a portion of the Payments equal to the “Repayment Amount.” The Repayment Amount with respect to the Payments shall be the smallest such amount, if any, as shall be required to be paid to the Company so that Executive's net after-tax proceeds with respect to the Payments (after taking into account the payment of the Excise Tax and all other applicable taxes imposed on such payment) shall be maximized. The Repayment Amount with respect to the Payments shall be zero if a Repayment Amount of more than zero would not result in Executive's net after-tax proceeds with respect to the Payments being maximized. If the Excise Tax is not eliminated pursuant to this paragraph, Executive shall pay the Excise Tax.

iii.Notwithstanding any other provision of this Section 18(j), if (i) there is a reduction in the Payments as described in this Section 18(j), (ii) the IRS later determines that Executive is liable for the

Excise Tax, the payment of which would result in the maximization of Executive's net after-tax proceeds (calculated as if Executive's Payments had not previously been reduced), and (iii) Executive pays the Excise Tax, then the Company shall pay to Executive those Payments which were reduced pursuant to this subsection as soon as administratively possible after Executive pays the Excise Tax so that Executive's net after-tax proceeds with respect to the Payments are maximized.

For the avoidance of doubt, Executive acknowledges he is solely responsible for the payment of any Excise Tax and that the Company will not reimburse or otherwise indemnify him for such amount. Any reimbursements or repayments provided under this subsection shall be made strictly in accordance with Section 409A of the Code, including Treasury Regulation 1.409A-3(i)(1)(v).

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IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the date and year first above written.

THIS AGREEMENT CONTAINS AN ARBITRATION CLAUSE.

EXECUTIVE:

Mark E. Hood

BOB EVANS FARMS, INC.

By:

Paul S. Williams

Chairman, Compensation Committee

of the Board of Directors

EX-10.14

EXHIBIT 10.14

EMPLOYMENT AGREEMENT

This Employment Agreement (“Agreement”) is entered into as of April 29, 2017 by and between Bob Evans Farms, Inc., a Delaware corporation (the “Company”), and Colin M. Daly (the “Executive”).

WHEREAS, the Company desires to retain the Executive to serve as the Company’sExecutive Vice President, General Counsel and Corporate Secretary, and the Executive desires to serve and be so employed by the Company; and

WHEREAS, the Company and the Executive wish to establish the terms of the Executive’s employment with the Company, the financial obligations of the Company to the Executive and to specify certain rights, responsibilities and duties of the Executive.

NOW, THEREFORE, in consideration of the premises and the mutual terms and conditions hereof, and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Employment. Subject to the terms and conditions of this Agreement, the Company hereby employs the Executive as the Company’s Executive Vice President, General Counsel and Corporate Secretary upon the terms and conditions hereinafter set forth.

2. Duties; Exclusive Services. During the Term and subject to the terms and conditions of this Agreement, the Executive shall (a) serve as, and have the title of, the Company’s Executive Vice President, General Counsel and Corporate Secretary (b) report to the Chief Executive Officer and perform such duties and responsibilities as may be prescribed from time to time by the Chief Executive Officer, which shall be generally consistent with the duties and responsibilities of similarly situated executives of companies in similar lines of business, (c) perform and discharge faithfully, diligently and to the best of his ability such duties and responsibilities and devote his full time and efforts to the business and affairs of the Company, (d) comply with and abide by all terms and conditions set forth in this Agreement, all applicable work policies, procedures and rules as may be issued from time to time by the Company and all federal, state and local statutes, regulatory and public ordinances governing the performance of his duties hereunder, and (e) in addition to the obligations described in Section 9, not engage in any other business activity, whether or not for gain, profit or other pecuniary advantage, that in the reasonable judgment of the Board could interfere with the performance of Executive’s obligations under this Agreement. Notwithstanding the foregoing, it shall not be a violation of this Agreement for Executive to (A) devote reasonable periods of time to charitable and community activities and industry or professional activities (including, without limitation, serving on the board of directors of not-for-profit entities) or (B) manage personal business interests and investments, so long as such activities in (A) and (B) do not interfere with the performance of Executive’s obligations under this Agreement. Except as set forth in the foregoing sentence, Executive may not, without the prior approval of the Board (or applicable committee thereof), serve on the board of directors (or other governing body) of any other for-profit corporation or entity.

3. Term. Subject to earlier termination as hereinafter provided, this Agreement shall commence on April 29, 2017 (the “Effective Date”) and shall continue through the fifth (5^th) anniversary of the Effective Date (the “Initial Term”) and shall automatically renew for successive one-year periods (each, a “Renewal Term”) upon all terms, conditions and obligations set forth herein unless either party shall provide written notice to the other not less than ninety (90) days prior to the expiration of the Initial Term or any Renewal Term. For purposes hereof, the Initial Term, together with any Renewal Term, are hereinafter referred to as

the “Term.” In the event for any reason the Executive does not commence employment on or before the Effective Date, this Agreement shall be deemed void and of no force or effect.

4. Compensation.

a. Subject to the terms and conditions of this Agreement, during the Term and as compensation for his services rendered under this Agreement, the Executive shall be entitled to receive the following:

i. Base Salary. The Executive’s initial annual base salary is Three Hundred Twenty-Five Thousand Dollars ($325,000). Such amount may be increased from time to time in the sole discretion of the Compensation Committee of the Board (such amount, as may be so increased, is hereafter referred to as the “Base Salary”), and shall be payable in 26 equal bi-weekly installments or, if different, the Company’s regular payroll schedule, prorated for any partial employment month.

ii. Annual Cash Bonus. The Executive shall be eligible for an annual cash bonus opportunity (“Bonus”) as may be determined and authorized in the sole discretion of the Compensation Committee based upon performance goals that the Compensation Committee establishes in good faith. Some or all of the Bonus may, in the sole discretion of the Compensation Committee, be subject to performance goals designed to comply with the performance-based compensation exception under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), or any successor rule or regulation. The Executive’s target Bonus opportunity shall be determined by the Compensation Committee in its sole discretion on an annual basis, except that the Executive’s target Bonus opportunity for any given year during the Term will not be less than 60% of his Base Salary.

iii. Long Term Incentive Plan. As may be determined and authorized from time to time in the sole discretion of the Compensation Committee, and subject to the terms and conditions of any equity compensation plans and award agreements governing the grant of equity awards, the Executive shall be eligible to participate annually during the Term in the Company’s Long Term Incentive Plan or successor program (including, without limitation, the Bob Evans Farms, Inc. Amended and Restated 2010 Equity and Cash Incentive Plan, collectively, the “LTIP”), with a targeted equity award based upon a percentage of the Executive’s Base Salary, but set initially at 50%. Any equity grants made pursuant to the LTIP shall be dependent upon the achievement of performance goals, and the vesting and other terms and conditions of such equity grants shall be determined by the Compensation Committee in its sole discretion.

b.Recoupment Policy. Notwithstanding any other provision of this Agreement to the contrary, the Executive is subject to the Bob Evans Farms, Inc. Executive Compensation Recoupment Policy, as amended from time to time (the “Recoupment Policy”). In the event of any conflict between this Agreement and the terms of the Recoupment Policy, the terms of the Recoupment Policy shall control.

5. Benefits. In addition to the compensation to be paid to the Executive pursuant to Section 4 hereof, the Executive shall be entitled to receive the following benefits, subject to the Company continuing to sponsor and maintain such benefits for its senior executive officers and subject to any modification or amendment to the plans or policies governing such benefits:

a. Participation in Employee Plans. In addition to the plans described in this Agreement, the Executive shall be entitled to participate in any health, disability, or group life insurance plan; any pension, retirement, or profit sharing plan; and any other perquisites and fringe benefits, in which the Executive is eligible to participate and which may be generally made available from time to time to the Company’s senior executive officers, in accordance with the terms of such plans or arrangements.

b. Paid Time Off. The Executive shall be entitled to twenty-three days of paid time off with full salary and benefits each fiscal year. Under current policy (which may be changed at the discretion of the Company), no cash or other payment will be due, however, for unused paid time off and paid time off may not be carried over from any fiscal year to the next.

6. Reimbursement of Expenses. Subject to such rules and procedures as from time to time are specified by the Company and in accordance with the Company’s expense reimbursement policy (which may be changed at the discretion of the Company), the Company shall reimburse the Executive for reasonable business expenses necessarily incurred in the performance of his duties under this Agreement. To the extent that any expenses, reimbursement, fringe benefit or other, similar plan or arrangement in which Executive participates during the Term (including any reimbursements under this Section 6) or thereafter provides for a “deferral of compensation” within the meaning of Code Section 409A, then such amount shall be reimbursed in accordance with Treasury Regulation section 1.409A-3(i)(1)(iv), including (i) the amount eligible for reimbursement or payment under such plan or arrangement in one calendar year may not affect the amount eligible for reimbursement or payment in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), (ii) subject to any shorter time periods provided herein or the applicable plans or arrangements, any reimbursement or payment of an expense under such plan or arrangement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and (iii) the right to any reimbursement or in-kind benefit is not subject to liquidation or exchange for another benefit.

7. Confidentiality/Trade Secrets. The Executive acknowledges that his position with the Company is one of the highest trust and confidence both by reason of his position and by reason of his access to and contact with the trade secrets and confidential and proprietary business information of the Company. Both during the Term of this Agreement and thereafter, the Executive covenants and agrees as follows:

a. He shall use his best efforts and exercise reasonable diligence to protect and safeguard the trade secrets and confidential and proprietary information of the Company, including but not limited to financial information, the identity of its customers and suppliers, its arrangements with customers and suppliers, and its technical and financial data, records, compilations of information, processes, recipes and specifications relating to its customers, suppliers, products and services;

b. He shall not disclose any of such trade secrets and confidential and proprietary information, except as may be required in the course of his employment with the Company or by law; and

c. He shall not use, directly or indirectly, for his own benefit or for the benefit of another, any of such trade secrets and confidential and proprietary information.

All files, records, documents, drawings, specifications, memoranda, notes, or other documents relating to the business of the Company, in whatever form, format or medium, whether prepared by the Executive or otherwise coming into his possession, shall be the exclusive property of the Company and shall be delivered to the Company and not retained by the Executive upon termination of his employment for any reason whatsoever or at any other time upon request of the Board, or, at the option of the Company, he may destroy all such material and certify such destruction in writing to the Company within ten (10) days following the termination of his employment or such request by the Company.

8. Discoveries. The Executive covenants and agrees that he will fully inform the Company of and disclose to the Company all inventions, designs, improvements, discoveries, and processes (“Discoveries”) that he has now or may hereafter have during his employment with the Company and that pertain or relate to the business of the Company or to any experimental work, products, services, or processes

of the Company in progress or planned for the future, whether conceived by the Executive alone or with others, and whether or not conceived during regular working hours or in conjunction with the use of any Company assets. All such Discoveries shall be the exclusive property of the Company whether or not patent or trademark applications are filed thereon. The Executive shall provide reasonable assistance to the Company, at any time during or after his employment, in obtaining patents and other intellectual property protection on all such Discoveries deemed patentable or otherwise protectable by the Company and shall execute all documents and do all things reasonably requested by the Company to obtain letters patent, vest the Company with full and exclusive title thereto, and protect the same against infringement by others, all at the expense of the Company.

9. Non-Competition.

a. The Executive covenants and agrees that he shall not, directly or indirectly, as an employee, employer, consultant, agent, principal, partner, shareholder, officer, director, member, manager or through any other kind of ownership (other than ownership of securities of publicly held corporations of which the Executive owns less than three percent (3%) of any class of outstanding securities), membership, affiliation, association, or in any other representative or individual capacity, engage in or render, or agree to engage in or render, any services to (i) any Competing Restaurant Business for a period of two (2) years following the date hereof or (ii) any Competing Foods Business during the period of his employment with the Company and for a period of two (2) years following the effective date of the termination of the Executive’s employment for any reason.

b.For purposes of this Agreement:

i.“Competing Restaurant Business” shall mean any business in North America that is engaged in the Family Dining Segment (as hereinafter defined) of the restaurant industry or any other sector of the restaurant industry in which the Company was, or had taken substantial steps toward being, actively engaged as of April 28, 2017.

ii.“Competing Foods Business” shall mean any business in North America that: (a) produces and distributes food products to the extent the Company is actively engaged in, or has taken substantial steps towards being actively engaged in, producing and distributing the same or similar food products at the time of Executive’s termination of employment; (b) offers products that compete with the products offered by the Company, or with products as to which the Company has taken substantial steps toward launching, during the Executive’s employment with the Company; or (c) is engaged in a line of business that competes with any line of business in which the Company is operating, or as to which the Company has taken substantial steps toward beginning to operate, at the time of Executive’s termination of employment.

iii.“Family Dining Segment” shall mean the segment of the restaurant industry in which Bob Evans Restaurants is categorized, and shall include, without limitation and by way of example, the following restaurant concepts together with such other concepts as are commonly understood within the restaurant industry to be included within the “family dining” segment: Baker’s Square, Frisch’s Big Boy, Cracker Barrel Old Country Store, Denny’s, First Watch, Friendly’s, HomeTown Buffet, Golden Corral, Huddle House, IHOP, Marie Callender’s, Old Country Buffet, Perkins, Ponderosa, Ryan’s, Shoney’s, Skyline Chili, Sonny’s BBQ, Village Inn, Waffle House and Western Sizzlin. The Family Dining Segment shall expressly exclude restaurants in other segments of the restaurant industry including the “casual dining” segment, which would include, without limitation, restaurant concepts such as Applebee’s, Chili’s, Longhorn Steakhouse, Olive Garden,

Ruby Tuesday’s and O’Charley’s together with such other concepts as are commonly understood within the restaurant industry to be included within the “casual dining” segment.

10. Non-Solicitation. The Executive agrees that for a period of two (2) years following the date hereof, he will not, either directly or indirectly, for himself or for any third party, employ or hire any other person who is then employed by Bob Evans Restaurants, LLC (“BER”), or solicit, induce, recruit, or cause any other person who is then employed by BER to terminate his/her employment for the purpose of joining, associating, or becoming employed with any other business or activity or to violate any confidentiality, non-competition or employment agreement that such person may have with BER or any policy of BER. The Executive further agrees that during the period of his employment, and for a period of two (2) years following the effective date of the termination of the Executive’s employment for any reason, he will not, either directly or indirectly, for himself or for any third party, employ or hire any other person who is then employed by the Company, or solicit, induce, recruit, or cause any other person who is then employed by the Company to terminate his/her employment for the purpose of joining, associating, or becoming employed with any other business or activity or to violate any confidentiality, non-competition or employment agreement that such person may have with the Company or any policy of the Company.

11. Cooperation.

a. The Executive agrees that both during the Term of this Agreement and thereafter, he will make himself available at reasonable times, intervals and places for interviews, consultations, internal investigations and/or testimony during which he will provide to the Company, or its designated attorneys or agents, any and all information known to him regarding or relating to the Company or his activities on behalf of the Company pertaining to the subject matter on which his cooperation is sought.

The Executive further agrees that if he is ever subpoenaed or otherwise required by law to provide any statement or other assistance to a party to a dispute or litigation with the Company, other than the Company, then he will provide written notice of the circumstances requiring such statement or other assistance, including where applicable a copy of the subpoena or other legal writ, in such a manner and at such a time that allows the Company to timely respond. Nothing herein shall prevent the Executive from cooperating with co-defendants in litigation or with inquiry in a government investigation without a need to obtain prior consent or approval from the Company; however, the Executive shall provide prompt notice of any voluntary giving of oral or written statements to such parties, and provide to the Company a copy of any written statement so given or a summary of any oral statement provided.

b. Both during the Term of this Agreement and thereafter, the Executive covenants and agrees that he will not disparage the Company.

12. Remedies for Breach of Covenants of the Executive.

a. The Company and the Executive specifically acknowledge and agree that the foregoing covenants of the Executive in Sections 7, 8, 9, 10, and 11 are reasonable in content and scope and are given by the Executive for adequate consideration and that the violation of any provision of such sections will cause irreparable harm to the Company. The Company and the Executive further acknowledge and agree that if any court of competent jurisdiction or other appropriate authority disagrees with the parties’ foregoing agreement as to reasonableness, then such court or other authority shall reform or otherwise amend the foregoing covenants to the extent permitted by law and in accordance with Section 18(b).

b. The covenants set forth in Sections 7, 8, and 11 of this Agreement shall continue to be binding upon the Executive notwithstanding the termination of his employment with the Company for any reason

whatsoever, and the covenants set forth in Sections 9 and 10 of this Agreement shall continue to be binding upon the Executive following the termination of his employment with the Company for any reason whatsoever for the period provided therein. Such covenants shall be deemed and construed as separate agreements independent of any other provisions of this Agreement and any other agreement between the Company and the Executive. The existence of any claim or cause of action by the Executive against the Company, unless predicated on this Agreement, shall not constitute a defense to the enforcement by the Company of any or all such covenants. It is expressly agreed that the remedy at law for the breach of any such covenant is inadequate and injunctive relief and specific performance shall be available without the necessity of posting bond or other security to prevent the breach, or any threatened breach, thereof.

c.For purposes of the provisions of Sections, 7, 8, 9, 10, and 11, any reference to the Company shall include the Company and any entity or entities that control, are controlled by or are under common control with the Company.

13. Termination of Employment. Any reference to the Executive’s “Separation from Service” or “Separate from Service” shall have the same meaning as provided in Treasury Regulation section 1.409A-1(h). The Executive’s employment with the Company may be terminated as follows:

a. Death of the Executive. The Executive’s employment hereunder will terminate upon his death, and the Executive’s beneficiary will be entitled to the following payments and benefits:

i. Any Base Salary that is accrued but unpaid and any business expenses that are unreimbursed, all as of the date of termination of employment;

ii. Any rights and benefits (if any) provided under plans and programs of the Company in which the Executive was participating immediately prior to his death, including without limitation, the LTIP (including any award agreements applicable to awards thereunder) and the BEEDP (collectively, the “Plans and Programs”), determined in accordance with the applicable terms and provisions of such Plans and Programs;

iii.Any prior year earned, but unpaid Bonus, which shall be paid in accordance with the terms and provisions of the applicable plan or program at the later of (A) the same time that payments for that fiscal year would be made to other participants, or (B) within sixty (60) days following the Executive’s death; and

iv. An amount equal to the pro-rated Bonus for the then-current fiscal year based on the actual achievement of the applicable performance goals for such fiscal year (without pro-ration of such performance goals) and as approved by the Compensation Committee, which Bonus shall be pro-rated based on the number of calendar days the Executive was employed during the fiscal year and paid at the later of (A) the same time payments for that fiscal year are made to other participants, or (B) within sixty (60) days following the date of the Executive’s death.

In the absence of a beneficiary designation by the Executive, or if the Executive’s designated beneficiary does not survive him, payments and benefits described in this subsection will be paid to the Executive’s estate. All payments due under Section 13(a)(i) shall be made within thirty (30) days after the date of the Executive’s death.

b. Disability. The Executive’s employment hereunder may be terminated by the Company in the event of his Disability upon not less than thirty (30) days prior written notice to the Executive. For purposes of this Agreement, “Disability” or “Disabled” means, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a

continuous period of not less than twelve (12) months, (i) the inability of the Executive to engage in any substantial gainful activity or (ii) the Executive receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering the Company’s employees. Unless otherwise required by law, the existence of a Disability shall be reasonably determined by the Company only upon receipt of a written medical opinion from a qualified physician selected by or reasonably acceptable to both the Company and Executive (“Designated Physician”). At the reasonable request of the Company, and as permitted by law, Executive will submit to a physical examination by the Designated Physician. During any period that the Executive fails to perform his duties hereunder as a result of a Disability (“Disability Period”), the Executive will continue to receive his Base Salary at the rate then in effect for such period commencing on the date the Executive is determined to be Disabled until his employment is terminated pursuant to this subsection; provided, however, that payments of Base Salary so made to the Executive will be reduced by the sum of the amounts, if any, that were payable to the Executive under any “bona fide disability benefit plan” as such term is defined in Treasury Regulation section 1.409A-1(a)(5), with any such offset being made in accordance with Treasury Regulation section 1.409A-3(i)(1)(ii). For purposes of clarification, Executive need not be Disabled for a period of twelve (12) months before the Company does in fact consider Executive to be Disabled pursuant to the definition provided herein, but subject in all instances to applicable law, including Code Section 409A. To the extent that a “disability benefit plan” elects not to pay Executive any sums (or the sums necessary to ensure Executive receives 100% of Base Salary), but Executive otherwise meets the definition of “Disabled” contained in this subsection, then the Company shall ensure that Executive continues to receive 100% of Base Salary until such time as Executive is no longer determined to be Disabled or Executive’s employment is terminated. In the event that the Company elects to terminate the Executive’s employment pursuant to this subsection, the Executive will be entitled to the following payments and benefits:

i. Any Base Salary that is accrued but unpaid and any business expenses that are unreimbursed, all as of the date of termination of employment;

ii. Any rights and benefits (if any) provided under Plans and Programs of the Company in which the Executive was participating immediately prior to the time he became Disabled, determined in accordance with the applicable terms and provisions of such Plans and Programs;

iii.Any prior year earned, but unpaid Bonus, which shall be paid in accordance with the terms and provisions of the applicable plan or program at the later of (A) the same time that payments for that fiscal year would be made to other participants, or (B) within sixty (60) days following the Executive’s Separation from Service; and

iv. An amount equal to the pro-rated Bonus for the then-current fiscal year based on the actual achievement of the applicable performance goals for such fiscal year (without pro-ration of such performance goals) and as approved by the Compensation Committee, which Bonus shall be pro-rated based on the number of calendar days the Executive was employed during the fiscal year and paid at the later of (A) the same time payments for that fiscal year are made to other participants, or (B) within sixty (60) days following the date of the Executive’s Separation from Service.

