Cracker Barrel sells Maple Street Biscuit, raises fiscal 2026 outlook

Cracker Barrel transferred the Maple Street Biscuit Company trademark and associated assets astatine 35 restaurants to Biscuit Belly, LLC. The remaining 16 Maple Street locations volition close. Maple Street contributed little than 2% of Cracker Barrel's yearly revenue, and the divestiture is expected to amended adjusted net earlier interest, taxes, depreciation, and amortization opening successful fiscal 2027, the institution said. In transportation with the transaction, Cracker Barrel anticipates non-cash charges successful the scope of $37 cardinal to $39 cardinal during its existent fiscal 4th quarter, positive currency charges of $6 cardinal to $8 million, with a information of those costs carrying implicit into fiscal 2027.

The sale-leaseback woody with an organization existent property capitalist brought successful astir $77 cardinal successful nett proceeds, which Cracker Barrel said it plans to use to paying down debt. The woody besides allows the institution to usage superior nonaccomplishment carryforwards that would different person expired.

"Divesting Maple Street sharpens our absorption connected the halfway Cracker Barrel marque and is expected to amended profitability," President and Chief Executive Officer Julie Masino said successful a statement. "Combined with our improved fiscal 2026 outlook and reduced leverage, these actions show the advancement we are making against our strategical priorities."

Cracker Barrel present projects it volition deed oregon apical the precocious bound of its fiscal 2026 gross guidance portion besides beating its adjusted EBITDA target. The company's fiscal twelvemonth ends July 31. It had antecedently projected full gross of $3.27 cardinal to $3.30 cardinal and adjusted EBITDA of $120 cardinal to $125 million. In the archetypal 11 weeks of the fiscal 4th quarter, edifice same-store income were down astir 2.5% portion retail same-store income edged up astir 0.5% compared with the year-earlier period.

Cracker Barrel banal jumped 9% to $58.20 successful after-hours trading connected Monday.

Biscuit Belly, a Louisville, Kentucky-based biscuit sandwich concept, said it intends to rebrand the acquired Maple Street outlets nether its ain sanction implicit an 18-to-24-month window, according to a Biscuit Belly property release. The institution said the acquisition would bring its full portion number to much than 60 locations by the extremity of 2028.