Cracker Barrel unloads Maple Street chain as it works to cut debt

Key Points:

• Cracker Barrel is selling its Maple Street Biscuit Company brand and assets related to 35 locations to Biscuit Belly LLC, while closing the remaining 16 Maple Street restaurants to focus on its core brand and improve profitability.
• The company completed a sale-leaseback deal for 26 company-owned locations, generating approximately $77 million in net proceeds, which will be used to pay down debt.
• Biscuit Belly plans to convert the acquired Maple Street restaurants into its own locations over 18 to 24 months, more than tripling its footprint and aiming for over 60 locations by 2028.
• Maple Street accounted for less than 2% of Cracker Barrel’s annual revenue, and the sale is expected to improve adjusted EBITDA starting in fiscal 2027, though Cracker Barrel will incur $37-$39 million in non-cash charges and $6-$8 million in cash costs in the fourth quarter.
• These moves come as Cracker Barrel seeks to recover from customer backlash over a failed rebranding effort last summer, including the controversial removal of the "Old Timer" from its logo.