Any payments of Base Salary during the Disability Period shall be made in accordance with the payroll procedures described in Section 4(a)(i) of this Agreement. Any payments due under Section 13(b)(i) shall be made within thirty (30) days after the date of the Executive’s termination of employment.

c. Termination of Employment for Cause. The Company may terminate the Executive’s employment at any time for “Cause.” For purposes of this Agreement, the following shall constitute “Cause.”

i. The Executive is convicted of, or pleads no contest/nolo contendere to, any felony, crime involving moral turpitude or any other serious criminal offense;

ii. The Executive breaches in any material respect any provision of this Agreement (other than as related to Sections 7, 8, 9, 10, and 11, which is covered by Section 13(c)(iii) below and other than as related to any violation of the Company’s Code of Conduct or other Company policy which is covered by Section 13(c)(vi) below), or habitually neglects to perform his duties under this Agreement (other than for reasons related to Disability) and such breach or habitual neglect is not cured in the Board’s good faith belief within ten (10) business days after Executive’s receipt of written notice on behalf of the Board;

iii. The Executive breaches any provision of Section 7, 8, 9, 10, or 11, and such breach is not cured, to the extent curable, in the Board’s good faith belief within five (5) business days after Executive’s receipt of written notice on behalf of the Board;

iv. After conducting a thorough investigation in compliance with Company policy, the Company determines that the Executive has violated in any material respect any applicable local, state or federal law relating to discrimination or harassment; provided that the Executive shall be afforded an opportunity to respond to any allegations that are the subject of such investigation prior to the Company’s determination;

v. The Executive engages in any inappropriate relationship (romantic, sexual, or otherwise) with an employee, customer, or supplier of the Company, or misuses or abuses Company property and/or resources or engages in other conduct, even if not in conjunction with his duties hereunder, that in the Board’s good faith belief could reasonably be expected to bring material disrepute to the Company or adversely affect the Executive’s ability to perform his duties for the Company;

vi. The Company reasonably determines that the Executive has violated the Company’s Code of Conduct or any other Company policy adopted by the Board and applicable to senior executives of the Company; or

vii. The Executive acts, without Board direction or approval, in an intentionally reckless manner (but not mere unsatisfactory performance) that is materially injurious to the financial condition of the Company.

In the event that the Company terminates the Executive’s employment for Cause, the Executive will be entitled to no further payments or benefits hereunder other than the following:

A. Any Base Salary that is accrued but unpaid and any business expenses that are unreimbursed, all, as of the date of termination of employment; and

B. Any rights and benefits (if any) provided under Plans and Programs of the Company, determined in accordance with the applicable terms and provisions of such Plans and Programs.

All payments due under Section 13(c)(A) shall be made within thirty (30) days after the date of the Executive’s termination of employment.

d. Termination Without Cause. The Company may terminate the Executive’s employment for any reason upon fourteen (14) days prior written notice to the Executive. If the Executive’s employment is involuntarily terminated by the Company for any reason other than the reasons set forth in paragraphs (a),

(b) or (c) of this Section 13 during the Term, the Executive will be entitled to the following payments and benefits:

i. Any Base Salary that is accrued but unpaid and business expenses that are unreimbursed as of the date of termination of employment which payment shall be due within thirty (30) days after the date of the Executive’s termination of employment;

ii. Any rights and benefits (if any) provided under Plans and Programs of the Company in which the Executive was participating at the time of the termination of his employment, determined in accordance with the applicable terms and provisions of such Plans and Programs;

iii. Any prior year earned, but unpaid Bonus, which shall be paid in accordance with the terms and provisions of the applicable plan or program at the later of (A) the same time that payments for that fiscal year would be made to other participants, or (B) within sixty (60) days following the Executive’s Separation from Service;

iv. Continuation of the Executive’s Base Salary, as in effect on the date of his Separation from Service, for a period of twenty-four (24) months commencing within sixty (60) days following the date of his Separation from Service; provided, that these payments will be made in equal monthly payments over such twenty-four (24) month period, each installment payment provided for in this Section 13(d)(iv) is a separate “payment” within the meaning of Treasury Regulation section 1.409A-2(b)(2)(i) and that the payments are intended to satisfy, to the greatest extent possible, the exemptions from the application of Code Section 409A, including those provided under Treasury Regulation sections 1.409A-1(b)(4) (regarding short-term deferrals), 1.409A-1(b)(9)(iii) (regarding the two-times, two (2) year exception) and 1.409A-1(b)(9)(v) (regarding reimbursements and other separation pay);

v. An amount equal to the pro-rated Bonus for the then-current fiscal year based on the actual achievement of the applicable performance goals for such fiscal year (without pro-ration of such performance goals) and as approved by the Compensation Committee, which shall be pro-rated based on the number of calendar days the Executive was employed during the fiscal year and paid at the later of (A) the same time payments for that fiscal year are made to other participants or (B) within sixty (60) days following the date of the Executive’s Separation from Service;

vi.A lump sum amount, payable by the Company concurrent with the payment provided in Section 13(d)(i) hereunder, equal to the Company’s estimated obligation (as determined by the Company in the reasonable exercise of its discretion) for the cost of premiums, and related administrative fees, for group health (medical, dental and/or vision) continuation coverage for the Executive and the Executive’s eligible dependents, for the same level of benefits as in effect immediately prior to the Executive’s termination of employment and for a period equal to eighteen (18) months. Notwithstanding the foregoing, if the Company’s payment pursuant to the foregoing sentence would violate the nondiscrimination rules applicable to non-grandfathered plans, or result in the imposition of penalties under, the Patient Protection and Affordable Care Act of 2010 (“PPACA”) and related regulations and guidance promulgated thereunder, the parties agree to reform such sentence in such manner as is necessary to comply with PPACA; and

vii.The payment by the Company for all Company-sponsored life insurance programs in which the Executive was participating or covered immediately before termination for eighteen (18) months following the date of his Separation from Service; or alternately and as determined in the reasonable exercise of the Company’s discretion, the equivalent monetary value of the cumulative premiums for such coverage (payable by the Company concurrent with the payment provided in Section 13(d)(i) hereunder), but in no

event shall the Company be required to expend more than $25,000 to provide the life insurance benefit or alternative contemplated pursuant to this subsection.

e. Voluntary Termination by the Executive. The Executive may resign and terminate his employment with the Company for any reason whatsoever (other than for Good Reason pursuant to Section 13(f)) upon not less than sixty (60) days prior written notice to the Company. In the event that the Executive so terminates his employment pursuant to this Section 13(e) on or prior to October 29, 2019, the Executive will be entitled to the following payments and benefits:

i. Any Base Salary that is accrued but unpaid and any business expenses that are unreimbursed, all, as of the date of termination of employment; and

ii. Any rights and benefits (if any) provided under Plans and Programs of the Company in which the Executive was participating at the time of the termination of his employment (whether by reason of retirement or otherwise), determined in accordance with the applicable terms and provisions of such Plans and Programs.

All payments due under Section 13(e)(i) shall be made within thirty (30) days after the date of the Executive’s termination of employment.

In the event that the Executive so terminates his employment pursuant to this Section 13(e) afterOctober 29, 2019and on or prior toApril 29, 2022, the Executive will be entitled to receive the payments set forth in Section 13(d) hereof.

f. Good Reason Termination. The Executive may resign and terminate his employment with the Company for “Good Reason.” The Executive shall have “Good Reason” to effect a termination of his employment if without his consent the Company (i) materially reduces the Executive’s Base Salary or Bonus or LTIP opportunity, except for a reduction that applies to executive officers generally (and does not apply disproportionately to the Executive), (ii) requires the Executive to relocate more than 50 miles from the greater Columbus, Ohio area, (iii) a material adverse change in Executive’s title, position, duties, or responsibilities; (iv) a material reduction in the aggregate health and welfare benefits provided to Executive under the Company’s welfare benefit plans, except for a reduction that applies to executive officers generally (and does not apply disproportionately to the Executive); or (vi) a material breach by the Company of the terms of this Agreement; all provided the Executive (A) has given written notice to the Board as to the details of the basis for such Good Reason within thirty (30) days following the date on which the Executive alleges the condition giving rise to such Good Reason initially occurs and the Company has failed to provide a reasonable cure within thirty (30) days after its receipt of such notice and (B) terminates his employment within ninety (90) days of the time in which the condition giving rise to such Good Reason initially occurs.

In the event that the Executive terminates his employment for Good Reason pursuant to this Section 13(f), the Executive will be entitled to the payments and benefits described in Section 13(d).

g. Benefit Plans/Offset. In the event of any termination of the Executive’s employment, whether by the Executive or the Company and for any reason, participation by the Executive in all compensation and benefit plans of the Company will cease upon the effective termination date and all unvested bonuses, equity awards and other like items will immediately lapse, except as otherwise provided in applicable Company plans or hereunder and subject to the terms and limitation thereof. In the event of the Executive’s termination of employment, all amounts owed by the Executive to the Company for any reasons whatsoever will become immediately due and payable. The Company will have the right, in its discretion, to collect any or all such amounts by offset against any amounts due to the Executive from the Company whether or not under this

Agreement; provided that such offset complies with the requirements of Code Section 409A. Notwithstanding the foregoing, any such offset that would have the effect (directly or indirectly) of accelerating amounts due to the Executive under this Agreement that are subject to Code Section 409A must meet the following requirements: (i) such offset must relate to a debt that was incurred in the ordinary course of the service relationship between the Company and the Executive; (ii) the entire amount of reduction in any of the Executive’s taxable years may not exceed $5,000; and (iii) the offset must be made at the same time and in the same amount as the debt otherwise would have been due and collected from the Executive, all in accordance with Treasury Regulation section 1.409A-3(j)(4)(xiii). In addition, except as specifically provided for herein, the payments provided for in Section 13 of this Agreement are in lieu of and supersede any severance or termination benefits to which the Executive might otherwise be entitled, and there will be no duplication of payments or benefits made under this Agreement and any other agreement with, or plan, policy, or program maintained by, the Company.

h. Certain Delays in Payment if the Executive is a Specified Employee. Notwithstanding anything in this Agreement to the contrary, if the Executive is a “specified employee” (within the meaning of Treasury Regulation section 1.409A-1(i) and as determined under the Company’s policy for determining specified employees) on the date of his Separation from Service and the Executive is entitled to a payment and/or a benefit under this Agreement that is required to be delayed pursuant to Code Section 409A(a)(2)(B)(i), then such payment or benefit, as the case may be, shall not be paid or provided for (or begin to be paid or provided for) until the first business day of the seventh month following the date of the Executive’s Separation from Service (or, if earlier, the date of the Executive’s death). The first payment that can be made to the Executive following such postponement period shall include the cumulative amount of any payments or benefits that could not be paid or provided for during such postponement period due to the application of Code Section 409A(a)(2)(B)(i).

i. Conditions to Payment and Benefits. Except as required under applicable law, the obligation of the Company to make payments (other than Base Salary earned by the Executive prior to his separation from employment and payment for any unreimbursed business expenses) and to provide other benefits to the Executive after his termination of employment under Section 13 is expressly conditioned on (i) the Executive’s timely execution, without revocation, of a release of claims in a form reasonably satisfactory to the Company prior to the first date that payment is to begin and (ii) the Executive’s continued full performance of his obligations under Sections 7, 8, 9, 10, 11, and 12 to the extent that such sections survive the Executive’s termination of employment as provided thereunder. With respect to any payments or other benefits payable to the Executive after his termination of employment that are subject to Code Section 409A, to the extent that the period during which the Executive may execute, without revocation, a release of claims as set forth in this Section 13(i) begins in one taxable year of the Executive and ends in a second taxable year of the Executive, such payments or benefits shall not commence, be paid or provided until the second taxable year of the Executive, regardless of when the Executive executes the release.

14. Termination and Change in Control Agreement. The Executive is a participant in the Company’s Change in Control and Severance Plan dated November 2015(the “Change in Control Plan”). If an event or a series of related events entitle the Executive to payments under both this Agreement and the Change in Control Plan, the Executive will be entitled to the payments due under whichever of the Change in Control Plan or this Agreement provides for the greatest amount, and shall not be entitled to the payments otherwise provided under whichever of the Change in Control Plan or this Agreement provides for the least amount. Without limiting the generality of the foregoing, the provisions of Section 13(d) and 13(f) are expressly not intended to supersede this Section 14, and to the extent of any conflict, the terms of this Section 14 shall control. Any coordination of benefits under this Section 14 shall be made strictly in accordance with Code Section 409A, including the preservation of the time and form of payment provisions regarding

the payment of any amounts which provide for a “deferral of compensation” within the meaning of Code Section 409A under each respective arrangement.

15.Arbitration of Disputes. Except for disputes and claims arising out of or relating to Sections 7 through 12, disputes or controversies arising out of or relating to this Agreement, including the basis on which the Executive is terminated, will be resolved by arbitration in accordance with the rules of the American Arbitration Association. The award of the arbitrator will be final, conclusive and non-appealable and judgment upon the award rendered by the arbitrator may be entered in any court having competent jurisdiction. The arbitrator must be an arbitrator qualified to serve in accordance with the rules of the American Arbitration Association and one who is approved by the Company and the Executive. If the Executive and the Company fail to agree on an arbitrator, each must designate a person qualified to serve as an arbitrator in accordance with the rules of the American Arbitration Association and these persons will select the arbitrator from among those persons qualified to serve in accordance with the rules of the American Arbitration Association. Any arbitration relating to this Agreement will be held in Columbus, Ohio. With the exception of the Company agreeing to pay (or reimburse the Executive) for the arbitration filing fees and the fees paid to the Arbitrator, the Company and the Executive will each bear its/his own fees and expenses incurred in connection with the arbitration proceedings, including attorney’s fees, unless otherwise awarded by the arbitrator[s]. To the extent that the reimbursement of fees during the term of Executive’s employment under this Agreement (including any reimbursements under this Section 15) or thereafter provides for a “deferral of compensation” within the meaning of Code Section 409A, then such amount shall be reimbursed in accordance with Treasury Regulation section 1.409A-3(i)(1)(iv), including (i) the amount eligible for reimbursement or payment under such plan or arrangement in one calendar year may not affect the amount eligible for reimbursement or payment in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), (ii) subject to any shorter time periods provided herein or the applicable plans or arrangements, any reimbursement or payment of an expense under such plan or arrangement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and (iii) the right to any reimbursement or in-kind benefit is not subject to liquidation or exchange for another benefit.

16. Representation and Warranty. The Executive represents and warrants to the Company that no existing covenant, restriction, or other obligation restricts or limits in any way the Executive’s ability to enter into this Agreement and to perform his duties hereunder.

17. Notices. Any notices to be given hereunder by either party to the other may be effected and shall be deemed to have been given when delivered personally in writing or by mail, registered or certified, postage prepaid, with return receipt requested. Mailed notices shall be addressed as follows:

a. If to the Company:

Bob Evans Farms, Inc.

8111 Smiths Mill Road

New Albany, Ohio 43054

Attn: Chief Administrative Officer

b. If to the Executive, to the address on file with the Company.

Either party may change its address for notice by giving notice in accordance with the terms of this Section 17.

18. General Provisions.

a. Law Governing. This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio.

b.Invalid Provisions. If any provision of this Agreement is held to be illegal, invalid, or unenforceable, then such provision shall be fully severable and this Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part hereof, and the remaining provisions hereof shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance herefrom. Furthermore, in lieu of such illegal, invalid, or unenforceable provision, there shall be added automatically as a part of this Agreement a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and still be legal, valid or enforceable. Without limiting the generality of the foregoing, the parties further intend that the provisions of Section 9 shall be limited to the extent necessary to ensure Executive's compliance with Rule 5.6 of the American Bar Association Model Rules of Professional Conduct, or any implementation thereof by any applicable jurisdiction.

c. Entire Agreement. This Agreement, the Recoupment Policy, the Change in Control Plan and any governing award agreements, grant notices, and plan documents referenced herein together set forth the entire understanding of the parties and supersede all prior agreements or understandings, whether written or oral, with respect to the subject matter hereof. No terms, conditions or warranties, other than those contained herein, and no amendments or modifications hereto shall be binding unless made in writing and signed by the parties hereto.

d. Binding Effect. This Agreement shall extend to and be binding upon and inure to the benefit of the parties hereto, their respective heirs, representatives, successors and assigns. This Agreement may not be assigned by the Executive, but may be assigned by the Company to any person or entity that succeeds to the ownership or operation of the business in which the Executive is primarily employed by the Company.

e. Waiver. The waiver by either party hereto of a breach of any term or provision of this Agreement shall not operate or be construed as a waiver of a subsequent breach of the same provision by any party or of the breach of any other term or provision of this Agreement.

f. Headings. Headings of the sections herein are used solely for convenience and shall not be used for interpretation or construing any word, clause, paragraph, or provision of this Agreement.

g. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument. Confirmation of execution by electronic transmission of a signature (whether by facsimile or email) shall be binding upon the party so confirming. A faxed or emailed copy of a signed Agreement will be deemed to be the same as an original.

h. Taxes. Anything in this Agreement to the contrary notwithstanding, all payments required to be made hereunder by the Company to the Executive shall be subject to withholding of such amounts relating to taxes as the Company may reasonably determine that it should withhold pursuant to any applicable law or regulations. In lieu of withholding such amounts, in whole or in part, however, the Company may, in its discretion, accept other provision for payment of taxes, provided that it is satisfied that all requirements of the law affecting its responsibilities to withhold such taxes have been satisfied.

i. Section 409A. This Agreement shall be interpreted and administered in compliance with Code Section 409A, to the extent applicable. By accepting this Agreement, Executive hereby agrees and acknowledges that the Company does not make any representations with respect to the application of Code

Section 409A to any tax, economic or legal consequences of any payments payable to Executive hereunder. Further, by the acceptance of this Agreement, Executive acknowledges that (i) Executive has obtained independent tax advice regarding the application of Code Section 409A to the payments due to Executive hereunder, (ii) Executive retains full responsibility for the potential application of Code Section 409A to the tax and legal consequences of payments payable to Executive hereunder and (iii) the Company shall not indemnify or otherwise compensate Executive for any violation of Code Section 409A that may occur in connection with this Agreement. The parties agree to cooperate in good faith to amend such documents and to take such actions as may be necessary or appropriate to comply with Code Section 409A.

j. Coordination with Code Sections 280G and 4999.

i.Anything in this Agreement to the contrary notwithstanding and except as set forth below, in the event it shall be determined that any payment, benefit, vesting or distribution to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (a “Payment”) would but for this Section 18(j) be subject to the excise tax imposed by §4999 of the Code, or any comparable successor provisions (the “Excise Tax”), then the Payments shall be either (i) provided to Executive in full, or (ii) provided to Executive as to such lesser extent which would result in no portion of such Payments being subject to the Excise Tax, whichever of the foregoing amounts, when taking into account applicable income and employment taxes, the Excise Tax, and any other applicable taxes, results in the receipt by Executive on an after-tax basis, of the greatest amount of Payments, notwithstanding that all or some portion of such Payments may be subject to the Excise Tax. Any determination required under this Section 18(j) shall be made in writing in good faith by the Company's independent certified public accountants, appointed prior to any change in ownership (as defined under Code §280G(b)(2), and/or tax counsel selected by such accountants (the “Accounting Firm”) in accordance with the principles of §280G of the Code. In the event of a reduction of Payments hereunder, the Payments shall be reduced as follows: (i) first from cash payments which are included in full as parachute payments, (ii) second from equity awards which are included in full as parachute payments, (iii) third from cash payments which are partially included as parachute payments, and (iv) fourth from equity awards that are partially included as parachute payments. In applying these principles, any reduction or elimination of the Payments shall be made in a manner consistent with the requirements of Code Section 409A and where two economically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro rata basis but not below zero. For purposes of making the calculations required by this Section 18(j), the Accounting Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of the Code, and other applicable legal authority. The Company and Executive shall furnish to the Accounting Firm such information and documents as the Accounting Firm may reasonably request in order to make a determination under this Section 18(j). All fees and expenses of the Accounting Firm shall be borne solely by the Company.

ii.If, notwithstanding any reduction described in this Section 18(j), the Internal Revenue Service (the “IRS”) determines that Executive is liable for the Excise Tax as a result of the receipt of the Payments as described above, then Executive shall be obligated to pay back to the Company, within thirty (30) days after a final IRS determination or in the event that Executive challenges the final IRS determination, a final judicial determination, a portion of the Payments equal to the “Repayment Amount.” The Repayment Amount with respect to the Payments shall be the smallest such amount, if any, as shall be required to be paid to the Company so that Executive's net after-tax proceeds with respect to the Payments (after taking into account the payment of the Excise Tax and all other applicable taxes imposed on such payment) shall be maximized. The Repayment Amount with respect to the Payments shall be zero if a Repayment Amount of more than zero would not result in Executive's net after-tax proceeds with respect to the Payments being

maximized. If the Excise Tax is not eliminated pursuant to this paragraph, Executive shall pay the Excise Tax.

iii.Notwithstanding any other provision of this Section 18(j), if (i) there is a reduction in the Payments as described in this Section 18(j), (ii) the IRS later determines that Executive is liable for the Excise Tax, the payment of which would result in the maximization of Executive's net after-tax proceeds (calculated as if Executive's Payments had not previously been reduced), and (iii) Executive pays the Excise Tax, then the Company shall pay to Executive those Payments which were reduced pursuant to this subsection as soon as administratively possible after Executive pays the Excise Tax so that Executive's net after-tax proceeds with respect to the Payments are maximized.

For the avoidance of doubt, Executive acknowledges he is solely responsible for the payment of any Excise Tax and that the Company will not reimburse or otherwise indemnify him for such amount. Any reimbursements or repayments provided under this subsection shall be made strictly in accordance with Section 409A of the Code, including Treasury Regulation 1.409A-3(i)(1)(v).

IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the date and year first above written.

THIS AGREEMENT CONTAINS AN ARBITRATION CLAUSE.

EXECUTIVE:

Colin M. Daly

BOB EVANS FARMS, INC.

