Cracker Barrel announced it is selling its Maple Street Biscuit Company business and closing 16 of its locations as part of a broader strategy to reduce debt and improve profitability [1]. The company sold the Maple Street brand and assets tied to 35 locations to Biscuit Belly LLC, while the remaining 16 Maple Street restaurants will be shuttered [1]. In addition to the divestiture, Cracker Barrel completed a sale-leaseback transaction involving 26 company-owned locations, generating approximately $77 million in net proceeds, which will be used to pay down debt while continuing to operate the restaurants under lease agreements [1].
Julie Masino, president and CEO of Cracker Barrel, stated that these actions demonstrate the company's disciplined approach to managing its business and balance sheet, aiming for long-term success and shareholder value creation [1]. She emphasized that divesting Maple Street will allow Cracker Barrel to focus on its core brand and is expected to improve profitability [1].
Biscuit Belly, which currently operates 15 locations, plans to convert the acquired Maple Street restaurants into Biscuit Belly locations over the next 18 to 24 months, starting in the greater Cincinnati area and Richmond, Virginia [1]. This acquisition will more than triple Biscuit Belly’s footprint and is projected to help the chain grow to over 60 locations by the end of 2028 [1].
Financially, Maple Street accounted for less than 2% of Cracker Barrel’s annual revenue [1]. The sale is expected to improve Cracker Barrel's adjusted EBITDA beginning in fiscal 2027 [1]. The company anticipates recording between $37 million and $39 million in non-cash charges related to the Maple Street exit during its fiscal fourth quarter, along with an additional $6 million to $8 million in cash costs [1]. Cracker Barrel operates approximately 660 company-owned locations across 43 states [1].
CONCLUSION
Cracker Barrel's divestiture of Maple Street Biscuit Company and real estate sale-leaseback are strategic moves to reduce debt and sharpen its focus on its core brand. The company expects these actions to improve profitability and adjusted EBITDA in the coming years. Biscuit Belly's acquisition positions it for rapid expansion, while Cracker Barrel aims for long-term shareholder value creation.