Cracker Barrel Sells Maple Street Brand, Closes Locations for Debt Reduction

Cracker Barrel (NAS:CBRL) sold its 'Maple Street Biscuit Company' brand and closed multiple locations on July 21 (US local time), according to Fox Business. The company executed the transaction to reduce debt and improve profitability. The restructuring follows a failed logo and interior redesign last summer that was reversed within one week due to customer backlash, after which the company experienced declining sales and deteriorating performance.

Cracker Barrel Sells Maple Street Brand to Biscuit Belly

Cracker Barrel sold the Maple Street brand and 35 location assets to 'Biscuit Belly', according to Fox Business. The company decided to close the remaining 16 Maple Street restaurants. Maple Street accounts for less than 2% of Cracker Barrel's annual revenue.

Company Completes $77M Sale-Leaseback Transaction

Cracker Barrel completed a sale-leaseback transaction on 26 company-owned locations, securing approximately $77 million (approximately 114 billion KRW). The company will use the funds for debt repayment and will continue operating the properties under lease agreements.

Cracker Barrel Expects EBITDA Improvement from FY2027

Cracker Barrel stated the divestiture and restructuring will result in improved adjusted EBITDA starting in fiscal year 2027. The restructuring represents the company's effort to overcome sales declines and performance deterioration following last summer's failed rebranding initiative, which included a logo change and interior redesign that was withdrawn after one week due to customer opposition.

FAQ

What did Cracker Barrel sell on July 21?

Cracker Barrel sold the Maple Street Biscuit Company brand and 35 location assets to Biscuit Belly on July 21 (US local time), according to Fox Business. The company also closed 16 remaining Maple Street restaurants.

How much did Cracker Barrel raise from the sale-leaseback transaction?

Cracker Barrel secured approximately $77 million (approximately 114 billion KRW) from a sale-leaseback transaction involving 26 company-owned locations. The company will use the funds for debt repayment and continue operating the properties under lease.

When does Cracker Barrel expect financial improvement from the restructuring?

Cracker Barrel stated it expects adjusted EBITDA improvement starting in fiscal year 2027 as a result of the Maple Street divestiture and restructuring.