By:

Paul S. Williams

Chairman, Compensation Committee

EX-21

EXHIBIT 21

Direct and Indirect Subsidiaries of

Bob Evans Farms, Inc.

As of April 28, 2017

Name of Entity and Ownership Structure	Jurisdiction
Bob Evans Farms, Inc.	Delaware
- Bob Evans Farms, LLC	Ohio
- BEF Foods, Inc.	Ohio
- Kettle Creations, LLC	Ohio
- Bob Evans Holdings, Inc.	Ohio
- BEF Management, Inc.	Ohio
- Bob Evans Transportation Company, LLC	Ohio
- Bob Evans Express, LLC	Ohio
- BE Partner, LLC	Delaware
- Bob Evans Core, LLC	Ohio
- BEF Restaurant Services, LLC	Ohio
- MCafe Holding, LLC	Delaware

The registrant has listed all of its direct and indirect subsidiaries and the inclusion of any entity does not necessarily signify that it is a significant subsidiary of the registrant.

EX-23

EXHIBIT 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the following Registration Statements:

- Form S-8    No. 333-205255    Bob Evans Farms, Inc. Amended and Restated 2010 Equity and Cash Incentive Plan

- Form S-8    No. 333-205257    Bob Evans Farms, Inc. and Affiliates Fourth Amended and Restated Executive Deferral Program and the Bob Evans Farms, Inc. 2010 Director Deferral Program

- Form S-8    No. 333-205258    Bob Evans Farms, Inc. and Affiliates 401(k) Retirement Plan

of our reports dated June 15, 2017, with respect to the consolidated financial statements of Bob Evans Farms, Inc. and the effectiveness of internal control over financial reporting of Bob Evans Farms, Inc. included in this Annual Report (Form 10-K) of Bob Evans Farms, Inc. for the year ended April 28, 2017.

/s/ Ernst & Young LLP

Grandview Heights, Ohio

June15, 2017

EX-24

EXHIBIT 24

POWER OF ATTORNEY

Form 10-K Fiscal Year Ended April 28, 2017

KNOW ALL MEN BY THESE PRESENTS, that the undersigned director of Bob Evans Farms, Inc., a Delaware corporation (the “Company”), which is about to file with the Securities and Exchange Commission, Washington, D.C., under the provisions of the Securities Exchange Act of 1934, as amended, the Annual Report of the Company on Form 10-K for the fiscal year ended April 28, 2017, hereby constitutes and appoints Colin M. Daly as his true and lawful attorneys-in-fact and agent, with full power of substitution and re-substitution, for him and in his name, place and stead, in any and all capacities, to sign both the Annual Report on Form 10-K and any and all amendments and documents related thereto, and to file the same, and any and all exhibits, financial statements and schedules related thereto, and other documents in connection therewith, with the Securities and Exchange Commission and The NASDAQ Stock Market, granting unto the said attorney-in-fact and agent, and substitute or substitutes, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, and hereby ratifies and confirms all things that each of said attorneys-in-fact and agents, or either of them or his, her or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand the day and year written to the right of his or her signature. Executed as of the date indicated below.

Name	Signature	Title	Date
Douglas N. Benham	/s/ Douglas N. Benham	Director	June 15, 2017
Charles M. Elson	/s/ Charles M. Elson	Director	June 15, 2017
Mary Kay Haben	/s/ Mary Kay Haben	Director	June 15, 2017
David W. Head	/s/ David W. Head	Director	June 15, 2017
Kathleen S. Lane	/s/ Kathleen S. Lane	Director	June 15, 2017
Eileen A. Mallesch	/s/ Eileen A. Mallesch	Director	June 15, 2017
Larry S. McWilliams	/s/ Larry S. McWilliams	Director	June 15, 2017
Kevin M. Sheehan	/s/ Kevin M. Sheehan	Director	June 15, 2017
J. Michael Townsley	/s/ J. Michael Townsley	Director	June 15, 2017
Michael F. Weinstein	/s/ Michael F. Weinstein	Director	June 15, 2017
Paul S. Williams	/s/ Paul S. Williams	Director	June 15, 2017

1

EX-31.1

EXHIBIT 31.1

Rule 13a-14(a)/15d-14(a) CERTIFICATION

I, J. Michael Townsley, certify that:

1. I have reviewed this Form 10-K of Bob Evans Farms, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors:

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: June 15, 2017
	/s/ J. Michael Townsley
	J. Michael Townsley
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

Rule 13a-14(a)/15d-14(a) CERTIFICATION

I, Mark E. Hood, certify that:

1. I have reviewed this Form 10-K of Bob Evans Farms, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors:

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: June 15, 2017
	/s/ Mark E. Hood
	Mark E. Hood
	Chief Financial Officer and Chief Administrative Officer
	(Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

SECTION 1350 CERTIFICATION*

I, J. Michael Townsley, Chief Executive Officer of Bob Evans Farms, Inc. (the “Company”) certify pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 that:

1. The Annual Report on Form 10-K of the Company for the annual period ended April 28, 2017 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: June 15, 2017
	/s/ J. Michael Townsley
	J. Michael Townsley
	President and Chief Executive Officer
	(Principal Executive Officer)

A signed original of this written statement required by Section 906 had been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

SECTION 1350 CERTIFICATION*

I, Mark E. Hood, Chief Financial Officer of Bob Evans Farms, Inc. (the “Company”) certify pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 that:

1. The Annual Report on Form 10-K of the Company for the annual period ended April 28, 2017 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: June 15, 2017
	/s/ Mark E. Hood
	Mark E. Hood
	Chief Financial Officer and Chief Administrative Officer
	(Principal Financial Officer)

A signed original of this written statement required by Section 906 had been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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Document and Entity Information - USD ($)	12 Months Ended
	Apr. 28, 2017	Jun. 12, 2017	Oct. 28, 2016
Document And Entity Information [Abstract]
Document Type	10-K
Document Period End Date	Apr. 28, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Entity Registrant Name	Bob Evans Farms Inc
Entity Central Index Key	0000033769
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--04-28
Entity Filer Category	Large Accelerated Filer
Entity Well Known Seasoned Issuer	Yes
Entity Common Stock Shares Outstanding		19,924,672
Entity Public Float			$ 797,074,534

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Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 28, 2017	Apr. 29, 2016
Current Assets
Cash and equivalents	$ 210,886	$ 11,609
Accounts receivable, net	28,071	24,613
Inventories	17,210	17,093
Federal and state income taxes receivable	2,895	0
Prepaid expenses and other current assets	6,833	5,716
Current assets held for sale	3,334	48,707
Total Current Assets	269,229	107,738
Property Plant and Equipment
Land	291	330
Buildings and improvements	25,351	21,203
Machinery and equipment	214,366	176,611
Construction in process	4,546	20,959
Total Property, Plant and Equipment	244,554	219,103
Less accumulated depreciation	113,814	89,851
Net Property, Plant and Equipment	130,740	129,252
Other Assets
Deposits and other	2,118	3,841
Notes receivable	0	20,886
Rabbi trust assets	22,353	20,662
Goodwill and other intangible assets	19,673	19,829
Deferred income tax assets	5,131	29,002
Non-current assets held for sale	0	469,164
Total Other Assets	49,275	563,384
Total Assets	449,244	800,374
Current Liabilities
Current portion of long-term debt	428	3,419
Accounts payable	13,424	15,841
Accrued property, plant and equipment purchases	1,283	4,024
Accrued non-income taxes	3,353	890
Accrued wages and related liabilities	16,404	16,370
Self-insurance reserves	10,692	11,288
Current taxes payable	27,954	9,473
Current reserve for uncertain tax positions	1,481	1,481
Other accrued expenses	17,905	13,614
Current liabilities held for sale	0	89,157
Total Current Liabilities	92,924	165,557
Non-Current Liabilities
Deferred compensation	17,277	17,761
Reserve for uncertain tax positions	1,795	2,752
Deferred income tax liabilities	50	0
Deferred rent and other	1,091	377
Deferred gain on sale leaseback transactions	2,192	2,432
Credit facility borrowings and other long-term debt	2,267	335,638
Non-current liabilities held for sale	0	59,413
Total Non-Current Liabilities	24,672	418,373
Stockholders’ Equity
Common stock, $.01 par value; authorized 100,000 shares; issued 42,638 shares at April 28, 2017, and April 29, 2016	426	426
Capital in excess of par value	260,619	244,304
Retained earnings	931,315	832,323
Treasury stock, 22,842 shares at April 28, 2017, and 22,881 shares at April 29, 2016, at cost	(860,712)	(860,609)
Total Stockholders’ Equity	331,648	216,444
Total Liabilities and Stockholders' Equity	$ 449,244	$ 800,374

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Consolidated Balance Sheets (Parentheticals) - $ / shares	Apr. 28, 2017	Apr. 29, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, issued (in shares)	42,638,000	42,638,000
Treasury stock (in shares)	22,842,000	22,881,000

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Consolidated Statements of Net Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Apr. 24, 2015
Income Statement [Abstract]
Net Sales	$ 394,842	$ 387,616	$ 379,313
Cost of sales	170,820	172,973	199,067
Operating wage and fringe benefit expenses	39,964	42,189	41,717
Other operating expenses	58,402	52,387	49,381
Selling, general and administrative expenses	56,243	65,949	73,380
Depreciation and amortization expense	24,031	21,044	18,364
Impairments	15,256	0	2,761
Operating Income (Loss)	30,126	33,074	(5,357)
Net interest expense	9,216	10,427	8,649
Income (Loss) from Continuing Operations Before Income Taxes	20,910	22,647	(14,006)
Provision (Benefit) for income taxes	3,874	6,439	(8,626)
Income (Loss) from Continuing Operations	17,036	16,208	(5,380)
Income from Discontinued Operations, Net of Income Taxes	109,431	8,014	21,933
Net Income	$ 126,467	$ 24,222	$ 16,553
Earnings (Loss) Per Share - Income from Continuing Operations
Basic (in dollars per share)	$ 0.86	$ 0.76	$ (0.23)
Diluted (in dollars per share)	0.85	0.75	(0.23)
Earnings Per Share - Income from Discontinued Operations
Basic (in dollars per share)	5.51	0.38	0.93
Diluted (in dollars per share)	5.43	0.38	0.93
Earnings Per Share - Net Income
Basic (in dollars per share)	6.37	1.14	0.70
Diluted (in dollars per share)	6.28	1.13	0.70
Cash dividends per share (in dollars per share)	$ 1.36	$ 1.30	$ 1.24
Weighted Average Shares Outstanding
Basic (in shares)	19,839	21,336	23,489
Dilutive shares (in shares)	293	158	160
Diluted (in shares)	20,132	21,494	23,649

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Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Capital in Excess of Par Value		Retained Earnings	Treasury Stock
Shares Outstanding Beginning Balance at Apr. 25, 2014		23,319
Stockholders Equity at the Beginning of the Period at Apr. 25, 2014	$ 389,219	$ 426	$ 231,933		$ 849,235	$ (692,375)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	16,553				16,553
Dividends	(29,426)				(29,426)
Treasury stock repurchased	0
Treasury stock reissued under compensation plans, shares		88
Treasury stock reissued under compensation plans	450		830			(380)
Share-based compensation expense	2,967		2,967
Tax benefit — stock plans	228		228
Shares Outstanding Ending Balance at Apr. 24, 2015		23,407
Stockholders Equity at the End of the Period at Apr. 24, 2015	379,991	$ 426	235,958		836,362	(692,755)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	24,222				24,222
Dividends	(28,261)				(28,261)
Treasury stock repurchased, shares		(3,912)
Treasury stock repurchased	(171,513)					(171,513)
Treasury stock reissued under compensation plans, shares		262
Treasury stock reissued under compensation plans	4,217		558			3,659
Share-based compensation expense	6,127		6,127
Tax benefit — stock plans	1,661		1,661
Shares Outstanding Ending Balance at Apr. 29, 2016		19,757
Stockholders Equity at the End of the Period at Apr. 29, 2016	216,444	$ 426	244,304	[1]	832,323	(860,609)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	126,467				126,467
Dividends	(27,475)				(27,475)
Treasury stock repurchased	0
Treasury stock reissued under compensation plans, shares		39
Treasury stock reissued under compensation plans	(486)		(383)			(103)
Share-based compensation expense	17,197		17,197
Tax benefit — stock plans	(499)		(499)
Shares Outstanding Ending Balance at Apr. 28, 2017		19,796
Stockholders Equity at the End of the Period at Apr. 28, 2017	$ 331,648	$ 426	$ 260,619	[1]	$ 931,315	$ (860,712)	[2]

[1] Capital in Excess of Par Value includes $14,356 and $9,502 of share based obligations owed to participants in our deferred compensation plans as of April 28, 2017 and April 29, 2016, respectively. Refer to Note 7 for more information.

[2] Treasury stock includes 1,160 shares held by our Rabbi Trust as of April 28, 2017 that will be used to satisfy share-based deferred compensation obligations. Refer to Note 7 for additional information.

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Consolidated Statements of Stockholders' Equity (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Apr. 28, 2017	Apr. 29, 2016
Cash dividends per share (in dollars per share)	$ 0.34	$ 0.34	$ 1.36	$ 1.30
Treasury Stock
Shares held in rabbi trust	1,160,000		1,160,000
Capital in Excess of Par Value
Value of shares held in deferred trust	$ 14,356	$ 9,502	$ 14,356	$ 9,502

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Apr. 24, 2015
Statement of Cash Flows [Abstract]
Net Income	$ 126,467	$ 24,222	$ 16,553
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	60,090	79,607	80,074
Impairments	15,256	8,384	8,861
(Gain) Loss on disposal of fixed assets	(168,859)	4,532	2,204
(Gain) Loss on rabbi trust assets	(1,691)	1,640	(742)
Loss (Gain) on deferred compensation	2,514	(765)	2,013
Share-based compensation	17,197	6,127	2,967
Accretion of non-current note receivable	(1,133)	(2,082)	(1,859)
Deferred income taxes	23,921	(28,384)	(14,791)
Amortization of deferred financing costs	4,201	2,188	1,099
Cash provided by (used for) assets and liabilities:
Accounts receivable	(2,700)	(2,793)	4,588
Inventories	(751)	(377)	623
Prepaid expenses and other current assets	(1,377)	483	(563)
Accounts payable	(10,281)	7,499	955
Federal and state income taxes	14,629	33,067	1,504
Accrued wages and related liabilities	(1,160)	(3,101)	11,005
Self-insurance	(1,474)	1,269	(974)
Accrued non-income taxes	(756)	745	(2,892)
Deferred revenue	(337)	433	747
Other assets and liabilities	(198)	(9,058)	(8,267)
Net cash provided by operating activities	73,558	123,636	103,105
Investing activities:
Purchase of property, plant and equipment	(65,768)	(65,694)	(74,517)
Proceeds from sale of property, plant and equipment	557,061	257,246	10,036
Proceeds from liquidation of rabbi trust assets	0	5,245	0
Deposits and other	330	(537)	(135)
Net cash provided by (used in) investing activities	491,623	196,260	(64,616)
Financing activities:
Cash dividends paid	(26,915)	(27,861)	(29,056)
Gross proceeds from credit facility borrowings and other long-term debt	413,268	672,349	579,895
Gross repayments of credit facility borrowings and other long-term debt	(750,668)	(783,339)	(588,541)
Payments of debt issuance costs	(1,542)	(3,555)	(1,279)
Purchase of treasury stock	0	(171,513)	0
Proceeds from share-based compensation	518	214	534
Cash paid for taxes on share-based compensation	(1,353)	(1,314)	(1,738)
Excess tax benefits from share-based compensation	(499)	1,661	228
Net cash (used in) financing activities	(367,191)	(313,358)	(39,957)
Net cash provided by (used in) operations	197,990	6,538	(1,468)
Cash and equivalents at the beginning of the period	12,896	6,358	7,826
Cash and equivalents at the end of the period	$ 210,886	$ 12,896	$ 6,358

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Summary of Significant Accounting Policies

12 Months Ended

Apr. 28, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Description of Business:   We produce and distribute a variety of complementary home-style, refrigerated side-dish convenience food items and pork sausage under the Bob Evans ®, Owens ® and Country Creek ® brand names. These food products are available throughout the United States at grocery retailers. We also manufacture and sell similar products to food-service accounts, including Bob Evans Restaurants and other restaurants. The revenue from sales to Bob Evans Restaurants were eliminated in consolidation.

On January 24, 2017, we entered into an Asset and Membership Interest Purchase Agreement (the "BER Sale Agreement") with Bob Evans Restaurants, LLC (formerly BER Acquisition, LLC) a Delaware limited liability company formed by affiliates of Golden Gate Capital Opportunity Fund, L.P. ("the Buyer"). The Buyer completed the acquisition of the Company's Bob Evans Restaurants Business (the "Restaurants Business"), including our corporate headquarters, on April 28, 2017 (the "Restaurants Transaction"). For all periods presented in our Consolidated Statements of Net Income, all sales, costs, expenses, gains and income taxes attributable to our Restaurants Business as well as the Restaurants Transaction have been reported under the captions "Income from Discontinued Operations, Net of Income Taxes." Cash flows used in or provided by our Restaurants Business have been reported in the Consolidated Statements of Cash Flows under operating and investing activities. Refer to Note 2 - Discontinued Operations for additional information.

Prior to the decision to sell our Restaurants Business, we had two reporting segments, Bob Evans Restaurants and BEF Foods. BEF Foods sells food products throughout the retail grocery and food service channels, including to Bob Evans Restaurants. Corporate and other costs related to shared services functions were not allocated to our reporting segments. As a result of the decision to sell our Restaurants Business, which is now classified as discontinued operations, we have one reporting segment. Revenues and costs related to our BEF Foods business, including indirect corporate overhead costs, are reported within results from continuing operations. All revenues and costs incurred directly in support of the Bob Evans Restaurants business are presented in results from discontinued operations. Prior year information has been adjusted to conform with the current presentation. Unless otherwise stated, the information disclosed in footnotes accompanying the financial statements refer to continuing operations. See Note 2 for additional information regarding results from discontinued operations.

Principles of Consolidation:    The consolidated financial statements include the accounts of Bob Evans and its subsidiaries. Intercompany accounts and transactions have been eliminated. Dollars are in thousands, except share and per share amounts.

Use of Estimates:    The preparation of financial statements in conformity with US GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could differ from the estimates and assumptions used.

Fiscal Year:    Our fiscal year ends on the last Friday in April. References herein to fiscal 2017, fiscal 2016 and fiscal 2015 refer to fiscal years ended April 28, 2017, April 29, 2016, and April 24, 2015, respectively. Fiscal years 2017 and 2015 were 52 week periods, whereas fiscal year 2016 was a 53 week period.

Revenue Recognition: Revenue is recognized when products are received by our customers. We engage in promotional (sales incentives or trade spend) programs in the form of "off-invoice" deductions, billbacks, cooperative advertising and coupons with our customers. Costs associated with these programs are classified as a reduction of gross sales in the period in which the sale occurs. Promotional spending for continuing operations, primarily comprised of off-invoice deductions and billbacks, was $84,748, $79,302, and $56,618 for fiscal years 2017, 2016 and 2015, respectively.

Shipping and Handling costs:  Expenditures related to shipping our BEF Foods products to our customers are expensed when incurred. Shipping and handling costs were $16,125, $14,850 and $17,025 in fiscal years 2017, 2016 and 2015, respectively, and are recorded in the other operating expenses line of the Consolidated Statements of Net Income.

Cash Equivalents:    We consider all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. We did not own any cash equivalents as of April 28, 2017, or April 29, 2016.

Accounts Receivable:    Accounts receivable represents amounts owed to us through our operating activities and are presented net of allowance for doubtful accounts and promotional incentives. Accounts receivable consist primarily of trade receivables from customer sales. We evaluate the collectability of our accounts receivable based on a combination of factors. In circumstances where we are aware of a specific customer’s inability to meet its financial obligations to us, we record a specific allowance for bad debts against amounts due to reduce the net recognized receivable to the amount we reasonably believe will be collected. In addition, we recognize allowances for bad debts based on the length of time receivables are past due with allowance percentages, based on our historical experiences, applied on a graduated scale relative to the age of the receivable amounts. If circumstances such as higher than expected bad debt experience or an unexpected material adverse change in a major customer’s ability to meet its financial obligations to us were to occur, the recoverability of amounts due to us could change by a material amount. We had allowances for doubtful accounts of $269 and $421 as of April 28, 2017, and April 29, 2016, respectively. Accounts receivable are reduced by $8,055 and $4,916 as of April 28, 2017, and April 29, 2016, respectively, related to promotional incentives that reduce what is owed to the Company from certain BEF Foods customers.

Concentration of Credit Risk:    We maintain cash depository accounts with major banks. Accounts receivable can be potentially exposed to a concentration of credit risk with customers or in particular industries. In fiscal 2017 sales to Wal-mart comprised approximately 20% of net sales from continuing operations while sales to Kroger comprised approximately 14% of net sales from continuing operations. Reserves for credit losses have historically been within our expectations.

Notes Receivable:    As a result of the sale of Mimi’s Café to Le Duff, we received a promissory note ("the Note") for $30,000. The Note had an annual interest rate of 1.5%, a term of seven years and a full principal and interest payment date of February 2020. Partial prepayments were required prior to maturity if the buyer reached certain levels of EBITDA during specified periods. No partial prepayments were received on this Note. The Note was originally valued using a discounted cash flow model and we recognized accretion income of $1,133, $2,082 and $1,859 in fiscal years 2017, 2016 and 2015, respectively.

In the third quarter of fiscal 2017, we reached an agreement with Mimi's Café and settled the Note. We received a payment of $7,000 which settled all of Mimi's Café outstanding obligations of the Note. The settlement resulted in an impairment charge of $15,256, which was recorded in the Impairments line of the Consolidated Statements of Net Income.

