Cracker Barrel has completed a sale-leaseback transaction involving 26 company-owned restaurant properties and divested certain assets of its Maple Street Biscuit Company business. The company also raised its profitability outlook for fiscal 2026.
The sale-leaseback generated approximately $77 million in net proceeds, which Cracker Barrel plans to use to reduce debt. Under a sale-leaseback structure, a company sells owned real estate to an investor and continues operating at the locations under lease agreements.
Cracker Barrel said the transaction was completed at an attractive valuation and is expected to strengthen its balance sheet. The deal is also tax-efficient because it allows the company to use capital loss carryforwards that otherwise would have expired.
Separately, Cracker Barrel sold the Maple Street Biscuit Company trademark and assets associated with 35 locations to Biscuit Belly. Financial terms of that transaction were not disclosed.
Cracker Barrel plans to close the remaining 16 Maple Street Biscuit Company locations. The divestiture removes a business that represented less than 2% of the company’s annual revenue and allows management to concentrate resources on the core Cracker Barrel brand.
The company expects to record noncash charges of approximately $37 million to $39 million during the fourth quarter of fiscal 2026 in connection with the divestiture. Cracker Barrel also anticipates cash costs of approximately $6 million to $8 million, with the expenses expected to be recognized across fiscal 2026 and fiscal 2027.
Despite the expected charges, the Maple Street exit is projected to improve adjusted EBITDA beginning in fiscal 2027. Adjusted EBITDA is a profitability measure that excludes interest, taxes, depreciation, amortization and certain other expenses management considers outside ongoing operations.
Cracker Barrel also provided an update on its fourth-quarter performance. During the first 11 weeks of the quarter, comparable restaurant sales declined approximately 2.5% from the prior-year period, while comparable retail sales increased approximately 0.5%.
The company now expects to achieve or exceed the high end of its fiscal 2026 revenue guidance and surpass its previous adjusted EBITDA outlook. Cracker Barrel had previously projected annual revenue of $3.27 billion to $3.30 billion and adjusted EBITDA of $120 million to $125 million for the fiscal year ending July 31, 2026.
The two transactions are part of Cracker Barrel’s effort to reduce leverage, improve profitability and simplify its business portfolio. The company operates approximately 660 Cracker Barrel Old Country Store locations across 43 states.
KEY QUOTES:
“These efforts reflect the discipline we bring to managing our business and balance sheet as we position Cracker Barrel for long-term success and shareholder value creation.”
“Our sale-leaseback transaction will allow us to opportunistically reduce debt while monetizing a portion of our owned real estate at an attractive valuation. Divesting Maple Street sharpens our focus on the core Cracker Barrel brand and is expected to improve profitability.”
“Combined with our improved fiscal 2026 outlook and reduced leverage, these actions demonstrate the progress we are making against our strategic priorities.”
Julie Masino, President and CEO of Cracker Barrel
