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Cracker Barrel sells Maple Street Biscuit Co. assets, exits most locations
The company expects up to $47M in exit costs and noncash charges up to $39M in the fourth quarter, while planning to use sale-leaseback proceeds to reduce debt.
Cracker Barrel Old Country Store Inc. is selling its Maple Street Biscuit Co. restaurant assets and planning to shut down the chain’s remaining 16 locations, according to a company press release cited by Bisnow.
Bisnow reports that Cracker Barrel will sell the Maple Street Biscuit Co. concept, including trademark and intellectual property, to fast-casual chain Biscuit Belly, which will acquire 35 existing locations. Cracker Barrel expects noncash charges of up to $39M in the fourth quarter related to the sale, plus cash costs of up to $8M for lease terminations, severance payments and exit expenses.
The outlet says Cracker Barrel expects removing Maple Street Biscuit Co. to benefit earnings before interest, taxes, depreciation and amortization starting in fiscal 2027, and that the subsidiary contributed less than 2% to the company’s annual revenue.
In a separate transaction, Cracker Barrel completed a sale-leaseback deal for 26 company-owned stores with an institutional real estate investor, generating around $77M in proceeds to reduce its debt. The company also said the sale was tax-efficient and will allow it to use capital loss carryforwards that would otherwise expire.