Inventories:    Our inventories are determined on an average cost method which approximates a first in, first out basis due to the perishable nature of our inventory. Inventory includes raw materials and supplies ($6,037 in fiscal 2017 and $5,911 in fiscal 2016) and finished goods ($11,173 in fiscal 2017 and $11,182 in fiscal 2016). Inventories associated with the Restaurants Business were transferred to the Buyer as part of the Restaurants Transaction. See Note 2 for additional information.

Property, Plant and Equipment:   Property, plant and equipment is recorded at cost less accumulated depreciation. The straight-line depreciation method is used for all capitalized assets. Depreciation is calculated at rates adequate to amortize costs over the estimated useful lives of buildings and improvements (5 to 25 years) and machinery and equipment (3 to 10 years). Improvements to leased properties are depreciated over the shorter of their useful lives or the initial lease terms. Total depreciation expense from continuing operations was $23,875, $20,887 and $18,207 and in fiscal years 2017, 2016 and 2015, respectively.

We capitalized internal labor costs of $605, $1,557 and $2,118 in fiscal years 2017, 2016 and 2015, respectively, primarily associated with the first and second phases of our ERP implementation and other IT projects. The first phase of our ERP system was put in service in the first quarter of fiscal 2016, and has an expected useful life of ten years. The second phase of our ERP system was put in service in the second quarter of fiscal year 2017 and also has an expected useful life of 10 years.

We evaluate property, plant and equipment held and used in the business for impairment whenever events or changes circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. Impairment is determined by comparing the estimated fair value for the asset group to the carrying amount of its assets. If impairment exists, the amount of impairment is measured as the excess of the carrying amount over the estimated fair values of the assets.

Assets associated with our Richardson, Texas, location totaling $3,334 are classified as Current Assets Held for Sale in the Consolidated Balance Sheet as of April 28, 2017 and April 29, 2016.

Goodwill and Other Intangible Assets:    Goodwill and other intangible assets, which primarily represents the cost in excess of fair market value of net assets acquired, were $19,673 and $19,829 as of April 28, 2017, and April 29, 2016, respectively. The majority of our goodwill was acquired as part of our fiscal 2013 acquisition of Kettle Creations. Additionally, as part of this acquisition we obtained a non-compete agreement with certain executives of the former company. The Kettle Creations non-compete agreement is amortized on a straight-line basis over its estimated economic life of five years.

Goodwill and intangible assets with indefinite lives are not amortized, but rather are tested for impairment during the fourth quarter each year or on a more frequent basis when indicators of impairment exist. Goodwill and indefinite lived intangible asset impairment testing involves a comparison of the estimated fair value of reporting units to the respective carrying amount. If the estimated fair value exceeds the carrying amount, then no impairment exists. If the carrying amount exceeds the estimated fair value, then a second step is performed to determine the amount of impairment, if any. We perform our impairment test using a combination of income-based and market-based approaches. The income based approach indicates the fair value of an asset or business based on the cash flows it can be expected to generate over its remaining useful life. Under the market-based approach, fair value is determined by comparing our reporting units to similar businesses or guideline companies whose securities are actively traded in public markets. There have been no impairments to our goodwill in the current or prior years.

Accrued Non-Income Taxes:    Accrued non-income taxes primarily represent obligations for real estate and personal property taxes. Accrued non-income taxes were $3,353 and $890 at April 28, 2017, and April 29, 2016, respectively. Accrued non-income taxes associated with the Restaurants Business were conveyed to the Buyer as part of the Restaurants Transaction. See Note 2 - Discontinued Operations for additional information.

Self-Insurance Reserves:    We record estimates for certain health, workers’ compensation and general liability insurance costs that are self-insured programs. Self-insurance reserves include actuarial estimates of both claims filed, carried at their expected ultimate settlement value, and claims incurred but not yet reported. Our liability represents an estimate of the ultimate cost of claims incurred as of the fiscal year end balance sheet date. Self-insurance reserves were $10,692 and $11,288 at April 28, 2017, and April 29, 2016, respectively. Workers compensation reserves associated with the Restaurants Business were transferred to the Buyer as part of the Restaurants Transaction. See Note 2 for additional information.

Other Accrued Expenses:    Other accrued expenses consisted of the following:

(in thousands)	April 28, 2017		April 29, 2016
Legal and professional fees	$	10,807	$	4,119
Accrued customer incentives	1,912		1,872
Accrued broker fees	945		957
Accrued advertising	515		727
Accrued utilities	492		449
Accrued interest	16		541
Other	3,218		4,949
Total other accrued expenses	$	17,905	$	13,614

Advertising Costs:    Media advertising is expensed at the time the media first airs. We expense all other advertising costs as incurred. Advertising expense from continuing operations was $9,006, $6,658 and $3,607 in fiscal years 2017, 2016 and 2015, respectively. Advertising costs are classified in other operating expenses in the Consolidated Statements of Net Income.

Cost of Sales:    Cost of sales represents primarily the cost of materials. Cost of sales excludes depreciation expense, which is recorded in the depreciation and amortization expense line on the Consolidated Statements of Net Income.

Comprehensive Income:    Comprehensive income is the same as reported net income as we have no other comprehensive income.

Earnings Per Share:    Our basic earnings per share ("EPS") computation is based on the weighted-average number of shares of common stock outstanding during the period presented. Our diluted EPS calculation reflects the assumed vesting of restricted shares and market-based performance shares, the exercise and conversion of outstanding employee stock options and the settlement of share-based obligations recorded as liabilities on the Consolidated Balance Sheets (see Note 6 for more information), net of the impact of antidilutive shares.

The numerator in calculating both basic and diluted EPS for each period is reported net income. The denominator is based on the following weighted-average shares outstanding:

(in thousands)	2017	2016	2015
Basic	19,839	21,336	23,489
Dilutive shares	293	158	160
Diluted	20,132	21,494	23,649

In fiscal years 2017, 2016 and 2015, respectively, there were 215,889, 207,538 and 124,766 shares of common stock excluded from the diluted earnings per share calculations because they were antidilutive.

Dividends: In fiscal 2017, we paid four quarterly dividends, each equal to $0.34 per share on our outstanding common stock. Individuals that hold awards for unvested and outstanding restricted stock units, market-based performance share units and outstanding deferred stock awards are entitled to receive dividend equivalent rights equal to the per-share cash dividends paid on outstanding units. Dividend equivalent rights are forfeitable until the underlying share units from which they were derived vest. Share-based dividend equivalents are recorded as a reduction to retained earnings, with an offsetting increase to capital in excess of par value. Refer to table below:

	2017		2016
Cash dividends paid to common stock holders	$	26,915	$	27,861
Dividend Equivalent Rights	560		400
Total dividends	$	27,475	$	28,261

Leases:     In fiscal 2016, we entered into sale leaseback transactions for two of our production facilities. The transaction included 20-year initial lease terms for each facility, with two10-year additional renewal periods exercisable at our option, 2% annual rent increases and payment and performance guaranties. A gain of $2,305 on the sale of our Lima, Ohio, facility was deferred and is being recognized on a straight-line basis over the initial term of the lease. Rent expense is recorded on a straight-line basis. Our straight-line rent calculation does not include an assumption of lease renewal periods. We record the difference between the amount charged to expense and the rent paid as deferred rent in the Consolidated Balance Sheets. Rent expense was $4,117 and $2,202 in fiscal years 2017 and 2016, respectively. Refer to the following table for expected future minimum lease payments, which excludes the impact of any available renewal periods:

(in thousands)	2018		2019		2020		2021		2022		Thereafter
Future operating lease payments	$	3,586	$	3,657	$	3,731	$	3,805	$	3,881	$	60,657

Income Taxes:   We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

We record uncertain tax positions in accordance with the Income Taxes Topic of the Financial Accounting Standards Board ("FASB ") ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying Consolidated Statement of Net Income. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheets. See Note 4 for additional information.

Commitments and Contingencies:    We occasionally use purchase commitment contracts to stabilize the potentially volatile pricing associated with certain commodity items.

We are self-insured for most casualty losses and employee health care claims up to certain stop-loss limits per claim. We have accounted for liabilities for casualty losses, including both reported claims and incurred but not reported claims, based on information provided by independent actuaries. We have estimated our employee health care claims liability through a review of incurred and paid claims history. The Company retained liabilities for health insurance and general liability claims associated with the Restaurants Business that were incurred prior to the closing of the Restaurants Transaction. We do not believe that our calculation of casualty losses and employee health-care claims liabilities would change materially under different conditions and/or different methods. However, due to the inherent volatility of actuarially determined casualty losses and employee health care claims, it is reasonably possible that we could experience changes in estimated losses, which could be material to net income.

We are from time to time involved in ordinary and routine litigation, typically involving claims from customers, employees and others related to operational issues common to the food manufacturing industry. Management believes that the ultimate outcome of these proceedings, individually or in the aggregate, will not have a material adverse effect on our financial position, cash flows or results of operations. See Note 8 for further information.

As part of the Restaurants Transaction, the Company and BEF Foods, Inc. continue to guarantee certain payment and performance obligations associated with Bob Evans Restaurants leases associated with the sale leaseback transaction that occurred in the fourth quarter of fiscal 2016. See Note 2 for additional information.

New Accounting Pronouncements: In the normal course of business, management evaluates all new accounting pronouncements issued by the FASB, the Securities and Exchange Commission (“SEC”), the Emerging Issues Task Force, the American Institute of Certified Public Accountants or any other authoritative accounting body to determine the potential impact they may have on the Company’s consolidated financial statements. The pronouncements below were either adopted by the Company in fiscal 2017 or will be effective for the Company in future years.

In May 2014, the FASB and the International Accounting Standards Board ("IASB") issued new joint guidance surrounding revenue recognition. Under US GAAP, this guidance is being introduced to the ASC as Topic 606, Revenue from Contracts with Customers ("Topic 606"), by Accounting Standards Update No. 2014-09. The new standard supersedes a majority of existing revenue recognition guidance under US GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Companies may need to use more judgment and make more estimates while recognizing revenue, which could result in additional disclosures to the financial statements. Topic 606 allows for either a "full retrospective" adoption or a "modified retrospective" adoption. The standard will become effective for us in fiscal 2019.

We are in the process of implementing the new standard, focusing on promotional arrangements with customers. We do not believe the implementation will be material to our current or historical financial statements. We are in the process of developing additional controls to ensure proper oversight of new customer relationships and promotional activity, as well as to ensure we meet all of the disclosure requirements associated with the new standard. We have not yet concluded which transition method we will elect, but anticipate we will use the modified retrospective approach.

In August 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-15, Presentation of Financial Statements - Going Concern to provide guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern. The guidance requires management to assess whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity's ability to continue as a going concern within one year after the date that the financial statements are issued. When management identifies such conditions or events, a footnote disclosure is required to disclose their nature, as well as management's plans to alleviate the substantial doubt to continue as a going concern. The standard became effective for our fiscal year end 2017 and did not have an impact on the consolidated financial statements.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. ASU 2015-11 simplifies the subsequent measurement of inventory by replacing today's lower of cost or market test with a lower of cost or net realizable test, which is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The standard will become effective for us in fiscal 2018. We do not expect this update to have a material impact on the consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases. This guidance requires companies to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The new standard also will result in enhanced quantitative and qualitative disclosures, including significant judgments made by management, to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing leases. The standard requires modified retrospective adoption and will become effective beginning in fiscal 2020, with early adoption permitted. We are currently evaluating this standard, including the timing of adoption and the related impact on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Compensation Accounting. ASU 2016-09 requires that excess tax benefits are recorded on the income statement as opposed to additional paid-in-capital, and treated as an operating activity on the statement of cash flows. ASU 2016-09 also allows companies to make an accounting policy election to either estimate the number of awards that are expected to vest (current U.S. GAAP) or account for forfeitures when they occur. ASU 2016-09 further requires cash paid by an employer when directly withholding shares for tax-withholding purposes to be classified as a financing activity on the statement of cash flows. The standard will become effective for us in fiscal 2018. We are currently evaluating the impact this standard will have on our consolidated financial statements.

In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses. ASU 2016-13 introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale (AFS) debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The standard will become effective for us in our fiscal 2021. We do not expect this standard to have a material impact on the consolidated financial statements.

In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The guidance is to be applied using a retrospective transition method to each period presented. This standard will become effective for us in our fiscal 2019. We are currently evaluating the impact this standard will have on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment." ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating Step 2 from the goodwill impairment test. Under the previous guidance an impairment of goodwill exists when the carrying amount of goodwill exceeds its implied fair value, whereas under the new guidance a goodwill impairment loss would be recognized if the carrying amount of the reporting unit exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. The ASU is effective for annual and any interim impairment tests for periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact this standard will have on our consolidated financial statements.

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Discontinued Operations

12 Months Ended

Apr. 28, 2017

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On January 24, 2017, the Company entered into the BER Sale Agreement with the Buyer. On April 28, 2017, we completed the sale of the Restaurants Business for an aggregate purchase price of $565,000 in cash, subject to certain adjustments set forth in the BER Sale Agreement (the “Restaurants Transaction”). The Buyer also purchased our corporate headquarters as part of the transaction.

The Restaurants Transaction was effected by (i) the sale of the Restaurants Business assets by the Company’s affiliates to Buyer and (ii) the sale by the Company of fifty percent of the equity interests in a newly formed special purpose entity that holds specified intellectual property assets used by both the Restaurants Business and the Company’s food production business. As part of the Restaurants Transaction the Company also conveyed to the Buyer the majority of working capital liabilities associated with the Restaurants Business, including outstanding payables, accrued wages, and other accrued current liabilities, other than debt.

The Company will continue to supply Bob Evans Restaurants with certain of its products under a five-year supply agreement. The supply agreement requires Bob Evans Restaurants purchase 100% of certain food products from the Company in the first year. The required percentage of purchases for those products then decreases annually, down to 25% in the final year. In fiscal years 2017, 2016 and 2015 respectively, the Company's BEF Foods business sold $22,056, $18,769 and $19,304 of products to Bob Evans Restaurants. These sales were eliminated on our Consolidated Statements of Net Income.

Additionally, pursuant to a transition services agreement, the Company will supply certain services, primarily information technology related, to Bob Evans Restaurants and will receive certain human resource, tax and accounting services from Bob Evans Restaurants. These services will be provided at cost for a period up to 18 months, which can be further extended.

Results associated with the Restaurants Business are classified as income from discontinued operations, net of income taxes, in our Consolidated Statements of Net Income. Prior year results have been adjusted to conform with the current presentation. Income from discontinued operations is comprised of the following:

(in thousands)	2017		2016			2015
Net Sales	$	876,786	$	951,211		$	969,878
Costs and expenses:
Cost of sales	226,516		252,612			258,677
Operating wage and fringe benefit expenses	359,959		384,959			381,822
Operating expenses	172,717		169,673			168,610
Selling, general and administrative expenses	62,025		73,873			69,916
Depreciation and amortization expense	36,059		58,562			61,710
Impairments	522		8,385			6,100
Operating Income from discontinued operations	18,988		3,147			23,043
Gain on sale of Restaurants Business	150,167		—			—
Net interest expense	2,203		373			—
Income from discontinued operations before income taxes	166,952		2,774			23,043
Provision (Benefit) for income taxes	57,521		(5,240		)	1,110
Income from discontinued operations	$	109,431	$	8,014		$	21,933

Selling, general and administrative expenses recorded in discontinued operations include corporate costs incurred directly in support of the Restaurants Business. In fiscal 2017, these costs included $10,818 of severance and stock compensation costs associated with corporate employees who supported the Restaurants Business.

We sold our corporate headquarters facility to the Buyer on a debt-free basis as part of the Restaurants Transaction, which required us to pay-in-full the outstanding borrowings on our Mortgage Loan prior to closing the Transaction. In accordance with ASC 205 - Presentation of Financial Statements, interest expense associated with the Mortgage Loan, which includes $972 of debt issuance amortization charges recorded upon termination of the Mortgage Loan in the fourth quarter, was allocated to discontinued operations.

See the table below for a reconciliation of the gain recorded on the sale of our Restaurants Business:

Net proceeds received from Restaurant Transaction (1)	$	539,301
Restaurants Business assets:
Accounts receivable	3,522
Inventory	8,538
Property, plant and equipment	480,663
Other assets	5,693
Total Restaurants Business assets	498,416
Restaurants Business liabilities:
Accounts payable	13,813
Accrued non income taxes	11,587
Accrued wages and benefits	8,794
Self-insurance reserves	8,003
Accrued gift cards	13,810
Accrued miscellaneous liabilities	12,455
Deferred sale leaseback gain	51,077
Other restaurant liabilities	7,039
Total Restaurants Business Liabilities	126,578
Other transaction costs incurred as part of the sale of the Restaurants Business (2)	$	17,296
Gain on sale of the Restaurants Business before income taxes	$	150,167

(1)The proceeds received from the Restaurants Transaction are net of certain costs paid at closing, including transfer taxes and title insurance, and other working capital adjustments outlined in the BER Sale Agreement.

(2) Costs directly incurred as a result of the sale of our Restaurants Business, including investment bank fees, legal fees, professional fees and other administrative costs.

Prior to the closing of the Restaurants Transaction, these assets and liabilities were classified as held for sale in the Consolidated Balance Sheets as of January 27, 2017, in the Form 10-Q. The Company retained certain liabilities associated with the Restaurants Business, including $7,408 of liabilities for general liability and health insurance claims incurred prior to the closing of the Restaurants Transaction. Additionally we retained all liabilities related to income taxes associated with the Restaurants Business.

Proceeds from the sale of the Restaurants Business have been presented in the Consolidated Statements of Cash Flow under investing activities for fiscal year 2017. Total operating and investing cash flows of discontinued operations for fiscal years 2017, 2016 and 2015 are comprised of the following:

(in thousands)	2017			2016		2015
Net cash (used in) provided by operating activities	$	(35,807	)	$	72,645	$	123,401
Net cash provided by (used in) investing activities	$	519,833		$	175,816	$	(49,184	)

Net cash provided by investing activities in fiscal year 2017 includes the proceeds from the sale of the Restaurants Business, while net cash provided by investing activities in fiscal year 2016 includes approximately $197,000 of proceeds associated with our sale leaseback of 143 restaurant properties. Net cash provided by (used in) investing activities in each year is net of capital expenditures associated with the Restaurants Business.

Lease Guarantee

As part of the Restaurants Transaction, the Buyer assumed all operating leases associated with the Restaurants Business, including leases for the 143 restaurant properties that were sold as part of a sale leaseback transaction in the fourth quarter of fiscal 2016. The Company and BEF Foods, Inc. continue to guarantee certain payment and performance obligations associated with the lease agreements for those restaurant properties (the "Guarantee"). In the event Bob Evans Restaurants fails to meet its payment and performance obligations under these lease agreements, the Company may be required to make rent and other payments to the landlord under the requirements of the Guarantee. Should the Company, as guarantor of the lease obligations, be required to make all lease payments due for the remaining term of the lease subsequent to April 28, 2017, the maximum amount we may be required to pay is the annual rent amount, for the remainder of the lease term. The current annual rent on these leases is approximately $13,300, and will increase up to 1.5% annually based on indexed inflation. The lease term extends for approximately 19 more years as of April 28, 2017, and the Company would remain a guarantor of the leases in the event the leases are extended for a renewal period. In the event that the Company is obligated to make payments under the guarantor obligations, we believe the exposure is limited due to contractual protections and recourse available in the master lease agreements as well as the BER Sale Agreement, including a requirement of the landlord to mitigate damages by re-letting the properties in default. Bob Evans Restaurants continues to meet its obligations under these leases and there have not been any events that would indicate that they will not continue to meet the obligations of the leases. As such, we believe the fair value of the Guarantee is immaterial as of April 28, 2017.

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Long-Term Debt and Credit Arrangements

12 Months Ended

Apr. 28, 2017

Debt Disclosure [Abstract]

Long-Term Debt and Credit Agreements

Long-Term Debt and Credit Arrangements

As of April 28, 2017, long-term debt was comprised of the long term portion of a $3,000 Research and Development Investment Loan ("R&D Loan") and an interest-free loan of $1,000, due ten years from the date of borrowing, with imputed interest.

In the fourth quarter of fiscal 2017, in conjunction with the sale of our Restaurants Business, we paid all outstanding borrowings and terminated our Revolving and Restated Credit Agreement ("Credit Agreement"). Under the terms of the Credit Agreement, we were required to use proceeds from the sale of our Restaurants Business to pay off outstanding borrowings, which occurred on the date the Restaurants Transaction closed. In the fourth quarter of fiscal 2017, we also paid off all outstanding borrowings on the mortgage credit agreement on our corporate headquarters facility (the "Mortgage Loan"). Our corporate headquarters facility was sold as part of the Restaurants Transaction and the termination of the Mortgage Loan prior to closing the Restaurants Transaction was a requirement under the BER Sale Agreement. Interest expense associated with the Mortgage Loan, including the write off of unamortized debt issuance costs of $972, was recorded in the results from discontinued operations. We expensed $2,005 of unamortized debt issuance costs in the fourth quarter of fiscal 2017 associated the termination of the Credit Agreement. Interest expense associated with the Credit Agreement, including the write off of unamortized debt issuance costs, were recorded in the Net Interest Expense line of the Consolidated Statements of Net Income.

Refer to the table below for outstanding borrowings as of April 28, 2017, and April 29, 2016, respectively:

(in thousands)	April 28, 2017			April 29, 2016
Credit Agreement borrowings	$	—		$	307,000
Mortgage Loan	—			28,963
R&D Loan (1)	1,801			2,219
Interest-free loan (1)	894			875
Total borrowings	2,695			339,057
Less current portion	(428		)	(3,419		)
Long term debt	$	2,267		$	335,638

(1) The R&D Loan and Interest-free loan mature in fiscal 2021 and 2022, respectively.

