Cracker Barrel Divests Maple Street Biscuit and Bolsters Fiscal 2026 Outlook

On Monday, Cracker Barrel announced two major strategic initiatives: the sale of its Maple Street Biscuit Company division and a sale-leaseback agreement covering 26 restaurant locations. These moves are designed to streamline the company’s focus on its primary brand and reduce overall debt.

As part of the transaction, Cracker Barrel transferred the Maple Street Biscuit Company trademark and the assets of 35 restaurants to Biscuit Belly, LLC. The remaining 16 Maple Street locations are scheduled to close. While Maple Street accounted for less than 2% of Cracker Barrel’s annual revenue, the divestiture is expected to boost adjusted EBITDA starting in fiscal 2027. Cracker Barrel anticipates non-cash charges between $37 million and $39 million during the current fiscal fourth quarter, along with cash charges of $6 million to $8 million, a portion of which will extend into fiscal 2027.

Additionally, a sale-leaseback agreement with an institutional real estate investor has generated approximately $77 million in net proceeds. Cracker Barrel plans to use these funds to reduce debt and leverage capital loss carryforwards that were nearing expiration.

“Divesting Maple Street allows us to sharpen our focus on the core Cracker Barrel brand and is expected to drive profitability,” stated President and CEO Julie Masino. “Combined with our improved fiscal 2026 outlook and reduced leverage, these actions reflect the progress we are making toward our strategic objectives.”

Cracker Barrel has updated its projections and now expects to meet or exceed the upper end of its fiscal 2026 revenue guidance, while also surpassing its adjusted EBITDA target. The company’s fiscal year concludes on July 31. Previous guidance estimated total revenue between $3.27 billion and $3.30 billion, with adjusted EBITDA between $120 million and $125 million. During the first 11 weeks of the fiscal fourth quarter, restaurant same-store sales declined by approximately 2.5%, while retail same-store sales saw a slight increase of about 0.5% year-over-year.

Following the announcement, Cracker Barrel shares rose 9% to $58.20 in after-hours trading.

According to a press release, Louisville-based Biscuit Belly intends to rebrand the acquired Maple Street locations under its own brand over the next 18 to 24 months. This acquisition is expected to expand Biscuit Belly’s footprint to over 60 locations by the end of 2028.

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