Cracker Barrel introduced two strategic actions on Monday: the sale of its Maple Road Biscuit Firm enterprise and a sale-leaseback transaction overlaying 26 of its restaurant areas, strikes the corporate stated would sharpen its give attention to the core model and cut back debt.
Cracker Barrel transferred the Maple Road Biscuit Firm trademark and related belongings at 35 eating places to Biscuit Stomach, LLC. The remaining 16 Maple Road areas will shut. Maple Road contributed lower than 2% of Cracker Barrel’s annual income, and the divestiture is anticipated to enhance adjusted earnings earlier than curiosity, taxes, depreciation, and amortization starting in fiscal 2027, the corporate stated. In reference to the transaction, Cracker Barrel anticipates non-cash expenses within the vary of $37 million to $39 million throughout its present fiscal fourth quarter, plus money expenses of $6 million to $8 million, with a portion of these prices carrying over into fiscal 2027.
The sale-leaseback cope with an institutional actual property investor introduced in roughly $77 million in internet proceeds, which Cracker Barrel stated it plans to use to paying down debt. The deal additionally permits the corporate to make use of capital loss carryforwards that may in any other case have expired.
“Divesting Maple Road sharpens our give attention to the core Cracker Barrel model and is anticipated to enhance profitability,” President and Chief Govt Officer Julie Masino stated in a press release. “Mixed with our improved fiscal 2026 outlook and diminished leverage, these actions display the progress we’re making towards our strategic priorities.”
Cracker Barrel now tasks it would hit or high the higher sure of its fiscal 2026 income steering whereas additionally beating its adjusted EBITDA goal. The corporate’s fiscal 12 months ends July 31. It had beforehand projected complete income of $3.27 billion to $3.30 billion and adjusted EBITDA of $120 million to $125 million. Within the first 11 weeks of the fiscal fourth quarter, restaurant same-store gross sales had been down roughly 2.5% whereas retail same-store gross sales edged up about 0.5% in contrast with the year-earlier interval.
Cracker Barrel inventory jumped 9% to $58.20 in after-hours buying and selling on Monday.
Biscuit Stomach, a Louisville, Kentucky-based biscuit sandwich idea, stated it intends to rebrand the acquired Maple Road retailers beneath its personal identify over an 18-to-24-month window, in keeping with a Biscuit Stomach press launch. The corporate stated the acquisition would convey its complete unit rely to greater than 60 areas by the tip of 2028.