Establishment of New Credit Facility

On April 28, 2017, the Company entered into a new $300,000 Credit Facility (the “Credit Facility”). The Credit Facility represents a syndicated secured revolving credit facility under which up to $300,000 will be available, with a letter of credit sub-facility of $20,000, and an accordion option to increase the revolving credit commitment to $400,000. All obligations under the Credit Facility are unconditionally guaranteed by the Company as well as certain wholly owned subsidiaries, and is secured by a first-priority security interest in certain property and assets of the Company, including accounts receivable, inventory, equipment, intellectual property and certain other assets, including stock pledges of certain material direct subsidiaries. The Credit Facility has a maturity date of April 28, 2022. We incurred financing costs of $1,542 associated with this Credit Facility, which will be amortized over the five-year term of the facility.     

The primary purposes of the Credit Facility are for stand-by letters of credit in the ordinary course of business as well as working capital, capital expenditures, acquisitions, stock repurchases, dividends, including a special dividend paid to the Company’s stockholders at the close of business on June 16, 2017, and other general corporate purposes.

Borrowings under the Credit Facility bear interest, at Borrower’s option, at a rate based on the Eurodollar Rate or the Base Rate, plus a margin based on the Consolidated Leverage Ratio, as detailed in the Credit Facility, ranging from 1.25% to 2.00% per annum for Eurodollar Rate, and ranging from 0.25% to 1.00% per annum for Base Rate. Base Rate means, for any day, a fluctuating per annum rate of interest equal to the highest of (i) the Federal Funds Rate, plus 0.50%, and (ii) Bank of America, N.A.’s “prime rate”, and (iii) the Eurodollar Rate, plus 1.0%. As of April 28, 2017, the margin on LIBOR-based loans was 1.50% per annum and the margin on Base Rate-based loans was 0.50% per annum. Commitment fees payable under the Credit Facility are also based on the Consolidated Leverage Ratio and range from 0.20% per annum to 0.30% per annum of the average unused portion of the total lender commitments then in effect.

The terms of the Credit Facility provide for customary representations and warranties and affirmative covenants. The Credit Facility contains negative covenants usual and customary for a transaction of this nature. The Credit Agreement also contains financial covenants that require us to maintain a specified minimum coverage ratio of not less than 3.00 to 1.00, and a maximum leverage ratio that may not exceed 3.50 to 1.00. As of April 28, 2017, there were no outstanding borrowings on the Credit Facility and we were in compliance with all covenants. A breach of any of these covenants could result in a default under our Credit Facility, in which all amounts under the Credit Facility may become immediately due and payable, and all commitments under our Credit Facility to extend further credit may be terminated.

At April 28, 2017, we had outstanding letters of credit that totaled approximately $12,036, of which $11,736 is utilized as part of the total amount available under our Credit Facility. If certain conditions are met under these arrangements, we would be required to satisfy the obligations in cash. Due to the nature of these arrangements and based on historical experience and future expectations, we do not expect to make any significant payment outside of the terms set forth in these arrangements. Approximately $3,300 of these letters of credit were associated with our Restaurants Business and have subsequently been canceled or released.

Our combined effective annual interest rate for the now terminated Credit Agreement and Mortgage Loan was 2.37% during the year ended April 28, 2017. Interest costs of $445, $210 and $471 incurred in fiscal years 2017, 2016 and 2015, respectively, were capitalized in connection with our ERP system implementation and other construction activities. Interest paid in fiscal years 2017, 2016 and 2015 was $9,718, $10,579 and $10,399, respectively. Net interest expense from continuing operations in fiscal years 2017, 2016 and 2015 was comprised of the following:

(in thousands)	2017			2016			2015
Interest Expense:
Variable-rate debt (1)	$	7,817		$	10,925		$	10,373
Fixed-rate debt (2)	3,213			2,262			1,177
Capitalized interest	(445		)	(210		)	(471		)
Total Interest Expense on outstanding borrowings	10,585			12,977			11,079
Interest Income:
Accretion on note receivable (3)	(1,133		)	(2,082		)	(1,859		)
Other (4)	(236		)	(468		)	(571		)
Total Interest Income	(1,369		)	(2,550		)	(2,430		)
Net Interest Expense	$	9,216		$	10,427		$	8,649

(1) Primarily interest expense on our Credit Agreement borrowings.

(2) Includes the amortization of debt issuance costs

(3) Accretion on our $30,000 note receivable, obtained as part of the sale of Mimi’s Café to Le Duff which was settled in fiscal 2017.

(4) Primarily interest income on the $30,000 note receivable, obtained as part of the sale of Mimi’s Café to Le Duff which was settled in fiscal 2017.

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Income Taxes

12 Months Ended

Apr. 28, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The amount of the deferred tax assets considered realizable could be adjusted if estimates of future taxable income during the carryforward periods are reduced or increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence, such as the Company’s projections for growth. Significant components of our deferred tax liabilities and assets as of April 28, 2017, and April 29, 2016, were as follows:

(in thousands)	April 28, 2017			April 29, 2016
Deferred tax assets:
Self-insurance	$	2,306		$	5,595
Stock and deferred compensation plans	14,034			12,582
Deferred proceeds on Mimi’s Café sale	—			3,564
Rebates, coupons and allowances	2,683			1,067
Inventory	2,234			2,605
Wage and related liabilities	2,511			3,426
Deferred gain from sale leaseback	769			22,306
Other	2,392			7,619
Total deferred tax assets before valuation allowances	26,929			58,764
Valuation allowance	(238		)	(246		)
Net deferred tax assets	$	26,691		$	58,518
Deferred tax liabilities:
Property, plant and equipment	$	19,988		$	28,111
Intangibles	1,217			747
Other	405			658
Total deferred tax liabilities	21,610			29,516
Net deferred tax assets (liabilities)	$	5,081		$	29,002

There are $568 of state net operating loss carry forwards that will expire at various times through 2036.

As of April 28, 2017, and April 29, 2016, the valuation allowance for net operating loss carryovers totaled $238 and $246, respectively. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, taxable income in carryback years and tax-planning strategies when making this assessment.

Significant components of the provision (benefit) for income taxes are as follows:

(in thousands)	2017			2016		2015
Current:
Federal	$	(3,647	)	$	3,714	$	(5,679	)
State	(173		)	873		(779		)
Total current	(3,820		)	4,587		(6,458		)
Deferred:
Federal	8,364			1,704		(1,922		)
State	(670		)	148		(246		)
Total deferred	7,694			1,852		(2,168		)
Total tax provision (benefit)	$	3,874		$	6,439	$	(8,626	)

Our provision for income taxes differs from the amounts computed by applying the federal statutory rate due to the following:

	2017		2016		2015
Statutory federal tax rate	35.0	%	35.0	%	35.0	%
State and local income tax — net	0.9		3.9		6.8
Domestic production activity deduction	(13.5	)	(11.7	)	13.4
Fixed assets	—		—		2.2
Officers life insurance	(2.5	)	2.7		4.4
Other	(1.4	)	(1.5	)	(0.2	)
Provision for income taxes	18.5	%	28.4	%	61.6	%

Taxes paid during fiscal 2017, fiscal 2016 and fiscal 2015 were $23,743, $7,739 and $10,543, respectively.

Uncertain Tax Positions

The following table summarizes activity of the total amounts of unrecognized tax benefits:

(in thousands)	2017			2016			2015
Balance at beginning of fiscal year	$	4,983		$	5,202		$	5,952
Additions based on tax positions related to the current year	(23		)	306			63
Additions for tax positions of prior years	308			149			551
Reductions for tax positions of prior years	(227		)	(188		)	(284		)
Reductions due to settlements with taxing authorities	(126		)	(113		)	(672		)
Reductions due to statute of limitations expiration	(903		)	(373		)	(408		)
Balance at end of fiscal year	$	4,012		$	4,983		$	5,202

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of April 28, 2017, April 29, 2016, and April 24, 2015, was $4,012, $4,720 and $4,939, respectively. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain, but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits would not affect our effective tax rate.

The Company believes that it is reasonable that a decrease of up to $73 to $1,554 in unrecognized tax benefits related to state exposures may be necessary in the coming year due to settlements with taxing authorities or lapses of statutes of limitations.

We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense in the Consolidated Statements of Net Income. During fiscal 2017, fiscal 2016 and fiscal 2015, we recognized $422, $50 and $166, respectively of benefits related to the adjustment of previously assessed interest and penalties. As of April 28, 2017, and April 29, 2016, we accrued approximately $368 and $790, respectively, in interest and penalties related to unrecognized tax benefits.

We file United States federal and various state and local income tax returns. Tax returns are generally subject to examination for a period of three to five years after the filing of the respective return.

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Restructuring and Severance Charges

12 Months Ended

Apr. 28, 2017

Restructuring and Related Activities [Abstract]

Restructuring and Severance Charges

Restructuring and Severance Charges

In fiscal 2017, we incurred charges of $6,662 related to a reduction of personnel as part of the Company's overall strategic initiatives, including the sale of the Restaurants Business (see Note 2 for additional information). Severance charges associated with employees who work in shared service functions were recorded in the S,G&A line of the Consolidated Statements of Net Income, while charges associated with employees who supported the Restaurant Business were recorded in results from discontinued operations. Liabilities for severance charges associated with restructuring activities as of April 28, 2017, were $2,800 and are recorded in the accrued wages and related liabilities line of the Consolidated Balance Sheet and we expect these liabilities to be paid in fiscal 2018.

Additionally, in each of the fourth quarters of fiscal years 2016 and 2015, we recorded charges related to a reduction of personnel at our corporate headquarters. Restructuring costs related to employees who supported our continuing operations or worked in shared service functions were recorded in the S,G&A line of the Consolidated Statements of Net Income. See the table below for additional information.

	Restructuring Charges
Balance April 25, 2014	$	1,227
Restructuring and related severance charges incurred (1)	4,340
Amounts paid	(1,849		)
Balance Adjustments	(92		)
Balance April 24, 2015	$	3,626
Restructuring and related severance charges incurred (1)	2,606
Amounts paid	(3,105		)
Adjustments	(429		)
Balance April 29, 2016	$	2,698
Restructuring and related severance charges incurred (1)	6,662
Amounts paid	(5,632		)
Adjustments	(928		)
Balance April 28, 2017	$	2,800

⁽¹⁾ Restructuring charges of $2,090, $972 and $3,236 were recorded in continuing operations in fiscal years 2017, 2016 and 2015, respectively, in the S,G&A line of the Consolidated Statements of Net Income. The remaining charges were recorded in the results of discontinued operations.

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Share-Based Compensation Plans

12 Months Ended

Apr. 28, 2017

Share-based Compensation [Abstract]

Share-Based Compensation Plans

Share-Based Compensation Plans

Shared-based Employee Compensation:    The Stock Compensation Topic of the FASB ASC 718 ("ASC 718") requires that we measure the cost of employee services received in exchange for an equity award, such as stock options, restricted stock awards and restricted stock units, based on the estimated fair value of the award on the grant date. The cost is recognized in the income statement over the vesting period of the award on a straight-line basis with the exception of compensation cost related to awards for retirement eligible employees, which are recognized immediately upon grant. Compensation cost recognized is based on the grant date fair value estimated in accordance with ASC 718.

On September 13, 2010, our stockholders approved the Bob Evans Farms, Inc. 2010 Equity and Cash Incentive Plan (the “2010 Plan”). Upon approval, the 2010 Plan became our primary plan under which new stock-based compensation can be granted.

The types of awards that may be granted under the 2010 Plan include: stock options, stock appreciation rights, restricted stock, restricted stock units, cash incentive awards, performance shares, performance units, and other awards. The Compensation Committee of the Board of Directors administers the 2010 Plan, including establishing the terms and conditions of the awards. The 2010 Plan allows the Compensation Committee to make awards to any of our employees, consultants, or nonemployee directors. The 2010 Plan imposes various restrictions on awards, including a maximum life of 10 years for stock options and stock appreciation rights and a minimum exercise price equal to the grant date stock price for stock options and stock appreciation rights. The remaining shares available for issue under the 2006 Equity and Cash Incentive Plan (the “2006 Plan”) became available for issuance under the 2010 Plan effective September 13, 2010.

In fiscal 2017, we granted market-based performance share units ("PSUs") and restricted stock units ("RSUs"). The PSUs granted under the 2010 Plan have market-based vesting conditions, while RSUs granted under the 2010 Plan vest ratably over three years for employees, and one year for non-employee directors of the Company. The PSUs awarded in the first quarter of fiscal 2017 were designed to vest at the end of a three-year performance period if they achieved the market-based vesting conditions. The PSUs were valued using a Monte Carlo simulation with the number of shares that ultimately vest dependent on the Company's total stockholder return, measured against the total stockholder return of a select group of peer companies over a three-year period. During fiscal years 2017, 2016 and 2015, we issued treasury shares to satisfy the vesting of restricted awards and stock option exercises.

In the third quarter of fiscal 2017, in accordance with the authority and power granted to the Compensation Committee under the terms of the 2010 Plan, the Compensation Committee approved acceleration of the vesting of all unvested RSUs, RSAs and PSUs then outstanding, contingent upon and effective at the time of the closing of the Restaurants Transaction. The Compensation Committee further determined that the performance criteria applicable to each PSU was deemed satisfied, upon the closing of the Restaurants Transaction and delivery by the participant of a written agreement with the Company containing a general release of claims and certain restrictive covenants. The Compensation Committee’s decision applied to all of the Company’s outstanding RSUs, RSAs and PSUs granted to employees that were unvested at the time of the modification.

The Compensation Committee's decision resulted in a Type III modification, defined as a change from improbable to probable vesting conditions as per ASC 718, for certain employees terminated during fiscal 2017 and for employees that left the Company as part of the Restaurants Transaction. For Type III modified stock awards, we recalculated the fair value on the modification date (January 24, 2017), and accelerated the associated unrecognized stock compensation expense. RSAs and RSUs are valued based on the stock closing price on the grant date. Total stock-based compensation expense from continuing operations in fiscal years 2017, 2016 and 2015, was $7,269, $2,958 and $1,600 respectively. The related tax benefit recognized was $2,762, $1,124 and $608 in fiscal years 2017, 2016 and 2015, respectively. Expense associated with stock-based compensation is primarily reflected in S,G&A expense.

Stock Options

The following table summarizes option-related activity for fiscal 2017:

Options	Shares Subject to Options		Weighted-Average Exercise Price
Outstanding, Beginning of Year	38,040		$	33.26
Granted	—		—
Exercised	(15,150	)	34.16
Forfeited or expired	—		—
Outstanding, End of Year	22,890		$	32.67

	Shares	Weighted-Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Options outstanding	22,890	$	32.67	1.59	$	780
Options exercisable	22,890	$	32.37	1.59	$	780

As of April 28, 2017, there was no remaining unrecognized compensation cost related to outstanding stock options. The total intrinsic value of options exercised during fiscal years 2017, 2016 and 2015 was $333, $195 and $567, respectively. Cash received from the exercise of options was $518, $214 and $534 for fiscal years 2017, 2016 and 2015, respectively.

Cash flows resulting from the tax benefits of tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) are classified as financing cash flows. In fiscal years 2017, 2016 and 2015, excess tax (expense) benefits of $(499), $1,661 and $228, respectively, were classified as financing cash flows in the Consolidated Statements of Cash Flows.

Restricted Stock

A summary of the status of our non-vested restricted stock awards and restricted stock units as of April 28, 2017, and changes during fiscal 2017 is presented below:

Restricted Stock Awards	Shares		Weighted-Average Grant Date Fair Value
Non-vested, Beginning of Year	89,655		$	40.93
Granted	—		—
Vested	(85,222	)	41.25
Forfeited	(4,433	)	34.74
Non-vested, End of Year	—		$	—

Restricted Stock Units	Shares		Weighted-Average Grant Date Fair Value
Non-vested, Beginning of Year	145,118		$	45.51
Granted	97,862		39.25
Vested	(211,743	)	43.55
Forfeited	(7,418	)	43.33
Non-vested, End of Year	23,819		$	37.91

At April 28, 2017, there was $291 of unrecognized compensation cost related to non-vested restricted stock units for our Board of Directors. This cost is expected to be recognized over a weighted-average period of 0.33 years. The total fair value of RSAs and RSUs granted during fiscal years 2017, 2016 and 2015 was $3,841, $6,092 and $4,649, respectively. The total fair value of RSAs and RSUs that vested during fiscal years 2017, 2016 and 2015 was $9,221, $5,601 and $10,136, respectively.

In addition to the shares subject to outstanding options and unvested restricted stock units and performance share units, approximately 2.9 million shares were available for grant under the 2010 Plan at April 28, 2017.

Performance Share Units

Performance Share Units	Shares		Weighted-Average Grant Date Fair Value
Non-vested, Beginning of Year	61,746		$	54.76
Granted	142,124		34.08
Vested	(189,959	)	40.19
Forfeited	(13,911	)	42.46
Non-vested, End of Year	—		$	—

At April 28, 2017, there was no unrecognized stock compensation expense. The total fair value of PSU awards granted during fiscal 2017 was $4,844. The total fair value of PSU awards vested during fiscal 2017 was $7,634. The weighted-average assumptions used for PSUs in the Monte Carlo simulation during fiscal 2017 were as follows:

	Fiscal 2017 PSU grants
Grant date market price	$	39.69
Fair value	$	34.08
Assumptions:
Price volatility	30.9		%
Risk-free interest rate	0.92		%
Average volatility of peer companies	36.2		%
Average correlation coefficient of peer companies	0.774

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Other Compensation Plans

12 Months Ended

Apr. 28, 2017

Compensation and Retirement Disclosure [Abstract]

Other Compensation Plans

Other Compensation Plans

Defined Contribution Plan: We have a defined contribution plan (401(k)) that is available to substantially all employees who have at least 1,000 hours of service. Expenses related to matching contributions to these plans for continuing operations were $1,426, $988 and $946 for fiscals 2017, 2016, and 2015 respectively, and are primarily recorded within S,G&A.

Nonqualified Deferred Compensation Plans: We have three nonqualified deferred compensation plans, the Bob Evans Executive Deferral Plans I and II (collectively referred to as “BEEDP”) and Bob Evans Directors’ Deferral Plan (“BEDDP”), which provides certain executives and Board of Directors members, respectively, the opportunity to defer a portion of their current year salary or stock compensation to future years. A third party manages the investments of employee deferrals. Expenses related to investment results of these deferrals are based on the change in quoted market prices of the underlying investments elected by plan participants.

Obligations to participants who defer stock compensation through our deferral plans are satisfied only in company stock. There is no change in the vesting term for stock awards that are deferred into these plans. Obligations related to these deferred stock awards are treated as "Plan A" instruments, as defined by ASC 710. These obligations are classified as equity instruments within the Capital in excess of par value line of the Consolidated Balance Sheets. No subsequent changes in fair value are recognized in the Consolidated Financial Statements for these instruments. Participants earn share-based dividend equivalents in an amount equal to the value of per-share dividends paid to common shareholders. These dividends accumulate into additional shares of common stock, and are recorded through retained earnings in the period in which dividends are paid. Vested, deferred shares are included in the denominator of basic and diluted EPS in accordance with ASC 260 - Earnings per Share. The dilutive impact of unvested, deferred stock awards is included in the denominator of our diluted EPS calculation.

Participants who defer cash compensation into our deferral plans have a range of investment options, one of which is company stock. Obligations for participants who choose this investment election are satisfied only in shares of company stock, while all other obligations are satisfied in cash. These share-based obligations are treated as "Plan B" instruments, as defined by ASC 710. These deferred compensation obligations are recorded as liabilities on the Consolidated Balance Sheets, in the deferred compensation line. We record compensation cost for subsequent changes in fair value of these obligations. Participants earn share-based dividend equivalents in an amount equal to the value of per-share dividends paid to common shareholders. These dividends accumulate into additional shares of common stock, and are recorded as compensation cost in the period in which the dividends are paid. At April 28, 2017, our deferred compensation obligation included $1,398 of share based obligations, which represents 20,949 shares. The dilutive impact of these shares are included in the denominator of our EPS calculation. Compensation cost (benefit) recognized on the adjustment of fair value for deferred awards was immaterial in the current and prior year.

Supplemental Executive Retirement Plan: The Supplemental Executive Retirement Plan ("SERP") provides awards to a limited number of executives in the form of nonqualified deferred cash compensation. Gains and losses related to these benefits and the related investment results are recorded within the S,G&A caption in the Consolidated Statements of Net Income. The SERP is frozen and no further persons can be added, and funding was reduced to a nominal amount per year for the remaining participants.

Deferred compensation liabilities expected to be satisfied in the next 12 months are classified as current liabilities in the accrued wages and other liabilities line of the Consolidated Balance Sheets. Our deferred compensation liabilities as of April 28, 2017 and April 29, 2016, consisted of the following:

(in thousands)	April 28, 2017			April 29, 2016
Deferred cash obligations in BEEDP and BEDDP plans	$	13,986		$	12,845
Deferred cash obligations in SERP plan	5,830			6,271
Deferred liability for share-based obligations in BEEDP and BEDDP plans	1,398			673
Other noncurrent compensation arrangements	110			100
Total deferred compensation liabilities	21,324			19,889
Less current portion	(4,047		)	(2,128		)
Noncurrent deferred compensation liabilities	$	17,277		$	17,761

Employees who transferred to Bob Evans Restaurants as part of the Restaurants Transaction were treated as terminated employees in our deferred compensation plans and will receive payouts based on their distribution elections.

Rabbi Trust Assets:    The Rabbi Trust is intended to be used as a source of funds to match respective funding obligations in our nonqualified deferred compensation plans. Assets held by the Rabbi Trust are recorded on our Consolidated Balance Sheets, and include company owned life insurance ("COLI") policies, short-term money market securities and Bob Evans common stock. The COLI policies held by the Rabbi Trust are recorded at cash surrender value on the Rabbi Trust Assets line of Consolidated Balance Sheets and totaled $22,353 and $20,662 as of April 28, 2017, and April 29, 2016, respectively. The cash receipts and payments related to the company owned life insurance policies are included in cash flows from operating activities on the Consolidated Statements of Cash Flows and changes in the cash surrender value for these assets are reflected within the S,G&A line in the Consolidated Statements of Net Income.

