Cracker Barrel Sells Maple Street Biscuit Company Assets
Cracker Barrel exits fast-casual breakfast with the sale of Maple Street Biscuit Company.
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Cracker Barrel has sold the Maple Street Biscuit Company assets, which includes 35 restaurants, to Biscuit Belly. This exit involves a non-cash charge of approximately $37 million to $39 million, while the remaining 16 locations will close. Cracker Barrel aims to enhance its adjusted EBITDA starting in fiscal 2027 by refocusing on its primary business.
Why It Matters
This divestiture may compress available territories in the fast casual breakfast sector, impacting future development and competitive positioning for franchisees. Additionally, Cracker Barrel's strategic focus on its core brand suggests potential valuation signals for multi-unit operators in the region.
Cracker Barrel has divested its interests in the fast-casual breakfast segment by selling the Maple Street Biscuit Company assets to Biscuit Belly. The transaction involves the Maple Street trademark, intellectual property, and assets connected to 35 restaurants, with the remaining 16 locations slated for closure. Specific financial implications of the sale include an expected non-cash charge of $37 million to $39 million in Q4 and additional cash costs of $6 million to $8 million related to severance, lease terminations, and other exit expenses, extending into fiscal 2027.
Prior to the sale, the Maple Street brand had become a small fraction of Cracker Barrel's business, contributing less than 2 percent to annual revenues. The closure of this segment is projected to enhance Cracker Barrel's adjusted EBITDA beginning in fiscal 2027, aligning with CEO Julie Masino's emphasis on prioritizing the turnaround of the Cracker Barrel brand itself.
Maple Street, founded in 2012, had seen growth under Cracker Barrel, expanding its unit count from 28 sites at the time of acquisition in 2019 to a peak of 68 by fiscal 2025. However, in May 2024, Cracker Barrel announced plans to slow development of the brand and close underperforming locations, indicating its strategy had shifted to focus on its primary business. During this period, Cracker Barrel has also implemented a sale-leaseback of 26 company-owned restaurants, generating approximately $77 million, which will be used to pay down debt.