The short-term securities held by the Rabbi Trust are recorded at their carrying value, which approximates fair value, on the prepaid expense and other current assets line of the Consolidated Balance Sheets and totaled $984 and $3,290 as of April 28, 2017, and April 29, 2016, respectively. All assets held by the Rabbi Trust are restricted to their use as noted above.

Net expenses associated with our nonqualified deferred compensation plans include expenses associated with investment returns of our plan participants as well as premiums and administrative fees associated with the plans and our Rabbi Trust, and are offset by the investment returns on our COLI policies. Net expenses associated with our deferred compensation plans totaled $1,031, $1,162 and $1,236 in fiscal years 2017, 2016, and 2015 respectively, and are recorded within S,G&A.

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Commitments and Contingencies

12 Months Ended

Apr. 28, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

We are from time-to-time involved in ordinary and routine litigation, typically involving claims from customers, employees and others related to operational issues common to the food manufacturing industries, and incidental to our business. Management presently believes that the ultimate outcome of these proceedings, individually or in the aggregate, will not have a material adverse effect on our financial position, cash flows or results of operations.

In the fourth quarter of fiscal 2016, we settled a class-action related to alleged violations of the Fair Labor Standards Act by misclassifying assistant managers as exempt employees and failing to pay overtime compensation during the period of time the employee worked as an assistant manager. In fiscal 2015, we recorded a charge of $6,000 related to the settlement of this matter. In the first quarter of fiscal 2016, we reached an agreement in principle to resolve litigation matter and recorded an additional $10,500 charge. In the fourth quarter of fiscal 2016, the Court issued a Final Approval Order on the settlement and the appeals period expired. The Company recorded a favorable adjustment of $3,344 related to the final settlement of this matter in fiscal 2016.

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Goodwill and Other Intangible Assets

12 Months Ended

Apr. 28, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The carrying value of our goodwill and other intangible assets as of the end of fiscal 2017 and fiscal 2016 is $19,673 and $19,829, respectively, and primarily represents goodwill acquired in our fiscal 2013 acquisition of Kettle Creations. We assess the carrying value of our goodwill annually or whenever circumstances indicate that a decline in the carrying value may have occurred as required under the provisions of ASC 350. In the fourth quarter of fiscal 2017 we completed our annual impairment test. There have been no impairments to our goodwill in the current or prior years

We also have a definite-lived intangible assets recorded on the Consolidated Balance Sheets consisting of noncompetition agreements that are being amortized over a 5-year life and have an immaterial remaining unamortized balance as of April 28, 2017.

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Acquisitions

12 Months Ended

Apr. 28, 2017

Business Combinations [Abstract]

Acquisitions

 Acquisitions

On January 24, 2017, the Company’s subsidiary BEF Foods, Inc. (“BEF Foods”) entered into a Stock Purchase Agreement (the “PFPC Agreement”) with Pineland Farms Potato Company, Inc., a Maine corporation (“PFPC”), the stockholders of PFPC party thereto (collectively, the “Sellers”), and Libra Foundation, as the Sellers’ Representative, and, solely for the purposes of guaranteeing the payment and performance obligations of BEF Foods under the PFPC Agreement, the Company. Pursuant to the PFPC Agreement, subject to the satisfaction or waiver of certain conditions, BEF Foods has purchased and acquired from the Sellers all of the equity interests of PFPC outstanding immediately after the closing , in exchange for (i) $115,000 in cash, subject to certain adjustments set forth in the PFPC Agreement, and (ii) up to an additional $25,000 in cash as potential earn-out consideration, the payment of which is subject to the achievement of certain operating EBITDA performance milestones over a consecutive twelve-month period during the 24 months following the closing. The transaction closed in the first quarter of fiscal 2018.

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Quarterly Financial Data (Unaudited)

12 Months Ended

Apr. 28, 2017

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

Quarterly Financial Data (Unaudited)

Summarized unaudited quarterly financial results for Fiscal 2017 and Fiscal 2016 follows (in thousands, except per share amounts):

	First Quarter				Second Quarter					Third Quarter					Fourth Quarter
	2017		2016		2017			2016		2017			2016		2017		2016
Net Sales from Continuing Operations	$	85,941	$	83,044	$	96,158		$	94,281	$	112,820		$	107,897	$	99,923	$	102,394
Operating Income (Loss) from Continuing Operations	$	8,265	$	5,986	$	(4,768	)	$	5,330	$	17,121		$	11,424	$	9,508	$	10,334
Net Income (Loss) from Continuing Operations	$	5,298	$	2,582	$	(4,857	)	$	1,278	$	9,838		$	6,416	$	6,757	$	5,932
Net Income (Loss) from Discontinued Operations	$	3,864	$	1,698	$	5,074		$	5,152	$	(1,617	)	$	6,515	$	102,110	$	(5,351	)
Consolidated Earnings Per Share - Net Income
Basic	$	0.46	$	0.19	$	0.01		$	0.29	$	0.41		$	0.62	$	5.47	$	0.03
Diluted	$	0.46	$	0.19	$	0.01		$	0.29	$	0.41		$	0.62	$	5.39	$	0.03
Common stock sale prices (1)
High	$	46.83	$	51.88	$	41.09		$	49.92	$	57.94		$	44.34	$	67.25	$	48.14
Low	$	35.67	$	43.02	$	35.90		$	42.51	$	40.05		$	37.51	$	55.49	$	38.92
Cash dividends paid	$	0.34	$	0.31	$	0.34		$	0.31	$	0.34		$	0.34	$	0.34	$	0.34

(1) Common stock sale prices are based on the market-close prices during the respective periods.

• Fiscal quarters represent 13-week periods, except the fourth quarter of fiscal year 2016, which was a 14-week period.

• Total quarterly EPS may not equal the annual amount because EPS is calculated independently for each quarter.

• Stock prices are high and low sale prices for our common stock as reported on the NASDAQ Stock Market (trading symbol — BOBE), which is the principal market for our common stock.

• The number of registered stockholders of our common stock at June 9, 2017, was 14,648.

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Subsequent Events

12 Months Ended

Apr. 28, 2017

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On May 1, 2017, we completed the acquisition of PFPC. We acquired all of the equity interests of PFPC in exchange for (i) $115,000 in cash, subject to certain adjustments set forth in the purchase agreement, and (ii) up to an additional $25,000 in cash as potential earn-out consideration, the payment of which is subject to the achievement of certain operating EBITDA performance milestones over consecutive twelve month periods during the 24 months following the closing.

The acquisition increases our side-dish production capacity and provides us the capability to produce and sell diced and shredded potato products in both the retail and food-service channels. The acquisition also diversifies our production capability by adding a second state-of-the-art potato processing facility with approximately 180 million pounds of capacity. PFPC also owns and operates a 900-acre potato farm and is surrounded by an estimated 55,000 acres of annual potato production.

On May 1, 2017, the Company’s Board of Directors announced the declaration of a special dividend in the amount of $7.50 per share on the Company’s outstanding common stock. The dividend is payable on June 16, 2017 to stockholders of record at the close of business on May 30, 2017.

On May 31, 2017, the Company’s Board of Directors announced the declaration of a quarterly cash dividend of $0.34 per share on the Company's outstanding common stock. The dividend is payable on June 26, 2017 to stockholders of record at the close of business on June 12, 2017.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Apr. 28, 2017

Accounting Policies [Abstract]

Description of Business

Description of Business:   We produce and distribute a variety of complementary home-style, refrigerated side-dish convenience food items and pork sausage under the Bob Evans ®, Owens ® and Country Creek ® brand names. These food products are available throughout the United States at grocery retailers. We also manufacture and sell similar products to food-service accounts, including Bob Evans Restaurants and other restaurants. The revenue from sales to Bob Evans Restaurants were eliminated in consolidation.

On January 24, 2017, we entered into an Asset and Membership Interest Purchase Agreement (the "BER Sale Agreement") with Bob Evans Restaurants, LLC (formerly BER Acquisition, LLC) a Delaware limited liability company formed by affiliates of Golden Gate Capital Opportunity Fund, L.P. ("the Buyer"). The Buyer completed the acquisition of the Company's Bob Evans Restaurants Business (the "Restaurants Business"), including our corporate headquarters, on April 28, 2017 (the "Restaurants Transaction"). For all periods presented in our Consolidated Statements of Net Income, all sales, costs, expenses, gains and income taxes attributable to our Restaurants Business as well as the Restaurants Transaction have been reported under the captions "Income from Discontinued Operations, Net of Income Taxes." Cash flows used in or provided by our Restaurants Business have been reported in the Consolidated Statements of Cash Flows under operating and investing activities. Refer to Note 2 - Discontinued Operations for additional information.

Prior to the decision to sell our Restaurants Business, we had two reporting segments, Bob Evans Restaurants and BEF Foods. BEF Foods sells food products throughout the retail grocery and food service channels, including to Bob Evans Restaurants. Corporate and other costs related to shared services functions were not allocated to our reporting segments. As a result of the decision to sell our Restaurants Business, which is now classified as discontinued operations, we have one reporting segment. Revenues and costs related to our BEF Foods business, including indirect corporate overhead costs, are reported within results from continuing operations. All revenues and costs incurred directly in support of the Bob Evans Restaurants business are presented in results from discontinued operations. Prior year information has been adjusted to conform with the current presentation. Unless otherwise stated, the information disclosed in footnotes accompanying the financial statements refer to continuing operations. See Note 2 for additional information regarding results from discontinued operations.

Principles of Consolidation

Principles of Consolidation:    The consolidated financial statements include the accounts of Bob Evans and its subsidiaries. Intercompany accounts and transactions have been eliminated. Dollars are in thousands, except share and per share amounts.

Use of Estimates

Use of Estimates:    The preparation of financial statements in conformity with US GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could differ from the estimates and assumptions used.

Fiscal Year

Fiscal Year:    Our fiscal year ends on the last Friday in April. References herein to fiscal 2017, fiscal 2016 and fiscal 2015 refer to fiscal years ended April 28, 2017, April 29, 2016, and April 24, 2015, respectively. Fiscal years 2017 and 2015 were 52 week periods, whereas fiscal year 2016 was a 53 week period.

Revenue Recognition

Revenue Recognition: Revenue is recognized when products are received by our customers. We engage in promotional (sales incentives or trade spend) programs in the form of "off-invoice" deductions, billbacks, cooperative advertising and coupons with our customers. Costs associated with these programs are classified as a reduction of gross sales in the period in which the sale occurs. Promotional spending for continuing operations, primarily comprised of off-invoice deductions and billbacks

Shipping and Handling costs

Shipping and Handling costs:  Expenditures related to shipping our BEF Foods products to our customers are expensed when incurred.

Cash Equivalents

come.

Cash Equivalents:    We consider all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents.

Accounts Receivable

 or April 29, 2016.

Accounts Receivable:    Accounts receivable represents amounts owed to us through our operating activities and are presented net of allowance for doubtful accounts and promotional incentives. Accounts receivable consist primarily of trade receivables from customer sales. We evaluate the collectability of our accounts receivable based on a combination of factors. In circumstances where we are aware of a specific customer’s inability to meet its financial obligations to us, we record a specific allowance for bad debts against amounts due to reduce the net recognized receivable to the amount we reasonably believe will be collected. In addition, we recognize allowances for bad debts based on the length of time receivables are past due with allowance percentages, based on our historical experiences, applied on a graduated scale relative to the age of the receivable amounts. If circumstances such as higher than expected bad debt experience or an unexpected material adverse change in a major customer’s ability to meet its financial obligations to us were to occur, the recoverability of amounts due to us could change by a material amount.

Concentration of Credit Risk

mers.

Concentration of Credit Risk:    We maintain cash depository accounts with major banks. Accounts receivable can be potentially exposed to a concentration of credit risk with customers or in particular industries. In fiscal 2017 sales to Wal-mart comprised approximately 20% of net sales from continuing operations while sales to Kroger comprised approximately 14% of net sales from continuing operations. Reserves for credit losses have historically been within our expectations.

Notes Receivable

Notes Receivable:    As a result of the sale of Mimi’s Café to Le Duff, we received a promissory note ("the Note") for $30,000. The Note had an annual interest rate of 1.5%, a term of seven years and a full principal and interest payment date of February 2020. Partial prepayments were required prior to maturity if the buyer reached certain levels of EBITDA during specified periods. No partial prepayments were received on this Note. The Note was originally valued using a discounted cash flow model and we recognized accretion income of $1,133, $2,082 and $1,859 in fiscal years 2017, 2016 and 2015, respectively

Inventories

Inventories:    Our inventories are determined on an average cost method which approximates a first in, first out basis due to the perishable nature of our inventory.

Property, Plant and Equipment

Property, Plant and Equipment:   Property, plant and equipment is recorded at cost less accumulated depreciation. The straight-line depreciation method is used for all capitalized assets. Depreciation is calculated at rates adequate to amortize costs over the estimated useful lives of buildings and improvements (5 to 25 years) and machinery and equipment (3 to 10 years). Improvements to leased properties are depreciated over the shorter of their useful lives or the initial lease terms. Total depreciation expense from continuing operations was $23,875, $20,887 and $18,207 and in fiscal years 2017, 2016 and 2015, respectively.

We capitalized internal labor costs of $605, $1,557 and $2,118 in fiscal years 2017, 2016 and 2015, respectively, primarily associated with the first and second phases of our ERP implementation and other IT projects. The first phase of our ERP system was put in service in the first quarter of fiscal 2016, and has an expected useful life of ten years. The second phase of our ERP system was put in service in the second quarter of fiscal year 2017 and also has an expected useful life of 10 years.

We evaluate property, plant and equipment held and used in the business for impairment whenever events or changes circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. Impairment is determined by comparing the estimated fair value for the asset group to the carrying amount of its assets. If impairment exists, the amount of impairment is measured as the excess of the carrying amount over the estimated fair values of the assets.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets:    Goodwill and other intangible assets, which primarily represents the cost in excess of fair market value of net assets acquired, were $19,673 and $19,829 as of April 28, 2017, and April 29, 2016, respectively. The majority of our goodwill was acquired as part of our fiscal 2013 acquisition of Kettle Creations. Additionally, as part of this acquisition we obtained a non-compete agreement with certain executives of the former company. The Kettle Creations non-compete agreement is amortized on a straight-line basis over its estimated economic life of five years.

Goodwill and intangible assets with indefinite lives are not amortized, but rather are tested for impairment during the fourth quarter each year or on a more frequent basis when indicators of impairment exist. Goodwill and indefinite lived intangible asset impairment testing involves a comparison of the estimated fair value of reporting units to the respective carrying amount. If the estimated fair value exceeds the carrying amount, then no impairment exists. If the carrying amount exceeds the estimated fair value, then a second step is performed to determine the amount of impairment, if any. We perform our impairment test using a combination of income-based and market-based approaches. The income based approach indicates the fair value of an asset or business based on the cash flows it can be expected to generate over its remaining useful life. Under the market-based approach, fair value is determined by comparing our reporting units to similar businesses or guideline companies whose securities are actively traded in public markets.

Accrued Non-Income Taxes

Accrued Non-Income Taxes:    Accrued non-income taxes primarily represent obligations for real estate and personal property taxes.

Self-Insurance Reserves

Self-Insurance Reserves:    We record estimates for certain health, workers’ compensation and general liability insurance costs that are self-insured programs. Self-insurance reserves include actuarial estimates of both claims filed, carried at their expected ultimate settlement value, and claims incurred but not yet reported. Our liability represents an estimate of the ultimate cost of claims incurred as of the fiscal year end balance sheet date.

Advertising Costs

Advertising Costs:    Media advertising is expensed at the time the media first airs. We expense all other advertising costs as incurred. Advertising expense from continuing operations was $9,006, $6,658 and $3,607 in fiscal years 2017, 2016 and 2015, respectively. Advertising costs are classified in other operating expenses in the Consolidated Statements of Net I

Cost of Sales

Cost of Sales:    Cost of sales represents primarily the cost of materials. Cost of sales excludes depreciation expense, which is recorded in the depreciation and amortization expense line on the Consolidated Statements of Net Income.

Comprehensive Income

Comprehensive Income:    Comprehensive income is the same as reported net income as we have no other comprehensive income.

Earnings Per Share

Earnings Per Share:    Our basic earnings per share ("EPS") computation is based on the weighted-average number of shares of common stock outstanding during the period presented. Our diluted EPS calculation reflects the assumed vesting of restricted shares and market-based performance shares, the exercise and conversion of outstanding employee stock options and the settlement of share-based obligations recorded as liabilities on the Consolidated Balance Sheets (see Note 6 for more information), net of the impact of antidilutive shares.

Dividends

Dividends: In fiscal 2017, we paid four quarterly dividends, each equal to $0.34 per share on our outstanding common stock. Individuals that hold awards for unvested and outstanding restricted stock units, market-based performance share units and outstanding deferred stock awards are entitled to receive dividend equivalent rights equal to the per-share cash dividends paid on outstanding units. Dividend equivalent rights are forfeitable until the underlying share units from which they were derived vest. Share-based dividend equivalents are recorded as a reduction to retained earnings, with an offsetting increase to capital in excess of par value.

Leases

Leases:     In fiscal 2016, we entered into sale leaseback transactions for two of our production facilities. The transaction included 20-year initial lease terms for each facility, with two10-year additional renewal periods exercisable at our option, 2% annual rent increases and payment and performance guaranties. A gain of $2,305 on the sale of our Lima, Ohio, facility was deferred and is being recognized on a straight-line basis over the initial term of the lease. Rent expense is recorded on a straight-line basis. Our straight-line rent calculation does not include an assumption of lease renewal periods. We record the difference between the amount charged to expense and the rent paid as deferred rent in the Consolidated Balance Sheets.

Income Taxes

Income Taxes:   We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

We record uncertain tax positions in accordance with the Income Taxes Topic of the Financial Accounting Standards Board ("FASB ") ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying Consolidated Statement of Net Income. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheets.

Commitments and Contingencies

Commitments and Contingencies:    We occasionally use purchase commitment contracts to stabilize the potentially volatile pricing associated with certain commodity items.

We are self-insured for most casualty losses and employee health care claims up to certain stop-loss limits per claim. We have accounted for liabilities for casualty losses, including both reported claims and incurred but not reported claims, based on information provided by independent actuaries. We have estimated our employee health care claims liability through a review of incurred and paid claims history. The Company retained liabilities for health insurance and general liability claims associated with the Restaurants Business that were incurred prior to the closing of the Restaurants Transaction. We do not believe that our calculation of casualty losses and employee health-care claims liabilities would change materially under different conditions and/or different methods. However, due to the inherent volatility of actuarially determined casualty losses and employee health care claims, it is reasonably possible that we could experience changes in estimated losses, which could be material to net income.

We are from time to time involved in ordinary and routine litigation, typically involving claims from customers, employees and others related to operational issues common to the food manufacturing industry. Management believes that the ultimate outcome of these proceedings, individually or in the aggregate, will not have a material adverse effect on our financial position, cash flows or results of operations. See Note 8 for further information.

As part of the Restaurants Transaction, the Company and BEF Foods, Inc. continue to guarantee certain payment and performance obligations associated with Bob Evans Restaurants leases associated with the sale leaseback transaction that occurred in the fourth quarter of fiscal 2016. See Note 2 for additional information.

New Accounting Pronouncements

New Accounting Pronouncements: In the normal course of business, management evaluates all new accounting pronouncements issued by the FASB, the Securities and Exchange Commission (“SEC”), the Emerging Issues Task Force, the American Institute of Certified Public Accountants or any other authoritative accounting body to determine the potential impact they may have on the Company’s consolidated financial statements. The pronouncements below were either adopted by the Company in fiscal 2017 or will be effective for the Company in future years.

In May 2014, the FASB and the International Accounting Standards Board ("IASB") issued new joint guidance surrounding revenue recognition. Under US GAAP, this guidance is being introduced to the ASC as Topic 606, Revenue from Contracts with Customers ("Topic 606"), by Accounting Standards Update No. 2014-09. The new standard supersedes a majority of existing revenue recognition guidance under US GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Companies may need to use more judgment and make more estimates while recognizing revenue, which could result in additional disclosures to the financial statements. Topic 606 allows for either a "full retrospective" adoption or a "modified retrospective" adoption. The standard will become effective for us in fiscal 2019.

We are in the process of implementing the new standard, focusing on promotional arrangements with customers. We do not believe the implementation will be material to our current or historical financial statements. We are in the process of developing additional controls to ensure proper oversight of new customer relationships and promotional activity, as well as to ensure we meet all of the disclosure requirements associated with the new standard. We have not yet concluded which transition method we will elect, but anticipate we will use the modified retrospective approach.

In August 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-15, Presentation of Financial Statements - Going Concern to provide guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern. The guidance requires management to assess whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity's ability to continue as a going concern within one year after the date that the financial statements are issued. When management identifies such conditions or events, a footnote disclosure is required to disclose their nature, as well as management's plans to alleviate the substantial doubt to continue as a going concern. The standard became effective for our fiscal year end 2017 and did not have an impact on the consolidated financial statements.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. ASU 2015-11 simplifies the subsequent measurement of inventory by replacing today's lower of cost or market test with a lower of cost or net realizable test, which is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The standard will become effective for us in fiscal 2018. We do not expect this update to have a material impact on the consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases. This guidance requires companies to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The new standard also will result in enhanced quantitative and qualitative disclosures, including significant judgments made by management, to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing leases. The standard requires modified retrospective adoption and will become effective beginning in fiscal 2020, with early adoption permitted. We are currently evaluating this standard, including the timing of adoption and the related impact on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Compensation Accounting. ASU 2016-09 requires that excess tax benefits are recorded on the income statement as opposed to additional paid-in-capital, and treated as an operating activity on the statement of cash flows. ASU 2016-09 also allows companies to make an accounting policy election to either estimate the number of awards that are expected to vest (current U.S. GAAP) or account for forfeitures when they occur. ASU 2016-09 further requires cash paid by an employer when directly withholding shares for tax-withholding purposes to be classified as a financing activity on the statement of cash flows. The standard will become effective for us in fiscal 2018. We are currently evaluating the impact this standard will have on our consolidated financial statements.

In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses. ASU 2016-13 introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale (AFS) debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The standard will become effective for us in our fiscal 2021. We do not expect this standard to have a material impact on the consolidated financial statements.

In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The guidance is to be applied using a retrospective transition method to each period presented. This standard will become effective for us in our fiscal 2019. We are currently evaluating the impact this standard will have on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment." ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating Step 2 from the goodwill impairment test. Under the previous guidance an impairment of goodwill exists when the carrying amount of goodwill exceeds its implied fair value, whereas under the new guidance a goodwill impairment loss would be recognized if the carrying amount of the reporting unit exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. The ASU is effective for annual and any interim impairment tests for periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact this standard will have on our consolidated financial statements.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Apr. 28, 2017

Accounting Policies [Abstract]

Schedule of Other Accrued Expenses

 Other accrued expenses consisted of the following:

(in thousands)	April 28, 2017		April 29, 2016
Legal and professional fees	$	10,807	$	4,119
Accrued customer incentives	1,912		1,872
Accrued broker fees	945		957
Accrued advertising	515		727
Accrued utilities	492		449
Accrued interest	16		541
Other	3,218		4,949
Total other accrued expenses	$	17,905	$	13,614

Schedule of Weighted Average Number of Shares

The denominator is based on the following weighted-average shares outstanding:

(in thousands)	2017	2016	2015
Basic	19,839	21,336	23,489
Dilutive shares	293	158	160
Diluted	20,132	21,494	23,649

Schedule of Dividends

Refer to table below:

	2017		2016
Cash dividends paid to common stock holders	$	26,915	$	27,861
Dividend Equivalent Rights	560		400
Total dividends	$	27,475	$	28,261

Schedule of Minimum Lease Payments

Refer to the following table for expected future minimum lease payments, which excludes the impact of any available renewal periods:

(in thousands)	2018		2019		2020		2021		2022		Thereafter
Future operating lease payments	$	3,586	$	3,657	$	3,731	$	3,805	$	3,881	$	60,657

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Discontinued Operations (Tables)

12 Months Ended

Apr. 28, 2017

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Discontinued Operations and Assets Held for Sale

See the table below for a reconciliation of the gain recorded on the sale of our Restaurants Business:

Net proceeds received from Restaurant Transaction (1)	$	539,301
Restaurants Business assets:
Accounts receivable	3,522
Inventory	8,538
Property, plant and equipment	480,663
Other assets	5,693
Total Restaurants Business assets	498,416
Restaurants Business liabilities:
Accounts payable	13,813
Accrued non income taxes	11,587
Accrued wages and benefits	8,794
Self-insurance reserves	8,003
Accrued gift cards	13,810
Accrued miscellaneous liabilities	12,455
Deferred sale leaseback gain	51,077
Other restaurant liabilities	7,039
Total Restaurants Business Liabilities	126,578
Other transaction costs incurred as part of the sale of the Restaurants Business (2)	$	17,296
Gain on sale of the Restaurants Business before income taxes	$	150,167

(1)The proceeds received from the Restaurants Transaction are net of certain costs paid at closing, including transfer taxes and title insurance, and other working capital adjustments outlined in the BER Sale Agreement.

(2) Costs directly incurred as a result of the sale of our Restaurants Business, including investment bank fees, legal fees, professional fees and other administrative costs.

Results associated with the Restaurants Business are classified as income from discontinued operations, net of income taxes, in our Consolidated Statements of Net Income. Prior year results have been adjusted to conform with the current presentation. Income from discontinued operations is comprised of the following:

(in thousands)	2017		2016			2015
Net Sales	$	876,786	$	951,211		$	969,878
Costs and expenses:
Cost of sales	226,516		252,612			258,677
Operating wage and fringe benefit expenses	359,959		384,959			381,822
Operating expenses	172,717		169,673			168,610
Selling, general and administrative expenses	62,025		73,873			69,916
Depreciation and amortization expense	36,059		58,562			61,710
Impairments	522		8,385			6,100
Operating Income from discontinued operations	18,988		3,147			23,043
Gain on sale of Restaurants Business	150,167		—			—
Net interest expense	2,203		373			—
Income from discontinued operations before income taxes	166,952		2,774			23,043
Provision (Benefit) for income taxes	57,521		(5,240		)	1,110
Income from discontinued operations	$	109,431	$	8,014		$	21,933

Proceeds from the sale of the Restaurants Business have been presented in the Consolidated Statements of Cash Flow under investing activities for fiscal year 2017. Total operating and investing cash flows of discontinued operations for fiscal years 2017, 2016 and 2015 are comprised of the following:

(in thousands)	2017			2016		2015
Net cash (used in) provided by operating activities	$	(35,807	)	$	72,645	$	123,401
Net cash provided by (used in) investing activities	$	519,833		$	175,816	$	(49,184	)

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Long-Term Debt and Credit Arrangements (Tables)

12 Months Ended

Apr. 28, 2017

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Refer to the table below for outstanding borrowings as of April 28, 2017, and April 29, 2016, respectively:

(in thousands)	April 28, 2017			April 29, 2016
Credit Agreement borrowings	$	—		$	307,000
Mortgage Loan	—			28,963
R&D Loan (1)	1,801			2,219
Interest-free loan (1)	894			875
Total borrowings	2,695			339,057
Less current portion	(428		)	(3,419		)
Long term debt	$	2,267		$	335,638

(1) The R&D Loan and Interest-free loan mature in fiscal 2021 and 2022, respectively.

Schedule of Net Interest Expense

Net interest expense from continuing operations in fiscal years 2017, 2016 and 2015 was comprised of the following:

(in thousands)	2017			2016			2015
Interest Expense:
Variable-rate debt (1)	$	7,817		$	10,925		$	10,373
Fixed-rate debt (2)	3,213			2,262			1,177
Capitalized interest	(445		)	(210		)	(471		)
Total Interest Expense on outstanding borrowings	10,585			12,977			11,079
Interest Income:
Accretion on note receivable (3)	(1,133		)	(2,082		)	(1,859		)
Other (4)	(236		)	(468		)	(571		)
Total Interest Income	(1,369		)	(2,550		)	(2,430		)
Net Interest Expense	$	9,216		$	10,427		$	8,649

(1) Primarily interest expense on our Credit Agreement borrowings.

(2) Includes the amortization of debt issuance costs

(3) Accretion on our $30,000 note receivable, obtained as part of the sale of Mimi’s Café to Le Duff which was settled in fiscal 2017.

(4) Primarily interest income on the $30,000 note receivable, obtained as part of the sale of Mimi’s Café to Le Duff which was settled in fiscal 2017.

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Income Taxes (Tables)

12 Months Ended

Apr. 28, 2017

Income Tax Disclosure [Abstract]

Deferred Tax Assets and Liabilities

Significant components of our deferred tax liabilities and assets as of April 28, 2017, and April 29, 2016, were as follows:

(in thousands)	April 28, 2017			April 29, 2016
Deferred tax assets:
Self-insurance	$	2,306		$	5,595
Stock and deferred compensation plans	14,034			12,582
Deferred proceeds on Mimi’s Café sale	—			3,564
Rebates, coupons and allowances	2,683			1,067
Inventory	2,234			2,605
Wage and related liabilities	2,511			3,426
Deferred gain from sale leaseback	769			22,306
Other	2,392			7,619
Total deferred tax assets before valuation allowances	26,929			58,764
Valuation allowance	(238		)	(246		)
Net deferred tax assets	$	26,691		$	58,518
Deferred tax liabilities:
Property, plant and equipment	$	19,988		$	28,111
Intangibles	1,217			747
Other	405			658
Total deferred tax liabilities	21,610			29,516
Net deferred tax assets (liabilities)	$	5,081		$	29,002

Provision (Benefit) for Income Taxes

Significant components of the provision (benefit) for income taxes are as follows:

(in thousands)	2017			2016		2015
Current:
Federal	$	(3,647	)	$	3,714	$	(5,679	)
State	(173		)	873		(779		)
Total current	(3,820		)	4,587		(6,458		)
Deferred:
Federal	8,364			1,704		(1,922		)
State	(670		)	148		(246		)
Total deferred	7,694			1,852		(2,168		)
Total tax provision (benefit)	$	3,874		$	6,439	$	(8,626	)

Effective Income Tax Rate Reconciliation

Our provision for income taxes differs from the amounts computed by applying the federal statutory rate due to the following:

	2017		2016		2015
Statutory federal tax rate	35.0	%	35.0	%	35.0	%
State and local income tax — net	0.9		3.9		6.8
Domestic production activity deduction	(13.5	)	(11.7	)	13.4
Fixed assets	—		—		2.2
Officers life insurance	(2.5	)	2.7		4.4
Other	(1.4	)	(1.5	)	(0.2	)
Provision for income taxes	18.5	%	28.4	%	61.6	%

Unrecognized Tax Benefits Reconciliation

The following table summarizes activity of the total amounts of unrecognized tax benefits:

(in thousands)	2017			2016			2015
Balance at beginning of fiscal year	$	4,983		$	5,202		$	5,952
Additions based on tax positions related to the current year	(23		)	306			63
Additions for tax positions of prior years	308			149			551
Reductions for tax positions of prior years	(227		)	(188		)	(284		)
Reductions due to settlements with taxing authorities	(126		)	(113		)	(672		)
Reductions due to statute of limitations expiration	(903		)	(373		)	(408		)
Balance at end of fiscal year	$	4,012		$	4,983		$	5,202

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Restructuring and Severance Charges (Tables)

12 Months Ended

Apr. 28, 2017

Restructuring and Related Activities [Abstract]

Schedule of Restructuring and Related Costs

See the table below for additional information.

	Restructuring Charges
Balance April 25, 2014	$	1,227
Restructuring and related severance charges incurred (1)	4,340
Amounts paid	(1,849		)
Balance Adjustments	(92		)
Balance April 24, 2015	$	3,626
Restructuring and related severance charges incurred (1)	2,606
Amounts paid	(3,105		)
Adjustments	(429		)
Balance April 29, 2016	$	2,698
Restructuring and related severance charges incurred (1)	6,662
Amounts paid	(5,632		)
Adjustments	(928		)
Balance April 28, 2017	$	2,800

⁽¹⁾ Restructuring charges of $2,090, $972 and $3,236 were recorded in continuing operations in fiscal years 2017, 2016 and 2015, respectively, in the S,G&A line of the Consolidated Statements of Net Income. The remaining charges were recorded in the results of discontinued operations.

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Share-Based Compensation Plans (Tables)

12 Months Ended

Apr. 28, 2017

Share-based Compensation [Abstract]

Stock Options Activity

The following table summarizes option-related activity for fiscal 2017:

Options	Shares Subject to Options		Weighted-Average Exercise Price
Outstanding, Beginning of Year	38,040		$	33.26
Granted	—		—
Exercised	(15,150	)	34.16
Forfeited or expired	—		—
Outstanding, End of Year	22,890		$	32.67

	Shares	Weighted-Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Options outstanding	22,890	$	32.67	1.59	$	780
Options exercisable	22,890	$	32.37	1.59	$	780

Restricted Stock Units and Awards Activity

A summary of the status of our non-vested restricted stock awards and restricted stock units as of April 28, 2017, and changes during fiscal 2017 is presented below:

Restricted Stock Awards	Shares		Weighted-Average Grant Date Fair Value
Non-vested, Beginning of Year	89,655		$	40.93
Granted	—		—
Vested	(85,222	)	41.25
Forfeited	(4,433	)	34.74
Non-vested, End of Year	—		$	—

Restricted Stock Units	Shares		Weighted-Average Grant Date Fair Value
Non-vested, Beginning of Year	145,118		$	45.51
Granted	97,862		39.25
Vested	(211,743	)	43.55
Forfeited	(7,418	)	43.33
Non-vested, End of Year	23,819		$	37.91

Performance Share Units

Performance Share Units

Performance Share Units	Shares		Weighted-Average Grant Date Fair Value
Non-vested, Beginning of Year	61,746		$	54.76
Granted	142,124		34.08
Vested	(189,959	)	40.19
Forfeited	(13,911	)	42.46
Non-vested, End of Year	—		$	—

Performance Share Awards Valuation Assumptions

The weighted-average assumptions used for PSUs in the Monte Carlo simulation during fiscal 2017 were as follows:

	Fiscal 2017 PSU grants
Grant date market price	$	39.69
Fair value	$	34.08
Assumptions:
Price volatility	30.9		%
Risk-free interest rate	0.92		%
Average volatility of peer companies	36.2		%
Average correlation coefficient of peer companies	0.774

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Other Compensation Plans (Tables)

12 Months Ended

Apr. 28, 2017

Compensation and Retirement Disclosure [Abstract]

Schedule of Deferred Compensation Liabilities

Our deferred compensation liabilities as of April 28, 2017 and April 29, 2016, consisted of the following:

(in thousands)	April 28, 2017			April 29, 2016
Deferred cash obligations in BEEDP and BEDDP plans	$	13,986		$	12,845
Deferred cash obligations in SERP plan	5,830			6,271
Deferred liability for share-based obligations in BEEDP and BEDDP plans	1,398			673
Other noncurrent compensation arrangements	110			100
Total deferred compensation liabilities	21,324			19,889
Less current portion	(4,047		)	(2,128		)
Noncurrent deferred compensation liabilities	$	17,277		$	17,761

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Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Apr. 28, 2017

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

Summarized unaudited quarterly financial results for Fiscal 2017 and Fiscal 2016 follows (in thousands, except per share amounts):

	First Quarter				Second Quarter					Third Quarter					Fourth Quarter
	2017		2016		2017			2016		2017			2016		2017		2016
Net Sales from Continuing Operations	$	85,941	$	83,044	$	96,158		$	94,281	$	112,820		$	107,897	$	99,923	$	102,394
Operating Income (Loss) from Continuing Operations	$	8,265	$	5,986	$	(4,768	)	$	5,330	$	17,121		$	11,424	$	9,508	$	10,334
Net Income (Loss) from Continuing Operations	$	5,298	$	2,582	$	(4,857	)	$	1,278	$	9,838		$	6,416	$	6,757	$	5,932
Net Income (Loss) from Discontinued Operations	$	3,864	$	1,698	$	5,074		$	5,152	$	(1,617	)	$	6,515	$	102,110	$	(5,351	)
Consolidated Earnings Per Share - Net Income
Basic	$	0.46	$	0.19	$	0.01		$	0.29	$	0.41		$	0.62	$	5.47	$	0.03
Diluted	$	0.46	$	0.19	$	0.01		$	0.29	$	0.41		$	0.62	$	5.39	$	0.03
Common stock sale prices (1)
High	$	46.83	$	51.88	$	41.09		$	49.92	$	57.94		$	44.34	$	67.25	$	48.14
Low	$	35.67	$	43.02	$	35.90		$	42.51	$	40.05		$	37.51	$	55.49	$	38.92
Cash dividends paid	$	0.34	$	0.31	$	0.34		$	0.31	$	0.34		$	0.34	$	0.34	$	0.34

(1) Common stock sale prices are based on the market-close prices during the respective periods.

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Summary of Significant Accounting Policies Narrative (Details)			3 Months Ended								12 Months Ended
	Jan. 24, 2017 segment	Jan. 23, 2017 segment	Apr. 28, 2017 USD ($) $ / shares	Jan. 27, 2017 USD ($) $ / shares	Oct. 28, 2016 $ / shares	Jul. 29, 2016 $ / shares	Apr. 29, 2016 USD ($) facility $ / shares	Jan. 22, 2016 $ / shares	Oct. 23, 2015 $ / shares	Jul. 24, 2015 $ / shares	Apr. 28, 2017 USD ($) $ / shares shares	Apr. 29, 2016 USD ($) facility lease_renewal $ / shares shares	Apr. 24, 2015 USD ($) $ / shares shares
Property, Plant and Equipment [Line Items]
Number of reporting segments | segment	1	2
Promotional expenses											$ 84,748,000	$ 79,302,000	$ 56,618,000
Allowance for doubtful accounts			$ 269,000				$ 421,000				269,000	421,000
Accounts receivable reduction											8,055,000	4,916,000
Accretion income											1,133,000	2,082,000	1,859,000
Inventory raw materials and supplies			6,037,000				5,911,000				6,037,000	5,911,000
Inventory finished goods			11,173,000				11,182,000				11,173,000	11,182,000
Depreciation											23,875,000	20,887,000	18,207,000
Current assets held for sale			3,334,000				48,707,000				3,334,000	48,707,000
Goodwill and other intangible assets			19,673,000				19,829,000				19,673,000	19,829,000
Accrued non-income taxes			3,353,000				890,000				3,353,000	890,000
Self-insurance reserves			$ 10,692,000				$ 11,288,000				10,692,000	11,288,000
Advertising expense											$ 9,006,000	$ 6,658,000	$ 3,607,000
Stock options to purchase | shares											215,889	207,538	124,766
Cash dividends per share (in dollars per share) | $ / shares			$ 0.34	$ 0.34	$ 0.34	$ 0.34	$ 0.34	$ 0.34	$ 0.31	$ 0.31	$ 1.36	$ 1.30	$ 1.24
Number of restaurants sold | facility							2					2
Term of leaseback												20 years
Number of renewal options | lease_renewal												2
Renewal term												10 years
Annual rent escalator (as a percent)												2.00%
Deferred gain on sale leaseback transactions			$ 2,192,000				$ 2,432,000				$ 2,192,000	$ 2,432,000
Rental expense from continuing operations											$ 4,117,000	2,202,000
BEF Foods Noncompetition Agreements
Property, Plant and Equipment [Line Items]
Estimated economic life											5 years
Building and Improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life											5 years
Building and Improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life											25 years
Machinery and Equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life											3 years
Machinery and Equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life											10 years
Capitalized Internal Labor Costs
Property, Plant and Equipment [Line Items]
Depreciation											$ 605,000	1,557,000	$ 2,118,000
ERP System
Property, Plant and Equipment [Line Items]
Estimated useful life					10 years					10 years
Mimi's Café
Property, Plant and Equipment [Line Items]
Sale note receivable											$ 30,000,000
Sale interest rate											1.50%
Sale note receivable term											7 years
Receipt of payment on note receivable				$ 7,000,000
Impairments				$ 15,256,000
Discontinued Operations, Held-for-sale | Former Production Facility, Richardson Texas
Property, Plant and Equipment [Line Items]
Current assets held for sale			$ 3,334,000				3,334,000				$ 3,334,000	3,334,000
Other Operating Expenses
Property, Plant and Equipment [Line Items]
Shipping and handling costs											16,125,000	14,850,000	17,025,000
Interest Income | Mimi's Café
Property, Plant and Equipment [Line Items]
Accretion income											$ 1,133,000	2,082,000	$ 1,859,000
Total revenue | Customer Concentration Risk | Wal-mart
Property, Plant and Equipment [Line Items]
Percent of total revenue											20.00%
Total revenue | Customer Concentration Risk | Kroger
Property, Plant and Equipment [Line Items]
Percent of total revenue											14.00%
Lima Facility
Property, Plant and Equipment [Line Items]
Deferred gain on sale leaseback transactions							$ 2,305,000					$ 2,305,000

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Summary of Significant Accounting Policies Schedule of Other Accrued Expenses (Details) - USD ($) $ in Thousands	Apr. 28, 2017	Apr. 29, 2016
Accounting Policies [Abstract]
Legal and professional fees	$ 10,807	$ 4,119
Accrued customer incentives	1,912	1,872
Accrued broker fees	945	957
Accrued advertising	515	727
Accrued utilities	492	449
Accrued interest	16	541
Other	3,218	4,949
Total other accrued expenses	$ 17,905	$ 13,614

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Summary of Significant Accounting Policies Schedule of Weighted Average Number of Shares (Details) - shares shares in Thousands	12 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Apr. 24, 2015
Accounting Policies [Abstract]
Basic (in shares)	19,839	21,336	23,489
Dilutive shares (in shares)	293	158	160
Diluted (in shares)	20,132	21,494	23,649

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Summary of Significant Accounting Policies Schedule of Dividends (Details) - USD ($) $ in Thousands	12 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Apr. 24, 2015
Accounting Policies [Abstract]
Cash dividends paid to common stock holders	$ 26,915	$ 27,861
Dividend Equivalent Rights	560	400
Total dividends	$ 27,475	$ 28,261	$ 29,426

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Summary of Significant Accounting Policies Schedule of Minimum Lease Payments (Details) $ in Thousands	Apr. 28, 2017 USD ($)
Accounting Policies [Abstract]
Future payments for operating leases, 2018	$ 3,586
Future payments for operating leases, 2019	3,657
Future payments for operating leases, 2020	3,731
Future payments for operating leases, 2021	3,805
Future payments for operating leases, 2022	3,881
Thereafter	$ 60,657

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Discontinued Operations - Narrative (Details) $ in Thousands		3 Months Ended								12 Months Ended
	Apr. 28, 2017 USD ($)	Apr. 28, 2017 USD ($)	Jan. 27, 2017 USD ($)	Oct. 28, 2016 USD ($)	Jul. 29, 2016 USD ($)	Apr. 29, 2016 USD ($) restaurant	Jan. 22, 2016 USD ($)	Oct. 23, 2015 USD ($)	Jul. 24, 2015 USD ($)	Apr. 28, 2017 USD ($)	Apr. 29, 2016 USD ($) restaurant	Apr. 24, 2015 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net Sales		$ 99,923	$ 112,820	$ 96,158	$ 85,941	$ 102,394	$ 107,897	$ 94,281	$ 83,044	$ 394,842	$ 387,616	$ 379,313
Bob Evans Restaurants
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale leaseback											$ 197,000
Number of restaurants sold | restaurant						143					143
Intersegment Eliminations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net Sales										$ 22,056	$ 18,769	$ 19,304
Restaurants Business | Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal group, aggregate cash purchase price	$ 565,000
Ownership equity interest sold (as a percent)										50.00%
Supply agreement term										5 years
Supply agreement supplies provided (as a percent)										100.00%
Supplies agreement supplies provided last year (as a percent)										25.00%
Period of continued involvement after disposal										18 months
Employee severance and share based compensation										$ 10,818
Debt issuance amortization										972
Liabilities retained after disposal	7,408	7,408								7,408
Current annual rent	$ 13,300	$ 13,300								$ 13,300
Rent increase inflation index (as a percent)										1.50%
Lease term										19 years

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Discontinued Operations - Discontinued Operations in Statements of Net Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Apr. 24, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
(Loss) Income from discontinued operations	$ 109,431	$ 8,014	$ 21,933
Restaurants Business | Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net Sales	876,786	951,211	969,878
Cost of sales	226,516	252,612	258,677
Operating wage and fringe benefit expenses	359,959	384,959	381,822
Operating expenses	172,717	169,673	168,610
Selling, general and administrative expenses	62,025	73,873	69,916
Depreciation and amortization expense	36,059	58,562	61,710
Impairments	522	8,385	6,100
Operating (Loss) Income from discontinued operations	18,988	3,147	23,043
Gain on sale of the Restaurants Business before income taxes	150,167	0	0
Net interest expense	2,203	373	0
(Loss) Income from discontinued operations before income taxes	166,952	2,774	23,043
(Benefit) Provision for income taxes	57,521	(5,240)	1,110
(Loss) Income from discontinued operations	$ 109,431	$ 8,014	$ 21,933

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Discontinued Operations - Reconciliation of Gain on Discontinued Operation (Details) - Restaurants Business - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands	12 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Apr. 24, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net proceeds received from Restaurant Transaction	$ 539,301
Restaurants Business assets:
Accounts receivable	3,522
Inventory	8,538
Property, plant and equipment	480,663
Other assets	5,693
Total Restaurants Business assets	498,416
Restaurants Business liabilities:
Accounts payable	13,813
Accrued non income taxes	11,587
Accrued wages and benefits	8,794
Self-insurance reserves	8,003
Accrued gift cards	13,810
Accrued miscellaneous liabilities	12,455
Deferred sale leaseback gain	51,077
Other restaurant liabilities	7,039
Total Restaurants Business Liabilities	126,578
Other transaction costs incurred as part of the sale of the Restaurants Business (2)	17,296
Gain on sale of the Restaurants Business before income taxes	$ 150,167	$ 0	$ 0

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Discontinued Operations - Discontinued Operations Cash Flow Disclosures (Details) - Restaurants Business - Discontinued Operations, Disposed of by Sale - USD ($) $ in Thousands	12 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Apr. 24, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net cash (used in) provided by operating activities	$ (35,807)	$ 72,645	$ 123,401
Net cash provided by (used in) investing activities	$ 519,833	$ 175,816	$ (49,184)

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Long-Term Debt and Credit Arrangements Narrative (Details)	12 Months Ended
	Apr. 28, 2017 USD ($)	Apr. 29, 2016 USD ($)	Apr. 24, 2015 USD ($)
Debt Instrument [Line Items]
Letters of credit outstanding, amount	$ 12,036,000
Interest costs incurred	445,000	$ 210,000	$ 471,000
Interest paid	9,718,000	$ 10,579,000	$ 10,399,000
Restaurants Business | Discontinued Operations, Disposed of by Sale
Debt Instrument [Line Items]
Debt issuance amortization	972,000
Letters of credit outstanding, amount	3,300,000
Standby Letters of Credit
Debt Instrument [Line Items]
Borrowings available	$ 11,736,000
Credit Agreement borrowings
Debt Instrument [Line Items]
Effective interest rate	2.37%
R&D Loan
Debt Instrument [Line Items]
Loans payable	$ 3,000,000
Debt instrument term (in years)	10 years
Unamortized debt issuance costs expensed	$ 2,005,000
Interest-free loan
Debt Instrument [Line Items]
Loans payable	$ 1,000,000
Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument term (in years)	5 years
Financing costs incurred	$ 1,542,000
Credit facility	300,000,000
Line of credit facility accordion feature higher borrowing capacity option	$ 400,000,000
Coverage ratio requirement	3.00
Leverage ratio requirement	3.50
Credit Facility | Revolving Credit Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, spread on variable rate (as a percent)	1.50%
Credit Facility | Revolving Credit Facility | Base Rate
Debt Instrument [Line Items]
Debt instrument, spread on variable rate (as a percent)	0.50%
Credit Facility | Revolving Credit Facility | Eurodollar
Debt Instrument [Line Items]
Debt instrument, spread on variable rate (as a percent)	100.00%
Credit Facility | Revolving Credit Facility | Federal Funds Rate
Debt Instrument [Line Items]
Debt instrument, spread on variable rate (as a percent)	0.50%
Credit Facility | Letter of Credit
Debt Instrument [Line Items]
Credit facility	$ 20,000,000
Credit Facility | Minimum | Revolving Credit Facility
Debt Instrument [Line Items]
Commitment fee (as a percent)	0.20%
Credit Facility | Minimum | Revolving Credit Facility | Base Rate
Debt Instrument [Line Items]
Debt instrument, spread on variable rate (as a percent)	0.25%
Credit Facility | Minimum | Revolving Credit Facility | Eurodollar
Debt Instrument [Line Items]
Debt instrument, spread on variable rate (as a percent)	1.25%
Credit Facility | Maximum | Revolving Credit Facility
Debt Instrument [Line Items]
Commitment fee (as a percent)	0.30%
Credit Facility | Maximum | Revolving Credit Facility | Base Rate
Debt Instrument [Line Items]
Debt instrument, spread on variable rate (as a percent)	1.00%
Credit Facility | Maximum | Revolving Credit Facility | Eurodollar
Debt Instrument [Line Items]
Debt instrument, spread on variable rate (as a percent)	2.00%

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Long-Term Debt and Credit Arrangements Schedule of Long Term Debt (Details) - USD ($) $ in Thousands	Apr. 28, 2017	Apr. 29, 2016
Debt Instrument [Line Items]
Total borrowings	$ 2,695	$ 339,057
Less current portion	(428)	(3,419)
Long term debt	2,267	335,638
Credit Agreement borrowings
Debt Instrument [Line Items]
Total borrowings	0	307,000
Mortgage Loan
Debt Instrument [Line Items]
Total borrowings	0	28,963
R&D Loan
Debt Instrument [Line Items]
Total borrowings	1,801	2,219
Interest-free loan
Debt Instrument [Line Items]
Total borrowings	$ 894	$ 875

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Long-Term Debt and Credit Arrangements Schedule of Net Interest Expense (Details) - USD ($)	12 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Apr. 24, 2015
Debt Instrument [Line Items]
Capitalized interest	$ (445,000)	$ (210,000)	$ (471,000)
Total Interest Expense on outstanding borrowings	10,585,000	12,977,000	11,079,000
Accretion on note receivable	(1,133,000)	(2,082,000)	(1,859,000)
Other	(236,000)	(468,000)	(571,000)
Total Interest Income	(1,369,000)	(2,550,000)	(2,430,000)
Net Interest Expense	9,216,000	10,427,000	8,649,000
Mimi's Café
Debt Instrument [Line Items]
Sale note receivable	30,000,000
Variable-rate debt
Debt Instrument [Line Items]
Interest expense: debt	7,817,000	10,925,000	10,373,000
Fixed-rate debt
Debt Instrument [Line Items]
Interest expense: debt	$ 3,213,000	$ 2,262,000	$ 1,177,000

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Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Apr. 28, 2017	Apr. 29, 2016
Deferred tax assets:
Self-insurance	$ 2,306	$ 5,595
Stock and deferred compensation plans	14,034	12,582
Deferred proceeds on Mimi’s Café sale	0	3,564
Rebates, coupons and allowances	2,683	1,067
Inventory	2,234	2,605
Wage and related liabilities	2,511	3,426
Deferred gain from sale leaseback	769	22,306
Other	2,392	7,619
Total deferred tax assets before valuation allowances	26,929	58,764
Valuation allowance	(238)	(246)
Net deferred tax assets	26,691	58,518
Deferred tax liabilities:
Property, plant and equipment	19,988	28,111
Intangibles	1,217	747
Other	405	658
Total deferred tax liabilities	21,610	29,516
Net deferred tax assets (liabilities)	$ 5,081	$ 29,002

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Income Taxes Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Apr. 24, 2015
Income Tax Contingency [Line Items]
Valuation allowance	$ 238	$ 246
Taxes paid	23,743	7,739	$ 10,543
Unrecognized tax benefits that would impact effective tax rate	4,012	4,720	4,939
Income tax penalties and interest expense	422	50	$ 166
Accrued interest and penalties related unrecognized tax benefits	368	$ 790
Minimum
Income Tax Contingency [Line Items]
Reasonable decrease in unrecognized tax benefits	73
Maximum
Income Tax Contingency [Line Items]
Reasonable decrease in unrecognized tax benefits	1,554
State Tax Authority
Income Tax Contingency [Line Items]
Operating loss carryforwards	$ 568

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Income Taxes Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Apr. 24, 2015
Current:
Federal	$ (3,647)	$ 3,714	$ (5,679)
State	(173)	873	(779)
Total current	(3,820)	4,587	(6,458)
Deferred:
Federal	8,364	1,704	(1,922)
State	(670)	148	(246)
Total deferred	7,694	1,852	(2,168)
Total tax provision (benefit)	$ 3,874	$ 6,439	$ (8,626)

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Income Taxes Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Apr. 24, 2015
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Statutory federal tax rate	35.00%	35.00%	35.00%
State and local income tax — net	0.90%	3.90%	6.80%
Domestic production activity deduction	(13.50%)	(11.70%)	13.40%
Fixed assets	0.00%	0.00%	2.20%
Officers life insurance	(2.50%)	2.70%	4.40%
Other	(1.40%)	(1.50%)	(0.20%)
Provision for income taxes	18.50%	28.40%	61.60%

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Income Taxes Unrecognized Tax Benefits Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Apr. 24, 2015
Reconciliation of Unrecognized Tax Benefits [Roll Forward]
Balance at beginning of fiscal year	$ 4,983	$ 5,202	$ 5,952
Additions based on tax positions related to the current year	(23)	306	63
Additions for tax positions of prior years	308	149	551
Reductions for tax positions of prior years	(227)	(188)	(284)
Reductions due to settlements with taxing authorities	(126)	(113)	(672)
Reductions due to statute of limitations expiration	(903)	(373)	(408)
Balance at end of fiscal year	$ 4,012	$ 4,983	$ 5,202

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Restructuring and Severance Charges Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Apr. 24, 2015	Apr. 25, 2014
Restructuring Cost and Reserve [Line Items]
Restructuring and severance charges incurred	$ 6,662	$ 2,606	$ 4,340
Corporate severance liabilities	2,800	$ 2,698	$ 3,626	$ 1,227
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring and severance charges incurred	$ 6,662

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Restructuring and Severance Charges Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Apr. 24, 2015
Restructuring Reserve [RollForward]
Beginning balance	$ 2,698	$ 3,626	$ 1,227
Restructuring and related severance charges incurred	6,662	2,606	4,340
Amounts paid	(5,632)	(3,105)	(1,849)
Adjustments	(928)	(429)	(92)
Ending balance	2,800	2,698	3,626
Selling, General and Administrative Expenses
Restructuring Reserve [RollForward]
Restructuring and related severance charges incurred	$ 2,090	$ 972	$ 3,236

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Share-Based Compensation Plans Narrative (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended	12 Months Ended
	Jul. 29, 2016	Apr. 28, 2017	Apr. 29, 2016	Apr. 24, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense		$ 7,269	$ 2,958	$ 1,600
Tax benefit recognized		2,762	1,124	608
Total intrinsic value of options		333	195	567
Cash received from exercise of stock options		518	214	534
Excess tax benefits		(499)	1,661	228
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		$ 291
Restricted Stock Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period		4 months
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		$ 0
Total fair value of awards		4,844
Total fair value of vested awards		7,634
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		0
Restricted Stock Awards and Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total fair value of awards		3,841	6,092	4,649
Total fair value of vested awards		$ 9,221	$ 5,601	$ 10,136
2010 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation, expiration period		10 years
Number of shares available for grant (in shares)		2.9
2010 Plan | Employee | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
2010 Plan | Employee | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years	3 years
2010 Plan | Non-Employee Directors | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		1 year

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Share-Based Compensation Plans Stock Options Activity (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Apr. 28, 2017 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of options outstanding, beginning (in shares) | shares	38,040
Granted (in shares) | shares	0
Exercised (in shares) | shares	(15,150)
Forfeited or expired (in shares) | shares	0
Number of options outstanding, ending (in shares) | shares	22,890
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding option value, beginning (in dollars per share) | $ / shares	$ 33.26
Granted (in dollars per share) | $ / shares	0.00
Exercised (in dollars per share) | $ / shares	34.16
Forfeited or expired (in dollars per share) | $ / shares	0.00
Outstanding option value, ending (in dollars per share) | $ / shares	$ 32.67
Options exercisable (in shares) | shares	22,890
Options exercisable, Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 32.37
Weighted- Average Remaining Contractual Term	1 year 7 months 2 days
Options exercisable, Weighted-Average Remaining Contractual Term	1 year 7 months 2 days
Aggregate Intrinsic Value | $	$ 780
Options exercisable, Aggregate Intrinsic Value | $	$ 780

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Share-Based Compensation Plans Restricted Stock Units and Awards Activity (Details)	12 Months Ended
	Apr. 28, 2017 $ / shares shares
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested, beginning balance (in shares) | shares	89,655
Granted (in shares) | shares	0
Vested (in shares) | shares	(85,222)
Forfeited (in shares) | shares	(4,433)
Nonvested, ending balance (in shares) | shares	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Non-vested, beginning (in dollars per share) | $ / shares	$ 40.93
Granted (in dollars per share) | $ / shares	0.00
Vested (in dollars per share) | $ / shares	41.25
Forfeited (in dollars per share) | $ / shares	34.74
Non-vested, ending (in dollars per share) | $ / shares	$ 0.00
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested, beginning balance (in shares) | shares	145,118
Granted (in shares) | shares	97,862
Vested (in shares) | shares	(211,743)
Forfeited (in shares) | shares	(7,418)
Nonvested, ending balance (in shares) | shares	23,819
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Non-vested, beginning (in dollars per share) | $ / shares	$ 45.51
Granted (in dollars per share) | $ / shares	39.25
Vested (in dollars per share) | $ / shares	43.55
Forfeited (in dollars per share) | $ / shares	43.33
Non-vested, ending (in dollars per share) | $ / shares	$ 37.91

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Share-Based Compensation Plans Performance Share Units (Details) - Performance Shares	12 Months Ended
	Apr. 28, 2017 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested, beginning balance (in shares) | shares	61,746
Granted (in shares) | shares	142,124
Vested (in shares) | shares	(189,959)
Forfeited (in shares) | shares	(13,911)
Nonvested, ending balance (in shares) | shares	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Non-vested, beginning (in dollars per share) | $ / shares	$ 54.76
Granted (in dollars per share) | $ / shares	34.08
Vested (in dollars per share) | $ / shares	40.19
Forfeited (in dollars per share) | $ / shares	42.46
Non-vested, ending (in dollars per share) | $ / shares	$ 0.00

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Share-Based Compensation Plans Performance Share Awards Valuation Assumptions (Details) - Performance Shares	12 Months Ended
	Apr. 28, 2017 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date market price (in dollars per share)	$ 39.69
Granted (in dollars per share)	$ 34.08
Price volatility (as a percent)	30.90%
Risk-free interest rate (as a percent)	0.92%
Average volatility of peer companies (as a percent)	0.362
Average correlation coefficient of peer companies	0.774

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Other Compensation Plans Narrative (Details) $ in Thousands	12 Months Ended
	Apr. 28, 2017 USD ($) hour plan shares	Apr. 29, 2016 USD ($)	Apr. 24, 2015 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Minimum hours of service required for 401(k) eligibility (at least) | hour	1,000
Employer match contribution	$ 1,426	$ 988	$ 946
Number of nonqualified deferred compensation plans | plan	3
Deferred compensation obligation, shares | shares	20,949
Rabbi trust assets	$ 22,353	20,662
BEEDP and BEDDP Plans
Defined Benefit Plan Disclosure [Line Items]
Share based obligations	1,398	673
Expenses related to investments of employee deferrals	1,031	1,162	$ 1,236
Prepaid Expenses and Other Current Assets
Defined Benefit Plan Disclosure [Line Items]
Short-term securities held in Rabbi Trust	$ 984	$ 3,290

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Other Compensation Plans Schedule of Deferred Compensation Liabilities (Details) - USD ($) $ in Thousands	Apr. 28, 2017	Apr. 29, 2016
Defined Benefit Plan Disclosure [Line Items]
Other noncurrent compensation arrangements	$ 110	$ 100
Total deferred compensation liabilities	21,324	19,889
Less current portion	(4,047)	(2,128)
Noncurrent deferred compensation liabilities	17,277	17,761
SERP
Defined Benefit Plan Disclosure [Line Items]
Deferred cash obligations	5,830	6,271
BEEDP and BEDDP Plans
Defined Benefit Plan Disclosure [Line Items]
Deferred cash obligations	13,986	12,845
Deferred liability for share-based obligations in BEEDP and BEDDP plans	$ 1,398	$ 673

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Commitments and Contingencies Narrative (Details) - Settled Litigation - Fair Labor Standards Act - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 29, 2016	Jul. 24, 2015	Apr. 24, 2015
Loss Contingencies [Line Items]
Litigation charges		$ 10,500	$ 6,000
Favorable adjustment	$ 3,344

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Goodwill and Other Intangible Assets (Details) - USD ($)	12 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Apr. 24, 2015
Goodwill [Line Items]
Goodwill and other intangible assets	$ 19,673,000	$ 19,829,000
Impairment of goodwill	$ 0	$ 0	$ 0
BEF Foods | Noncompetition Agreements
Goodwill [Line Items]
Estimated economic life	5 years

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Acquisitions (Details) - BEF Foods - Pineland Farms Potato Company, Inc	Jan. 24, 2017 USD ($)
Business Acquisition [Line Items]
Acquisition, cash payment	$ 115,000
Acquisition, additional cash as potential earn-out consideration	$ 25,000
Acquisition, consecutive performance period to achieve earn-out consideration	12 months
Acquisition, measurement period for earn-out consideration	24 months

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Quarterly Financial Data (Unaudited) (Details) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Apr. 28, 2017 USD ($) $ / shares	Jan. 27, 2017 USD ($) $ / shares	Oct. 28, 2016 USD ($) $ / shares	Jul. 29, 2016 USD ($) $ / shares	Apr. 29, 2016 USD ($) $ / shares	Jan. 22, 2016 USD ($) $ / shares	Oct. 23, 2015 USD ($) $ / shares	Jul. 24, 2015 USD ($) $ / shares	Apr. 28, 2017 USD ($) $ / shares	Apr. 29, 2016 USD ($) $ / shares	Apr. 24, 2015 USD ($) $ / shares	Jun. 09, 2017 stockholder
Subsequent Event [Line Items]
Net Sales from Continuing Operations | $	$ 99,923	$ 112,820	$ 96,158	$ 85,941	$ 102,394	$ 107,897	$ 94,281	$ 83,044	$ 394,842	$ 387,616	$ 379,313
Operating Income (Loss) from Continuing Operations | $	9,508	17,121	(4,768)	8,265	10,334	11,424	5,330	5,986	30,126	33,074	(5,357)
Net Income (Loss) from Continuing Operations | $	6,757	9,838	(4,857)	5,298	5,932	6,416	1,278	2,582	$ 126,467	$ 24,222	$ 16,553
Income from Discontinued Operations, Net of Income Taxes | $	$ 102,110	$ (1,617)	$ 5,074	$ 3,864	$ (5,351)	$ 6,515	$ 5,152	$ 1,698
Earnings Per Share - Net Income
Basic (in dollars per share)	$ 5.47	$ 0.41	$ 0.01	$ 0.46	$ 0.03	$ 0.62	$ 0.29	$ 0.19	$ 6.37	$ 1.14	$ 0.70
Diluted (in dollars per share)	5.39	0.41	0.01	0.46	0.03	0.62	0.29	0.19	6.28	1.13	0.70
Common stock sale prices - High (in dollars per share)	67.25	57.94	41.09	46.83	48.14	44.34	49.92	51.88
Common stock sale prices - Low (in dollars per share)	55.49	40.05	35.90	35.67	38.92	37.51	42.51	43.02
Cash dividends paid (in dollars per share)	$ 0.34	$ 0.34	$ 0.34	$ 0.34	$ 0.34	$ 0.34	$ 0.31	$ 0.31	$ 1.36	$ 1.30	$ 1.24
Subsequent Event
Earnings Per Share - Net Income
Number of registered stockholders of common stock | stockholder												14,648

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Subsequent Events (Details) - Subsequent Event $ / shares in Units, $ in Thousands, lb in Millions	May 31, 2017 $ / shares	May 01, 2017 USD ($) lb $ / shares
Subsequent Event [Line Items]
Quarterly cash dividend (in dollars per share) | $ / shares	$ 0.34	$ 7.50
Pineland Farms Potato Company, Inc
Subsequent Event [Line Items]
Acquisition, cash payment		$ 115,000
Potential earn out consideration		$ 25,000
Acquisition, consecutive performance period to achieve earn-out consideration		12 months
Acquisition, measurement period for earn-out consideration		24 months
Facility processing capacity | lb		180